South EndZone
- Thread starter Let's Go State
- Start date
I believe that Endzone seats are $150 each. IMO, those seats were a bit harder to sell before we got our new scoreboard. We were also looking to expand our base to a group of buyers who were not willing to pay the higher price and were willing to take a seat that was a bit poorer.
I would look for Pollard to jump the End Zone and Cy's Pack tickets by about $25 each at some point. There is nothing stopping you from trying to get a cheaper seat if you wish. I will say that the 15 yard line is a much, much better seat than an end zone or angled from the end zone. Whether the 15 yard line is worth it to you is a personal decision.
I think having different price points is a good thing, even with expansion. We dont need to have everyone paying full price. Its good to get some in at cheap levels. Many of those will become future lifetime fans.Sure, you might get more upfront with fewer more expensive tickets, but long term you make more by getting as many in the door as possible.
IMHO, this is all a huge catch-22.
Everybody wants to win. You need good coaches and facilities to get good recruits. That takes money.
You need to win to get more people interested and to get them willing to pay more money.
Winning= more money and vice versa,
Right now, I think ISU is at another point where it is on the verge of breaking through to that next level, but not quite there yet. It's not quite time to fill in the south end zone yet, but it is getting close. The demand still needs to be even more than what it is now though, imo. You want to be at a point where an ISU football ticket is hard, if not impossible, to get. You want to be at a point that no matter who the opponent is, the stadium will be sold out before game day. When that happens, and ISU has it for 2 or 3 years, then it will be time to fill in the south end zone.
I think the new football facility had a huge effect on the recruting for this upcoming season, and I would expect it to have an even bigger effect on the recruiting for 2014. I also thought that going at least 7-5 this year would have been another huge step, and for a while there I thought ISU was going to do it. An 8-4 record would have been mind-blowing. Unfortunately, ISU continues to suffer missed opportunities such as the home games this year with Texas Tech, KSU, and West Virginia. At this point, ISU can no longer be settling for playing well. It needs to win more of those games, and it needs to better protect its home field. When that happens, then, and only then will I believe that ISU has turned the corner to the next level.
IMHO, this bowl game is huge. A loss will be a setback, while a win, coupled with the new facility will drastically help to continue the momentum ISU has from this year.
Everybody wants to win. You need good coaches and facilities to get good recruits. That takes money.
You need to win to get more people interested and to get them willing to pay more money.
Winning= more money and vice versa,
Right now, I think ISU is at another point where it is on the verge of breaking through to that next level, but not quite there yet. It's not quite time to fill in the south end zone yet, but it is getting close. The demand still needs to be even more than what it is now though, imo. You want to be at a point where an ISU football ticket is hard, if not impossible, to get. You want to be at a point that no matter who the opponent is, the stadium will be sold out before game day. When that happens, and ISU has it for 2 or 3 years, then it will be time to fill in the south end zone.
I think the new football facility had a huge effect on the recruting for this upcoming season, and I would expect it to have an even bigger effect on the recruiting for 2014. I also thought that going at least 7-5 this year would have been another huge step, and for a while there I thought ISU was going to do it. An 8-4 record would have been mind-blowing. Unfortunately, ISU continues to suffer missed opportunities such as the home games this year with Texas Tech, KSU, and West Virginia. At this point, ISU can no longer be settling for playing well. It needs to win more of those games, and it needs to better protect its home field. When that happens, then, and only then will I believe that ISU has turned the corner to the next level.
IMHO, this bowl game is huge. A loss will be a setback, while a win, coupled with the new facility will drastically help to continue the momentum ISU has from this year.
I know what is best for the program, but it is not necessarily best for me because:
$375 x 8 = $3000
$150 x 8 = $1200
$3000 >>>> $1200
I probably won't be able to buy 8. :sad:
This is true. I first purchased season tickets 3 years ago...the last year without the new scoreboard and I was originally just going to get a (1) season ticket. Then talked my friends into it but there was only a few singles available in the endzone so we moved to the sides. Not a huge deal but just clarifying for accuracy.
I posted this over on a WRNL comments thread in the past, but here are some ideas to chew on as long as we're discussing the SEZ:
Basically, my theory is this: we bowl in the SEZ and move the students there. Boom. The SEZ is now 100% sold out. This also creates a significant new inventory of GOOD SEATS (the seats the students previously held). We can now collect donations for these seats, sell seatbacks for them, and other new methods of generating revenue.
Students are a good match for the SEZ seats: we would never be able to require a donation for hillside or endzone seats, and we can never require a donation for student tickets. Match them up and it's obvious: students move there.
