Interesting accounting in the season ticket invoice

[NarfUte]

I’m a NEZ’er and the overall invoice is the same as last year but the Crimson Club obligation is 5x what it used to be. Are there advantages to the AD for them doing that?

[Tony (admin)]

Huh. That makes the tax deductible portion of our tickets bigger.

[Charlie]

Is the tax deduction still around?

[NarfUte]

I’m pretty sure those contributions are no longer tax deductible, but I’m not a tax professional 

[Tony (admin)]

Then I wonder why the change… 

[MFury]

I wonder if it impacts how the AD is able to use the funds – suspect revenue likely allocated different than donations.

[dwainegf]

My trick knee tells me that it is setting up future increases in ticket costs. Mine said $160 for each ticket which is roughly $27 per game per seat. Last year that number was around $75 per game. If they slowly raise the per game price over a period of time to get it to $75 per game and keep the obligation for the Crimson Club, they will likely keep selling the tickets while raising revenues. There is a breaking point on per game pricing that, I am guessing here, was quickly approaching at the $75 range.

My trick knee is wrong from time to time, however, not very often.

[UteThunder]

This is exactly what is going on. 

Right now, people are used to paying X for their tickets and Z for their Crimson Club donation. By reducing X and increasing Z to equal the original amount, they are hoping to condition season ticket holders to see their higher CC donation as their normal donation amount. After a year or two of people adjusting to the new “lower” priced tickets, they will slowly begin raising ticket prices while keeping the now “normal” CC donation at the higher amount.  

[Charlie]

Either way, even though the school now needs funds, it is not the best time for increases.