SU planning pay cuts and stopping all capital projects besides the dome roof...

[Cusefan0307]

Syracuse University plans pay cuts, hiring freeze after $35M loss from coronavirus pandemic

SU will cut pay of top administrators and coaches by 10%.

www.syracuse.com

Thought this deserved it's own thread.

 

[FloridaFan]

at least they arent getting rid of teams

 

[upperdeck]

pretty much normal for most colleges i am hearing about.

This is about saving peoples jobs for the next yr, on top of lives,

if everyone took a 1% like $500-1000 hit you would save 5-10 Million

you could also save a huge chunk if they paused the retirement supplement for a short term too for non union people..

what is the SU package? do they supplement or is it self funded?

 

[cuse10]

This might be a point of contention and controversy among some, but are there roles that are worth cutting altogether? Although SU is a private institution and as a result, it's books are closed to you and I, I'm sure there are quite a few positions that have a salary range in the lower to mid six figures that are solely titular and for show.

 

[upperdeck]

surprised a retirement package hasnt already been announced.. say you find 200 people making 100K within 5 yrs of retirement and you offered them 50K over 10 yrs type deal like the Mets plan. there is 10 million saved..

 

[CuseLegacy]

 

[upperdeck]

easier to take a cut if there are no games to coach i suppose..

 

[FloridaFan]

Coaches shouldnt be paid that much anyways. A couple hundred thousand and put the rest of the money into the student athletes and school

 

[orangedave]

Coaches shouldnt be paid that much anyways. A couple hundred thousand and put the rest of the money into the student athletes and school

Wouldn't you then risk the loss of the coaches to schools willing to pay more? Or would you propose that all schools follow that which ain't gonna happen.

 

[Doc5120]

Syracuse University plans pay cuts, hiring freeze after $35M loss from coronavirus pandemic

SU will cut pay of top administrators and coaches by 10%.

www.syracuse.com

Thought this deserved it's own thread.

As a University employee, I appreciate those at the top taking the pay cut. Not getting a raise this year certainly sucks (not that I'm surprised that happened), but it's a heck of a lot better than not having a job! I'm crossing my fingers that is all the action that will be necessary, and no one across campus loses their job at some point if this continues for longer than expected.

 

[upperdeck]

I am at the point of my career where if they just said no more raises but you keep your job for 5 more years I would be happy. Once you get the house paid for, most of our costs become wants not needs. And this stay at home thing really shows that. Go to the store every 2 weeks, dont buy fast food every day for lunch. not browse shopping

 

[TexanMark]

Wouldn't you then risk the loss of the coaches to schools willing to pay more? Or would you propose that all schools follow that which ain't gonna happen.

Ofcourse you would. The market rules.

If I were King I would institute a pay cap per program. The P5 spends X amount. Look into a luxury tax too. The G5 has the option to spend the same or set a lower cap.

 

[upperdeck]

the issue will still always be the haves will find a place to spend the money the dont spend on a coach. more slides or ice cream trucks

 

[skurey]

Students should be head coaches change my mind.

 

[SU68]

I wonder if those taking the 10% cut volunteered, or got volunteered. Those who have served in the military know what I'm talking about.

 

[TexanMark]

I wonder if those taking the 10% cut volunteered, or got volunteered. Those who have served in the military know what I'm talking about.

Ha Ha

Yeah the term is "Voluntold"

 

[Shenexon]

I think there are a number of schools that were struggling before the shutdown that won't survive. Not all schools have assets to draw from until things improve. I'm hoping SU weathers the storm without significant issues. In the scenarios we face, survival is underrated for many businesses. Schools are no different. How will this change the long term demand for on-campus education? How will places like SU adapt?

 

[FloridaFan]

Wouldn't you then risk the loss of the coaches to schools willing to pay more? Or would you propose that all schools follow that which ain't gonna happen.

All schools. the NCAA needs to put a foot down about the gross overpayment of coaches and dark money in sports

 

[Sudano]

I think there are a number of schools that were struggling before the shutdown that won't survive. Not all schools have assets to draw from until things improve. I'm hoping SU weathers the storm without significant issues. In the scenarios we face, survival is underrated for many businesses. Schools are no different. How will this change the long term demand for on-campus education? How will places like SU adapt?

Everyone will plead poverty true or not. SU had a billion dollar endowment last year. Probably lower today but no need to cry for the one industry who has had govt pay subsidies for education for decades and have overcharged to maximize student loans. It will be a hard time on a cash flow basis but they will bridge the gap with a new focus and concentration.

 

[Shenexon]

Everyone will plead poverty true or not. SU had a billion dollar endowment last year. Probably lower today but no need to cry for the one industry who has had govt pay subsidies for education for decades and have overcharged to maximize student loans. It will be a hard time on a cash flow basis but they will bridge the gap with a new focus and concentration.

I think it's tough to criticize an organism like SU and other schools. They're the lifeblood of many towns & cities, with individuals and families creating a university on a moment to moment basis. They're also part of the cash flow, though it's mostly pass through sustaining a larger community. The endowment I think is partly to weather times like this. It's not the first time we've faced hard times with lots of smart people before us looking to the future. Let's hope we're as resilient...

 

[upperdeck]

when you cant use the vast majority of the endowment to get out of this type of situation it shows you just how close to the edge these campuses are. say it was worth 1billion.. How much of that went away this month? then if you sell off some of that now you are down that plus when it comes back.

The colleges are also unclear what time frame these solutions are for? Is this a 1 quarter vs a 1 yr savings plan?

 

[elimunelson]

when you cant use the vast majority of the endowment to get out of this type of situation it shows you just how close to the edge these campuses are. say it was worth 1billion.. How much of that went away this month? then if you sell off some of that now you are down that plus when it comes back.

The colleges are also unclear what time frame these solutions are for? Is this a 1 quarter vs a 1 yr savings plan?

plus that endowment isn't a blank check. I'm sure a lot of it is earmarked for certain things and not "pandemic emergency spending".

I suspect you will see a consolidation of schools vs bankruptcies. Schools will trade for whatever their real estate is in some cases and geography. There was some of this already in the Boston area.

I could see the urban schools deal with consolidating. Something like Suffolk/Emerson or they all combine with BU. Just spitballing.

 

[Chris02M]

wonder if schools will get something from one of the many stimulus packages being worked on

 

[orangedave]

plus that endowment isn't a blank check. I'm sure a lot of it is earmarked for certain things and not "pandemic emergency spending".

I suspect you will see a consolidation of schools vs bankruptcies. Schools will trade for whatever their real estate is in some cases and geography. There was some of this already in the Boston area.

I could see the urban schools deal with consolidating. Something like Suffolk/Emerson or they all combine with BU. Just spitballing.

I believe that, in most cases, the endowment funds themselves cannot be spent. They are invested and only the income from the investments, can be spent. Also the donor can specify how the income is spent.
A billion dollar endowment is misleading.

 

[TexanMark]

The endowment was worth close to $1.5B. Not sure it's value today. I would think still well over $1B. It better be... you don't want a really high beta.