(01-13-2026, 09:11 PM)BostonCard Wrote: (01-13-2026, 06:12 PM)calfan Wrote: Right- I should be forthcoming and share that I have seen the last couple years' balance sheets (I think they're public, or at least I thought so? Some Cal fans submitted FOIA requests, I believe but need to look back) and football revenue is significantly green.
Our football program is revenue generating by a significant margin. I think someone else mentioned that the stadium debt should be factored in: I don't agree because a) Central campus has agreed to cover it, this was (largely) a state-mandated expense for the retrofit and more importantly b) it's a fixed cost, the point isn't even that football runs red/green but rather that for every dollar put into the program we expect a positive return (which is the case). It is clear that until we hit some marginal return threshold, we should continue to increase spending because it returns more than we put in. Fixed costs that do not fluctuate with money spent don't make sense to factor in- it's a simple input/output equation and until we hit a level upon which we're no longer returning X% more than we're putting in, it makes sense to fuel the fire. At least in my mind, happy to hear disagreement
Note that this may not be the case for Stanford, I don't know the situation as well. I'd be surprised if this weren't the case. Most schools similarly are ROI positive from football and that's not including the brand / visibility that great football gives you. I know a lot of smart kids who took Stanford over MIT/Ivies during the Harbaugh/Shaw years because they wanted a fun school-spirit experience. So I really do think it's a good investment.
Wow, failing to distinguish between marginal net revenue and average net revenue makes the "analysis" even more worthless than it already was. You discount the cost of the retrofit as a fixed cost (and, true, the University would be on the hook for it even if Cal dropped football tomorrow), but do not discount the fixed revenues, and the bulk of the revenues are also fixed. For example, no matter how much Cal invests in its football team, the broadcast rights will not move a lot (I believe about $15 million, based on getting 30% of the ACC payout, and while there is some variation based on viewership, which might move a little based on how good the team is, the effect is not zero but not transformational*). Endowment payout (probably a bigger share of revenue for Stanford than Cal) would only increase if spending more money on football got a transformational donation. But even the $50 million donation Stanford football scored from Bradford Freeman is incremental but not transformative**. OK, gate revenue surely would move if Stanford were a better team, but a) it only makes up 4% of total revenue, so let's assume 6 - 8% of football revenue and b) it might surprise you to know that the team with the lowest home attendance in the ACC was the conference champion (yes, Duke, with 24,000 fans/game had a lower attendance than Stanford with 28,000). The other conference championship participant, UVa, was also below the median. Winning puts more butts in seats, of course, but there are a lot of factors that influence attendance beyond record.
The point is that saying that even if we did buy your analysis that Cal football was in the black (if you exclude stadium debt), it doesn't mean that if you increase spending on Cal football you will increase revenue by more. Especially in sports, which are by definition a zero sum game, with there is constant pressure on every team to spend more money, but the average record across all teams is by definition .500 and unchangeable. And if everyone ran your analysis and concluded that they could make more money by spending more money, the eventual destination is that everyone has spent more money, on average nobody has improved, and therefore the return on that investment is 0.
The best you can hope for is that your marginal spend was more efficient than the other teams', or that due to some unusual circumstance, you were able to increase your spend at a time when someone else wasn't. But the advent of the House settlement payout means that pretty much everyone will be spending $20 million more than they used to if they can and again, and as a whole we will be right back where we started.
Look, you are welcome to advocate for more spending because your ego is tied to how well a bunch of 20 year olds move a ball on a football field, or, even better, you are welcome to throw your money at it to realize that vision. Despite my dismissiveness of it, it was more enjoyable to root for Stanford football a decade ago than it is now, and all else being equal, I would prefer to have a winning football team than a losing one. But it is ludicrous to pretend that spending more in order to cater to that vanity will actually pay off with a positive return.
BC
* Indiana's viewership about doubled from 2023 (when they went 3-9) to 2025 (when they were undefeated), but was still about half of Ohio State and Michigan's, and Indiana is pretty much the most extreme transformation possible. Cal could win the ACC and would still be outdrawn by Clemson and Florida State. Viewership is less elastic than you might think, and it must really chap your hide that from 2020-2024, when Stanford won a total of 16 games, our TV viewership was still 46% higher than Cal's (reference: https://www.thekeyplay.com/content/2025/...st-5-years).
