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A really crazy economics idea

Wolegib

All-American
May 23, 2013
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I know, you hate it already. It represents change and not the way things are done at Purdue.

the givens:

I've watched a bunch of football games on TV and also noticed our attendance figures. I have to believe the attendance is sold tickets rather than actual attendance. And yes, the TV cameras have been very generous to Purdue and not showing all the empty seats at Purdue games.

A couple of months ago Morgan stated publically that the BIG 10 cable contract generated 75-80% of Purdue's athletic revenue. and he reported that the revenues from that contract would steadily increase.

A lot of recruits come to football games, and they make their decision and impression of the team and school and campus life primarily based on their visits. I believe a packed stadium would have a much greater influence on a game's outcome, and also on a recruit's first impression of Purdue.

here is my proposal.

When I was a student, the cost of going to football games was part of our fees. and for us poor kids, our financial aid paid for those tickets. As a result, we packed the stadium with students even in the Agasi years. the idea of taking the football tickets out of the fees was a bad one. As part of my crazy idea, I say put them back.

the second part of my idea is to lower ticket prices. I was about to buy tickets to the Michigan game. Good seats were going for $200-500. the cheap seats were $50-80. Purdue is pricing itself out of business. This is not OSU or Green Bay, and our product isn't as good. Using an economic principle, when the demand is low, you lower the prices. With as many open seats as Purdue has, Purdue is facing a lot of lost potential revenue. My idea is to significantly lower the ticket prices - especially to students. we need to make those good seats affordable. This is not a Billy Joel concert. I look at it two ways, by lowering the prices, Purdue would sell more tickets and ultimately increase their revenue. and in a couple of years, the BIG 10 network may finance all of Purdue sports and what is made at football games may represent a profit. So what do they have to lose?

In summary:

I want to increase attendance at Purdue games while our product on the field isn't generating interest. I want to pack the stadium with cheering fans that are wearing old gold and black. I wan t to get the students back to attending games by giving the m free tickets and making the cost absorbed into their student fees and getting mom and dad or their scholarship to pay for them. and for alumni, and fans, I want to lower ticket prices. to those John Purdue Club members, if they feel bad about lower ticket prices, they can donate more during fund drives. and at the end of the year, the volume of ticket sales at lower prices should be greater than the current revenue.

And the final result would improve the atmosphere at the stadium, and sell more cokes and brats too. A sell out crowd might motivate the team, and who knows, might even influence a key recruit to come to Purdue.

sooooooooooo, what do you think ??
 
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I know, you hate it already. It represents change and not the way things are done at Purdue.

the givens:

I've watched a bunch of football games on TV and also noticed our attendance figures. I have to believe the attendance is sold tickets rather than actual attendance. And yes, the TV cameras have been very generous to Purdue and not showing all the empty seats at Purdue games.

A couple of months ago Morgan stated publically that the BIG 10 cable contract generated 75-80% of Purdue's athletic revenue. and he reported that the revenues from that contract would steadily increase.

A lot of recruits come to football games, and they make their decision and impression of the team and school and campus life primarily based on their visits. I believe a packed stadium would have a much greater influence on a game's outcome, and also on a recruit's first impression of Purdue.

here is my proposal.

When I was a student, the cost of going to football games was part of our fees. and for us poor kids, our financial aid paid for those tickets. As a result, we packed the stadium with students even in the Agasi years. the idea of taking the football tickets out of the fees was a bad one. As part of my crazy idea, I say put them back.

the second part of my idea is to lower ticket prices. I was about to buy tickets to the Michigan game. Good seats were going for $200-500. the cheap seats were $50-80. Purdue is pricing itself out of business. This is not OSU or Green Bay, and our product isn't as good. Using an economic principle, when the demand is low, you lower the prices. With as many open seats as Purdue has, Purdue is facing a lot of lost potential revenue. My idea is to significantly lower the ticket prices - especially to students. we need to make those good seats affordable. This is not a Billy Joel concert. I look at it two ways, by lowering the prices, Purdue would sell more tickets and ultimately increase their revenue. and in a couple of years, the BIG 10 network may finance all of Purdue sports and what is made at football games may represent a profit. So what do they have to lose?

In summary:

I want to increase attendance at Purdue games while our product on the field isn't generating interest. I want to pack the stadium with cheering fans that are wearing old gold and black. I wan t to get the students back to attending games by giving the m free tickets and making the cost absorbed into their student fees and getting mom and dad or their scholarship to pay for them. and for alumni, and fans, I want to lower ticket prices. to those John Purdue Club members, if they feel bad about lower ticket prices, they can donate more during fund drives. and at the end of the year, the volume of ticket sales at lower prices should be greater than the current revenue.

