The Money Side of Athletics

[HerdBot]

I'll just say this. The Gophers get 45 million in money before they even lift a finger our entire athletic budget is about 20 million. Then they act like they are not rolling in the dough. Right. It reminds me when Red McCombs whined about the limited Metrodome revenue because he wasnt making as much money as the Cowboys and acting like he was poor when in reality he was making a shit load. Just not as much as other billionaires.

BTW it's pretty easy to build a new stadium when you get this kind of money

[bisonmike2]

Interesting article in regards to cost of college athletics.

http://www.startribune.com/as-colleg...ing/310548681/

I always find it fascinating that the big schools get more and more revenues, but have little excess cash to show for it.

Shows how much expensive it is to move up or compete at the top level.


Minnesota is middle of the road really when it comes to revenues for the power five. Where to they spend all the money?

I wonder if they really don't have excess cash or if they have some creative accounting that makes it appear like they don't have excess cash. I'm thinking there's a little of both.

[Mr Meaty]

I wonder if they really don't have excess cash or if they have some creative accounting that makes it appear like they don't have excess cash. I'm thinking there's a little of both.

The might have a couple of Hockey programs sucking away a lot of money. That happens at other schools with Teh Hockie Program.

[Bison"FANatic"]

It is a classic case of give someone the budget and they will spend the whole thing. No matter if it is smart or foolishly spent. I mean how many times do you see coaches making millions canned yet their contract needs to be paid off for the next 3 years and you also pay a new coach. There is absolutely zero incentive for AD's at the highest level to keep costs inline all they need to care about is how to spend as much as they can to show they need more. Heck the AD's at a lot of the P5 colleges are "more important" than the college presidents.

[roadwarrior]

It is a classic case of give someone the budget and they will spend the whole thing.

This sounds like park boards, school boards, cities and counties!

[tony]

This sounds like park boards, school boards, cities and counties!

Yeah, except that most government entities make their budget and then get their funding.

I've got no clue how, say, Oregon does it. Do they make a budget and then, when they get an extra $20 million or so, throw the budget out the window and just spend, spend, spend? If so, what is the extra $20 million going towards and who has oversight?

To me, it would make sense to set a budget, stick to it, and then put revenue over the budgeted amount into a separate fund.

[kab1one]

I'll just say this. The Gophers get 45 million in money before they even lift a finger our entire athletic budget is about 20 million. Then they act like they are not rolling in the dough. Right. It reminds me when Red McCombs whined about the limited Metrodome revenue because he wasnt making as much money as the Cowboys and acting like he was poor when in reality he was making a shit load. Just not as much as other billionaires.

BTW it's pretty easy to build a new stadium when you get this kind of money

Due they fund their stadiums out of the annual budget? TCF was a fund drive like the BSA here in Fargo. They are looking to raise $150-200 million for althetic halls, practice facilities, etc.

I know at the U of Michigan, a donor gave $50 million for an endowment to pay for coaches. So a big portion of Harbaugh's salary was paid by the endowment and not even included in the operating budget.

But big picture it just shows how much money would be needed to even consider a move up to a conference even like the MW.

[Bison"FANatic"]

One of the things I always look at is how do "businesses" do during tough times. College athletics doesn't or hasn't had "tough times" with guaranteed TV contracts and with some of the other revenue streams. Quite a few of the P5 teams have been decreasing how much university funds they take so they then don't have to answer to the higher ups as much. They keep getting more money and the bloat keeps getting larger and larger.

In what I call my "play" money investments when I look at investments one of the things I look at is when was the last time that sector had to go through "tough times" Be it banks, certain manufacturing or lately oil when those industries have to make the tough choices they come out a better company on the back side that is usually leaner and able to perform to the same or better level all while being more profitable with a larger upside. Will P5 college athletics ever have a actual "tough time" to go through and not just a administrative whining about so called "tough time".

[HerdBot]

Due they fund their stadiums out of the annual budget? TCF was a fund drive like the BSA here in Fargo. They are looking to raise $150-200 million for althetic halls, practice facilities, etc.

I know at the U of Michigan, a donor gave $50 million for an endowment to pay for coaches. So a big portion of Harbaugh's salary was paid by the endowment and not even included in the operating budget.

But big picture it just shows how much money would be needed to even consider a move up to a conference even like the MW.

I'll say this. It's easier to hit up your donors for projects when you don't have to raise as much money for scholarships. I mean imagine how much stuff we could get built if teammakers didn't have to fund scholarships since a tv deal covered them.

The Gophers are also getting student fees and naming rights to pay a good chunk of TCF Bank Stadium.

[Hammerhead]

The gophers have to subsidize their losses for selling beer. 😆