It's got to be a big financial hit for Virginia. They're still paying the money to Ohio to play, but now it is getting no income while having to pay travel expenses. I wonder if Virginia has to pay Vanderbilt for use of the stadium? Either way, it's got to be a big loss for Virginia.
I can't see how it wouldn't have been better to play in Athens, even if it meant Virginia had to still pay Ohio. Maybe Ohio could have offered some of the revenue or some kind of discount in the payment (maybe it did). Either way, it would seem less costly for Virginia, but maybe it was worth the financial difference in order to not play a true road game.
I have the same thoughts.
What exactly is in this for Virginia?
-They still pay Ohio $650K
-They now have to pay for travel
-Who is covering the costs for the stadium use?
-They don't get ticket revenue (free tickets?)
-Do they have to refund people tickets for the original game?
-Who gets TV revenue? Virginia? The conference? Split with the MAC or Ohio?
If I'm Virginia, I'm really questioning this decision from a financial perspective.
A couple simple answers.
UVa needs this game to have any shot at becoming bowl eligible (6 wins). The windfall for a potential bowl game is well worth making this game happen.
BUT ...
They also know Ohio isn't Kent or Akron or some other MAC slouch. So agreeing to play them on a neutral field is the only way they would probably do this. They know that rolling into Peden (while it might be financially cheaper on the front end) would put them at a significant disadvantage.
If they need this as a 6th win to be bowl eligible, they aren't going to get a good bowl with a big payout.
Depending on how the bowl picture/cancellation schedule shakes out, I wouldn’t be surprised if that 6-win requirement is waived.
The previous bowls they’ve been to include Military, Chick-Fil-A (now Peach) and Gator.
Among those three bowls is about a $1.5M average payout for each team. Half of that may go to the ACC, leaving $750K in bowl revenue.
You have to factor in big travel expenses. It cost Toledo $700K in expenses to go to the Potato Bowl.
That leaves $50K, plus another $50K from the share of the ACC take. So Virginia is plus $100K on the bowl.
But they spent $650K+ for the game that (possibly) puts them into bowl eligibility? Expenses that they can't recoup from ticket sales.
Maybe the TV revenue from the game makes up for it...