** Stanford's total revenue in 2023/24 was $143 million, of which 24% ($34 million) came from the endowment. If you assume a 5% payout (and assume that the Bradford Freeman's entire donation made it to the endowment, which it wasn't), the Freeman donation would generate about $2.5, which increases the payout by 7%, which is not nothing, but makes a small marginal change. Moreover, what are we going to assume, that Freeman would have made a $100 million donation if Stanford had won 7 games instead of 4? That there is a whole host of other donors waiting in the wings but for the fact that Stanford had a lousy football team?
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BC,Calfan,
Enjoyed reading both your posts on Football, valid points on both sides, ..so you inspired me to reply.
I wrote this very quickly late at night, so the thoughts are raw & not fully fleshed out, but hopefully you get the gist.
Let me add a hypothetical that might change the analysis and maybe unify your 2 perspectives::
I have stated on this board, and have felt for almost 2.5 decades, that Stanford MUST enlarge & diversify its undergraduate enrollment; Enlarge it by 2500 undergrads total, 625 per class (frosh, soph, jun, senior), and DIVERSIFY it to be less 'specialized & nerdy' [A little more like Duke & NotreDame's, Cal's GeorgiaTech's, UCLA's, Wisconsin's undegraduate classes as far as being less nerdy & more sports-loving....I can see BC and Goose, gnashing their teeth, but IMO Duke and NotreDame, Cal, GeorgiaTech students are 'high caliber people, we at Stanford do not have 'higher ethics or morals or academic-ethics-standards' than Duke or ND, GeorgiaTach or these others in that list ...just look at all our Academic Scandals of the last decade, that hopefully i dont have to air out here]
Had this been done 25years ago (yes i know this would have required getting the okay from Santa Clara county to build more on Stanford/County land, but lets assume this had been done)
That would mean a substantially larger Alumni base & FanBase out and about ( spouses of Alums, siblings of Alums, kids of Alums, etc ) almost exponential, when you consider the multiplicative & orthogonal 6 degrees of separation between these 'extra Alums; over the last 20 years & who they have as relatives and significant others, etc
Just maybe if we had this Larger undergraduate base for the last 25 years (that was less nerdy and more diverse), maybe 1 or 2 of these Alums or Significant others or Relatives of these Alums, would be 'someone Financially Successful (e.g half billionaire); ... who 'Loved Sports' like a T Boone Pickens (OklahomaState) or a Mark Cuban (Indiana) or the Guy from TexasTech, and then they would be happy to Donate to Stanford Football & Stanford Sports.
Yes, my model is hypothetical (no guarantee), but hopefully one can understand the underlying concept here:
THE LARGER & MORE DIVERSE YOUR UNDERGRADUATE CLASSES ARE over a 25year span, (its all about volume & numbers), your university has a 'slightly better chance; of having 1 or 2 of these Diverse Undergraduates, go on to become Massively Financially Successful & A CollegeFootballFan, who would then Donate like a MarkCuban or TBoonePickens.
Then (to unify BC & Calfans positions), Stanford could:
• BC's point: Have that 1 or 2 'Rich Half Billionaire' Football Fanatic Alums, who would want to 'Donate' to StanfordFootball, without doing the tradeoff of the AcademicSide and the AD
• CalFans point: Have the ability to 'Go All In' on Funding to Produce a 'Competitive Top 25 Football Program (like a NotreDame)
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And yes, BC, I am fully aware there is little to no data to support a CORRELATION or GUARANTEE between a 'LARGER More Diverse Undergraduate & Alumni Base' & '1 or 2 of those Alums or Alum's significant others or relatives becoming a 'Half Billionaire College Football Loving Alum' who wants to donate to their alma-maters AD or Football Program, ...but just with the 'Law of Larger Numbers' ..to me this gives us a better chance. And it seems like we have come to this idea of Enlarging the Undergraduate Class now (albeit about 20 years tardy IMO).