Why Schools Should Embrace Selling Beer at College Football Games

The NCAA likes to regulate just about everything -- but not the sale of alcoholic drinks at college sporting events. The decision to sell beer inside stadiums falls on the individual schools. And it's growing in popularity.

That makes it a little surprising that the University of Texas announced last week that it will continue its policy of not selling beer or wine at the school's football games.

The decision could cause the school to miss out on about $1 million in revenue. That might not be a huge deal in Texas, where the athletics department brings in $167.7 million in revenue, easily the highest of any in college athletics. But after the success of early adopters like West Virginia University, you can expect other schools to tap into this trend.

Taking the moral high ground
For Texas, the case against serving alcohol at the games is a moral one. With students and families attending the games, the school feels that serving alcoholic beverages would take away from the family atmosphere it is trying to create.

The 14 member schools of the Southeastern Conference, or SEC, the premier division in college football, agree. They want to take drinking and the sometimes drunken and rowdy behavior of fans out of the game.

The SEC does not allow any of its member schools to sell alcohol at games. But the rest of college football is open to do as they please.

Here's the thing, though: College kids will drink whether you allow it inside the stadium or not. Trying to stop drinking at games altogether simply will not work.

A case study
That's what West Virginia University figured out when it examined the issue a few years ago. Instead of buying drinks in the stadium, people -- students, especially -- were over-drinking in the parking lot before going into the stadium or sneaking liquor underneath their clothes.

Some would even leave the stadium at halftime to polish off a couple more drinks before the game resumed. The result: Fans over-served themselves in order to stay buzzed throughout the game.

When the university changed course in 2011 and let patrons buy alcohol in the stadium, it saw a big change. By allowing alcohol sales in the game, the university was able to police the amount people drank and make a little money in the process. What it got was a slight drop in drinking-related arrests and an additional $500,000 in revenue.

That money was a nice bonus for an athletics department that made about $8.5 million in profit for the university last year. Schools with large stadiums such as Texas, which can seat more than 100,000 fans per game, stand to make even more.

A look across college football
Approximately 25 of the 126 schools in the Football Bowl Subdivision, college football's highest level, allow for alcohol sales in their stadiums. The majority of those schools, including Cincinnati, Houston, Louisville, Memphis, and Tulane, are in metropolitan areas.

The schools allow drinking to help in a competitive entertainment marketplace. Some of these schools also sell alcohol at other popular collegiate sporting events such as basketball games and baseball games.

With this opportunity to bring in extra revenue, expect more schools to follow suit, especially if other schools have situations like West Virginia, where fan behavior actually got better.

"Primarily economics would drive it," Alabama Athletics Director Bill Battle told USA Today. "The disadvantages are security and fan behavior and other things that go with that. And so it's a trade-off. It is done successfully in places throughout the country. We're in the Bible Belt; we may not be the first ones to do that. But certainly we would consider it. Whether we do it or not, I don't know."

College football is a major revenue stream for many of the top universities -- although some schools do lose money on the sport -- and college sports have never been shy about trying to maximize profits.

In the end, economics will drive this decision. Alcohol is coming to more college football games. It's too lucrative not to.

Your favorite college football games without cable? It may be on the way
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 

 


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 17, 2014, at 2:11 AM, ghill92 wrote:

    My alma mater is one of those that sells beer at their games and I wouldn't be caught dead at one of their games. Not only are the people drinking in the parking lot while they tail-gate they also drink to the point of passing out in the game. I personally don't like to deal with 15,000 or so drunken fools before, during, and especially after the game. Maybe schools are losing revenue by not selling beer at their games but really if the only reason you go to a game is to drink maybe the school shouldn't want you there.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3031754, ~/Articles/ArticleHandler.aspx, 9/18/2014 1:59:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement