THE WET PROJECT the Benefits of Alcohol Sales at Penn State’S Beaver Stadium the WET PROJECT: the Benefits of Alcohol Sales at Penn State’S Beaver Stadium

THE WET PROJECT The Benefits of Alcohol Sales at Penn State’s Beaver Stadium THE WET PROJECT: The Benefits of Alcohol Sales at Penn State’s Beaver Stadium

Prepared for: Paul Clifford Chief Executive Officer Penn State Alumni Association

Sandy Barbour Athletic Director Penn State Athletics

Prepared by: Spencer Rafajac Allyson Paul James Shaud

April 18th 2016 LETTER OF TRANSMITTAL

To: Paul Clifford, CEO - Penn State Alumni Association From: James Shaud, Spencer Rafajac, Allyson Paul Date: 4/18/16 Subject: Re-Introducing Alcohol into Penn State’s Beaver Stadium

Hello Mr. Clifford,

We are reaching out to you today in hopes that you might be able to take some time to review our proposal to re-introduce alcohol, namely beer, to Penn State’s football events. When we were asked by our Professor to think of something here in State College that we felt could be improved upon, a recent conversation with several Penn State Alumni came to mind. From that conversation it became apparent that many alumni miss the days when alcohol was permitted inside of Beaver Stadium. We wondered why this had changed all those years ago and that of course prompted us to do some dig- ging. After getting in contact with hundreds of people ranging from alumni, to medical professionals, and even law enforcement it became apparent that not only is the sale of alcohol at intercollegiate sporting events greatly desired, it is also greatly beneficial.

These benefits, include those related to health and safety, revenue, and evenin- creased morale and support from the Penn State Community. And as I am sure you already know, Penn State’s own Athletic Director, Sandy Barbour recently came out in support of serving alcohol at games in a limited capacity. Based on our findings we firmly believe that permitting beer sales at sporting events is in the best interest of the University. As we move forward in this process, should you and your staff agree with our findings, we would greatly appreciate further support from the alumni community.

Thank you for your time and consideration.

WE ARE,

Spencer Rafajac James Shaud Allyson Paul Contents PAGE

Executive Summary ……………………………………………………………… …………………. iv

Introduction …………………………………………………………… ……………………………… 1

The Alumni Want Beer to be Sold at Beaver Stadium 3 Key Survey Data …………………

Other Programs Across the Country are Implementing the Sale of Beer in Football Games…5 Map of Colleges That Sell Beer in their Stadiums on and off Campus

Selling Beer Generates Profits…………………….... 7 Petition for license to sell alcohol from State of PA……………………………………………. Necessary equipment and sourcing …………...…………………... ……………………….. Employee training (ID and beer distribution strategy).………….….…… …………………...

Selling Beer in Beaver Stadium Protects Spectators & Promotes Responsible Drinking 9 Binge Drinking Over 21 Bracelets

Conclusion 10

Works Cited 11

Appendix 12

List of Illustrations PAGE FIGURES 1. Survey Question #3 3 2. Survey Question #6 4 3. Survey Question #7 4 4. Survey Question #8 4 5. Survey Question #9 3 6. Survey Question #10 4 7. Map of College Stadiums that Sell Alcohol On/Off Campus 6 8. BottomsUp BU4-IC Dispenser 8 9. BottomsUp Plastic Cups 8 10. BottomsUp Custom Magnets 8 EXECUTIVE SUMMARY

This report contains an examination of the rea- sons why Penn State University should implement a policy that allows the sale of beer at Beaver Stadium during football games. The report relies on feedback from alumni, research of similar programs at other universities, and an understanding of the importance of safety for spectators. The report also contains the necessary actions needed for the implementation of this policy change.

The Benefits of Seling Beer at Beaver Stadium

1. Alumni support the policy change which will better the spectator game day experience of all attening.

2. Collegiate athletic programs across the country have been implementing similar policies recently. There is both precedent for Penn State and positive data to backup this change.

3. Selling beer provides a new source of revenue for Penn State Athletics. The new revenue can be used productively across the University.

4. Having beer avialable will prevent bindge drinking by changing tailgating behavior. Cre- ating a safer drinking environment for alumni will lead to less alochol incidents on gameday and set a better example for students.

Implimenting the Sale of Beer in Beaver Stadium

1. Gain a license for Beaver Stadium to sell beer from the Pennsylvania Liquor Control Board.

2. Install necessary equipment for the de- livery, storage, and dispensing of beer inside the stadium at concession areas.

