If I am a renter in SF, (I'm blatantly stereotyping but it's true to certain extent) I'm probably out enjoying the night life or other things that come with SF living.
If I am wealthy enough to own a home near USF, well, I'm probably enjoying dinner at a 3-5 star restaraunt while the kids are at home with nanny or sitter.
What USF is fighting for is discretionary time. The price is fine. The product is fine- not great but mid-major D-I basketball is one of best bargains in sports.
As far as target markets for new business I would think 1.) Local Alumni 2.) Family entertainment, especially the local Catholic Parishes in North Peninsula and west side of SF (Sunset, Parkside etc.) To go with that drawing students is key because they can create the type of atmosphere and experience that make College Basketball a unique experience. Duke was the blue print on that, a program whose tradition has been built on a legendary home court advantage.
Regarding the SI/SH game by the way. Alumni of two schools, families with connections to school through their local parishes, and the students of the two schools probably made up bulk of the attendance.
Oh and with ability to reach people via social media and email adverstising in the traditional sense is a waste of money for USF. Bus ads, television spots, radio, print, kind of pointless. You'll never win that battle versus the Niners, Warriors, Stanford and Cals of the world that have budgets for such things.