My best guess on MU's 2018-2019 total basketball revenue.......

[duanewade]

My back of the envelope analysis of Marquette's estimated net revenues for the 2018-2019 men's basketball season......

Net Game Revenue:
Average ticket sales per game: Guessing 15,500 including all the season ticket holders that don't show up every game
Average gross revenue per ticket holder (includes money made from food and bev): $100 per game with upper deck and students paying way less and lower bowl, court-side, BMO special lounge dwellers and sky-boxes paying way more
MU's lease share of gross revenues from tickets and profits from concessions, court-side advertising, arena naming rights and net money owed to the away team: 50%
**15,500 * $100 * 20 home games * 50% = $15,500,000

Fox Sports 1 Contract Revenue - $4,500,000

TV Revenue/Game Revenue from Thanksgiving Tournament, Gavitt Game and additional TV revenue from CBS Sports Covered Games, Big 10 Network, ESPN, etc. - $2,000,000

Annual NCAA Tournament Conference Revenue with $100,000 per conference team per game (thanks to Villanova the conference gets 6 shares each from them alone last year....this year guessing we'll have 4 teams in and they'll win 8 games combined) - $800,000*
*I believe I heard that the above hypothetical is paid to every conference team for ten year period?  However only including one year of revenue from the NCAA Tournament. 

Annual MU basketball Merchandise Sales - $1,000,000

MU's share of away game ticket sales - $2,000,000

So I'm guessing MU nets $25,000,000+/- in total direct men's basketball revenues in 2018-2019 vs. the $19,327,629 in the attached article from 2016-2017.  Increases due to inflation, higher attendance from the new Fiserv Forum and a top 10 ranked team. 

The $25MM keeps us in the top 10 teams nationally in total revenue but a far cry from Louisville and the KFC Yum center and its 22,090 seats and perpetual sellouts.  It sounds like Louisville got a great deal where they get to keep 75% of gross revenues vs us at probably close to 50% as the Bucks negotiated us hard. 

The indirect revenues MU men's basketball provides the university with positive national exposure to help fill classrooms with students willing to pay a lot of money is immeasurable.   Without Al McGuire and the Bucks MU would be a Duquesne or a Detroit Mercy with $2 to 3MM in total basketball revenues and half the student body while charging 1/3 less for tuition. 

https://amp.businessinsider.com/louisville-was-college-basketballs-biggest-money-maker-in-2016-2018-2

[Cheeks]

My back of the envelope analysis of Marquette's estimated net revenues for the 2018-2019 men's basketball season......


Annual MU basketball Merchandise Sales - $1,000,000


The indirect revenues MU men's basketball provides the university with positive national exposure to help fill classrooms with students willing to pay a lot of money is immeasurable.   Without Al McGuire and the Bucks MU would be a Duquesne or a Detroit Mercy with $2 to 3MM in total basketball revenues and half the student body while charging 1/3 less for tuition. 

I don't know how it is done today, but back in the day MU Athletics did not receive revenue from merchandise sales.  That went into the university coffers as a whole.

The marketing aspect is big, but be careful not to overstate the indirect value / importance of students coming to school because of it. For some, it is huge reason, national brand, etc, etc.  There are also 50% AT LEAST at MU that basketball means absolutely nothing to them and could not care less if we had a team or not.  Some that wish we didn't, and the money spent elsewhere. 

Sports fans are really passionate, but they are in the minority....but they are loud about their passion.  Sports leagues often like to make the same claims on indirect value they provide to TV, etc, but when you look at how many people actually passionately watch the games, it is a relatively small number.  Not disagreeing with you that there is value and sports put schools on the map...just a fine line of caution. 

[Herman Cain]

I think the ticket revenue in your analysis is a bit high, and the NCAA revenue may be a bit low. Although on the whole probably pretty accurate.

One of the objectives of the Big East Presidents was to form a conference of like minded schools. I believe the national exposure the conference has received as a whole has helped each university continue to build their overall brand.

I think the reality is MU needs to reinvest every dollar it brings in from basketball to maintain its position.   If the basketball program can have some sustained success, their may be a much bigger economic payoff.

Villanova took advantage of its recent success and has raised an enormous amount of money for specific projects , $759 million and also doubled their endowment.

https://www.philly.com/philly/education/villanova-university-surpasses-fundraising-goal-by-more-than-150-million-20180601.html

[Dr. Blackheart]

Blue & Gold raised $1million in December alone, although most of that will go to non-revenue sports. Yet, that money isn't being raised without basketball....and the other sports wont have to dip into the basketball funds as deep.

[duanewade]

I think the ticket revenue in your analysis is a bit high, and the NCAA revenue may be a bit low. Although on the whole probably pretty accurate.

One of the objectives of the Big East Presidents was to form a conference of like minded schools. I believe the national exposure the conference has received as a whole has helped each university continue to build their overall brand.

I think the reality is MU needs to reinvest every dollar it brings in from basketball to maintain its position.   If the basketball program can have some sustained success, their may be a much bigger economic payoff.

