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Re: USD and Daktronics Partnership
Jackrabbit Nation:
Think of this. Daktronics likely takes a very significant part of the advertising revenue. They put in the scoreboards and they sell the advertising.
Smart.
Buy stock in Daktronics.
Many (or all) of those advertisers budget a certain amount each year for promotions. When those boards are on the wall, USD will likely lose significant annual support from those advertisers. Bank "XYZ" may have set aside $10,000 for promotions at USD. Now, rather than the $10k going into the USD athletic budget, most or all of that money will flow to Daktronics.
History lesson: Any of you old enough to remember when Karl Miller was building the DakotaDome? Loyal athletic supporters at the U, people who could be counted on to purchase a season ticket each year, ponied up a little extra money and purchased a 10-year or seat contract. It worked to build the building but soon after the doors opened, the U realized it had given up some of the revenue that would have been realized if they could sell those seats for each game or each season. Probably the U supporters who bought the long-term contracts, with a little extra prodding, would have BOTH donated to the building fund AND bought a season ticket each year.
It's all a matter of one's philosophy on fund raising. The U thinks they're doing it correctly. The scoreboard deal may not be dumb but it may not be the smartest approach.
We'll see.
I think that if SDSU obtains new scoreboards, it will want to hang on dearly to the advertising revenue. That's a steady source of income, particularly if your teams have winning seasons each year and there are a lot of butts in the seats.
In the very near future, SDSU should look into licensing its names and logos. Most D-1 programs license their names, logos, designs etc. and they pick up a buck or so every time you put on that baseball cap, t-shirt or sweatshirt.
Go Jacks.
Jackrabbit Nation:
Think of this. Daktronics likely takes a very significant part of the advertising revenue. They put in the scoreboards and they sell the advertising.
Smart.
Buy stock in Daktronics.
Many (or all) of those advertisers budget a certain amount each year for promotions. When those boards are on the wall, USD will likely lose significant annual support from those advertisers. Bank "XYZ" may have set aside $10,000 for promotions at USD. Now, rather than the $10k going into the USD athletic budget, most or all of that money will flow to Daktronics.
History lesson: Any of you old enough to remember when Karl Miller was building the DakotaDome? Loyal athletic supporters at the U, people who could be counted on to purchase a season ticket each year, ponied up a little extra money and purchased a 10-year or seat contract. It worked to build the building but soon after the doors opened, the U realized it had given up some of the revenue that would have been realized if they could sell those seats for each game or each season. Probably the U supporters who bought the long-term contracts, with a little extra prodding, would have BOTH donated to the building fund AND bought a season ticket each year.
It's all a matter of one's philosophy on fund raising. The U thinks they're doing it correctly. The scoreboard deal may not be dumb but it may not be the smartest approach.
We'll see.
I think that if SDSU obtains new scoreboards, it will want to hang on dearly to the advertising revenue. That's a steady source of income, particularly if your teams have winning seasons each year and there are a lot of butts in the seats.
In the very near future, SDSU should look into licensing its names and logos. Most D-1 programs license their names, logos, designs etc. and they pick up a buck or so every time you put on that baseball cap, t-shirt or sweatshirt.
Go Jacks.
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