And the final result would improve the atmosphere at the stadium, and sell more cokes and brats too. A sell out crowd might motivate the team, and who knows, might even influence a key recruit to come to Purdue.

sooooooooooo, what do you think ??

Again, people tune out so keep it shorter man.

The reason the ticket prices are so high for the UM game is because...IT'S MICHIGAN!!!! A lot of UM fans will come to Purdue to watch them because they can't get or can't afford tickets at the Big House...kind of like why Cinncy has a huge influx of Cubs fans at their home games.
 
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Don't really agree with it. It's not the 1970's. People have more options with ways to spend their Saturday afternoon and the bottom line is that I don't think the cost of tickets is what's keeping most potential fans away. It's been the product. I've tried to literally give tickets away a couple of times in the Hazell era and people just have other things they'd rather do than go watch bad football no matter if the tickets cost $50 or if their free. Frankly, for fans that live outside of the immediate vicinity of West Lafayette, the cost of the tickets is somewhat minimal compared to the cost of travel and the opportunity cost of the time it takes to go to the game. I live in the South Bend area and I know attending a game is an all-day commitment for me. If I decide to either spend the night before or after it's closer to an all-weekend commitment. The cost of the ticket is the least of factors in my decision to attend.

We have one of the smallest capacities in the conference. Maybe the smallest....I'm not positive. I think if we put a good product on the field we will be able to fill the stadium with people who are excited about the team and willing to pay to see it. What I don't want to see is them adopt policies that won't really help with attendance while we're still bad and then cost the athletic department money by the time the program is headed in the right direction again.
 
Don't really agree with it. It's not the 1970's. People have more options with ways to spend their Saturday afternoon and the bottom line is that I don't think the cost of tickets is what's keeping most potential fans away. It's been the product. I've tried to literally give tickets away a couple of times in the Hazell era and people just have other things they'd rather do than go watch bad football no matter if the tickets cost $50 or if their free. Frankly, for fans that live outside of the immediate vicinity of West Lafayette, the cost of the tickets is somewhat minimal compared to the cost of travel and the opportunity cost of the time it takes to go to the game. I live in the South Bend area and I know attending a game is an all-day commitment for me. If I decide to either spend the night before or after it's closer to an all-weekend commitment. The cost of the ticket is the least of factors in my decision to attend.

We have one of the smallest capacities in the conference. Maybe the smallest....I'm not positive. I think if we put a good product on the field we will be able to fill the stadium with people who are excited about the team and willing to pay to see it. What I don't want to see is them adopt policies that won't really help with attendance while we're still bad and then cost the athletic department money by the time the program is headed in the right direction again.

Northwestern, Rutgers, and Maryland all have smaller capacities.

I didn't really read the original post, but I like the idea of giving free tickets to students.
1) short term benefit of making Ross ade a much tougher place to play.
2) long term benefit of growing the fan base.
 
Again, people tune out so keep it shorter man.

The reason the ticket prices are so high for the UM game is because...IT'S MICHIGAN!!!! A lot of UM fans will come to Purdue to watch them because they can't get or can't afford tickets at the Big House...kind of like why Cinncy has a huge influx of Cubs fans at their home games.
Exactly right, at the OSU game a few years ago, that is what the OSU fans sitting all around me were saying. Tickets at Purdue were available and cheaper than at OSU home games
 
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I broached this with MB when he first became AD at a banquet he attended at Tipton. He wasn't interested. And yes, there are many options for a Saturday afternoon, but lets get the students back into the stadium. Having many of the students there would greatly enhance the atmosphere as it did in the 70s (and the sixties)!
 
I broached this with MB when he first became AD at a banquet he attended at Tipton. He wasn't interested. And yes, there are many options for a Saturday afternoon, but lets get the students back into the stadium. Having many of the students there would greatly enhance the atmosphere as it did in the 70s (and the sixties)!

The bigger barrier is them wanting to be there. If they don't want to go, it doesn't matter if the tickets are free. Then if you make them free for students, you will lose money when the team is decent again.