Villanova took advantage of its recent success and has raised an enormous amount of money for specific projects , $759 million and also doubled their endowment.

https://www.philly.com/philly/education/villanova-university-surpasses-fundraising-goal-by-more-than-150-million-20180601.html

You're probably right but I'm just guessing and still can't figure out how Louisville makes so much more than everyone else and how Duke grosses so much even with a smaller arena.  Don't know if some of these programs get extremely lucrative deals with Nike, Under Armour, etc. to only wear their products as Duke basketball and Notre Dame football are national brands at this point and advertisers know this and pay accordingly. 

Agreed with what you say about MU/The BEast maximizing their position(s).  More winning means more money across the board. More money in turn pays for a lot of bills outside of athletics including academic buildings, academic scholarships, new dorms, etc. 

[Jay Bee]

I've personally spent about $600k in merch for myself, so $1M may be a little light

[Boston Warrior]

Agree!

A national championship is worth hundreds of millions in today’s dollars.

That is why you become a destination program. Don’t be a stepping stone program.

Keep your coach, keep your big supporters..

Keep big thinkers, don’t accept status quo  and go all out!

Nba alliance, nba training facility, big donations, higher prices for higher value and keep wojo and Staff!

[Cheeks]

You're probably right but I'm just guessing and still can't figure out how Louisville makes so much more than everyone else and how Duke grosses so much even with a smaller arena.  Don't know if some of these programs get extremely lucrative deals with Nike, Under Armour, etc. to only wear their products as Duke basketball and Notre Dame football are national brands at this point and advertisers know this and pay accordingly. 

Agreed with what you say about MU/The BEast maximizing their position(s).  More winning means more money across the board. More money in turn pays for a lot of bills outside of athletics including academic buildings, academic scholarships, new dorms, etc.

Last I recall, 100% of Duke's athletic scholarships were fully endowed. They recently had a goal of $250M athletic fund raising and brought in $340M total. So their expense line item is a lot different than MU. They also have football.  And yes, Duke's apparel deal is about $5M per year with escalators and long term...expires in 2027.   

It's one reason why Herman, Crash, myself and others have argued it is so important to continue increasing the level of the students.  Great students typically have a better probability of becoming great lawyers, doctors, business people, etc that in turn donate to the school. I realize this is against our "mission" at times, but from a survival point of view long term, that's important. 

[warriorchick]

Last I recall, 100% of Duke's athletic scholarships were fully endowed. They recently had a goal of $250M athletic fund raising and brought in $340M total. So their expense line item is a lot different than MU. They also have football.  And yes, Duke's apparel deal is about $5M per year with escalators and long term...expires in 2027.   

It's one reason why Herman, Crash, myself and others have argued it is so important to continue increasing the level of the students.  Great students typically have a better probability of becoming great lawyers, doctors, business people, etc that in turn donate to the school. I realize this is against our "mission" at times, but from a survival point of view long term, that's important.

If this is all about $$$$, then Marquette, should be looking at the financial means of the parents rather than the applicants' SAT scores and GPAs.  A lot of inherited wealth gets donated to Marquette.  Don't submit a FAFSA?  You're automatically accepted!!!!

There are plenty of wildly successful Marquette Grads that had less-than-stellar high school credentials. I know a number of them.  And my experience is that they are much more likely to attribute their success to their Marquette experience, and as a result, are more likely to financially support the school.

[Cheeks]

If this is all about $$$$, then Marquette, should be looking at the financial means of the parents rather than the applicants' SAT scores and GPAs.  A lot of inherited wealth gets donated to Marquette.  Don't submit a FAFSA?  You're automatically accepted!!!!

There are plenty of wildly successful Marquette Grads that had less-than-stellar high school credentials. I know a number of them.  And my experience is that they are much more likely to attribute their success to their Marquette experience, and as a result, are more likely to financially support the school.

Appreciate the response, and certainly don't mean that there are any guarantees better students = better jobs and $$.  And of course less than stellar students can hit home runs, too.   Completely agree.

I'm guessing if one does a correlation / causation analysis of the higher ranked schools based on student  academic merits, you would find their donations per alumni is higher.  This is pure theory, I have no data....total opinion, but would be interesting to see.   I understand MU's mission and it is near and dear to my heart.  I have one of my kids there now. My wife's dad went to MU medical school. My brother-in-law went to MU, it has served many of us well.  I get nervous where MU will be in 40 years,  75 years and on.  I'm impressed with Lovell. 

In my view the academics today at MU is already significantly better than it was when I was there. The culture has changed, too.  I took five students out to dinner the night before the Nova game.  It was a delight.  These were heady kids, young and a bit naive, but had a plan.  They were asking questions about the bar scene back in the day, which of course was night and day different than campus today.  As much as I revel in some of those memories back then, the university clamping down and changing the culture by removing some of the bars was a long term right decision.  It feels to me, anecdotally, that there are more kids there interested in career and academic pursuits than when I was there....it was a party school and hit or miss with the level of student IMO.  But will we have the financial stamina for the next 50 years, and beyond. I sure hope so. I'll be dead and gone, but I'd love to see the legacy endure.

[Boston Warrior]

I just hope it’s a school that drives for excellence. It can be great. This board tends to reflect on personal experience or like to tell us the inside experience. I believe Marquette can be much better than that. It’s future can be much better than its past.