Jason Wilkins

Week 4 Homework – SWU Case Study

Prof. Knopp

Devry University

Discussion Questions

1. Develop a forecasting model, justifying its selection over other techniques, and
project attendance through 2014.

Based on the computations, the trend projections show that the attendance from the past years
games through 2014 has gone and will continue to go up. This information gives leverage to the
new coach to get him the new stadium that he requested.

2. What revenues are to be expected in 2013 and 2014?

An assumed average ticket price of $50 in 2013 and a 5% increase each year in future prices.
Based upon the trend projection with seasonality forecasts, the revenue for both 2013 and 2014
were computed. By computing the sum of the attendees for all the five games each year and
multiply by the respective ticket price for that year we can forecast the revenue to be expected in
2013 and 2014.

3. Discuss the school’s options.

The best option is to build a new stadium as the forecasts show that the stadium will be sold out
sometime in 2013. It will continue to rise and this should definitely be dealt with now to ensure
there is no loss in revenue due to sold out games. As the population increases, it makes the most
sense to build a new stadium that can accommodate the forecasted attendance to replace the
aging stadium.
Southwestern University Football Game Attendance, 2007–2012

2007 2008 2009

GAME ATTENDEES OPPONENT ATTENDEES OPPONENT ATTENDEES OPPONENT
1 34,200 Rice 36,100 Miami 35,900 USC
a
2 39,800 Texas 40,200 Nebraska 46,500 Texas Tech
3 38,200 Duke 39,100 Ohio State 43,100 Alaska
b
4 26,900 Arkansas 25,300 Nevada 27,900 Arizona
5 35,100 TCU 36,200 Boise State 39,200 Baylor

2010 2011 2012

GAME ATTENDEES OPPONENT ATTENDEES OPPONENT ATTENDEES OPPONENT
1 41,900 Arkansas 42,500 Indiana 46,900 LSU
a
2 46,100 Missouri 48,200 North Texas 50,100 Texas
3 43,900 Florida 44,200 Texas A&M 45,900 South Florida
b
4 30,100 Central Florida 33,900 Southern 36,300 Montana
5 40,500 LSU 47,800 Oklahoma 49,900 Arizona State

a
Homecoming games.

b
During the fourth week of each season, Stephenville hosted a hugely popular southwestern crafts festival. This
event brought tens of thousands of tourists to the town, especially on weekends, and had an obvious negative impact
on game attendance.

Projected Attendees Per Game

2007 2008 2009 2010 2011 2012 2013 2014
34,200 36,100 35,900 41,900 42,500 46,900 47,623 49,920
39,800 40,200 46,500 46,100 48,200 50,100 54,320 56,940
38,200 39,100 43,100 43,900 44,200 45,900 51,012 53,472
26,900 25,300 27,900 30,100 33,900 36,300 36,174 37,918
35,100 36,200 39,200 40,500 47,800 49,900 49,869 52,274

Projected Revenue
2013 2014
47,623 49,920
54,320 56,940
51,012 53,472
36,174 37,918
49,869 52,274
238,998 250,525
$ 50.00 $ 52.50
$ 11,949,900.00 $ 13,152,550.66