For those questioning the $$$...(long - not for ADD folks)

#1
VolMax

VolMax

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#1
Each year, Forbes does an article on the top 20 most valuable teams in college football. In it, the place an overall value on the program and show annual revenue and profit.

In 2006, we were valued at $74 mill (ranked 7th behind ND, Tex, Ga, Mich, FL, and LSU) with a profit of $17.3 mill + $16.2 to VASF.

In 2011, we were valued at $82 mill (12th overall) with a profit of $38 mill (I believe they included the VASF in this figure). Looking at profit alone, FL had $47 mill, GA $53 mill, Bama $45 mill, LSU $47 mill, and TX had $71 mill.

For those that don't think we can afford a buyout and a $6 mill coach (Chuckie?), just think about those numbers. An increase in $10 mill still puts us below GA and about $25 mill below TX. That is a very attainable increase with a grand slam hire. The bayou folks don't exactly have more dough to spend then we do, and we have about 2 mill more in population than LA. We have about 1.5 mill more than Alabama and they have two SEC schools that have a combined profit of $82 mill.

Another piece (that I don't think Forbes calculates) is the value to the university and state brand. How much is the Alabama football brand worth to the state of Alabama?

Looks like whipping out the checkbook makes a lot of sense...
 
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#2
#2
The financial uptick that would be created just in Chucky doll sales could be measured in the millions alone...and they can't be more than $20-30?

Tickets are $70 or more...

Yeah...saying hiring Gruden would increase our net worth is like saying buying Apple stock 20 years ago wouldn't have been "such a bad thing."
 
#3
#3
Agreed. Hire the best and pay them. You have to spend money to earn it.
 
#4
#4
I'm confident that Hart wouldn't do anything that is financially non-feasible. But below is a more accurate description of the current state of the AD.

There are some mitigating factors with coaches coming off the books and (from what I've heard) potential boosts to TV payouts. But it's still not a good situation. The only way we're firing our staff and replacing it with Jon Gruden at the helm is if donors step in and pretty much agree to pay all of it - which would be beaucoup bucks.

Tennessee Volunteers athletic department posts $3.98 million deficit - ESPN

Tennessee's athletic department posted a $3.98 million deficit for the 2011-12 fiscal year that forced it to use a substantial portion of its financial reserves, department officials acknowledged Monday.

Tennessee also has more than $200 million in outstanding debt related to the construction and renovation of various athletic facilities on campus.
Click to expand...
 
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#5
#5
ATLVols said:
Agreed. Hire the best and pay them. You have to spend money to earn it.
Click to expand...

Yeah, there is an old adage: "It takes money to make money."

Just like in the stadium situation - other major institutions with aging stadiums began grand makeovers or built new stadiums. For UT to compete for recruits we had to renovate Neyland and update player facilities. I understand that we now need to update or replace the players dorm. All this takes money, and lots of it.

Now for the coaching situation, other programs are hiring SEC caliber coaches or proven, up-and-coming OCs or DCs as Head Coach. They are paying out big bucks in order to land those guys. NOW, I'n not demanding a Dooley replacement in this post, but I am saying, when he is replaced... if we are to be competitive in the SEC and with other major programs in recruiting, wins, etc., then it will cost us to get the coaching staff that will get us there. Even if Dooley were to pull out a miracle and win out this season (with a bowl)... and has at least 8 or 9 wins next year (another bowl)... when contract time rolls around, it would take big $$$ to keep him on board. I hope the administration is planning to pay out the money needed to hire and retain a quality coaching staff - whoever the staff may be.

GBO!!! ><>
 
#6
#6
golfballs said:
I'm confident that Hart wouldn't do anything that is financially non-feasible. But below is a more accurate description of the current state of the AD.

There are some mitigating factors with coaches coming off the books and (from what I've heard) potential boosts to TV payouts. But it's still not a good situation. The only way we're firing our staff and replacing it with Jon Gruden at the helm is if donors step in and pretty much agree to pay all of it - which would be beaucoup bucks.

Tennessee Volunteers athletic department posts $3.98 million deficit - ESPN
Click to expand...

Can't say I agree with the idea that boosters or donors would have to pay out huge money to make it happen. It has been stated several times that buyouts are paid monthly. I saw where the NS did the break down yesterday with the actual buyouts of all the coaches. 350,000.00 per month is the realistic number at worse. It could be less than that. Could Dave Hart find 350 grand a month? If Gruden were hired, what would the profit look like for Gruden merchandise the 1st month? What would happen to season ticket sales? Noone has to write a 15 million dollar check to get this thing started as some claim. With that being said, many outlets claim donors have already agreed to cover the buyouts. $$ will not be the reason if Gruden is not the next HC here.
 
#7
#7
VolMax said:
Each year, Forbes does an article on the top 20 most valuable teams in college football. In it, the place an overall value on the program and show annual revenue and profit.

In 2006, we were valued at $74 mill (ranked 7th behind ND, Tex, Ga, Mich, FL, and LSU) with a profit of $17.3 mill + $16.2 to VASF.

In 2011, we were valued at $82 mill (12th overall) with a profit of $38 mill (I believe they included the VASF in this figure). Looking at profit alone, FL had $47 mill, GA $53 mill, Bama $45 mill, LSU $47 mill, and TX had $71 mill.

