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The financial realities of playing in the Rock.

Posted on 10/18/14 at 1:03 am
Posted by CtotheVrzrbck
WeWaCo
Member since Dec 2007
37538 posts
Posted on 10/18/14 at 1:03 am
LINK


House Bill 1098, from the 2012 Legislative Session that shows the War Memorial Stadium Commission's budget. LINK

Subracting $25,000 for a custodian salary, the remaining 6 employees of the commission make at least $319K for an average of $53K + per year.

This is a state ran entity, the stadium will host less than 20 event/games this year. The U. of Arkansas is charged more than double than the other in-state D1 schools who played in WMS and no other university has plans to play in WMS again due to the "financial disaster" that moving games off campus to Little Rock have become for them.

Additionally the U. of Arkansas pays the commission $400,000 per year to offset the loss of a game, this means our contract for the SW Classic only pays us $600K when accounting for the WMS commission shakedown.

I think UA-Fayetteville should play one game a year in LR, but they should not be raked over the coals to do so. WMS is state ran, UofA is state ran. WMS doesn't seem to really be interested in making the stadium an attraction or doing anything to generate income past football games or things that might require them to actually bust their arse to be profitable or even viable. WMS is just bureaucratic waste. I would like to see us schedule a mix of the 3 service academies as our LR game mixed in with a SEC game every other of every couple of years.








For non-subscribers here are excerpts from the article.



quote:

What Crass accepts, though, is that the state-run commission will need to boost revenue now that the Razorbacks play only one game at the stadium instead of two each season, and that it will need to get creative to schedule additional games at a time when schools from all levels are finding more reasons to keep their teams on their own campuses.


Little Rock Catholic High School plays its home games at War Memorial Stadium at a cost of about $4,500 per game, and North Little Rock is doing the same this year at the same charge. Benton and Bryant play their Salt Bowl game there each season, and the Arkansas Activities Association hosts its six state championship games there every December.
Arkansas Baptist Junior College plays there as well, and Crass said there are about two events held each week in the club suites.


"We're very open to entertaining any offer, but for us to just go pay rent some place, that's not going to happen," ASU Athletic Director Terry Mohajir said. "It has to be financially beneficial to help strengthen our program."
ASU and UAPB had a oral agreement to play its 2013 game there, but it was moved to Jonesboro so ASU could play its first game under then-Coach Bryan Harsin on campus. Mohajir and Crass haven't talked about playing a future game in central Arkansas since.


"We have great supporters in central Arkansas, but we're going to make our decisions on how it benefits Arkansas State and our athletic department," Mohajir said.
UCA Athletic Director Brad Teague said the last time his school played at War Memorial in 2008 resulted in a "big financial loss."


The stadium was considered by the Sun Belt Conference and the Mid-American Conference in the summer of 2013 to host a bowl game, but a group in Montgomery, Ala., was quicker to get sponsorship and a television contract. There are chances a bowl game could be reborn, but it's not a guarantee.



"We need to figure out a way to make it more attractive, because the economics are real simple," Crass said. "We can't just say, 'Pay us rent and give us the parking and concessions and have a good time.' We have to figure out a partnership.
"I think the city of Little Rock has a role in that. The city is going to have to give folks an incentive to come play in the stadium."




