generating money for facilities

[Chip]

You don't spend what you don't have.

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You do if you get a loan. A loan that's backed by the affiliation with the ACC. Interest rates aren't exactly high these days.

Are loans off the table for the Athletic Department? (I need to get a job as their CFO, or at least somewhere in the Bean Counting department so I can answer these questions myself. I would need to telecommute about 90% of the time).

 

[AirForceOrange]

All this discussion in reagrds to money makes me wonder if SU joining the ACC and looking at a much bigger pay out has kept people (especially the big donors) from donating as they think why donate when the school is about to see a major bump in money in a year or two? Not sure if this is the case...just wondering...

 

[rrlbees]

You do if you get a loan. A loan that's backed by the affiliation with the ACC. Interest rates aren't exactly high these days.

Are loans off the table for the Athletic Department? (I need to get a job as their CFO, or at least somewhere in the Bean Counting department so I can answer these questions myself. I would need to telecommute about 90% of the time).

i dont think schools do a lot of that. what if vt and bncst go to the sec and uva and unc go to the b10? then what? we all complained about how little money we got in the big east compared to these other money rich conferences. what did the schools do with the money in those conferences? they didn't buy facilities. i have yet to see one person show, or find one myself, me a sports facility article that said the school paid for it. increased salaries, sure. cosmetics, sure. increased travel budgets, sure. increased recrutiing budgets, sure. new toys in the facilities, sure. but i have yet to swee anything significant that says team xyz spent millions on facilites.

 

[PhatOrange]

it's self explanatory and as to football, they do need to redo that whole thing. but it has nothing to do fundraising for capital projects which is what i thought we were talking about.

You're right about fundraising for capital projects, but she is under the Orange Club umbrella.

Maybe 'premium' seating could be tied to capital improvement projects (if it's not already.)

 

[Jaka]

i dont think schools do a lot of that. what if vt and bncst go to the sec and uva and unc go to the b10? then what? we all complained about how little money we got in the big east compared to these other money rich conferences. what did the schools do with the money in those conferences? they didn't buy facilities. i have yet to see one person show, or find one myself, me a sports facility article that said the school paid for it. increased salaries, sure. cosmetics, sure. increased travel budgets, sure. increased recrutiing budgets, sure. new toys in the facilities, sure. but i have yet to swee anything significant that says team xyz spent millions on facilites.

Q: How confident are you that the financial model for the renovation project is sound?
Our financial planning has been very conservative. From our extensive market research and detailed financial analysis, we are confident that the demand for the suites and club seats will be strong and that the project will be able to pay for itself through the new revenues that are generated.
Out of the total project cost of $226 million, we plan to cover $36 million from Athletic Department reserves and issue debt for the remaining $190 million. Our annual debt service is estimated to be about $12.4 million, with annual incremental revenues conservatively estimated at $12.8 million. However, these figures do not factor in any fundraising. To the extent that we receive support from our donors, that will reduce the amount of debt and will further reduce any financial risk.

http://www.umich.edu/stadium/faq/

 

[Chip]

i dont think schools do a lot of that. what if vt and bncst go to the sec and uva and unc go to the b10? then what? we all complained about how little money we got in the big east compared to these other money rich conferences. what did the schools do with the money in those conferences? they didn't buy facilities. i have yet to see one person show, or find one myself, me a sports facility article that said the school paid for it. increased salaries, sure. cosmetics, sure. increased travel budgets, sure. increased recrutiing budgets, sure. new toys in the facilities, sure. but i have yet to swee anything significant that says team xyz spent millions on facilites.

I've never seen that either, but to be honest I don't read up much on the facilities that others have used. Some have used state funding, haven't they? I'm sure there's some accounting rule or tax rule on the types of revenue that can be used for capital projects.

Just seems like for SU, this is such a jump, about 400% increase or so in conference revenue. Just makes me wonder if we were really running in the black. The math just doesn't add up. Schools like Michigan play in a relic of a stadium, bring in so many more millions than us in just attendance revenue. Then bring in so much more in conference revenue (when we were Big East especially). And God only knows how much they can fund raise. You'd think everyone employed in the Michigan Athletic department gets their own space ship for travel.

 

[rrlbees]

Q: How confident are you that the financial model for the renovation project is sound?
Our financial planning has been very conservative. From our extensive market research and detailed financial analysis, we are confident that the demand for the suites and club seats will be strong and that the project will be able to pay for itself through the new revenues that are generated.
Out of the total project cost of $226 million, we plan to cover $36 million from Athletic Department reserves and issue debt for the remaining $190 million. Our annual debt service is estimated to be about $12.4 million, with annual incremental revenues conservatively estimated at $12.8 million. However, these figures do not factor in any fundraising. To the extent that we receive support from our donors, that will reduce the amount of debt and will further reduce any financial risk.

http://www.umich.edu/stadium/faq/

Su did the same when they added some boxes/suites to the dome. that's not a new facility. paying for it is based upon occupation of the suite/box.

 

[supp]

Are loans off the table for the Athletic Department? (I need to get a job as their CFO, or at least somewhere in the Bean Counting department so I can answer these questions myself. I would need to telecommute about 90% of the time).

No, most major building projects on campuses across the country are covered in part by loans and bonds. Some percentage of yearly revenues goes to service that debt. As I said in another thread, Harvard might have a huge endowment totaling more than $30 billion but it also has some $7 billion in debt. I'm sure the SUAD is also financing some projects or getting some projects off the ground by borrowing money. The $64,000 question, though, is how much debt do they already have and can they take on more at this time?

 

[Jaka]

Su did the same when they added some boxes/suites to the dome. that's not a new facility. paying for it is based upon occupation of the suite/box.

It depends on your definition of "new facility", they pretty much built two buildings that connect to the stadium. The article did reveal that Mich had $36 M in reserves, and I'm sure that they didn't use all of it. I know SU is nowhere near Mich, but I'd imagine that we have reserves too. It is going to be interesting in the next 10 years what changes are going to happen with the athletic program.

 

[VirginiaOrange]

Don't shoot the messenger and take it for what it worth. A friend is a long-time SU employee (20+ years) with significant contacts and exposure to many in athletics. I've been told that Gedney is not the right person for the job - nice guy but lacks key skills/qualities to succeed at that job.

 

[reedny]

i dont think schools do a lot of that. what if vt and bncst go to the sec and uva and unc go to the b10? then what? we all complained about how little money we got in the big east compared to these other money rich conferences. what did the schools do with the money in those conferences? they didn't buy facilities. i have yet to see one person show, or find one myself, me a sports facility article that said the school paid for it. increased salaries, sure. cosmetics, sure. increased travel budgets, sure. increased recrutiing budgets, sure. new toys in the facilities, sure. but i have yet to swee anything significant that says team xyz spent millions on facilites.

That's because nearly all of the multi-million dollar facilities constructed from the foundation up are paid for with taxpayer funds.

 

[outoftownie]

I like Matt and Chris, know them both and have helped out on some sport specific fundraising. That said, it was always strange to me that the SUAD does not have have someone with a fundraising background in the Orange Pack. It seemed like we always had someone like Paul Norcross, Joe Manhertz or Scott Sidwell in there to lead the charge. When Sidwell left the AD went with former SU stars with no fundraising experience. I don't know if being someone in with fundraising experience would help based on the posts I have read about tight wallets and football big dollar donors.

 

[Jeepers]

Regardless of your opinion on the need of an IPF, it would be good to start fundraising properly now because the dome isn't getting any younger and will need to be replaced some day.