Here it is, the answer to the financial crisis that colleges and universities are facing: sports mortgages! Yes, you can now buy (for anywhere between $100,000 and $175,000) guaranteed first-rate seats in your alma mater's stadium. Pay now, pay later...take up to 50 years, they're willing to negotiate. This may seem unreal but the Associated Press just reported on this phenomena and it is catching on like wildfire. These are known as "equity seat rights" and help fans feel confident they will have the best cushioned seats, snacks, and views for a very long time. They also allow schools to invest the money now in renovations, new buildings, or whatever is deemed pressing. Downpayments and annual mortgage payments provide the money needed.
This actually seems like a pretty good idea. In California Memorial Stadium has sold more than 1,800 of its 3,000 seats and in the process collected over $150 million. This money will help renovate the almost 80 year old stadium and ensure fan participation for decades to come. Some schools are having trouble selling the seats in these lean times but feel confident that as the economy recovers the seats will sell. So schools benefit, alumni are happy, and with the 6% annual fee on the lien trustees are ecstatic.
We were talking in class about the role of sports in a university and the prestige that come with having a strong athletics program. The sports mortgage idea reinforces this power in a positive as well as prototypically capitalist way. And why not? This type of 'thinking outside the box' is great to see. Hopefully it can inspire more wacky yet profitable ideas.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033002104.html
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My graduate alma mater is doing this and I think it is pretty cool. I know if I lived closer to Salt Lake city, I would look into it. Not only are you supporting the institution, you get to take part in sporting events! I love college sports and I know that there is much debate on how much an institution spends on college athletics, but if a university can profit off of athletics and have the money go towards something more that just athletics, I am all for it. I would be interested to see where the money for these seats go. What is the institution going to do with this new money?
ReplyDeleteThanks for sharing this article Laura. I really enjoyed it!