Sunday, May 14, 2006

Trickle Down

During the Reagan administration part of the argument about the tax cuts at the center of the fiscal economic program was the "trickle down" theory. Simply put, the case went if you give tax cuts, mostly to the rich as they pay most of the taxes, then the money they spend would have a multiplier effect and help everyone. Those on the left saw this as a gift to the rich and the poor would not benefit. The history books show that the tax cuts (and the defense build up) lead to a boom in the American economy. The trickle down amounted to a flood and most people benefited. Those who disagree should review the economy in America in the late 1970's.

While the 12th game on the schedule will not have as big an impact on the nation, the impact on college football is becoming more clear.

Thanks to budgetary mistakes under former Athletics Director Wayne Hogan, Montana's athletic department was saddled with more than $1 million of debt. It forced the Griz to play a guaranteed game against Oregon last season, and open this season against Iowa for a $650,000 sum.

Where will the mid-major and teams without 100,000 seats get the money to compete with the escalating cost of a home game? These games will not be TV/ESPN worthy so, no money there to offset the cost. The only place to look for money is from the fans in the seats. Iowa’s Kinnick Stadium holds about 70,000 minus student seats 60,000 at $45 per seat yield $2,700,000 less $650,000 and IU could clear about $2 million (they have not been packing the stadium this century). Kinnick is be renovated and luxury boxes are being added (more tricle down).

Where is the unintended consequence in this 12th game? Stay tuned?

3 Comments:

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