The University of Minnesota lost around $16,000 last year on home football games despite selling more than $900,000 worth of beer and wine at the stadium.
Last year, the University decided to legally sell alcohol at TCF Bank Stadium. As a result, it had to spend significant amount on hiring 10 ushers; 12 additional police and 12 security officers to look into any drinking-related problems; setting up tents and equipment rental.
The hiring of police personnel cost the university around $47,000, wherein the police related incidents actually went down last year when compared to the previous seasons.
The decision to provide drinks at the stadium followed the Legislature passing a bill last April that permitted the university management to sell beer and wine.
Plus, the officials invested $30,000 to install ATMs and $12,000 worth of oversized plants were put up around the stadium.
"Going into the first season, we knew it wasn't going to be profitable," associate athletics director, Tom McGinnis, told Star Tribune.
All these expenses were stated to be start-up costs and a one-time investment. So, if the Minnesota Golden Gophers football fans continued to purchase the same amount of alcohol this year, they are hopeful of making a profit of $15,000.
In addition, half of its revenues were diverted to Philadelphia-based Aramark Corp., which acquired the contract to sell beer and wine. And the university spent $180,000 to just purchase the alcohol drinks.
In order to bring in more profits for the 2013 football season, the university is planning on replacing kegged beer with bottles and cans and reducing staff, police and security personnel.
Currently, the university is on a two-year trial period with the TCF Bank Stadium. Once, the term ends, it will consider hiking prices for its premium and box seating.
It is also thinking of modifying its contract with Aramark, which was signed initially to sell alcohol to premium seats at sports events.
