Haslam and His Money

#1

orangelo

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#1
Preface: I know that this is a crazy concept.
Does anyone have any idea how much the Haslam's traditionally have donate annually to the football program? I was just wondering how many $100-$1000 donations in the name of no Haslam it would take to make their money a push. I'm sure you could come up with 10k-20k people that care enough about UT and less about control that would donate to offset the cutting of ties of them.
 
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#2
#2
I really don't care how much it is. It might hurt, but you know what, it hurt growing up and moving out of my parents house too.

When I was a child, I spake as a child, I understood as a child, I thought as a child: but when I became a man, I put away childish things. - 1 Corinthians 13:11

It's time for us to grow up and stand on our own. I am an adult, and with that came responsibilities, but also came certain freedoms. If I decided to eat ice cream at midnight, I did it, and still do from time to time.

It's time for us to make our own decisions. Does that mean we might have to pay more? Yes, but that's okay.
 
#3
#3
Preface: I know that this is a crazy concept.
Does anyone have any idea how much the Haslam's traditionally have donate annually to the football program? I was just wondering how many $100-$1000 donations in the name of no Haslam it would take to make their money a push. I'm sure you could come up with 10k-20k people that care enough about UT and less about control that would donate to offset the cutting of ties of them.

You may get a mixed response to your post, but I will say that I appreciate your vulnerability.

I like the creativity but, in reality, most pledges would be made from fading emotion and not from fiscal ability.

The future of any such donations could not be depended upon in the same manner as the donations made by the Haslam's.

You have identified the driving force behind the power of the Haslam's. It is just not easy to replace, much less in an ongoing fashion.
 
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#5
#5
You may get a mixed response to your posts, but I will say that I appreciate your vulnerability.

I like the creativity but, in reality, most pledges would be made from fading emotion and not from fiscal ability.

The future of any such donations could not be depended upon in the same manner as the donations made by the Haslam's.

You have identified the driving force behind the power of the Haslam's. It is just not easy to replace, much less in an ongoing fashion.

But really, how much are they giving every year, each and every year?

$10 million?
 
#8
#8
Yeah, but are we talking 5 million, 10 million, 50 million, or 100 million?

Get me in the ball park.

Let's say that it is large enough to buy a fairly exclusive influence. I am not sure why an exact amount is important. We know that it must be quite large.
 
#9
#9
Let's say that it is large enough to buy a fairly exclusive influence. I am not sure why an exact amount is important. We know that it must be quite large.

Well if it's around $10 to $15 million, I can easily make that up, strictly business wise. No need for other donors.

If it's $20 to $25 million, I can use a combination of price increases and other donors to make that.

If they are giving more than that a year, then I have to start working to make that up.

But $10 million a year, I don't sweat it.

But debating you on this and another thread, I would be interested in where you see what they give a year, but just ball park.
 
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#10
#10
Bro, they have many buildings on campus named after them. They are the largest donors to the university and have been for many decades. They are deeply immersed in the culture, decision making processes, and business decisions that go on in and around the entire university system. They aren't going anywhere anytime soon. Jimmy 3 fancies himself some sort of Football god-father who understands the game. He clearly doesn't, and is inept in football decision making processes. We all suffer because of it. See Cleveland Browns organization past 10 years, and Pilot fraud to reference his actual personal merits. His daddy was the real Pilot pioneer, and he is the golden-boy pulling the strings behind the scenes. The sad thing is that his ego is screwing us all over with these atrocious hires.
 
#11
#11
Well if it's around $10 to $15 million, I can easily make that up, strictly business wise. No need for other donors.

If it's $20 to $25 million, I can use a combination of price increases and other donors to make that.

If they are giving more than that a year, then I have to start working to make that up.

But $10 million a year, I don't sweat.

I would like to hear the business plan for each category.

I just saw your addendum. I don't recall us debating about Haslam donations but I could have missed it.

I recall us discussing the financial impacts of continued seasons like this year. I enjoyed the conversation. I hope you did as well.
 
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#13
#13
I would like to hear the business plan for each category.

Well, the $10 to $15 million category, I increase my ticket sales by $10 per ticket. That gives me an additional $7 million. Likewise, I increase merchandise prices and concessions marginally, and get to my 10 to 15 category.

$20 to $25 million, I implement plan A from above, and reach out to other donors. If I can get an additional $1 to $2 million each out the large donors, plus additional cost on luxury boxes and parking, I should be able to make this category.

Now, after that, I may have to make some investments in facilities in and around Knoxville to generate more income.

I did enjoy that. Here it is:

You may be correct, however, what makes the Haslams any less desirable than what you find at other college football programs?

I'd like to hear where you think the Haslam yearly donations fall.
 
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#14
#14
Well, the $10 to $15 million category, I increase my ticket sales by $10 per ticket. That gives me an additional $7 million. Likewise, I increase merchandise prices and concessions marginally, and get to my 10 to 15 category.

$20 to $25 million, I implement plan A from above, and reach out to other donors. If I can get an additional $1 to $2 million each out the large donors, plus additional cost on luxury boxes and parking, I should be able to make this category.

Now, after that, I may have to make some investments in facilities in and around Knoxville to generate more income.

Now, I'd like to hear where you think the Haslam yearly donations fall.

Thanks for those plan summaries.

As you stated earlier, from a business perspective, it comes down to the product. If the product is not desirable, it's worth diminishes. I would question the ability to raise prices for the product on a promise that the lack of value now would be offset in future years. If you can sell that, I might need a resume from you.

Other than the timing, the summaries seem like a start.

As far as guessing donation amounts, it probably varies by year. The university has a need and makes a request for additional donations from dedicated donors with significant financial resources. I imagine their donations could be from $10M to $50M in any given year.
 
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#15
#15
Beware crossing the Haslam Family. Keep these logins amonomous. Good Luck

More power to them. If they want I'm sure they could cause me issues, but I've ran afoul of people more powerful, if not necessarily richer.

Came out okay those times. I figure tossing ideas around on a message board should be innocuous enough.
 
#16
#16
Thanks for those plan summaries.

As you stated earlier, from a business perspective, it comes down to the product. If the product is not desirable, it's worth diminishes. I would question the ability to raise prices for the product on a promise that the lack of value now would be offset in future years. If you can sell that, I might need a resume from you.

Other than the timing, the summaries seem like a start.

As far as guessing donation amounts, it probably varies by year. The university has a need and makes a request for additional donations from dedicated donors with significant financial resources. I imagine their donations could be from $10M to $50M in any given year.

Oh, I could sell that in the right environment at the right time.

And that environment is this program, and the time is now.

If I sell that the people responsible for the past 10 to 15 years of issues can be run off with a modest price increase, the people that have had to weather that storm will make that sacrifice. And they will do it gladly.

The quick turn around of hope that Butch Jones brought is proof of that. That can be leveraged again, but it has to be a better promise. That's why Schiano failed to sell. He was more of the same (Butch, Dooley). That's what Currie has failed to realize. He has to sell a new product, not a repackaged version of the old one.

People want a change of direction. That will sell. Especially to other boosters who, despite giving money, feel that they have been overshadowed.

Let me put it another way. Currie is try to sell that the fan base is stupid. No leaks, trust me to do the right thing. I know you've been left at the altar, had your heart ripped out by your last two loves, but trust me. Then he gets all prettied up and goes out all night. Comes back home smelling of perfume, with makeup smeared all over him.

You think he's going to be trusted? No.

But I can sell that High School sweet heart. That was long ago, and only the good memories remain. Plus, they never cheated.

You are selling emotions, not product, if you do it right. But you can't insult the customers intelligence. And you have to manage set the expectations.

You sell it as a coup, going back to the old ways. Much like New Coke / Old Coke. We made a mistake and we are fixing it, but it's going to cost.

