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Topic:  Ohio uses $78,569 from postseason opportunity fund to "break even"

Topic:  Ohio uses $78,569 from postseason opportunity fund to "break even"
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UpSan Bobcat
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  Message Not Read  Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/21/2013 2:01:44 PM 

I received this press release today. Not bad, I don't think, considering how much some bowls cost some schools.

Ohio University is one of only 17 programs in the country to have earned back-to-back bowl championships.  Ohio is also one of only 28 programs nationwide to have participated in four consecutive bowl games.

·         A bowl trip will generate millions of dollars in exposure for Ohio University through the three-hour nationally televised game on ESPN (available to 95 million homes) and weeks of additional exposure through ESPN bowl specials, other national TV exposure of the bowls, newspapers throughout the country, etc.  Ohio University aired its “Voices of Promise” commercial during the bowl telecast at no charge, demonstrating the financial benefit that Athletics provides in promoting the academic mission of the university. The bowl game on ESPN capped off eight total appearances on the ESPN family of networks.

·         Having success nationally by reaching a bowl game enhances the image of Ohio University and Bobcat athletics throughout the country.  The significant exposure received can benefit enrollment, fundraising, campus life and school pride to students, faculty, staff, alumni and friends. The Ohio University Alumni Association assisted with 16 organized Independence Bowl viewing parties across the country for Ohio alums.

·         Ohio University student-athletes participated in volunteer service projects, where they demonstrated their commitment to community and public service while gaining invaluable personal experiences in helping others. Ohio student-athletes visited with patients from LSU Children’s Hospital – Shreveport, LA.

·         Bobcat fans donated over 450 tickets to the Boys and Girls Club of Shreveport and Big Brothers-Big Sisters of Shreveport through the Ohio Athletics “Tickets for Kids” program.

·         It is the reason why student-athletes compete - to get to postseason play.  It is a reward for student-athletes, coaches and fans.

·         It provides a valuable experience for the student-athletes to visit another region of the country, take in the culture and grow personally.

·         Bowl trips assist in recruiting student-athletes, which fosters future winning teams.  It also provides the football team with extra practice to improve their talent for next year.

·         Trips to bowl games assist in future revenue production and budget stability for the athletic department through increased ticket sales, fundraising and other related financial benefits.

Bowl Budget 

·         Attending a bowl game has far reaching benefits for the athletic department and university.  However, it is common for most schools that attend bowls to have more expenses than revenues received.  Fortunately, the bowl venture ended up at a break even situation for the football team’s travel.  The overall revenues were able to meet the expense needs for the football team.  There was a detailed and planned cost containment effort to ensure the least expense possible for the travel party.  Due to bowl requirements, the trip for the team was six days in length.

·         Revenues for the bowl include: the Mid-American Conference/participating bowl guarantee, ticket sales (the university is able to keep all proceeds from the sale of 2,700 distributed tickets) and a Ohio Athletics postseason reserve budget account that was set up in 2009 to mitigate institutional support for postseason appearances.


Expenses - Campus  Bowl 
Ground Transportation*  $                                                                                           7,950.00
Lodging *  $                                                                                           7,875.00
Meals *  $                                                                                         31,057.00
Per Diem  $                                                                                                        -  
Advertising  $                                                                                           4,322.00
Publications *  $                                                                                               240.00
Incidentals  $                                                                                           8,324.40
Miscellaneous  $                                                                                         13,299.16
   
   
Expenses - Bowl  
Charter  $                                                                                      205,065.00
Ground Transportation  $                                                                                         29,250.00
Rentals  $                                                                                           1,972.18
Lodging  $                                                                                         84,019.52
Meals  $                                                                                         51,398.00
Per Diem  $                                                                                         25,618.00
Entertainment  $                                                                                           1,264.02
Incidentals  $                                                                                           3,112.80
Miscellaneous  $                                                                                           7,578.22
Bowl Rings  $                                                                                         20,100.00
TOTAL EXPENSES  $                                                                                      502,445.30
   
   
Revenue  
Bowl Revenue Distribution  $                                                                                      400,000.00
Ohio Athletics Post Season Opportunity Fund  $                                                                                         78,569.00
Ticket Revenue  $                                                                                         23,876.00
   
   
TOTAL REVENUE  $                                                                                      502,445.00
   
   
NET REVENUE/(EXPENTITURE)  $                                                                                                        -  
*Of the total bowl expenditures for team travel, $16,065 was paid to Ohio 
University units including: Housing, Printing, and Transportation Services

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Pete Chouteau
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/21/2013 2:53:09 PM 
I don't expect answers, because this forum isn't necessarily the place for an answer to be given. But anyway...

Is ticket revenue the only income received from the Independence Bowl organization?

If YES, then is the entire $400K line a distribution from the MAC office?

If NO, then how much came from the bowl and how much from the MAC?