The atmosphere will be better when the team is good. People are not going to go and watch us get drilled week after week at any ticket cost. It becomes tiresome, irritating, and a waste of time. Frankly, you would have had to pay me a significant amount of money to go to most games last season. I did make it to one when offered free Buchanan seats. I went to that one because it was homecoming and because I had never sat in Buchanan Club before. I wouldn't have gone to that game if the free seats hadn't been premium seats and I don't think Purdue wants to start handing those out. Better solution is just to field a competitive team.
 
The bigger barrier is them wanting to be there. If they don't want to go, it doesn't matter if the tickets are free. Then if you make them free for students, you will lose money when the team is decent again.

The atmosphere will be better when the team is good. People are not going to go and watch us get drilled week after week at any ticket cost. It becomes tiresome, irritating, and a waste of time. Frankly, you would have had to pay me a significant amount of money to go to most games last season. I did make it to one when offered free Buchanan seats. I went to that one because it was homecoming and because I had never sat in Buchanan Club before. I wouldn't have gone to that game if the free seats hadn't been premium seats and I don't think Purdue wants to start handing those out. Better solution is just to field a competitive team.

If CJB can find a 2-3 starters in fifth year transfers on the offensive and defensive line, I think this Purdue team gets competitive much sooner than expected. A fifth year defensive back contributor (not necessarily a starter), would also be useful. Then the next step is just staying healthy. I would like to see at least five wins and compete every game. CJB will need some time to repair the very broken program, but winning ahead of schedule will go a long way. Being competitive will put butts in the seats. Alumni really want for the football program to return to where it was in the Tiller years. Show a glimmer of spark and I think the fans will eat it up. My guess is that there will be more interest this year than last year and if they can string up some early wins, come conference play the fans will make a decent showing.
 
IU did free tickets for students around 2000's, students still didn't show. There reason it is said winning solves most problems.
 
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I broached this with MB when he first became AD at a banquet he attended at Tipton. He wasn't interested. And yes, there are many options for a Saturday afternoon, but lets get the students back into the stadium. Having many of the students there would greatly enhance the atmosphere as it did in the 70s (and the sixties)!

The issue with the tickets being part of tuition was that many students raised the issue that they were being forced to purchase something they didn't ever intend to use. Obviously you could make the same case about the CoRec and the fees associated with that when there are obviously people who never step foot inside there during their time on campus.
 
Nat, I did check out other games besides just the Michigan game, and the price for tickets was about the same. The price for tickets at Missouri was actually higher. Those Missouri fans really want to fill their stadium to see Purdue!

the tickets were never free. The students paid for them as part of their fees. However, as JohnnyDoe Boiler pointed out, some students complained they were forced to pay for the tickets which were not part of their educational expense. There's a lot of other things students pay for they never use. If the students, who complained, had looked at the big picture, they would have realized their financial aid grants were larger to absorb the cost. At least by forcing students to pay for tickets, the crowd size was larger and we had a block P section made up of freshman that had cards. It created a lot better environment. and even in the down years, attendance was higher.
 
When I was an undergrad at Purdue (Fat Jack era), all tickets to all athletic events were free for students. There was NOT a hidden fee in tuition or any other charge, tickets were flat-out free to students including hoops.
 
The students won't show if the team isn't winning. Social media provides a better distraction and big screen televisions in HD make it more convenient to watch from home. My brother is a student there now and his standpoint is it's better to drink while watching Purdue football than it is to turn to drinking because of Purdue football.
 
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Single game tickets aren't even on sale yet via the Athletic Ticket Office. The OP is checking Stubhub or similar to get these prices?
 
The BTN money will never cover the cost of Purdue athletics if we get where we want to go. It is set to jump into the 50 millions in the next couple years however our revenue was 75.6 M in 2015, second lowest in the league.

If we want to become a better program/department that competes with the OSUs or Michigans of the world (which is a crusade of @Wolegib s) we need to figure out ways that double revenues relatively quickly. 2015 Revenues below. Northwestern doesn't report.
  • OSU 167 M
  • Mich 152 M
  • Penn St 126 M
  • Wisc 124M
  • Minne 111M
  • Mich St 109M
  • Iowa 106M
  • Nebraska 102M
  • Maryland 93M
  • IU 88M
  • Illinois 86M
  • Purdue 76M
  • Rutgers 71M
Reducing the price and relative anchor of your ticket value would create scaling challenges down the road should the product improve. Getting more butts in the seat next year is NICE but it doesn't solve our huge revenue issue, in fact it would only hurt it.

Our issue largely is that Morgan DID rely on BTN revenue to float the department rather than investing and increasing other revenue streams.

