Andy Avalos a candidate for Colorado head coach

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greenyellow
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Re: Andy Avalos a candidate for Colorado head coach

Post by greenyellow »

So is it time for them to work on the north side of Autzen so they can add seating and eventually drop ticket prices a bit due to extra capacity?
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Re: Andy Avalos a candidate for Colorado head coach

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greenyellow wrote:So is it time for them to work on the north side of Autzen so they can add seating and eventually drop ticket prices a bit due to extra capacity?
Tough to see a positive return on investment on that.

Lets say they add 10k seats. That's an increase in capacity of ~20%. What won't happen is that they'll get 20% more ticket revenue over the season. Preseason games, which struggle to sell out and often don't (except when tOSU or someone comes to town), will have the same ticket revenue as before. Conference games also won't generate 20% more in revenue, because having the extra capacity will drive down ticket prices due to good ol' supply and demand. For the sake of argument, let's say that if capacity goes up 20%, ticket prices go down by 10%. So how much money is to be gained?

Here's home attendance for conference games this year. We'll assume this represents an average year.

Cal- 54,766
Colorado- 50,529
WSU- 59,361
Arizona- 54,219
OSU- 56,243
Total: 275,118

So adding 10k seats, you get ticket revenue from 50k more paying customers over 5 games, but as mentioned above, it will drive down the price of the existing seats. So having no data on ticket prices, lets say the average ticket price right now is $100, and because the extra capacity will cause a 10% drop, the new average will be $90. This year, 275,118 tickets at $100 apiece means $27.5MM in revenue. Increase attendance by 10k per game for 5 games, but drop ticket prices 10%, and the new revenue is $29.3MM (325,118 * $90). An extra $1.8MM per year.

The last time they made a similar expansion to add ~13k seats in 2002, it cost $80MM. Assuming inflation but a slightly smaller project keeps it at the same bill ($80MM), it would take 44 years for the investment to pay off, and that's assuming they don't lose any revenue from shutting down the stadium during construction or anything.

This isn't the most robust analysis ever, but you guys (gals?) get the point. I'd love to see a bigger stadium, but it doesn't make much sense from a fiscal standpoint, and definitely doesn't give the department extra budget capacity considering this won't even return 0% on investment for 44 years.
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Re: Andy Avalos a candidate for Colorado head coach

Post by EncinitasDuck »

Its not about seats, its about the millions of $$$ left on the table by a poorly run conference not taking advantage of the big $$$ out there. This is one, and possibly the only, area where Canzano has it right. We are just not generating the same $$$ per team as the SEC and B1G. Think about what 1-2 possibly 3 million per team would mean in terms of coaching salaries, etc. Its a nuclear arms race and we're playing with sponge dart guns.
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Re: Andy Avalos a candidate for Colorado head coach

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Amen brother...
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Re: Andy Avalos a candidate for Colorado head coach

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EncinitasDuck wrote:Its not about seats, its about the millions of $$$ left on the table by a poorly run conference not taking advantage of the big $$$ out there. This is one, and possibly the only, area where Canzano has it right. We are just not generating the same $$$ per team as the SEC and B1G. Think about what 1-2 possibly 3 million per team would mean in terms of coaching salaries, etc. Its a nuclear arms race and we're playing with sponge dart guns.
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Re: Andy Avalos a candidate for Colorado head coach

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Considering Phil, Kilkenny, or any number of donors would contribute to the project, Oregon likely wouldn't have to pay off much (if any) of the addition. At some point, they need to find a way to gain additional revenue to make up for the Pac-12's lackluster media contracts.
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Re: Andy Avalos a candidate for Colorado head coach

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greenyellow wrote:Considering Phil, Kilkenny, or any number of donors would contribute to the project, Oregon likely wouldn't have to pay off much (if any) of the addition. At some point, they need to find a way to gain additional revenue to make up for the Pac-12's lackluster media contracts.
Phil starts NIKE TV. Eliminates The PAC12 network. After a few years, eliminates ESPN. Let me dream.
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Re: Andy Avalos a candidate for Colorado head coach

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Everythingsducky wrote:
greenyellow wrote:Considering Phil, Kilkenny, or any number of donors would contribute to the project, Oregon likely wouldn't have to pay off much (if any) of the addition. At some point, they need to find a way to gain additional revenue to make up for the Pac-12's lackluster media contracts.
Phil launches NIKE TV. Eliminates The PAC12 network. After second thoughts, buys ESPN on the junk bond market, then eliminates the SEC and B1G contracts. Let me dream.
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Autzen Stadium... Where great teams go to die...Hard!

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Re: Andy Avalos a candidate for Colorado head coach

Post by buckmarkduck »

Andy is making half of what JL made, but getting far greater results. Give the man a bump. Also, I really hope he gets a power 5 job in the next couple years. That will mean UO probably makes the playoffs in that time.
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Re: Andy Avalos a candidate for Colorado head coach

Post by StevensTechU »

greenyellow wrote:Considering Phil, Kilkenny, or any number of donors would contribute to the project, Oregon likely wouldn't have to pay off much (if any) of the addition. At some point, they need to find a way to gain additional revenue to make up for the Pac-12's lackluster media contracts.
Probably have a better return on investment by having them sink $80MM into an annuity and living on the interest income.
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Re: Andy Avalos a candidate for Colorado head coach

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From what I've heard/seen, Avalos is not one of the top candidates for the job. Has anyone seen anything different?
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Re: Andy Avalos a candidate for Colorado head coach

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OregonFan4Life wrote:From what I've heard/seen, Avalos is not one of the top candidates for the job. Has anyone seen anything different?
Colorado appointed Darrin Chairvini as interim head coach. Many CU insiders think the interim tag will come off soon.


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