What about the folks displaced from the SEZ? 2,911 donation-free seats that cost $225 or less will be opened up by moving the students. These are slightly more expensive, but are also significantly better seats. The other displaced folks can either move up to donation-level seats, or move to the NEZ hillsides and pack 'em in. Some of these customers will be lost.
However, I think there is a constituency we are forgetting about. I personally believe there is a significantly under-served audience that wants to come to ISU games, but doesn't want hillside or endzone seats. These people want to have good seats and are willing to pay for them. When the students move, some really good seats open up, including seats on the 40 yard line in the upper deck.
Here's the math behind it:
There are currently 7,529 seats in the student section. I’m guessing the AD oversells these tickets (since they’re not always used and the students pack in tight)… let’s say an even 8,000.
Current endzone capacity is 8,500 between two hillsides (~2,500 each) and endzone bleachers (3,500).
Most speculation suggests that bowling in the south endzone actually reduces capacity slightly (if you do the lower bowl only)… so let’s say 8,000 seats. Obviously, we move the students to the south end zone. The numbers make sense.
What you’re losing:
5,000 hllside tickets * $99 each = $500,000
3,500 endzone tickets * $149 each = $525,000
Total lost revenue: $1,025,000.
What’s you’re gaining:
8,000 student tickets * $125 each = $1,000,000
So now for the endzone, you’re taking a net loss of $25,000 by selling those seats to students instead of the general public (on a day we sell out JTS, at least).
However, let’s look at where the money gains will be… Sections 28-32, and P-S.
For those nine sections, let’s estimate ISU oversold student season tickets to 8,000. That’s $1,000,000 in revenue. How much can ISU make instead selling them to non-students?
I’ll use the same pricing that is used on the opposite (mirror) side of Jack Trice, including donations.
Section 32: 533 seats * $175 each = $93,275.
Section 31: 873 seats * $225 each = $196,425.
Section 30: 873 seats * $375+$50 each = $371,025.
Section 29: 873 seats * $375+$125 each = $436,500.
Section 28: 819 seats * $375+$250 each = $511,875
Lower east side revenue: $1,609,100.
Section S: 319 seats * $175 each = $55,825
Section R: 1,186 seats * $225 each = $266,850
Section Q: 1,186 seats * $375+$50 each = $504,050
Section P (upper): 593 seats * $375+$125 each = $296,500
Section P (lower): 593 seats * $375+$250 each = $370,625
Upper east side revenue: $1,493,850
New revenues from former student section: $3,102,950
Lost student section revenue: $1,000,000
Net gain: $2,102,950
Minus loss in relocating students to SEZ + fewer seats: $25,000
Total net revenue gain from relocating student section: $2,077,950
Now, obviously, this is a huge pie-in-the-sky number, assuming you’re selling every single seat to a season ticket holder at maxmum price — not factoring in the young professional discount, etc. Don’t forget that ISU can sell seatbacks on these seats now too. That’s a nice little extra perk I didn’t factor in and sells quite well to season ticket holders.
I just ran the numbers to point out that by building the endzone and shifting the students, you’re creating a significant amount of new seating inventory. You’re basically getting rid of your low-margin / low-value inventory and creating more high end product. Is there going to be demand for this higher end product? That’s the real question.
The new inventory would still have progressively priced seating based on quality of the seats and there would be a variety of price points available. Obviously, some of the current buyers in the south endzone are value conscious and wouldn’t renew in the newer seats… but I think there’s also a significantly underserved market that would like to buy seats to ISU games… but finds the currently available product lacking. Plenty of people do not want to sit in an endzone or on a hillside.
The idea of building the SEZ isn't to increase capacity (most estimates say it will reduce capacity), it's to create more inventory of higher-margin, higher-value seats. Our opportunity cost of allowing the students to sit where they are now is significant.
Basically, my theory is this: we bowl in the SEZ and move the students there. Boom. The SEZ is now 100% sold out. This also creates a significant new inventory of GOOD SEATS (the seats the students previously held). We can now collect donations for these seats, sell seatbacks for them, and other new methods of generating revenue.
Students are a good match for the SEZ seats: we would never be able to require a donation for hillside or endzone seats, and we can never require a donation for student tickets. Match them up and it's obvious: students move there.
What about the folks displaced from the SEZ? 2,911 donation-free seats that cost $225 or less will be opened up by moving the students. These are slightly more expensive, but are also significantly better seats. The other displaced folks can either move up to donation-level seats, or move to the NEZ hillsides and pack 'em in. Some of these customers will be lost.
However, I think there is a constituency we are forgetting about. I personally believe there is a significantly under-served audience that wants to come to ISU games, but doesn't want hillside or endzone seats. These people want to have good seats and are willing to pay for them. When the students move, some really good seats open up, including seats on the 40 yard line in the upper deck.