I think you meant to title this thread a really crazy idea since it isn't based in economics. There is an issue in economics where companies charge too little for their products to drum up buyers in such a way that it prevents them from having adequate budgets to sell and market the products thus hurting them further. Purdue should charge what the league average ticket is and supply a product better than that.
 
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Should the current students be viewed as a revenue stream or an investment?

I remember reading a quote from the Pitt AD (although I can't find the article now) but to paraphrase him he said if you don't get the students at the games now they will never come back in 5, 10, or 20 years.

With the exception of the Tiller years we have a very limited pool of alumni who will come back to the games.

I would like to think winning will be the cure all but I have my doubts.
 
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The football team is made up of students and should represent students. It should be thought of as an extension of the student body rather than a revenue producer for the school and fan base. Therefore the school should do what it can to make all games accessible to the greatest amount of the student body. And students should feel pride and want to go to the games. Unfortunately, somewhere along the way, the student body has become disinterested in coming to the games. Your biggest section and most passionate section of fans should be current students, not the fan base. Bobinsky has to find a way to get the student back in the stadium. Forget the profit. No team or player likes performing in a half filled stadium that turns into a quarter filled stadium in the 4th quarter.
 
The football team is made up of students and should represent students. It should be thought of as an extension of the student body rather than a revenue producer for the school and fan base. Therefore the school should do what it can to make all games accessible to the greatest amount of the student body. And students should feel pride and want to go to the games. Unfortunately, somewhere along the way, the student body has become disinterested in coming to the games. Your biggest section and most passionate section of fans should be current students, not the fan base. Bobinsky has to find a way to get the student back in the stadium. Forget the profit. No team or player likes performing in a half filled stadium that turns into a quarter filled stadium in the 4th quarter.

Probably because the team has been awful? Dude, you are so totally clueless I wonder if you can walk and chew gum at the same time.

It's the exact same reason IU's student section was less than 1000 for home football games at the same time Purdue's went from the goal line to the 45 yard line in the early 2000's...Purdue was good and IU was bad. College students have better things to do than go watch bad football...I can think of 10 different things immediately.
 
How about if we actually pay the students to attend? Give 'em free tickets, scan each ticket as they enter the stadium, scan it again after the game ends as they leave the stadium and each student who stays for the entire game gets $5 added to his/her ration card at the dining facilities.
 
How about if we actually pay the students to attend? Give 'em free tickets, scan each ticket as they enter the stadium, scan it again after the game ends as they leave the stadium and each student who stays for the entire game gets $5 added to his/her ration card at the dining facilities.

Not enough money to move the needle. It would've taken me much more than $5 to sit through most of the games the past couple of years.
 
Students are very important at games, look at the Paint Crew in basketball. A team that can win, plus decent weather for the game, will bring them.
 
Students are very important at games, look at the Paint Crew in basketball. A team that can win, plus decent weather for the game, will bring them.

Agree. That's why we should try to have a good team so they will want to come. I really don't think cost is the factor that some here seem to think it is.
 
Once the students experience the Brohm Squad offense they will begin to return to Ross Ade. Purdue averaged 15,000 students per game during the Tiller era which made us one of the bigger student sections in all of college football. BTFU!
 
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Once the students experience the Brohm Squad offense they will begin to return to Ross Ade. Purdue averaged 15,000 students per game during the Tiller era which made us one of the bigger student sections in all of college football. BTFU!

And that was with the high school bleachers in the SEZ.
 
The football team is made up of students and should represent students. It should be thought of as an extension of the student body rather than a revenue producer for the school and fan base. Therefore the school should do what it can to make all games accessible to the greatest amount of the student body. And students should feel pride and want to go to the games. Unfortunately, somewhere along the way, the student body has become disinterested in coming to the games. Your biggest section and most passionate section of fans should be current students, not the fan base. Bobinsky has to find a way to get the student back in the stadium. Forget the profit. No team or player likes performing in a half filled stadium that turns into a quarter filled stadium in the 4th quarter.
Ya this is pretty delusional take, that profit pays for pretty much every other intercollegiate sport we have, sans basketball. AD's can't stay afloat, especially ours, w/o football turning big profits. Its actually all about the money
 
Ya this is pretty delusional take, that profit pays for pretty much every other intercollegiate sport we have, sans basketball. AD's can't stay afloat, especially ours, w/o football turning big profits. Its actually all about the money
but but but.... you know, utopia and holding hands.
 
Get caught for speeding Bloomington and they give you a football ticket. Get caught a second time and they make you go to the game!
 
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