For those that don't think we can afford a buyout and a $6 mill coach (Chuckie?), just think about those numbers. An increase in $10 mill still puts us below GA and about $25 mill below TX. That is a very attainable increase with a grand slam hire. The bayou folks don't exactly have more dough to spend then we do, and we have about 2 mill more in population than LA. We have about 1.5 mill more than Alabama and they have two SEC schools that have a combined profit of $82 mill.

Another piece (that I don't think Forbes calculates) is the value to the university and state brand. How much is the Alabama football brand worth to the state of Alabama?

Looks like whipping out the checkbook makes a lot of sense...
Click to expand...
ADD a joke to you huh? 8th grade education?
 
#8
#8
LebanonVolunteer said:
Can't say I agree with the idea that boosters or donors would have to pay out huge money to make it happen. It has been stated several times that buyouts are paid monthly. I saw where the NS did the break down yesterday with the actual buyouts of all the coaches. 350,000.00 per month is the realistic number at worse. It could be less than that. Could Dave Hart find 350 grand a month? If Gruden were hired, what would the profit look like for Gruden merchandise the 1st month? What would happen to season ticket sales? Noone has to write a 15 million dollar check to get this thing started as some claim. With that being said, many outlets claim donors have already agreed to cover the buyouts. $$ will not be the reason if Gruden is not the next HC here.
Click to expand...

Yeah, $6.25M per year for a coach. No sweat
 
#10
#10
IMO, if Haslam opens his checkbook for a big-name coach it's for the Browns, not the Vols. The Cleveland Browns represent an investment to where he's looking for a return. What's his return on UT football?

Don't get me wrong, I would love it if UT hired a big name, but to simply throw Haslam's name out there just because he has money doesn't mean he owes it to UT.
 
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#11
#11
golfballs said:
Yeah, $6.25M per year for a coach. No sweat
Click to expand...

I think the number for Gruden would be closer to 5.25 IMO. What would the cost be to stick with Dooley? Lose a fanbase, lose the players, continue losing football games, and lose maybe 15-20 million dollars a year in lost revenue. Pick your poison. Pay the money and compete, or stand pat and watch the program collapse.
 
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#12
#12
LebanonVolunteer said:
I think the number for Gruden would be closer to 5.25 IMO. What would the cost be to stick with Dooley? Lose a fanbase, lose the players, continue losing football games, and lose maybe 15-20 million dollars a year in lost revenue. Pick your poison. Pay the money and compete, or stand pat and watch the program collapse.
Click to expand...

What makes you think it will be 5.25? Apparently we couldn't even come close to sniffing him money wise last go round.
 
#13
#13
With his ESPN $$$$ I would expect it would take more than 5.25 million UNLESS Gruden really wants to coach college ball AT Tennessee. He could get a lot more from any serious NFL offers and if he's just waiting for a college job, what would Texas pay???
 
#14
#14
$200 million recently spent on renovations seem to have set TN back in the cash department.
 
#16
#16
FAIL, the UT Athletic Department last reported a deficit, so, your numbers are not current or relevent to the current situation. UT is still paying out for CPF, Kiffy and crew and now your suggesting they can pay out for CDD staff and hire a whole new staff without blinking an eye.......please tell me your not a CPA or Financial Advisor or public official with access to tax dollars........your logic and math is off the map.
 
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#17
#17
FlyFishnVol said:
FAIL, the UT Athletic Department last reported a deficit, so, your numbers are not current or relevent to the current situation. UT is still paying out for CPF, Kiffy and crew and now your suggesting they can pay out for CDD staff and hire a whole new staff without blinking an eye.......please tell me your not a CPA or Financial Advisor or public official with access to tax dollars........your logic and math is off the map.
Click to expand...

It's the Obama math plan. Spend all the money you want and figure out how to get the rich to pay it later.
 
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#19
#19
Boca Vol said:
IMO, if Haslam opens his checkbook for a big-name coach it's for the Browns, not the Vols. The Cleveland Browns represent an investment to where he's looking for a return. What's his return on UT football?

Don't get me wrong, I would love it if UT hired a big name, but to simply throw Haslam's name out there just because he has money doesn't mean he owes it to UT.
Click to expand...

I heard it was the other two heavy hitters leading the charge. Besides, if you pay a billion bucks for an NFL franchise, what's a $5 million buyout to you?
 
#20
#20
FlyFishnVol said:
FAIL, the UT Athletic Department last reported a deficit, so, your numbers are not current or relevent to the current situation. UT is still paying out for CPF, Kiffy and crew and now your suggesting they can pay out for CDD staff and hire a whole new staff without blinking an eye.......please tell me your not a CPA or Financial Advisor or public official with access to tax dollars........your logic and math is off the map.
Click to expand...

I guess the idiots at Forbes that write this article every year are wrong.
 
#22
#22
Boca Vol said:
IMO, if Haslam opens his checkbook for a big-name coach it's for the Browns, not the Vols. The Cleveland Browns represent an investment to where he's looking for a return. What's his return on UT football?

Don't get me wrong, I would love it if UT hired a big name, but to simply throw Haslam's name out there just because he has money doesn't mean he owes it to UT.
Click to expand...

If a person owns a sports team and are looking to profit they have no business owning it. Its about owning a sports team, not profit. But I am sure he wants them to win.
 
#25
#25
VolMax said:
Athletic Depts... Forbes articles I was referencing only covered football programs.
Click to expand...

well i can say that football pretty well covers all of them. for example, softball, baseball (probably) womens basketball, basketball(at some schools) in fact loses much more than they make...a not so relevant example would be how the wnba loses a ton of money, and the nba covers it.
 
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