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black&goldeveryday

American Athletic Conference Revenue Comparison by School (Off Topic)

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On 11/19/2019 at 8:23 PM, Bull Nut said:

Flip flop, can I call you flip flop? You see flip flop, First you said UCF doesn't need the money from 2 for 1 deals. Then you said it's all about the money.

I guess we're looking at it differently. From an outsider standpoint, UCF is not taking two for ones because they don't want to give up the ticket allotment that bigger programs request and the additional away game which is dipping into UCF's pockets.

From UCF standpoint, we don't need to take the two-for-one deals with bigger programs because we can play lesser competition and bring in the same revenue and then some.

We're saying the same thing just in a different way, however the UCF version is playing the victim just a tad. If UCF fans want to follow that narrative then they can't complain that quality teams wont play UCF. Cold hard truth is the elite programs control the land. Play by their rules or don't play them.

As far as my comments regarding the stadium. It is basic financial understanding that any debt carries its own inherent risks. Not saying it's necessarily a bad thing, but there are risks involved. It makes total sense that UCF doesn't want to give up the extra home game, if they're being smart they're taking that extra revenue/profit that they're generating and putting it in their coffers for a rainy day. Right now the debt of the stadium may not be a strain on the program, but shitt happens. Ticket sales could fall through the floor, alternative viewing options becoming more competitive, boosters dry up, etc. There are variables that have to be taken into consideration when carrying debt and scheduling 2 for 1s. 

Who knows, when UCF football starts to fall (maybe they have started already), the scheduling philosophy may change again.

The bottom line is (I'm sticking to my original point), USF and UCF have a different set of circumstances that influence their respective decisions regarding scheduling 2 for 1s.  USF needs pay days to build facilities and UCF needs more home games to support current and future expenses.

 

I actually agree with most of this post.  I agree that UCF's scheduling philosophy may change for a variety of reasons.

The following information is not intended  as an argument, just to provide factual clarification for some things posted by both of us.

I don't recall ever saying "UCF doesn't need the money from 2 for 1 deals."  But in reality, we don't.  Away only payday games pay a higher guarantee than the third game in 2-for-1 deals, and UCF's home game revenue produces more profit than the guarantees paid for the third game in 2-for-1 deals. So, strictly from an income standpoint, a 2-for-1 deal is only the THIRD best option for UCF to generate the maximum amount of income. 

Yes, all debt carries some amount of risk.  But risk associated with UCF's football stadium is EXTREMELY minimal. In fact, in the fiscal year ending June 2017 (covering the 2016 football season, before UCF came anywhere close to selling out season tickets and with prices lower than we have now) the stadium corporation transferred $5.147 million to the UCF athletics association after satisfying all debt obligations for the year. For the fiscal year ending June 2018 (covering the 2017 football season) that number increased to $6.567 million. This indicates that UCF Athletics is nowhere near worried about the stadium corporation generating the income required for debt payments.     

Yearly debt payments on UCF's stadium are about $3.6 million.  Stadium Corporation revenue from premium seating (suites), naming rights, commissions and sponsorships totals $4.009 million for the fiscal year ending June 2018. That LITERALLY means that UCF doesn't need to sell a single ticket all season, and there is still enough revenue to pay the stadium's debt service.

 

 

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