3. Train staff on the necessary procedures for controlling the sale of beer and containing it to certain sections. By the end of this report, the reader will understand the many positives of selling beer at Beaver stadium as well as have a knowledge of the actions needed to do so. Reintroducing Alcohol Sales into Beaver Stadium

The Pennsylvania State University is widely known for its extensive and renowned athletic programs with almost 30 men and women’s teams and over 15 different sporting facilities. However, Penn State is most recognized for one team and facility in particular. PSU’s football team, the Nittany Lions, and the famous Beaver Stadi- um ultimately come out on top.

A key aspect that attaches it- self to the experience of a Penn State sporting event is the tailgates that come before hand. Pre- and post-game tailgating is a tradition that makes football Saturdays and other events an exciting experience. Alumni families and friends gather to enjoy food, drink, and the gameday atmosphere, creating Penn State memories that last a lifetime.

The purpose of this report is to explain the benefits of, and the necessary steps for, selling beer at Penn State’s Beaver Stadium. After the conclusion, the Penn State Alumni Association Board of Directors will be able to see the following: Penn State is missing out on the many benefits of selling beer at athletic events and the ongoing failure to recognize the opportunity at hand puts the University at a strategic dis- advantage. Penn State can not afford to ignore something that is in the best interest of both its fans and the University as a whole.

1 Alumni are all too familiar with the nega- tives stemming from lack of beer sales in sporting events. What happens when you tell fans who started tailgating at 10:00 that come the noon-time kick-off they will be cut off because no alcohol is al- lowed or sold inside the stadium? Often, this causes alumni and students to binge drink, an unsafe practice with the add- ed detriment of typically leading to low- er overall attendance. Even if fans enter the stadium they are far less likely to stay for the duration and are much more likely to make dangerous and irrational de- cisions. Alumni also will recognize the loss of revenue for the Athletic Department.

In order to investigate the issue we:

1. Analyzed trends of athletic programs across the country regarding the implementation of beer sales, focusing specifically on additional revenue, profit, gameday alcohol incidents, attendance, and attendee feedback.

2. Conducted various interviews, both in person and through online surveys. We received feedback from hundreds of alumni ranging from those who gradu- ated as little as 1 year ago to 30+ years ago. Feedback was used to determine support, perceived feasibility, and implementation specific information such as a price-point and tailgating preferences.

3. Extrapolated the gathered information to fit a Penn State implementation of a beer selling policy. Both data from other programs and alumni feedback was used to project all important criteria as accurately as possible.

The problem can be fixed with relative ease and doing so would not only increase the safety and enjoyment of sporting event attendees but also has the potential to generate millions of dollars in additional revenues for the university and the athletic department.

2 The Alumni Want Beer to be Sold at Beaver Stadium

Figure 1

Alumni response clearly indicates that Penn State alumni would enjoy buying beer at Football games. Enjoying a cold refreshing brew while watching the Nittany Lions would improve the game experience for many alumni. Alumni can purchase beer at any professional sporting event they attend for good reason: fans enjoy it.

Alumni would be encouraged to drink more responsibly at tailgates and enter the game on time. Penn State Football games run over three hours and Alum- ni want to be able to buy beer during this time. The enjoyment stemming from sale of beer has benefits for the athletic department in general: when fan enjoyment increases so do ticket sales and prices. Penn State is already implementing a plan designed to sell alcohol in Figure 2 special boxed sections with the goal of increasing the demand for these areas. Selling beer in general seating will have the same effect: increasing demand.

Some argue that beer sales during the game will diminish the Penn State football experience. Worries about fans be- coming too intoxicated will be resolved by systems that limit to amount of beer each person can buy and also a ban on serving clearly intoxicated fans. The sale of beer will decrease pre-game binge drinking and promote responsible consumption of alcohol. The sale of beer is to make gameday more enjoyable for ev- eryone, even those who will not choose to buy any beer at Beaver Stadium.

3 Key Survey Data

Figure 3 Figure 4

Figure 5 Figure 6

4 Other programs across the country are implementing the sale of beer in football games.

The alcohol industry is one of the old- Maryland, a BIG 10 member and Uni- est in existence. Alcohol is in high de- versity that in many ways is comparable mand and the sale of it is highly lucra- to Penn State, introduced a one-year tive. It has been an important source of trial period for football and basket- revenue at professional sporting events ball games this past year. The Universi- for years. So the question is, why isn’t it ty’s athletics council voted, 16 to 1, in something being done at Collegiate favor of the trial period. Now that the sporting events? The answer, however, NCAA basketball season has come to is that it is being done. In recent years a close UMD will be evaluating wheth- more and more colleges and universities er to continue with new policy, though around the country have begun selling it seems to have been a success. alcohol at their intercollegiate sporting events. In fact today over 25% Penn State would need to submit a pub- of Division 1 schools offer alcohol lic venue license from the Pennsylvania Liquor Control Board (PLCB) for any fa- in their stadiums. This recent trend cility in which it wish to allow the sale of is not simply occurring without cause; beer. The Athletic Department would it is occurring because it is beneficial. need to demonstrate proper control of the sale as well as ability to dispense with- Due to the findings, implementing a tri- in the legal guidelines of Pennsylvania. al period at Beaver Stadium is the best course of action. This would allow the Other Universities in Pennsylvania, such University to test out the new policy at as Temple University, have been grant- its largest venue with limited risk and ed this permit. Gaining a license for the investment. If successful, it could be in- sale of beer in Beaver Stadium would be troduced to other venues with each simple and have precedent thanks to sports program tailoring the policy to the many college athletic programs im- best fit the facility. Each sports program plementing this change in recent years. can tailor the new policy to best fit with the venue, sport, and time of day. An- nouncing a trial program also allows West Virginia’s athlet- Penn State to heir on the side of caution ic director, Shane Lyons, said and project a sense of care and respon- last month that “approxi- sibility rather making an all out commit- mately $500,000 a year just ment to a somewhat drastic change. in beer comes back to us.”

