- Colleges like Texas A&M will see millions in revenue from college football with the allowance of 25% of fans in the stands.
- This money will go toward all aspects of the college and football program, giving those teams a head start financially going into 2021.
NEW YORK – College football teams that are allowing for fans to be in the stands, even minimally for the 2020 season, will do much better financially in the long run than institutions holding closed events.
There are many reasons why this will turn out to be the case going into next year. It costs money for games to be played.
Money from tickets, food, drinks, parking, and all of the other ways of spending that occurs by fans on game days not only covers the cost of holding the game, but turns a hefty profit for all of those involved in the business.
“Fans are important because they provide revenue,” said Gary Stokan, the chief executive of the Peach Bowl, which puts on the games in Atlanta.
Teams without fans will not be collecting any of this and may only be able to cover the cost of the event by networks paying to air it. However, there will be no leeway for the profits they’d typically see.
With the revenue gained, colleges that are allowing for percentages of spectators to fill the seats will have money to put toward their programs for the 2021 season while colleges that are closed to fans will be stuck at square one next year.
Schools Allowing Fans And Profits For Opened Games
Most schools are allowing 20%-25% capacity at their stadiums for games. Colleges that are not open for football enthusiasts like the Duke Blue Devils are in limbo as they don’t expect to have fans at least through September, at which time they will reevaluate the situation.
So, while their September games are closed, October and beyond could very well be seeing them open at the percentage levels of other schools after researching the profits being made and the low risk of a recurrence of COVID-19.
Schools that won’t let fans in the stands will not only be hurting the program’s finances but the college as a whole. Football is big business on any college campus and one of the largest revenue streams because of the sport’s popularity.
Tuition and budget cuts for the entire college could be seen in bigger dividends without fans in the stands. From 2014-2016 the Texas A&M Aggies recorded $148 million in revenue and $107 million in profit. The Aggies will be hosting 25% of diehard Aggies fans at games this season.
Based on those numbers, Texas A&M stands to gain about $12.5 million in revenue. This is money that will help their program with equipment, their stadium, their school, everything. And that’s just a revenue estimate, profits could bring in at least $10 million as well.
In The End
No school is completely opposed to the idea of opening the stands. Once they see how other colleges are doing as far as being able to keep COVID-19 at bay while gaining profits, they could implement the same strategies.
There is no reason for any school to opt-out of funding if there is a way for it to be done safely.
And all the schools that are open to fans are not just benefiting for the future of their football program but the entire college and how it’s run because no profits from college football cause a ripple effect that will be felt for years to come on campuses nationwide.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.