Financial Impact of Alcohol Sales on College Football Game Days

Hannah JohnsonJeremy Tisdale

Matt Cox

College Football Stadiums Where Alcohol is sold on campus

to the general public

Introduction

• 21 out of 120 Football Bowl Subdivision schools sell beer to the public at their stadiums, according to research by SportsBusiness Journal.

• Newest Schools are North Texas, SMU and Troy University

Problem Overview

• Universities are looking for ways to generate revenue and increase fan experience.

• By having alcohol sales school are at risk for 1. Fan Control

a. Aramark and Giant's Fan

2. Poor Game Management3. Underage Drinking

Generating Sales• University of Minnesota decided not to have beer sales an estimated lose

of $1million dollars. • West Virginia estimated it could generate $500,000 to $1.2 million.

– For the Mountaineers’ first home football game, played on Sunday afternoon over Labor Day weekend, Sodexo reported gross beer sales of $160,656 ($75,781 of that went to the athletic department)

– Beer sales have produced no less than $516,000 each of the past three years for West Virginia, and campus police report that alcohol-related incidents at Mountaineer Field have declined sharply

• Nevada football games generate $350,000 in beer sales annually

SWOT

• Strengthens • Increased Revenue

From Concession Sales• Increased Attendance• Favorable Demographic• Discourages Binge

Drinking

• Weakness• Image of School• Increased Propensity for

violence among inebriated fans

• Increased Potential for binge drinking

• Increased percentage of alcohol related violations on game day

SWOT

• Opportunities• Special offers such as alcohol

only available in premium seats resulting in high ticket prices for such seats

• New sponsors• More Interest in Suite Sales• Donation of Percentage of

profits• Competition between

brands could keep prices low

• Threats• Loss of booster support• Propensity for underage

drinking• Negative exposure to anti-

alcohol groups such as M.A.D.D

• Increased risk of underage drinking

• Time restrictions of alcohols sales causing fans to leave early or not come at all

Solutions

1. No Sales of Alcohol– Binge drinking will continue to happen

outside the stadiums and underage drinking cannot be controlled

2. Sale alcohol only in the premium seating – charge higher ticket pricing and for alcoholic

drinks– controls the distribution and help monitor

underage drinking

Solutions

3. Open alcohol sales to the general public – Difficult to control underage drinking • Show id and receive a wristband

– Control on binge drinking• limited to buying two beers at a time

– Greater Liabilities for fan’s behavior – Risk of poor game management• sales are cut off at halftime or in the third quarter

Recommendation

• Study the numbers• Reach out to other schools• Brainstorm new ideas to generate revenue

(Think Tank)

Recommendation

• Sale on the premium levels.– Generates Sales for tickets for premium level– Generate Sales from alcohol sales– Sponsorship Opportunities – Controlled Distribution– Limited Liability