SU Athletics receives windfall from ACC, will be used to help pay Big East exit fee (DO)

[OrangeXtreme]

http://www.dailyorange.com/2015/01/...c-will-be-used-to-help-pay-big-east-exit-fee/

Syracuse University Athletics still has a chance to dip out of the red this year due to a recent cash injection from the Atlantic Coast Conference.

When SU moved from the Big East conference to the Atlantic Coast Conference in 2011, the university assumed a $7.5 million exit fee —a cost that sparked university-wide debate. Last fall, representatives from the University Senate Budget Committee, SU Athletics and the administration reached an agreement that SU Athletics would pay 25 percent of that fee over a 10-year period.

The agreement also resolved that any additional revenue from the move to the ACC would be used to pay back the fee, possibly in a shorter period of time. This year, Terry Donovan, executive senior associate athletics director and chief financial officer for SU Athletics, projected that the athletics department would be running a deficit, so paying back the fee earlier wouldn’t be possible.

Now, thanks to a recent move by the University of Maryland from the ACC to the Big Ten, SU Athletics received a $1.2 million windfall fund — an unexpected sum of money. Part of Maryland’s exit fee was allocated to schools currently in the ACC. About $200,000 from the fund will be channeled to pay off the exit fee’s remaining balance, said Dawit Negussey, chair of the University Senate Budget Committee...

 

[Jack_Ball]

seems like we can afford to spend a little bit more on football?

 

[Bill Orange]

"SU Athletics could not be reached for comment."

Say what? Guess he's still wallowing in the Ducks losing to the Bucks.

 

[javadoc]

http://www.dailyorange.com/2015/01/...c-will-be-used-to-help-pay-big-east-exit-fee/

Syracuse University Athletics still has a chance to dip out of the red this year due to a recent cash injection from the Atlantic Coast Conference.

When SU moved from the Big East conference to the Atlantic Coast Conference in 2011, the university assumed a $7.5 million exit fee —a cost that sparked university-wide debate. Last fall, representatives from the University Senate Budget Committee, SU Athletics and the administration reached an agreement that SU Athletics would pay 25 percent of that fee over a 10-year period.

The agreement also resolved that any additional revenue from the move to the ACC would be used to pay back the fee, possibly in a shorter period of time. This year, Terry Donovan, executive senior associate athletics director and chief financial officer for SU Athletics, projected that the athletics department would be running a deficit, so paying back the fee earlier wouldn’t be possible.

Now, thanks to a recent move by the University of Maryland from the ACC to the Big Ten, SU Athletics received a $1.2 million windfall fund — an unexpected sum of money. Part of Maryland’s exit fee was allocated to schools currently in the ACC. About $200,000 from the fund will be channeled to pay off the exit fee’s remaining balance, said Dawit Negussey, chair of the University Senate Budget Committee...

Did they screw up the legend on the expense/revenue charts? They have hoops as green, but the size of the sectors in the chart suggest that the green sectors should be for football. Switch the colors for football and hoops.

I'm also confused by the description of the exit fee. We owed $7.5 million and the AD agreed to pay 25% of that, over 10 years. So that's $188K/yr. If we started paying it in 2011, we would have 6 payments (+/-) remaining, which is a lot more than $200K. How can they "pay off" the remaining balance with $200K from this windfall? Did the AD make a big lump payment against the portion of the $7.5M it owed up front, so that the 10 annual payments would be much less?

And... get ready for it...

"While $200,000 of the $1.2 million windfall to athletics will be allocated to accelerate payment of the Big East exit fee, some members of the Senate feel some portion of the remaining million dollars should be given back to the university and not kept by athletics."

Start sniping.

 

[rrlbees]

And... get ready for it... "While $200,000 of the $1.2 million windfall to athletics will be allocated to accelerate payment of the Big East exit fee, some members of the Senate feel some portion of the remaining million dollars should be given back to the university and not kept by athletics." Start sniping.

Probably because the University (each dept) had to pony up for the BE exit fee.

 

[KaiserUEO]

Did they screw up the legend on the expense/revenue charts? They have hoops as green, but the size of the sectors in the chart suggest that the green sectors should be for football. Switch the colors for football and hoops.

I'm also confused by the description of the exit fee. We owed $7.5 million and the AD agreed to pay 25% of that, over 10 years. So that's $188K/yr. If we started paying it in 2011, we would have 6 payments (+/-) remaining, which is a lot more than $200K. How can they "pay off" the remaining balance with $200K from this windfall? Did the AD make a big lump payment against the portion of the $7.5M it owed up front, so that the 10 annual payments would be much less?

And... get ready for it...

"While $200,000 of the $1.2 million windfall to athletics will be allocated to accelerate payment of the Big East exit fee, some members of the Senate feel some portion of the remaining million dollars should be given back to the university and not kept by athletics."

Start sniping.

theyre not 'paying off' theyre paying off...get it??

this reads odd for sure, but my understanding is that any new, unexpected $$ and/or any surplus... is to go towards payoff 1st... and NOT towards coaches, IPFs or anything else. they were projecting a deficit so they wouldve had no extra $$ to give other than their normal payment, but now they can send the extra $$ towards the payoff.

student writer.

 

[OttoMets]

Why do they combine men's and women's basketball revenue? They're different sports. And I'll wager one of them has no positive net revenue.

 

[Full_Rebar]

Why do they combine men's and women's basketball revenue? They're different sports. And I'll wager one of them has no positive net revenue.

You answered your own question. Must be nice to be a HC at SU these days- $198k avg. salary for the women's sports. I wonder how that compares to the other private P5 schools?