eta: Salaries I could dig up. Not sure the year the data is for however. LINK


WAR MEMORIAL STADIUM COMM STADIUM COMMISSION EXECUTIVE DIRECTOR CHARLES STAGGS $91,986.96

WAR MEMORIAL STADIUM COMM STADIUM COMMISSION MARKETING/EVENT MGR DANNY JOE CROFFORD $42,444.06

WAR MEMORIAL STADIUM COMM MAINTENANCE ASSISTANT ANNA LOWERY $6,236.44

WAR MEMORIAL STADIUM COMM STOCK CLERK CARLEY STAGGS $15,512.02

WAR MEMORIAL STADIUM COMM STOCK CLERK EVAN ADAMS $4,653.60

WAR MEMORIAL STADIUM COMM MAINTENANCE ASSISTANT J.C. HUNTER WALLACE $10,394.07

WAR MEMORIAL STADIUM COMM AGENCY FISCAL MANAGER DINAH HALLUM SODERLING $54,680.50

WAR MEMORIAL STADIUM COMM FOOD PREPARATION COORDINATOR ALYXANDRA M. SODERLING $6,236.44

WAR MEMORIAL STADIUM COMM ADMINISTRATIVE SUPPORT SPECIALIST ALLISON RENEA LOWERY $18,720.00



This post was edited on 10/18/14 at 1:26 am
Posted by TheCheshireHog
Cashew Chicken Country
Member since Oct 2010
40855 posts
Posted on 10/18/14 at 1:32 am to
I thought we made like $5 million with the SW Classic?
This post was edited on 10/18/14 at 1:33 am
Posted by Litigator
Hog Jaw, Arkansas
Member since Oct 2013
7535 posts
Posted on 10/18/14 at 1:35 am to
Posted by CtotheVrzrbck
WeWaCo
Member since Dec 2007
37538 posts
Posted on 10/18/14 at 1:41 am to
quote:

I thought we made like $5 million with the SW Classic?


From what I understood it was $10M for 10 years. I was thinking it was a Million per year in our pockets... If it's only 500K for each team, AND we're paying LR $400K for the next 3 years, then that was a stupid fricking deal to take based on financials alone.

The visibility of the game and the presence in the metroplex is great for us. The ticket prices are kinda crazy however, it's bowl game level and above.
Posted by CauleyHog
Fayetteville, Arkansas
Member since Nov 2012
4618 posts
Posted on 10/18/14 at 1:51 am to
WMS needs to get their shite together in other words...if you ask me. Jeff long needs to say good bye or WMS needs to put some work in and make it worth it for the UofA, and other universities like ASU, UCA, UAPB..yada yada yada. Expand, Concerts more games and attractions. They get paid alot of money for not doing too much.
Posted by TheCheshireHog
Cashew Chicken Country
Member since Oct 2010
40855 posts
Posted on 10/18/14 at 2:37 am to
I found this article that confirms it's around 4-5 million per year which is what I remember reading about it years ago.

LINK

quote:

Playing home-and-home is a possibility. Financially, he indicated there would not be a huge difference for Arkansas if the game was played in Texas or Fayetteville because of the estimated $4-5 million payout from the Southwest Classic game.
Posted by pioneerbasketball
Team Bunchie
Member since Oct 2005
132206 posts
Posted on 10/18/14 at 3:40 am to
Good stuff guys.
Posted by Feral
Member since Mar 2012
12375 posts
Posted on 10/18/14 at 8:02 am to
I know that they're making a lot of money renting out the club suite level and press box for parties and events. I've been to a wedding rehearsal dinner there, and we had our son's first birthday on the first floor of the press box two years ago.

It's not really that expensive to rent it out, and from what I remember they told me they were crazy busy with weekend events and were booked full for like 85% of the non-football weekends.

Who knows how much money they make from it, but there's practically no overhead because you have the stadium to yourself and you have to buy their catering and clean up afterward. It's a pretty cool place to have an event, and we really enjoyed having our son's first birthday there.
Posted by CtotheVrzrbck
WeWaCo
Member since Dec 2007
37538 posts
Posted on 10/18/14 at 10:03 am to
The article I linked says they average 2 bookings per week in the club suites.

I'd open up a lunch counter using the catering kitchen to make easy to prepare lunch items. It'd be a breeze to get in and out and there's plenty of traffic going by from Markham and I630 and the hospitals that surround the area as well. It would definitely keep the old stadium in the public eye and help generate more connections to people from it. The aesthetics of having lunch overlooking the field would be a cool thing.
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