May 5, 2009

Markets in Everything: Home Victories

With the usual apologies to Marginal Revolution, from the AJC:
Georgia, which has beaten New Mexico State by an average of 32 points in three previous meetings, will pay the Aggies $925,000 to come to Athens for another game.

The Bulldogs will play New Mexico State on Nov. 5, 2011, in Sanford Stadium.

Georgia is to pay New Mexico State the $925,000 — believed to be the largest payout UGA has made to a visiting team — by Jan. 31, 2012, according to the contract between the schools, obtained this morning by the AJC.
By my calculations that's an average margin of victory cost of $28,906.25 per point.  Memo to Coach Richt, pull the offense back in the second half and you could save a few hundred thousand dollars the next time contract negotiations come around.

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