[Cracked Sidewalks] Marquette Emphasizing Player Development, Schedule Quality

[CrackedSidewalksSays]

Marquette Emphasizing Player Development, Schedule Quality

Written by: noreply@blogger.com (Tim Blair)

Last year's pre-season scrimmage against the University of Virginia was a smashing success, with indications that the competitive action against a legitimate program did more to advance the Warriors' progress than a mindless exhibition game.  Of course, exhibition games also pay some bills at MU.  According to the athletic department, Marquette generates roughly $180,000 in gross revenue from exhibition games.  Sacrificing that guaranteed gate in favor of a closed scrimmage is not an insignificant consideration for an institution that relies on men's basketball to do more than just cover its own costs.

Or maybe it was.

Last week, MU announced the program would take matters a step further and eschew another home exhibition game in favor of two closed, pre-season scrimmages next season.  According to a report from Todd Rosiak, MU will scrimmage against both Kansas State and the Kevin O'Neill coached USC Trojans in the fall.

In choosing a pair of  closed scrimmages over two exhibition games,  Marquette is walking away from roughly $360,000 in gross revenue.  Still, Mike Broeker, Marquette's Deputy Director of Athletics, said the decision was simple.  "The value of two additional high major experiences in a controlled setting can't be quantified," said Broeker.

Forgoing the guaranteed gate from exhibitions is just one example of Marquette's favorable basketball economics.  In fact, based on what we know about next season's schedule, the program is poised to have fewer home games than usual.  The number may be as few as 16, rather than the 17 to 19 games MU typically hosts.  The result will be a higher-quality home slate for the Warriors, which will ease the long-standing downside for Marquette season ticket holders, namely, too many RPI-killing 'buy' games.

What changed?  The increased revenue driven by the men's basketball program now affords the university flexibility it previously did not have.  Unlike previous eras, program revenue is not overly dependent on home gate receipts.  The move to the Big East, and the program's success in the league and beyond, has significantly changed the financial equation.  "Increased revenue via conference distribution, NCAA play, television appearances, licensing and merchandising and sponsorships makes it (scheduling flexibility) possible," said Broeker.

For example, next season Marquette has already secured nationally televised games against LSU, University of Wisconsin-Madison and Vanderbilt.  The program is also working on a neutral-site game against another BCS program.  These games, and the associated television revenue they create, augment the anticipated conference payouts, NCAA tournament payouts and other sources of revenue.

The decision to pursue quality over quantity with the schedule is  possible because the program creates a remarkable revenue stream for the  university.   According to a report in Forbes earlier this year,  the men's basketball program generated more than $13 million  in revenue in 2009-2010.  Even when off-set with $8,185,030 in expenses,  the university earned a basketball-related profit of $5,692,445 during  the previous academic/athletic year.  Most (all?) of this goes to help support additional athletics programs.

Ultimately, the large and sustainable revenue streams generated by the men's basketball program are being reinvested in the team.  The decisions to emphasize quality over quantity will assist the program's early and in-season development, and will also improve the strength of schedule -- a primary determinant in receiving and advantageous NCAA tournament bid.



http://www.crackedsidewalks.com/2011/05/marquette-emphasizing-player.html

[Stretchdeltsig]

Sounds really good.  But, why not just schedule preseason games instead of scrimmages against these teams?

[GGGG]

Because MU, USC and KSU all need to schedule some guaranty games.  If you scheduled some sort of round robin, where each three get a home game, then each team has one less home game v. someone else...and still has to schedule either a pre-season scrimmage or exhibition game anyway.

I think this is a very well written article that highlights why it is important for MU to be in the BE.  The revenue it generates allows the program to be more aggressive with scheduling, be on television more often, and increase its visibility.  Schools like Xavier don't get that opportunity no matter how successful they are.

[OhioGoldenEagle]

Sounds really good.  But, why not just schedule preseason games instead of scrimmages against these teams?