West Virginia’s campus police department reported sharp declines in incident reports and arrests on home football Saturdays from 2010 to 2014.

That translated to well over $100,000 for the University, which takes a 52 percent cut.

5 YOU CAN BUY BEER HERE

Figure 7

Akron Texas Connecticut Bowling Green Tolledo Georgia State Cincinnati Troy Hawaii Colorado State Tulane Massachusetts Houston UNLV Memphis Kent State UTEP Miami Louisiana-Lafayette Louisiana-Monroe West Virginia San Diego State Louisville Western Kentucky South Alabama Maryland South Florida Minnesota Temple Nevada Texas-San Antonio North Texas SMU Syracuse What about PENN STATE???

6 Selling Beer Generates Large Profits

One of the main benefits of Each additional sport would course is revenue generation. bring in additional revenue. As stated above alcohol is While the other sports something in demand at colle- take place in smaller venues, giate events but without supply most if not all of them have it is practically irrelevant. How- more home games during ever, if Penn State elected to their respective seasons. sell beer at its games it would realize hundreds of thousands The ability to host professional if not millions of dollars in rev- sporting events. enue. West Virginia University We have missed out began selling beer at its foot- on the opportunity to host ball games back in 2011 and the NHL Winter Classic sever- since has seen great success. al times due to the lack of a liquor license at Beaver Stadium. Earlier this year West Virginia’s athletic director, Shane Lyons, Increased attendance and was quoted saying “approx- possibly ticket prices. imately $500,000 a year just in beer comes back to us,” and that was just from sales at football games. When you look at these numbers and extrapolate them to estimate what this policy could poten- tially bring in at Penn State the numbers are astounding. WVU’s enrollment is merely 29k students, while PSU’s enrollment is a staggering 97k. WVU’s Stadi- um holds only 60k people, while Penn State’s Beaver Stadium holds close to twice as many people with a capacity of 107k. After analyzing all the data we have gathered we conserva- tively estimated $850k of profit per annum for the University, just from home football games.

However we would like to stress that this number would of course further increase when con- sidering several other factors: 7 Figure 8 Installing the necessary equipment to dispense beer is straightforward and relatively cheap. In- stallation in large sporting venues such as beaver stadium run any- where from several hundred thou- sand to roughly a million dollars.

BU4-IC Dispenser While this is an upfront cost that (w/ Lifetime Warrenty) Penn State would need to cover, $3,800.00 this loss would be recouped in one Figure 9 or two seasons. Everything after that is pure profit coming into the program. This profit could be used to fund not only construction improve- ments but also University scholarships and alcohol education programs.

BottomsUp GrinOn Industries’ mission is to increase the profitability of beer service and consumer satisfaction via improved operational efficien- 16 Oz Cups cy through the distribution & im- $216 for 600 cups plementation of the Bottoms Up Draft Beer Dispensing System®. Figure 10 Bottoms Up Draft Beer Dispensing System® is a more profitable way of selling beer. It is an automated, hands-free system that increases throughput, efficiency, and adver- tising/branding opportunities. Every aspect of the system is designed to increase profitability. With millions of customers served last year alone, Bottoms Up is rapidly being adopt- Customized Magnets ed as the standard in beer service.

8 Selling Beer in Beaver Stadium Protects Spectators & Promotes Responsible Drinking

Penn State should implement this policy is to foster While additional security professionals could be a safer environment for its students & alumni, their hired to ensure that the dispensing of beer goes families, and the community at large. Alcohol re- smoothly, it would be easy to train existing game lated incidents whether they infringe upon the day staff in recognizing fake I.D.s, identifying pa- law or be strictly medical in nature are statistically trons who are too intoxicated, and enforcing any more likely to occur when the subject(s) in ques- regulations preventing beer in specific sections. tion have a higher Blood Alcohol Content (BAC). This is in part due to the number of drinks a person consumes in a session and is also due in part to the amount of blood in one's body. The other factor that is too often ignored however is the period of time over which said drinks are consumed.

