Stadium expansion: if the goal is to maximize revenue
Posted on: March 25, 2012 at 12:37:56 CT
Would suggest that those of you discussing stadium expansion should start by asking what is the Athletic Departmen's goal.
If that goal is to maximize revenue, the expansion is going to be funded entirely by donations and there is a waiting list for luxury seating, then building luxury seating is the rational choice.
When stadium expansion is funded by donations, the Athletic Department has a zero cost. Therefore the decision as to what mix of luxury seating and regular reserved seating to build is driven solely by revenue consideratins.
When there's a waiting list for luxury seating and some question as to how many additional regular reserved seasts can be sold, the safe course is to fill the known existing demand.
Edited by 90183 at 12:38:52 on 03/25/12