SMU89 wrote:Stallion wrote:The only real problem with Ford is lack of quality seats. If you begin to calculate the financial value of seats that people prefer to sit in with say TCU's remodeled stadium then its an economic drain on the program assuming the seats were filled. Compare SMU(20,000 sideline seats between endzones) to say TCU(38,000 sideline seats) then multiply by about season ticket price and it becomes a substantial number. And its not just sideline seats. Seats between 40-50 and 30-40 and can be sold for a premium. There's just a whole lot less premium seats. Of course, we have problems filling them anyway.
Doesn't price elasticity of demand and supply take care of this issue? I feel asleep in Dr Dooms class. Any Econ majors. Bhueler?
Attendance/revenue issues for schools involves complicated supply/demand considerations.
1)While the price people might be willing to pay for SMU tickets might increase as our program starts to win, it is not clear that the total number of tickets in demand would climb substantially. In terms of demand from "SMU fans," I suspect our overall demand for season tickets is very flat.
2)For SMU, demand from visiting teams can be an enormous factor in total demand. Even if SMU was having a rough year, I suspect the Aggie and TCU games would draw a large crowd of TCU fans. In contrast, a home game against Marshall or ECU might not draw a dozen visiting fans.
In terms of stadium/arena capacity, most teams have learned that it is really bad to have an oversize stadium. With the notable exception of Jerrywold, most new NFL stadiums are not bigger (and often smaller) than the stadiums they replaced. Why? Restricting supply ensures the teams can charge a premium price to everyone. In constrast, stadiums like LA's Memorial Stadium (with a huge number of low quality EZ seats) make it easy for fans to substitute into cheaper seats.
Another factor: TCU has made it clear that they won't play any Big 12 games at Jerryworld. While the extra seats would mean more revenue, they would likely be filled with visiting UT, TT, or OU fans. Back before the DP, all our big crowds at Texas Stadium had huge numbers of Aggie/UT/ARK fans. By avoiding Jerryworld, the Frogs want a home field advantage.
Given our fan base, I think Ford is about the right size. It is my understanding that it can be expanded if we need more seats. If not, we could always play a game at the Cotton Bowl (I love that old dump) from time to time.