If it all came from the bowl, then what role does the MAC play in making sure a school doesn't have to go out of pocket to play in a bowl? (which was mentioned prominently when comparing the NIU Orange Bowl bid to the Connecticut Orange Bowl fiasco)

If any or all came from the conference, where does the MAC get this money?

Is it from the TV contract?

If YES, how does that correlate to the Hustle Belt piece that detailed ESPN revenue per league? If any or all the TV money goes into the bowl participation, is that the carrot for schools to invest in football? And if yes, is it working?

With seven bowl teams, what is an average payout per school?

I could go on...

I appreciate the release of the financials, but I don't feel like they are a complete picture. I'm not a big fan of the "post-season opportunity fund". It seems to me that it's just a figment to allow a zero at the bottom of a spreadsheet so everybody feels good about something or other.

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Robert Fox
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/21/2013 3:01:04 PM 
I don't have a problem with the fund. It's a savings account to cover just these kinds of expenses, and if they started it in 2009, I have to assume the $78,500 withdrawal from this year didn't break the account.
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Alan Swank
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/21/2013 4:52:48 PM 
I would say that spending only $78,569 to play in a bowl game is a pretty good investment.
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mf279801
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/21/2013 5:08:05 PM 
Pete, 

the hustle belt numbers were only for the conference TV contracts and did NOT include bowl payouts/bowl TV money. (It DID include TV monies associated with conference championship games)
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Sony7
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 4:19:44 AM 
I scratch my head on this one.


Go Bobcats!

SONY7

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sargentfan
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 8:56:34 AM 
As noted at the very end of The Post article on this, the MAC still hasn't distributed any of the BCS money.  So that money should allow us to put back all the money we took and bank some into the dept too.
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OhioStunter
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 11:02:44 AM 
Alan Swank wrote:
I would say that spending only $78,569 to play in a bowl game is a pretty good investment.


I certainly agree. And bowl games are typically treated as an "annual banquet/holiday party" of sorts for administrators and alumni. So a lot of those advantages (alumni, govt relations, academic support) have to be factored into the great external exposure the university is getting. (And $16,000 of those expenses were paid back to university services, so that number is really more like $62K spent).

Does anyone know how many were in the travel party?

This article is a little dated, but really lays out some interesting numbers on bowl payouts/ROI: http://www.thewizofodds.com/the_wiz_of_odds/2011/05/bowl-games-silly-extravagance-or-worthwhile-tradition.html

Last Edited: 2/22/2013 11:24:34 AM by OhioStunter

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Monroe Slavin
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 12:43:59 PM 
Post game revenues in terms of contributions, marketing of such as Ohio gear and memorabilia, etc ???


Where's the band?!
WHERE"S THE BAND?!


DesignspiritUSA.com
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The Holiday Tote Bigg Bagg Collection--over-sized, reversible, extra pockets; now love carrying packages as much as you love shopping!

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OhioStunter
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 2:43:10 PM 
OhioStunter wrote:
Alan Swank wrote:
I would say that spending only $78,569 to play in a bowl game is a pretty good investment.


 (And $16,000 of those expenses were paid back to university services, so that number is really more like $62K spent).



Looking at this further, it appears $31K went to on-campus meals. Whether that's through the university or local businesses, I'm good either way with it. That really brings the university kick-in to more like $31K.
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BillyTheCat
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/22/2013 10:23:07 PM 
A good part of that 31K is the University billing the University for meals.
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ts1227
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/24/2013 9:12:51 PM 
mf279801 wrote:
Pete, 

the hustle belt numbers were only for the conference TV contracts and did NOT include bowl payouts/bowl TV money. (It DID include TV monies associated with conference championship games)


I believe that  the 400K was our payout from the Independence Bowl, as they lowballed the living crap out of us since we were an at large to their bowl.  But yes, it doesn't account the money coming from other MAC teams in bowls (especially NIU)
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Ohio69
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/26/2013 3:14:24 PM 

Saying you lost money on a bowl game is like saying you lost money by going on vacation.



Can somebody hit a pull up jumper for me?.....

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Bcat2
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/26/2013 4:11:36 PM 
Ohio69 wrote:

Saying you lost money on a bowl game is like saying you lost money by going on vacation.



"Do not pray for easy lives. Pray to be stronger men." JFK

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OhioStunter
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/27/2013 11:07:49 AM 
Bcat2 wrote:
Ohio69 wrote:

Saying you lost money on a bowl game is like saying you lost money by going on vacation.




Wait, who is Aunt Edna in this analogy?
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Casper71
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  Message Not Read  RE: Ohio uses $78,569 from postseason opportunity fund to "break even"
   Posted: 2/27/2013 1:11:30 PM 
billy, while the $31k may have been "the University billing the University" it is a matter of which activity pays for the food.  In other words, dining halls may have bought the food but they do NOT want the charge to their accounts.  So, that charge is passed on/transferred to athletics since the athletes ate the food.  Just quirky government fund accounting and technical stuff I'm sure most could care less about:)
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