People will buy that. Your car that keeps breaking down, we can give you a better one like your old one you remember that was dependable. And at only 10% increase on your current payments. It will be reliable, new, shiny, and have everything that loved about that old car you loved. But it will take a little time on the break in period. Don't run it hard for the first 5000 miles. Get your transmission oil changed at your first oil change. It's really going to be something at it's first 15,000 mile maintenance. The power really comes through then.

See, you can sell that, and manage expectations, without making excuses.
 
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#17
#17
big jim i know gave 32.5 millionmillion in one donation. it was recognized at the umass game. that donation was like 10 years ago.little jimmy and dee give like 10 million for scholarships, not sure if thats every year though. in 2014 the family came together and gave $50 million and then hence haslam college of business.
 
#18
#18
big jim i know gave 32.5 millionmillion in one donation. it was recognized at the umass game. that donation was like 10 years ago.little jimmy and dee give like 10 million for scholarships, not sure if thats every year though. in 2014 the family came together and gave $50 million and then hence haslam college of business.

Ok, let's assume that it's not every year, but a donation set up in an interest bearing trust, and let's say it was a 1 time $100 million.

So let's say over the past 10 years, he's gave $200 million all totaled.

My $20 million category gets you that over 10 years. Now you are going to lose some interest in the trust, can't be helped. But you can make that money up, and you can do it with a shift in power in the boosters.
 
#19
#19
You guys act like the Haslams are pulling the strings and that is not how it works. The University comes up with an idea and they go to the big donors to see if they will finance it. If you take away the big donors you don't have a chance because that's what our competition does. They way to have influence like that is to do what they do.
 
#20
#20
Oh, I could sell that in the right environment at the right time.

And that environment is this program, and the time is now.

If I sell that the people responsible for the past 10 to 15 years of issues can be run off with a modest price increase, the people that have had to weather that storm will make that sacrifice. And they will do it gladly.

The quick turn around of hope that Butch Jones brought is proof of that. That can be leveraged again, but it has to be a better promise. That's why Schiano failed to sell. He was more of the same (Butch, Dooley).

People want a change of direction. That will sell. Especially to other boosters who, despite giving money, feel that they have been overshadowed.

How would you communicate the "run off" justification for the price increase to the buyers without losing the donations before you know the success of your sales pitch? That is very high risk without any guarantee of the needed level of success.

Hey, just so you know, I am not trying to put you in a corner. This is all just theory and not about your ability to pull this off in reality. I enjoy the conversation.

Wow, I just saw your addendum.

Let's keep the conversation to the original if we can.
 
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#21
#21
How would you communicate the "run off" justification for the price increase to the buyers without losing the donations before you know the success of your sales pitch? That is very high risk without any guarantee of the needed level of success.

Hey, just so you know, I am not trying to put you in a corner. This is all just theory and not about your ability to pull this off in reality. I enjoy the conversation.

It's just a calculated risk. But a pretty safe one. You are selling what the public already wants to buy. The belief is that Haslam is the problem. They don't help themselves in any way, shape, or form. The Browns are perfect leverage.

If you come to me wanting to buy a diamond ring of a certain cut and clarity, and I have that certain cut and clarity, it's a pretty easy sell if the price is right.

I'm not talking about a 40% jump in price. It's marginal. If I can add 1 dollar to your phone bill to eliminate child hunger, and you already want to donate to child hunger, that's an easy sell.
 
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#22
#22
You guys act like the Haslams are pulling the strings and that is not how it works. The University comes up with an idea and they go to the big donors to see if they will finance it. If you take away the big donors you don't have a chance because that's what our competition does. They way to have influence like that is to do what they do.

Not all donors. Just changing which donors give the most.

And if you don't think the Haslams are pulling the strings, you are kidding yourselves.
 
#25
#25
Anyone clamoring for UT to pull the Haslam's power has no clue how big money works. Its not just the fact that they donate 50-100 million yearly. Its the fact that they have money on tap that UT can use at any point that it might be needed. Now do I think that they are somewhat a cancer when it comes to calling the shots on coaches yes. Although at the end of the day you know who is calling the shots. If you don't like it being done this way then I guess find a new university. Its not changing.
 

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