Bye bye Butch - Purdue bound (message board rumor)

#826
#826
InVOLuntary said:
Not to be disagreeable but in 2015 AL and TN had almost the exact revenue from football, $98M (TN) vs $97M (AL). TN was the second most profitable football program, behind Texas at $70M meaning we spend about $28M on football. Meanwhile, AL comes in at #10 on the list at $48M profit meaning they spend roughly 50% of their revenue on their program. What is happening to the money we don't spend on football? I realize we support other non-revenue sports but Bama does too. Our basketball while isn't great is still more successful than Bama's on both the men's and women's side. The money is there, it's in how you spend it.

Bama wants a championship level program, we seem to be happy with what we have. It really makes sense if you think about it in the regards to a business model. Why spend all that money when you don't have to? Almost identical revenues with spending half to achieve it.
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I don't know if it matters in this case, but every time Athletic Department numbers come out, I seem to remember a few people like Hyams pointing out that UTs reporting requirements/method is different than several schools. Something like UT's numbers are more realistic but generally don't look as good. IIRC, Georgia and a couple others really added a lot of window dressing to their reports.

Not that it excuses poor management on UT's case when it happens, but that the numbers that ADs report aren't always equal.

Someone with more time and a better understanding would have to dig into it to explain it better. I'll see if I can find an article that mentions it.
 
#827
#827
DC_Vol said:
If you would have paid attention to the article you would see that only one team generates revenue over 100M annually.

There are other factors that go into the valuation such as value generated for local economies.

It's not as simple as you laid out above.
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The whole point of me linking the article was in response to someone saying that UT had no money to pay for a new head coach or pay off the contract for getting rid of a coach. It is very, very clear that UT has the money to do this.

..As I stated above, their profit margin is 89 million for their football team. Sometimes people forget that revenue comes from not only for game day ticket sales but also merchandising, Huge sums of moneys from sponsors (Nike), TV Fees, Bowl appearances and so on. UT made $4,300,000 from the BOB free and clear this year. They paid no expenses out of that money.
 
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#828
#828
InVOLuntary said:
Not to be disagreeable but in 2015 AL and TN had almost the exact revenue from football, $98M (TN) vs $97M (AL). TN was the second most profitable football program, behind Texas at $70M meaning we spend about $28M on football. Meanwhile, AL comes in at #10 on the list at $48M profit meaning they spend roughly 50% of their revenue on their program. What is happening to the money we don't spend on football? I realize we support other non-revenue sports but Bama does too. Our basketball while isn't great is still more successful than Bama's on both the men's and women's side. The money is there, it's in how you spend it.

Bama wants a championship level program, we seem to be happy with what we have. It really makes sense if you think about it in the regards to a business model. Why spend all that money when you don't have to? Almost identical revenues with spending half to achieve it.
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Once the fans get tired of accepting mediocrity from those in power, maybe we can have nice things again.


They're charging you for prime rib, while serving you Bologna.
 
#833
#833
EZE said:
Plus, there is this little detail called Title IX. Football is by the the largest revenue generating sports, followed well behind by the two basketball programs. Football carries the freight on all of those other non-generating sports for both men and women.

Like most places, the bulk of that money is already spoken for. That is why our reserve is so slowly recovering.
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So, A SEC school like Ole Miss has the same secondary sports as UT. They have Basketball, baseball, softball, lacrosse, field hockey, soccer and so on. They have the same sports and expenses as UT. UT's valuation is 121 million and Ole miss's is less than 75 million....where does that extra money go??? The point is those secondary sports do not swallow up all that extra revenue....in the end the University is a business. A business that has been around for over a 100 years. They are not staying in business by just breaking even every year. So yes, they do have money in reserve...a lot of it.:glare:
 
#835
#835
InVOLuntary said:
Not to be disagreeable but in 2015 AL and TN had almost the exact revenue from football, $98M (TN) vs $97M (AL). TN was the second most profitable football program, behind Texas at $70M meaning we spend about $28M on football. Meanwhile, AL comes in at #10 on the list at $48M profit meaning they spend roughly 50% of their revenue on their program. What is happening to the money we don't spend on football? I realize we support other non-revenue sports but Bama does too. Our basketball while isn't great is still more successful than Bama's on both the men's and women's side. The money is there, it's in how you spend it.

Bama wants a championship level program, we seem to be happy with what we have. It really makes sense if you think about it in the regards to a business model. Why spend all that money when you don't have to? Almost identical revenues with spending half to achieve it.
Click to expand...

Careful, if you try and say UT is making money off of their football program, you will be called stupid for not realizing that lacrosse sticks are very, very expensive. They must use government lacrosse sticks.:salute:
 
#836
#836
Some people are mad at false rumors because they want Butch is an amazing coach who has earned more time and think that these rumors are somehow unseemly.

I'm just mad about the rumors because they keep getting my hopes up for nothing.
 
