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Auburn's athletic dept. operated at a deficit of $866,000 last year'

Posted on 11/12/14 at 12:19 pm
Posted by Toddy
Atlanta
Member since Jul 2010
27250 posts
Posted on 11/12/14 at 12:19 pm
They would rather go in the red than have the possibility of opposing fans buy tickets that they can't sell.

quote:

Rather than place available tickets on the open market, Auburn leaned on big-money boosters to sell out its 2013 home games with Georgia and Alabama, according to a report late Tuesday in the Wall Street Journal.

The country's leading financial newspaper did an intensive study into Auburn's ticket-selling practices last season, and found that the Tigers' 3-9 record in 2012 left it challenged to fill Jordan-Hare Stadium. That struggle continued late into the season, even with the team on the way to the SEC title.

With ticket sales waning early in 2013, the school began sending emails to members of the Talon Society (boosters who have donated more than $500,000 to the athletic department) and other top donors, asking them to purchase tickets. The strategy apparently worked, as the school sold all but 43 tickets to the Georgia game and 212 to the Iron Bowl.

In detailing those ticket sales, the WSJ found the following:

• Thirteen Auburn donors each bought 20-plus tickets at $95 each for the 2013 Iron Bowl, while four bought more than 50. For the Georgia game, those numbers were 16 and six, respectively.

• Auburn booster Jim Cleveland spent a total of $17,100 for 180 tickets to the two games. Cleveland, owner of Cleveland Brothers Construction in Auburn, is a close friend of athletics director Jay Jacobs.

However, by not placing the tickets on the open market, Auburn might have cost itself more than $1 million according to the WSJ's research. Auburn's athletic department operated at a deficit of $866,000 in 2013.

The school chose this route over releasing the tickets into the open market because it didn't want more rival fans than was absolutely necessary getting into the games.

"Our goal is not to have empty seats at the stadium," Auburn spokeswoman Cassie Arner said. "We especially don't want any seats to be occupied by fans of other schools, including Georgia or Alabama fans."


LINK
This post was edited on 11/12/14 at 12:23 pm
Posted by Mizzou to my Lou
Miami
Member since Sep 2013
1767 posts
Posted on 11/12/14 at 12:22 pm to
Roll Tide
Posted by SummerOfGeorge
Member since Jul 2013
102699 posts
Posted on 11/12/14 at 12:23 pm to
While it is still pretty pathetic sounding, the general concept of a University Athletic Foundation working at a deficit due to issues like this is not a huge deal.

A Foundation running a deficit or a near deficit due to long term debt payments like Tennessee was pre-SECN money is a much bigger issue.

Still hilarious.
Posted by FourThreeForty
Member since May 2013
17290 posts
Posted on 11/12/14 at 12:25 pm to
Sounds to me like they've been doing some extra spending on dem playuhs
Posted by piggidyphish
Birmingham
Member since Jul 2009
18880 posts
Posted on 11/12/14 at 12:26 pm to
damn...that's 4 qbs worth of money.
Posted by SummerOfGeorge
Member since Jul 2013
102699 posts
Posted on 11/12/14 at 12:28 pm to
Auburn's athletic department seemingly has some real doofuses in management positions.
This post was edited on 11/12/14 at 12:28 pm
Posted by PJinAtl
Atlanta
Member since Nov 2007
12742 posts
Posted on 11/12/14 at 12:28 pm to
My only concern is that if a team (college or pro) starts placing unsold tickets in the resale market in an attempt to capitalize on the higher revenue, does that open the door to them purposely withholding a number of tickets in order to increase demand and drive the price up?
Posted by piggidyphish
Birmingham
Member since Jul 2009
18880 posts
Posted on 11/12/14 at 12:29 pm to
quote:

Auburn's athletic department seemingly has some real doofuses in management positions.


More than likely...but it was also coming off a 3-9 season. I can believe the line wasn't very long to snatch up tickets.
Posted by RT1941
Member since May 2007
30193 posts
Posted on 11/12/14 at 12:30 pm to
Wait....is this the rumor that was circulating on Monday? Is this the final deathblow that gets Tim Jackson fired at AU?


Seriously, who gives a shite?
Posted by StopRobot
Mobile, AL
Member since May 2013
15384 posts
Posted on 11/12/14 at 12:30 pm to
quote:

found that the Tigers' 3-9 record in 2012 left it challenged to fill Jordan-Hare Stadium


Band wagon fanbase
Posted by piggidyphish
Birmingham
Member since Jul 2009
18880 posts
Posted on 11/12/14 at 12:30 pm to
quote:

Seriously, who gives a shite?


Toddy.
Posted by SummerOfGeorge
Member since Jul 2013
102699 posts
Posted on 11/12/14 at 12:31 pm to
Agree. This is just a bad practice for a quasi-state institution to be participating in. Not to mention the total lack of transparency. Like I said earlier, Auburn seems to have good ole boys in management when in reality they need big time business people who understand and run things like a Fortune 500 company.

This is a problem at a bunch of athletic departments in the last 5-10 years since money has gotten so big. Heck, some of the small D1 athletic foundations we audit are dealing with $100s of millions in monies for new facilities, contributions, salaries, etc and these folks are not qualified to be running an entity of that size.
Posted by stat19
Member since Feb 2011
29350 posts
Posted on 11/12/14 at 12:31 pm to
What does this have to do with gay marriage?
Posted by allin2010
Auburn
Member since Aug 2011
18150 posts
Posted on 11/12/14 at 12:32 pm to
Fire up ATPB.
Posted by StopRobot
Mobile, AL
Member since May 2013
15384 posts
Posted on 11/12/14 at 12:32 pm to
quote:

damn...that's 4 qbs worth of money.



An AU fan with a sense of humor. The Red Crowned Crane of the sports world
Posted by DuncanIdaho
Ouray, CO
Member since Feb 2013
14970 posts
Posted on 11/12/14 at 12:33 pm to
quote:

Auburn seems to have good ole boys in management

No shite. Did you see Gene Chizik's buyout?
Posted by Smoke7024
Member since Jun 2010
22644 posts
Posted on 11/12/14 at 12:33 pm to
What that article doesn't tell you is that these are unused tickets from players' families, high school coaches, etc. and aren't "available" for resale until the last minute. They call on donors a day or two before the game to take large portions of unsold tickets so they aren't left unsold. If any ticket office can get every ticket sold, then I'd be surprised. We are talking a few hundred tickets out of 87,000 or so.
This post was edited on 11/12/14 at 12:35 pm
Posted by Irons Puppet
Birmingham
Member since Jun 2009
25901 posts
Posted on 11/12/14 at 12:35 pm to
Still paying Chizik and some other ex-coaches salaries. I am amazed how the press failed to mentioned that fact.
Posted by SummerOfGeorge
Member since Jul 2013
102699 posts
Posted on 11/12/14 at 12:35 pm to
Well yea but that happens everywhere. This is a totally different situation.
Posted by RT1941
Member since May 2007
30193 posts
Posted on 11/12/14 at 12:36 pm to
Why the hell does the Wall Street Journal have such a hard on for AU?

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