Re: Minnesota Golden Gopher Season 2018-2019: Fire Motzko
Hmmmm... Kind of a slap in the face to the STHs. This is a controversial revenue management decision by the AD. IMHO the finance and athletic depts. at the U are shooting themselves in the foot by raising the "donation fee" among their most faithful fans and corporate clients.
The new Tax Cuts and Jobs Act effective Jan. 1 this year completely eliminated deductions for business entertainment expenses. Before the tax bill, companies could deduct 50 percent of a variety of business entertainment expenses, such as client meals, event tickets, charitable event tickets including these "donation fees". Under the new law, no deduction is allowed for any activity generally considered to be entertainment, amusement or recreation.
I don't know what average corporate ownership of Gopher hockey season tickets is (pro sports is about 30%), but companies will scrutinize their budgets carefully and look to spend their dollars more wisely which means less butts in the seats at Mariucci. The same applies to individual STHs. The collateral damage will inevitably affect concessions revenue as well. I don't see the wisdom in ruffling the feathers of your faithful corporate and individual STHs who represent the backbone of your revenue stream.
If Coyle wants to be competitive with ticket pricing, passing the savings onto STHs should be a top priority.
The Gophers are reducing prices for their cheapest season tickets, but their more expensive packages will cost the same. In those more expensive sections, the ticket prices are lower but the mandatory scholarship seating donation price increased, making the changes a wash. - STrib.
The new Tax Cuts and Jobs Act effective Jan. 1 this year completely eliminated deductions for business entertainment expenses. Before the tax bill, companies could deduct 50 percent of a variety of business entertainment expenses, such as client meals, event tickets, charitable event tickets including these "donation fees". Under the new law, no deduction is allowed for any activity generally considered to be entertainment, amusement or recreation.
I don't know what average corporate ownership of Gopher hockey season tickets is (pro sports is about 30%), but companies will scrutinize their budgets carefully and look to spend their dollars more wisely which means less butts in the seats at Mariucci. The same applies to individual STHs. The collateral damage will inevitably affect concessions revenue as well. I don't see the wisdom in ruffling the feathers of your faithful corporate and individual STHs who represent the backbone of your revenue stream.
"We live in a vibrant community and state where entertainment options are endless," Coyle said in the release. "We have to be extremely competitive and creative with the options we offer, while still making sure that we provide every opportunity for our student-athletes. We will continue to explore additional options for all our sports in the future."
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