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#837
#837
DC_Vol said:
He's logical. And correct.

You can probably find the annual balance sheet of the athletic department and see for yourself.
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The one for 2014-2015 that I found shows a difference of around 13 million between revenue and expenses in the AD.

Folks also forget there was a deficit problem for a while. The amount of revenue has increased dramatically in the past few years.
 
#838
#838
Rgntddybrvol91 said:
So, A SEC school like Ole Miss has the same secondary sports as UT. They have Basketball, baseball, softball, lacrosse, field hockey, soccer and so on. They have the same sports and expenses as UT. UT's valuation is 121 million and Ole miss's is less than 75 million....where does that extra money go??? The point is those secondary sports do not swallow up all that extra revenue....in the end the University is a business. A business that has been around for over a 100 years. They are not staying in business by just breaking even every year. So yes, they do have money in reserve...a lot of it.:glare:
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Valuation and revenue are two totally different things.
 
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#839
#839
InVOLuntary said:
Valuation and revenue are two totally different things.
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I know that....

Valuation is what the program would probably sell for if they were a Professional program that could be bought and sold.

Revenue is what the University actually receives in liquid assets.

They have had a 20 million excess right now.

My initial point was in response to someone saying earlier in the thread that UT doesn't have money.

After this years performance, that 20 million will disappear quickly and again, we will be deficient in revenue. We waited too long with Dooley and in the end the buyout cost us more because the revenue had disappeared because of his poor performance at coaching.

If we wait too long with Butch then we will be in the exact same position with having to pay a buy out when ticket sales are down, donor money to the program drying up and lost revenue to our games not being telecast on the big channels like CBS, ESPN etc.
 
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#840
#840
We'll soon see how much CBJ wants to be here by the hires and fires he makes this offseason.
 
#841
#841
What? Go to a mediocre Big 10 university which is no better than South Carolina, Ole Miss or Mississippi St. Maybe even less money.😱😮🤔😧😳
 
#843
#843
....I'm out, this is getting surreal. Evidently Jones has asked for a extension and a raise....I give up.:banghead2:
 

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#844
#844
Rgntddybrvol91 said:
....I'm out, this is getting surreal. Evidently Jones has asked for a extension and a raise....I give up.:banghead2:
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I want to see your reaction when he gets it! :loco:

Personally, I want to see the explanation given. This should be good.
 
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#845
#845
InVOLuntary said:
Not to be disagreeable but in 2015 AL and TN had almost the exact revenue from football, $98M (TN) vs $97M (AL). TN was the second most profitable football program, behind Texas at $70M meaning we spend about $28M on football. Meanwhile, AL comes in at #10 on the list at $48M profit meaning they spend roughly 50% of their revenue on their program. What is happening to the money we don't spend on football? I realize we support other non-revenue sports but Bama does too. Our basketball while isn't great is still more successful than Bama's on both the men's and women's side. The money is there, it's in how you spend it.

Bama wants a championship level program, we seem to be happy with what we have. It really makes sense if you think about it in the regards to a business model. Why spend all that money when you don't have to? Almost identical revenues with spending half to achieve it.
Click to expand...

If you're the AD why not be happy with what you have?

You can continually deliver a sub par product and get A++++ business results. The ROI is staggering.
 
#846
#846
Rgntddybrvol91 said:
I know that....

Valuation is what the program would probably sell for if they were a Professional program that could be bought and sold.

Revenue is what the University actually receives in liquid assets.

They have had a 20 million excess right now.

My initial point was in response to someone saying earlier in the thread that UT doesn't have money.

After this years performance, that 20 million will disappear quickly and again, we will be deficient in revenue. We waited too long with Dooley and in the end the buyout cost us more because the revenue had disappeared because of his poor performance at coaching.

If we wait too long with Butch then we will be in the exact same position with having to pay a buy out when ticket sales are down, donor money to the program drying up and lost revenue to our games not being telecast on the big channels like CBS, ESPN etc.
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I'm going to not wade into the revenue vs value argument any more, you seem pretty set on your side there.

Ticket sales and donations are true issues in a downturn, but UT does not receive direct revenue from games being broadcast on "the big channels". That's a conference thing. Now, you could drill down into in stadium advertising and overall value, but that's splitting hairs that have already been split 4 times.
 
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#848
#848
WallyBalls said:
UT does not receive direct revenue from games being broadcast on "the big channels". That's a conference thing. Now, you could drill down into in stadium advertising and overall value, but that's splitting hairs that have already been split 4 times.
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I did not know that.....I thought they got extra money for being on the big networks???

Is that paid out in the SEC payout each year??
 
#849
#849
Rgntddybrvol91 said:
I did not know that.....I thought they got extra money for being on the big networks???

Is that paid out in the SEC payout each year??
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Yes, the conference distributes TV revenues. To work the other way, each team would have to negotiate their own TV deals.
 
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