Here's the math behind it:
There are currently 7,529 seats in the student section. I’m guessing the AD oversells these tickets (since they’re not always used and the students pack in tight)… let’s say an even 8,000.
Current endzone capacity is 8,500 between two hillsides (~2,500 each) and endzone bleachers (3,500).
Most speculation suggests that bowling in the south endzone actually reduces capacity slightly (if you do the lower bowl only)… so let’s say 8,000 seats. Obviously, we move the students to the south end zone. The numbers make sense.
What you’re losing:
5,000 hllside tickets * $99 each = $500,000
3,500 endzone tickets * $149 each = $525,000
Total lost revenue: $1,025,000.
What’s you’re gaining:
8,000 student tickets * $125 each = $1,000,000
So now for the endzone, you’re taking a net loss of $25,000 by selling those seats to students instead of the general public (on a day we sell out JTS, at least).
However, let’s look at where the money gains will be… Sections 28-32, and P-S.
For those nine sections, let’s estimate ISU oversold student season tickets to 8,000. That’s $1,000,000 in revenue. How much can ISU make instead selling them to non-students?
I’ll use the same pricing that is used on the opposite (mirror) side of Jack Trice, including donations.
Section 32: 533 seats * $175 each = $93,275.
Section 31: 873 seats * $225 each = $196,425.
Section 30: 873 seats * $375+$50 each = $371,025.
Section 29: 873 seats * $375+$125 each = $436,500.
Section 28: 819 seats * $375+$250 each = $511,875
Lower east side revenue: $1,609,100.
Section S: 319 seats * $175 each = $55,825
Section R: 1,186 seats * $225 each = $266,850
Section Q: 1,186 seats * $375+$50 each = $504,050
Section P (upper): 593 seats * $375+$125 each = $296,500
Section P (lower): 593 seats * $375+$250 each = $370,625
Upper east side revenue: $1,493,850
New revenues from former student section: $3,102,950
Lost student section revenue: $1,000,000
Net gain: $2,102,950
Minus loss in relocating students to SEZ + fewer seats: $25,000
Total net revenue gain from relocating student section: $2,077,950
Now, obviously, this is a huge pie-in-the-sky number, assuming you’re selling every single seat to a season ticket holder at maxmum price — not factoring in the young professional discount, etc. Don’t forget that ISU can sell seatbacks on these seats now too. That’s a nice little extra perk I didn’t factor in and sells quite well to season ticket holders.
I just ran the numbers to point out that by building the endzone and shifting the students, you’re creating a significant amount of new seating inventory. You’re basically getting rid of your low-margin / low-value inventory and creating more high end product. Is there going to be demand for this higher end product? That’s the real question.
The new inventory would still have progressively priced seating based on quality of the seats and there would be a variety of price points available. Obviously, some of the current buyers in the south endzone are value conscious and wouldn’t renew in the newer seats… but I think there’s also a significantly underserved market that would like to buy seats to ISU games… but finds the currently available product lacking. Plenty of people do not want to sit in an endzone or on a hillside.
The idea of building the SEZ isn't to increase capacity (most estimates say it will reduce capacity), it's to create more inventory of higher-margin, higher-value seats. Our opportunity cost of allowing the students to sit where they are now is significant.
At this point I would be absolutely shocked if the SEZ doesn't increase capacity. That was an old plan put in place before our current ticket sales success.
It's not a matter of desire, it's a matter of the available space: doing ONLY the lower bowl would likely reduce capacity (slightly) of the SEZ compared to now. The curvature of the rows, building actual seats, steps, and lining up with the existing structure would all be limiting factors. Think about it: the hillsides when at maximum capacity are certainly more packed than actual stands would be. It wouldn't be a huge loss, but you would have less seating.
Only a double-decked SEZ would result in increased capacity.
Great post on pointing out profit/loss margins. I have been saying when building the SEZ put the students there and use the old student section to sell higher ticket prices, but keep it the same for the students. Good job dude, building it can work financially.
If and when they do this it needs to be a double decker if not do not do it then. We need to up the capacity and decrease it.
If we were doing a single deck it would be done by now. The only way its a single deck is if we put all club seats on the second deck. And there isn't currently a lot of demand for club seats so that wouldn't make sense. Plus the bottom deck could be a lot bigger than our current lower decks.
When we build the SEZ the opposing team needs to come out under it where the students section could possibly be. How intense would that be like Wisky does plus it would not create the BS that happened when we played West Virginia.
They would need a brand new locker room in that side. That's not going to happen.
You can add capacity without building a thing, remember. How many "seats" are currently in each section row of JTS? Reduce the width by 1" or 2" and you might be able to add a significant number of seats throughout the stadium, good sections and bad. And it costs virtually nothing to the AD.