Do you think this is a good sign?

[Full_Rebar]

From the DO talking about the Big East exit fee, do the quotes below mean that SU is spending more in order to be more competitive? Or, do you worry that SU is already maxed out and has no reserves despite the ACC increase?

They got additional information during these meetings, according to the report. This information and athletics’ five-year budget projections showed it could not bear the full cost of the fee, according to the committee’s report. Without the move to the ACC, Dudczak said, athletics would’ve likely continued running a deficit for the foreseeable future.

“There’s no question that if the athletic department hadn’t moved to the ACC, they’d really be in bad shape,” he said. “If we would’ve shifted all the cost to them, then that would’ve probably compromised other things that were anticipated for their budget,” he added.

SU Athletics will get about $14 million from ACC membership this fiscal year. This is an increase of about $6-$7 million from the Big East’s estimated payout to SU during the last fiscal year, he said.

Athletics had anticipated that the Big East would get a new TV contract that had a higher distribution, and that the conference would stay together, he said. This didn’t happen, but athletics had already put a budget into place that anticipated this revenue, he said.

Athletics, in effect, has no reserves, he said.

 

[oldpinepoint]

Without actually looking at the budget this tells me very little.


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[sufandu]

This seems to conflict with the lists that have us as being one of the more profitable athletic departments.

 

[javadoc]

From the DO talking about the Big East exit fee, do the quotes below mean that SU is spending more in order to be more competitive? Or, do you worry that SU is already maxed out and has no reserves despite the ACC increase?

We have not been spending a lot, IMO, certainly not compared to other ACC members. We anticipated a bump in revenue from a new BE contract. (Probably not as much as we got from the ACC.) So we started planning for a new IPF, with a commitment to allocating some operating budget to it in lieu of the usual up-front fundraising. We also committed to higher salaries for football coaches. And we were probably really close to break even, with no wiggle room.

So we were simply planning to spend more in order to be competitive. As much as we could without completely breaking the bank.

 

[Full_Rebar]

This seems to conflict with the lists that have us as being one of the more profitable athletic departments.

The fact that most athletic departments claim not to make a profit is a bunch of nonsense, so I don't put much stock in those lists.

Javadoc- I thought that Athletics was funding the IPF through donations, not operating budget? If this year's money was spent on upping salaries, then what changes moving forward? Is SU simply spending all it has now, or was it a one-time bump? I think it would be nice to have some money set aside each year to address special needs projects (ability to upgrade a coach for a sport, a facility enhancement such as dining for all sports, a nutrionist/sports psychologist)

 

[Crusty]

Looks like they say that after the exist fee but before the ACC new revenues the Athletic Dept would have run a deficit. Apparently, the Athletic Dept must pay the fee out of their budget. If this is what they are saying it would be stating the obvious. What am I missing?

 

[BlazeOrange]

How much was the BE TV contract that the conference turned down? I'd guess that the initial budget put together was based on that amount, then the reserves may or may not have been adjusted once it was rejected.

 

[anomander]

Looks like they say that after the exist fee but before the ACC new revenues the Athletic Dept would have run a deficit. Apparently, the Athletic Dept must pay the fee out of their budget. If this is what they are saying it would be stating the obvious. What am I missing?

Wait a minute I thought the University was supposed to be picking up that bill? I remember students trying to organize protests, but thought we were solid that the athletic department was not responsible for this? I really really really hope this isn't accurate. It would be extremely disappointing if that was the case

 

[anomander]

The fact that most athletic departments claim not to make a profit is a bunch of nonsense, so I don't put much stock in those lists.

Javadoc- I thought that Athletics was funding the IPF through donations, not operating budget? If this year's money was spent on upping salaries, then what changes moving forward? Is SU simply spending all it has now, or was it a one-time bump? I think it would be nice to have some money set aside each year to address special needs projects (ability to upgrade a coach for a sport, a facility enhancement such as dining for all sports, a nutrionist/sports psychologist)

I thought all facilites were supposed to be through private donations?

 

[OrangeXtreme]

Wait a minute I thought the University was supposed to be picking up that bill? I remember students trying to organize protests, but thought we were solid that the athletic department was not responsible for this? I really really really hope this isn't accurate. It would be extremely disappointing if that was the case

Athletic Dept will pay 25% of the exit fee.

http://www.dailyorange.com/2013/10/...stration-develop-big-east-exit-fee-agreement/

 

[Full_Rebar]

Wait a minute I thought the University was supposed to be picking up that bill? I remember students trying to organize protests, but thought we were solid that the athletic department was not responsible for this? I really really really hope this isn't accurate. It would be extremely disappointing if that was the case

Here is the full article- http://dailyorange.com/2013/10/a-re...stration-develop-big-east-exit-fee-agreement/

Athletics should be covering a portion of the exit fee, and this plan seems reasonable. I don't see how you could justify the AD paying less than 1 million of the exit fee. I mean if DG took 5 million to play the USC game at MetLife, there should have been enough money to pay the Athletics obligation before receiving a penny from the ACC.

For facilities, I don't know if people are lining up to donate to the replace the track facility, or for the upgrades that the volleyball coach is talking about in the DO today. Those students shouldn't have to wait around, so Athletics should be prepared to cover the costs while money is being raised.

 

[javadoc]

Javadoc- I thought that Athletics was funding the IPF through donations, not operating budget? If this year's money was spent on upping salaries, then what changes moving forward? Is SU simply spending all it has now, or was it a one-time bump? I think it would be nice to have some money set aside each year to address special needs projects (ability to upgrade a coach for a sport, a facility enhancement such as dining for all sports, a nutrionist/sports psychologist)

I thought I read somewhere on here that the AD got approval to proceed with the IPF using some amount of operating budget in lieu of donations. This was an extraordinary "get it going now" effort. If we had to wait for donations to measure up to the usual formula, we'd still be waiting. At least this was my fuzzy recollection.

I think a reasonable reading of the tidbits is that we have been running a deficit for a while, and the new money - plus a few targeted expenditures like football coaching salaries - simply gets us up to about even. This was based on the BE contract numbers. ACC we should be in better shape.

I think I also read on here that Gross spends too much on coaches for the non-revenue sports. That must play a role.

 

[anomander]

Here is the full article- http://dailyorange.com/2013/10/a-re...stration-develop-big-east-exit-fee-agreement/

Athletics should be covering a portion of the exit fee, and this plan seems reasonable. I don't see how you could justify the AD paying less than 1 million of the exit fee. I mean if DG took 5 million to play the USC game at MetLife, there should have been enough money to pay the Athletics obligation before receiving a penny from the ACC.

For facilities, I don't know if people are lining up to donate to the replace the track facility, or for the upgrades that the volleyball coach is talking about in the DO today. Those students shouldn't have to wait around, so Athletics should be prepared to cover the costs while money is being raised.

I just read the PS article. 25% seems a bit steep. I am going to look at what percentage other schools AD had to pay out of their exit fee but I highly doubt it was that much.


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