Thursday, November 10, 2011

Value Of Winning College Football Coaches: Paterno And Penn State Football Ticket Resale Prices

From Bloomberg, "Penn State Football Ticket Prices Fall 23%" by Erik Matuszewski and Eben Novy-Williams:
Ticket resale prices for Penn State’s football game against the University of Nebraska have dropped almost 23 percent since coach Joe Paterno was fired last night.

Defensive coordinator Tom Bradley, 55, was promoted on an interim basis to replace Paterno, who was dismissed along with university President Graham B. Spanier four days after former assistant football coach Jerry Sandusky was charged with sexually assaulting boys in the school’s athletic complex.
Penn State’s Beaver Stadium has been expanded to seat 106,572 fans, up from 46,284 when Paterno took over as coach in 1966. The school’s biggest crowd was 110,753 for a 2002 game against Nebraska.

Penn State is 8-1 and ranked 12th in the Bowl Championship Series rankings entering this weekend’s game against 19th-ranked Nebraska (7-2).
The resale ticket prices dropped $63 from $283 to $220 on the news of Paterno's firing. On the earlier announcement of Paterno's retirement at the end of this season, the resale ticket prices increased about $140.

His coaching ability and celebrity value is worth about $15 million dollars to the spectators (106,572 seats times $140). His on field presence during a game is worth about $6.7 million (106,572 times $63). The remaining $8 million is the value of of seeing a winning record team coached in preparation for a game by Paterno.

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