 

[JrodCuse]

$15.6M positive between the income and expenses. Thats a pretty solid 1 year NOI. Am I missing something else here? How do we not pay off the entire exit fee right now?

 

[TheCusian]

You answered your own question. Must be nice to be a HC at SU these days- $198k avg. salary for the women's sports. I wonder how that compares to the other private P5 schools?

Careful. Some crazy professor will start pushing for 1:1 spending on SU HC - regardless of income generated by that sport.

 

[anomander]

Careful. Some crazy professor will start pushing for 1:1 spending on SU HC - regardless of income generated by that sport.

Damn liberals. I kid, I kid

 

[javadoc]

$15.6M positive between the income and expenses. Thats a pretty solid 1 year NOI. Am I missing something else here? How do we not pay off the entire exit fee right now?

Every time the AD finances come up we get confused about the numbers and what the "real" financial state is. The accounting is such that you can't necessarily take those numbers at face value.

 

[TheCusian]

Damn liberals. I kid, I kid

No - I agree with that being a liberal thing - but in this case it makes zero sense. But I can imagine some crazy prof looking at the chart and thinking that...

 

[Full_Rebar]

No - I agree with that being a liberal thing - but in this case it makes zero sense. But I can imagine some crazy prof looking at the chart and thinking that...

Notice the example given wasn't football or basketball though, it was comparing Gait to the Dean of Student Affairs. I have no idea what the Deans of the colleges are making, but I don't think it's crazy for faculty to wonder what he's bringing to SU that the Dean of Newhouse/Maxwell/Architecture/I-School aren't, which would justify him getting paid more.

If it's truly camps, endorsements, etc. then it's another screw-up from Giansante/Gross not to respond and get the story straight. When that report came out, a lot of SU people looked at his salary with very raised eyebrows, and with cuts being made/talked about all over campus, you can understand why some faculty and staff are going to keep hitting this issue until they get answers.

 

[Ottoble]

$15.6M positive between the income and expenses. Thats a pretty solid 1 year NOI. Am I missing something else here? How do we not pay off the entire exit fee right now?

Every time the AD finances come up we get confused about the numbers and what the "real" financial state is. The accounting is such that you can't necessarily take those numbers at face value.

No Kidding! How can someone be quoted as saying "Athletics is running in the red but they might (MIGHT!) run in the black" when they are $15.6 MILLION in profit on that graph. It's just crazy. Only thing I can see is that the university is in charge of construction and renovations which they back charge the AD account for. I know very little about the accounting except what some in the know have said about the strange setup that exists at SU.

It should be simple Athletics is charged as a part of their operating costs for construction and upgrades like a mortgage and their net profits are donated to the university but set aside in a special fund that is used to support AD shortfalls. Any long term surplus trickles into academics over time.

 

[Toga]

Whenever something appears relating to revenue/expense or profit/loss as it pertains to college athletic departments, I may amuse myself by reading it but I don't believe a word of it.

 

[Chip]

Terry Donovan, executive senior associate athletics director

That title is just embarrassing. Couldn't find a place to fit in deputy?

 

[Millhouse]

Did they screw up the legend on the expense/revenue charts? They have hoops as green, but the size of the sectors in the chart suggest that the green sectors should be for football. Switch the colors for football and hoops.

I'm also confused by the description of the exit fee. We owed $7.5 million and the AD agreed to pay 25% of that, over 10 years. So that's $188K/yr. If we started paying it in 2011, we would have 6 payments (+/-) remaining, which is a lot more than $200K. How can they "pay off" the remaining balance with $200K from this windfall? Did the AD make a big lump payment against the portion of the $7.5M it owed up front, so that the 10 annual payments would be much less?

And... get ready for it...

"While $200,000 of the $1.2 million windfall to athletics will be allocated to accelerate payment of the Big East exit fee, some members of the Senate feel some portion of the remaining million dollars should be given back to the university and not kept by athletics."

Start sniping.

infographics suck. i spend way too much time trying to convince people that, really, a table of numbers can work just as well as some 5 dimensional bubbleclusterf. you have to twist and turn semicircles around in your mind to compare the pieces. just show the numbers or do a bar chart sorted by size

 

[Millhouse]

Terry Donovan, executive senior associate athletics director

That title is just embarrassing. Couldn't find a place to fit in deputy?

every bump in pay has to have a new title. why not just pay people more for being better at the same gig. i've had some pretty stupid titles along the way

 

[Chip]

every bump in pay has to have a new title. why not just pay people more for being better at the same gig. i've had some pretty stupid titles along the way

The dumber part is that they add the titles on instead of replacing them.

 

[Scooch]

infographics suck. i spend way too much time trying to convince people that, really, a table of numbers can work just as well as some 5 dimensional bubbleclusterf. you have to twist and turn semicircles around in your mind to compare the pieces. just show the numbers or do a bar chart sorted by size

A well done infographic can bring clarity to a complex dataset.

95% of infographics are not well done.

This is one of them.

 

[javadoc]

The dumber part is that they add the titles on instead of replacing them.

5th-generation surname hyphenation.

 

[TexanMark]

The dumber part is that they add the titles on instead of replacing them.

Personally it would run much better if they used military rank.

General Syverud
Colonel Gross
Lt Col Shafer
Major Donovan
Major Gedney
Major Edson
Capt Bullough
Sgt Acosta

 

[Frozen]

Personally it would run much better if they used military rank.

Major Failure

 

[Finwad32]

Major Failure

lol'd