Southwestern University (SWU), a large state college in Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth
Posted: Mon May 30, 2022 4:50 pm
Southwestern University (SWU), a large state college in
Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth
metroplex, enrolls close to 20,000 students. In a typical town–gown
relationship, the school is a dominant force in the small city,
with more students during fall and spring than permanent
residents.
A longtime football powerhouse, SWU is a member of the Big
Eleven conference and is usually in the top 20 in college football
rankings. To bolster its chances of reaching the elusive and
long-desired number-one ranking, in 2012 SWU hired the legendary Bo
Pitterno as its head coach. Although the number-one ranking
remained out of reach, attendance at the five Saturday home games
each year increased. Prior to Pitterno’s arrival,attendance
generally averaged 25,000 to 29,000 per game. Season ticket sales
bumped up by 10,000 just with the announcement of the new coach’s
arrival. Stephenville and SWU were ready to move to the big time!
The immediate issue facing SWU, however, was not NCAA ranking. It
was capacity. The existing SWU stadium, built in 1953, has seating
for 54,000 fans. The following table indicates attendance at each
game for the past six years. One of Pitterno’s demands upon joining
SWU had been a stadium expansion, or possibly even a new stadium.
With attendance increasing, SWU administrators began to face the
issuehead-on. Pitterno had wanted dormitories solely for his
athletes in the stadium as an additional feature of any expansion.
SWU’s president, Dr. Marty Starr, decided it was time for his vice
president of development to forecast when the existing stadium
would “max out.” He also sought a revenue projection,assuming an
average ticket price of $20 in 2018 and a 6.5% increase each year
in future prices.
Discussion Questions
PLEASE USE THE DATA PROVIDED BELOW
1. Develop a forecasting model, justify and compare its
selection over other techniques, and project attendance through
2019.
2. What revenues are to be expected in 2018 and 2019?
3. Discuss the school’s options.
Southwestern University Football Game Attendance, 2012-2017
2012
2013
2014
Game
Attendees
Opponent
Attendees
Opponent
Attendees
Opponent
1
34,500
Baylor
36,500
Oklahoma
36,100
TCU
2*
39,900
Texas
40,100
Nebraska
45,600
Texas Tech
3
38,000
LSU
39,500
UCLA
43,500
Alaska
4**
26,500
Arkansas
25,300
Nevada
27,000
Arizona
5
34,500
USC
36,500
Ohio
39,500
Rice
2015
2016
2017
Game
Attendees
Opponent
Attendees
Opponent
Attendees
Opponent
1
41,500
Arkansas
43,000
Indiana
47,000
TCU
2*
46,900
Missouri
49,300
North Texas
50,500
Texas Tech
3
43,500
Missouri
44,500
Texas A&M
46,000
Alaska
4**
30,500
Miami
34,000
Southern
36,500
Arizona
5
41,000
Duke
48,000
Oklahoma
50,000
Rice
*Homecoming games
**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.
Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth
metroplex, enrolls close to 20,000 students. In a typical town–gown
relationship, the school is a dominant force in the small city,
with more students during fall and spring than permanent
residents.
A longtime football powerhouse, SWU is a member of the Big
Eleven conference and is usually in the top 20 in college football
rankings. To bolster its chances of reaching the elusive and
long-desired number-one ranking, in 2012 SWU hired the legendary Bo
Pitterno as its head coach. Although the number-one ranking
remained out of reach, attendance at the five Saturday home games
each year increased. Prior to Pitterno’s arrival,attendance
generally averaged 25,000 to 29,000 per game. Season ticket sales
bumped up by 10,000 just with the announcement of the new coach’s
arrival. Stephenville and SWU were ready to move to the big time!
The immediate issue facing SWU, however, was not NCAA ranking. It
was capacity. The existing SWU stadium, built in 1953, has seating
for 54,000 fans. The following table indicates attendance at each
game for the past six years. One of Pitterno’s demands upon joining
SWU had been a stadium expansion, or possibly even a new stadium.
With attendance increasing, SWU administrators began to face the
issuehead-on. Pitterno had wanted dormitories solely for his
athletes in the stadium as an additional feature of any expansion.
SWU’s president, Dr. Marty Starr, decided it was time for his vice
president of development to forecast when the existing stadium
would “max out.” He also sought a revenue projection,assuming an
average ticket price of $20 in 2018 and a 6.5% increase each year
in future prices.
Discussion Questions
PLEASE USE THE DATA PROVIDED BELOW
1. Develop a forecasting model, justify and compare its
selection over other techniques, and project attendance through
2019.
2. What revenues are to be expected in 2018 and 2019?
3. Discuss the school’s options.
Southwestern University Football Game Attendance, 2012-2017
2012
2013
2014
Game
Attendees
Opponent
Attendees
Opponent
Attendees
Opponent
1
34,500
Baylor
36,500
Oklahoma
36,100
TCU
2*
39,900
Texas
40,100
Nebraska
45,600
Texas Tech
3
38,000
LSU
39,500
UCLA
43,500
Alaska
4**
26,500
Arkansas
25,300
Nevada
27,000
Arizona
5
34,500
USC
36,500
Ohio
39,500
Rice
2015
2016
2017
Game
Attendees
Opponent
Attendees
Opponent
Attendees
Opponent
1
41,500
Arkansas
43,000
Indiana
47,000
TCU
2*
46,900
Missouri
49,300
North Texas
50,500
Texas Tech
3
43,500
Missouri
44,500
Texas A&M
46,000
Alaska
4**
30,500
Miami
34,000
Southern
36,500
Arizona
5
41,000
Duke
48,000
Oklahoma
50,000
Rice
*Homecoming games
**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.