The alliance scheduling agreement already looks dead in football

[longtimefan]

Based on what? Scholarships and facility taxes are not real cash. A kid on a football scholarship isn’t taking money out of the general fund. It is forgoing income from a regular student. Funds are not coming in. That is a huge difference from taking money from the general fund to improve the football facility or to increase coaches pay.

If a team in the ACC is making $25M less than a team in the B1G it is actual money. Name me a school willing to take $25M out of their general fund to spend it on football?

Try this:

The all-inclusive Rutgers dumpster fire thread...

Final score 0-0 Both ash and edsal get bonuses.

syracusefan.com

 

[HRE Otto IV]

Try this:

The all-inclusive Rutgers dumpster fire thread...

Final score 0-0 Both ash and edsal get bonuses.

syracusefan.com

None of that differs from what I said.

 

[longtimefan]

Based on what? Scholarships and facility taxes are not real cash. A kid on a football scholarship isn’t taking money out of the general fund. It is forgoing income from a regular student. Funds are not coming in. That is a huge difference from taking money from the general fund to improve the football facility or to increase coaches pay.

If a team in the ACC is making $25M less than a team in the B1G it is actual money. Name me a school willing to take $25M out of their general fund to spend it on football?

In fiscal 2017, the athletic department brought in $96.9 million, but it spent $99.2 million, leaving a $2.3 million operating deficit. This, despite athletics receiving $21.32 million in direct institutional support from the school and another $11.77 million in student fees.

The $33 million subsidy in fiscal 2017 is up from more than $28 million in fiscal 2016, when athletics received $17.16 million in institutional support and another $11.42 million in student fees.

Rutgers says full Big Ten share delayed until 2027

A newly released report states, among other things, that Rutgers will not get a full revenue share from the Big Ten until 2027

www.app.com

 

[HRE Otto IV]

In fiscal 2017, the athletic department brought in $96.9 million, but it spent $99.2 million, leaving a $2.3 million operating deficit. This, despite athletics receiving $21.32 million in direct institutional support from the school and another $11.77 million in student fees.

The $33 million subsidy in fiscal 2017 is up from more than $28 million in fiscal 2016, when athletics received $17.16 million in institutional support and another $11.42 million in student fees.

Rutgers says full Big Ten share delayed until 2027

A newly released report states, among other things, that Rutgers will not get a full revenue share from the Big Ten until 2027

www.app.com

Again these are not real costs. It is forgone income. Rutgers isn’t taking money from the general fund.

 

[longtimefan]

Again these are not real costs. It is forgone income. Rutgers isn’t taking money from the general fund.

Seems like "creative" accounting.

 

[CU44SE]

I mean there is no telling how this will all play out. But I feel like people are forgetting that the ACC has scheduled look ins 3 times over the 20 year contract with ESPN. Now I don’t know if there is language that states they have to pay us similar to the other major conferences. Or how that is decided what happens at those look ins. But that is something I haven’t seen anyone in this thread mention.

After slight research looks like the first “look in” was supposed to happen in 2021. Obviously COVID and the sports world in flux did not help that. But I can’t seem to see any reports on what happened.

 

[NJneer12]

In fiscal 2017, the athletic department brought in $96.9 million, but it spent $99.2 million, leaving a $2.3 million operating deficit. This, despite athletics receiving $21.32 million in direct institutional support from the school and another $11.77 million in student fees.

The $33 million subsidy in fiscal 2017 is up from more than $28 million in fiscal 2016, when athletics received $17.16 million in institutional support and another $11.42 million in student fees.

Rutgers says full Big Ten share delayed until 2027

A newly released report states, among other things, that Rutgers will not get a full revenue share from the Big Ten until 2027

www.app.com

Oh it gets better.

Rutgers athletics rang up a $73M deficit last year. Students, taxpayers were on the hook

Rutgers athletics spending reached an all-time high of $118 million in 2020-21. Direct university subsidies more than doubled, to nearly $28 million.

www.northjersey.com

"Direct subsidies from the university to athletics more than doubled from the prior year, to $27.6 million, which includes a large loan from the university. Though student fees went down slightly during the COVID-19 pandemic, the total amount of fees, state aid and university support rose 50% over the prior fiscal year — to almost $43 million."

"NorthJersey.com revealed last September that Rutgers had been reporting loans from the university under “other operating revenue,” a practice that is contrary to NCAA guidelines and that made its annual deficits appear smaller. This year the loan was moved to "direct institutional support." The loans to athletics to cover operating deficits were also not permitted under university policy. "

"That policy was changed last year following questions from NorthJersey.com. "

 

[longtimefan]

Oh it gets better.

Rutgers athletics rang up a $73M deficit last year. Students, taxpayers were on the hook

Rutgers athletics spending reached an all-time high of $118 million in 2020-21. Direct university subsidies more than doubled, to nearly $28 million.

www.northjersey.com

"Direct subsidies from the university to athletics more than doubled from the prior year, to $27.6 million, which includes a large loan from the university. Though student fees went down slightly during the COVID-19 pandemic, the total amount of fees, state aid and university support rose 50% over the prior fiscal year — to almost $43 million."

"NorthJersey.com revealed last September that Rutgers had been reporting loans from the university under “other operating revenue,” a practice that is contrary to NCAA guidelines and that made its annual deficits appear smaller. This year the loan was moved to "direct institutional support." The loans to athletics to cover operating deficits were also not permitted under university policy. "

"That policy was changed last year following questions from NorthJersey.com. "

Tell HRE Otto.

 

[HRE Otto IV]

Tell HRE Otto.

Still not differing from my point. A loan needs to be repaid, which it will given future income from a full B1G membership. That future income isn't there for a school like Pitt. Pitt isn't going to take money away from their medical school to add $40M to football so they can pull even with Penn State.

 

[All4SU]

I’m not sure what’s sweeter… that Buttgers is financially under water, or the fact that SU/Newhouse did the study.

 

[HtownOrange]

Still not differing from my point. A loan needs to be repaid, which it will given future income from a full B1G membership. That future income isn't there for a school like Pitt. Pitt isn't going to take money away from their medical school to add $40M to football so they can pull even with Penn State.

If you go back a couple decades - long before the B1G's Big Mistake of taking Rutgers - Rutgers was losing money from the AD. They have only increased their losses which are in the $1Billion range. They are never projected to pay back any of the losses. The goal is to merely break even at some point. With $73MM in the hole last year, it is highly unlikely that the B1G payouts will exceed Rutgers' continued and projected losses any time soon. All projections showing Rutgers' running in the black within a few years use Rutgers' "funny" accounting which is generally unethical, if not illegal.