The programs choose to go this route because these scrimmages have far more to offer than a typical preseason 40 min. game.  These scrimmages are controlled completely by the coaching staffs of both teams which allows them to perform practice-like drills where one team will play consecutive and multiple offensive/defensive possessions against a relatively unknown team along with multiple 40 min games.  So in the end, they get almost a full day of work in against a legit D1 team rather than 2 20min halves controlled by NCAA refs.

[TheGym]

Sounds really good.  But, why not just schedule preseason games instead of scrimmages against these teams?

I believe NCAA rules prohibit preseason games with other Div I teams. 

[bilsu]

Are they really forgoing revenue? The reseating packet sent out said my season tickets, excluding required donation, will be $570 per seat. That is not less than last year, but I will be seeing less home games. Maybe in the end they will adjust the price, but right now the only benefit I am getting is saving gas, because I will be driving less times from Sheboygan. My required seat donation is now $500. Last year it was $375. I think in the end the average season ticket holder will be paying more than last year for less games.

[SaveOD238]

does anybody have any inside info on who/where the "made for tv, neutral site, BCS level game" might be?

[Henry Sugar]

In choosing a pair of  closed scrimmages over two exhibition games,  Marquette is walking away from roughly $360,000 in gross revenue.  Still, Mike Broeker, Marquette's Deputy Director of Athletics, said the decision was simple.  "The value of two additional high major experiences in a controlled setting can't be quantified," said Broeker.

Yes it can.  Anything can be quantified.

[bilsu]

does anybody have any inside info on who/where the "made for tv, neutral site, BCS level game" might be?

I have been wondering if this would be an exempt game. By that I mean it will not count against your allowed regular season games. That would allow us to have one more home game.

[StillAWarrior]

Yes it can.  Anything can be quantified.

Not only can it be quantified, the decision described in the article provides a good start...the value is at least $360,000.

[Silkk the Shaka]

Not only can it be quantified, the decision described in the article provides a good start...the value is at least $360,000.

Are they really losing money on this at all?  I could be totally wrong on this, but does MU get any revenue from games aside from ticket sales?  I thought the Bradley Center got concession revenue.  So if they cut the exhibition game out of the schedule and still charge the same amount of money for season tickets, they'd only be giving up the revenue generated from walk-up ticket sales.  I imagine that number is pretty low.  If it's two or three thousand people (which might be a stretch) and they pay an average of $10 each (again, probably a stretch), that's $20-$30k in revenue they'd give up.  I'm pretty sure MU pays ~$20k in rent per game, which they then probably then wouldn't pay, so it's basically a wash in this scenario.

Did I get anything wrong?  Am I not factoring in apparel revenue or something?  Does MU get concession revenue?  I just find it hard to believe MU would generate $360,000 for an exhibition game.  Even if they're giving up $100k in revenue, they still wouldn't have to pay the rent, so it's only $80k, which if it helps towards a deeper tournament run is money well spent.

[NYWarrior]

I just find it hard to believe MU would generate $360,000 for an exhibition game. 

MU confirmed that the program earns about $180,000 gross per exhibition game. The $360K figure represented the two exhibition games the team will forgo in favor of two scrimmages.

[karavotsos]

Yes it can.  Anything can be quantified.

How much is anything?

[bilsu]

MU confirmed that the program earns about $180,000 gross per exhibition game. The $360K figure represented the two exhibition games the team will forgo in favor of two scrimmages.

They basically earn nothing for exhibition games. They are  sold in season ticket holder packages and I suspect they sell very few individual tickets for these games. Therefore, by eliminating the games and not reducing the season ticket prices they have lost very little if any revenue. However, their costs go up, because they have an extra travel date.

[Henry Sugar]

How much is anything?

$19.99.  But if you act now, I'll throw in a second anything for free.

[ATL MU Warrior]

$19.99.  But if you act now, I'll throw in a second anything for free.

I would like a 60" TV and a nice new house to put it in please.

[Henry Sugar]

I would like a 60" TV and a nice new house to put it in please.

I assume your new house will require the standard unicorn in the stable and gold-plated helicopter for transportation, correct?

[ATL MU Warrior]

I assume your new house will require the standard unicorn in the stable and gold-plated helicopter for transportation, correct?

Absolutely.