Binge drinking culture has become dangerously prevalent in this day and age and one of the best ways to curb this type of behavior is to reduce the rate at which alcoholic beverages are being consumed. One study stated that, “Many colleges Ticket checkers would not allow anyone to bring that sell alcohol at games contend that doing an alcoholic beverage into the student section. so discourages binge drinking by allowing fans to The system implemented in the Bryce Jordan Cen- pace themselves.” When people know they can ter to allow beer sales includes an interesting sys- grab a beer to sip on inside of the stadium they tem, which should be implemented at first and don’t feel pressured to drink as quickly. And given measured for effectiveness. Identification stands the relatively high price associated with beer sold would scan a spectator’s I.D. and issue them a in stadiums, over consumption is further deterred special bracelet. These bracelets are impossible to while simultaneously producing high margins. tamper with and remove. The bracelet could even include a certain number of tabs; say three, which A recent example that speaks to the validity of the would be removed with each purchase of beer. This above claim comes from West Virginia’s campus ensures no one under 21 is given a beverage after police department. It reported, “sharp declines in it has been purchased and also limits the amount incident reports and arrests on home football Sat- of beverages dispensed to each spectator. urdays from 2010 to 2014,” with 2010 being the year before the University began selling beer at its games. Cooperation between all staff and personnel in- volved with the dispensing of alcohol is clearly Training employees to safely dispense beer crucial. The cooperation would be straightforward is key to implementation: it protects spec- and continuously evaluated by the Athletic De- tators and ensures no underage drinking. partment and the police officers assigned to work sporting events. With the purchase of simple equip- The biggest focus of this process would be the train- ment and introduction of simple training, Penn State ing of employees and the exact system used to would have a safe, fair, and publically beneficial control the transaction of beer. In Pennsylvania, a way to dispense beer at various sporting events. server must be 18 years of age or older to dispense alcoholic beverages with training. Identification scanners, standard at beer and liquor stores, are easily operated and leave no room for mistake. OVER21 OVER21 OVER21

9 CONCLUSION

The Pennsylvania State University is missing out on an important opportunity to boost Athletic Department profit, increase satisfaction of sporting event spectators, and create a safer experience for those attending Penn State games. The Alumni Association Board of Di- rectors has a unique opportunity to push for the implementation of a beer-sale policy. Alumni clearly support this policy change and recognize its benefits. Alumni support is a cornerstone of Penn State and the Athlet- ic Department will jump at the opportunity to improve the experience of fans who make up such a large attendance base of athletic events. Further, by demon- strating the benefits of an increase in profits, there is a clear and convincing argument for selling beer.

Fixing the problem is simple, involving a basic three step plan of acquiring a state approval of sale license, installing of industry-standard equipment to dispense beer, and training of employees who will distribute the beer in an easy and safe manner.

10 WORKS CITED

“Administration.” Penn State University Official Athletic Site. Penn State Athletics, n.d. Web.

“Beer Map Shows List of College Stadiums Selling Alcohol.” Saturday Down South. N.p., 16 Oct. 2015. Web.

Berger, Zach. “Bryce Jordan Center Beer Sales A Success In First Week end.” Onward State. N.p., 27 Apr. 2015. Web.

“College Football Stadiums Where Beer Is Sold.” College Football. N.p., n.d. Web.

Fleming, Megan. “Barbour Recommends Selling Alcohol At Athletic Fa cilities.” Onward State. N.p., 22 Feb. 2015. Web.

“Keys to a Successful Gameday.” Penn State University Official Athletic Site. Penn State Athletics, n.d. Web.

Lane, Mallory. “Bryce Jordan Center Seeking License to Sell Alcohol.” WEARECENTRALPA. N.p., 23 Feb. 2015. Web.

Management, Journal Of Sport. Examining the Financial Impact of Al cohol Sales on Football Game Days: A Case Study of a Major Football Program (n.d.): n. pag. Web.

Penn State University. “All About Alcohol.” Alcohol and Drugs. Penn State University, n.d. Web.

Person. “21 NCAA Schools to Allow Beer Sales at on Campus Football Games.” FanSided 21 NCAA Schools to Allow Beer Sales at on Campus Football Games Comments. N.p., 22 Aug. 2014. Web.

“Schools Eye Beer Sales for Help.” ESPN. Ed. ESPN.com News Services. ESPN Internet Ventures, 22 Aug. 2014. Web.

Tracy, Marc. “Beer Here! Beer Here?” The New York Times. The New York Times, 08 Oct. 2015. Web.

11 APPENDIX

Survey Questions & Data