globadoc
Professor of BBQ & Sports
- Joined
- Jan 7, 2010
- Messages
- 362
- Likes
- 49
While we waste away the hours until the decision to release Dooley and hire Bill Belichek is announced, here is your opportunity to play AD. Strictly on a financial basis alone, what would you do?
Here are a few facts, based on publicly available info:
Current Financial Picture
The current finances of the university are apparently pretty shaky. For last year, expenses outstripped revenues by $4M and debt servicing went up due to construction and etc. [absolute negative]
Buyout of Staff
If the entire football staff is fired at season's end, it would cost up to a potential 9.3M. What is unclear as to whether the buyout is chargeable to the budget over time (as the UT Sports article suggests) or if the buyouts are paid in full upfront to an escrow account and charged to the current year. If the latter is true, the $9.3M would be charged upfront to the dept and paid over time. Thus, the monthly payouts are insignificant. Of course, the payouts could also be as low as $5.6M if the asst coaches find jobs. [negative]
Ticket Revenues and Team Payouts
There are 7 home games this year instead of the 8 from last year. This is no doubt due to the Chick-Fil-A game in August. On an average basis, it looks like attendance will be down this year, unless we average 96.2K for Troy, Missouri, and UK (which I personally don't expect). The Chick-Fil-A game was projected to pay us $4.1M, which is likely better than the net from a home game). In addition, it allows the UTAD to pay only $2.125M to visiting teams (compared to $3.1M last year). [leaning negative]
**Note: Clearly, an increase in ticket sales would help, but it is unclear whether fans would return in droves for next year if the team is in another rebuilding period. Winning seasons sure help.
Impending increase in SEC contributions
According to a source, the amount UT receives from the SEC office is expected to rise by $10M-15M, starting in 2014. This is a huge sum, and it may provide the leverage to change staffs, but it does not kick in until 2 yrs from now. [positive]
Unknowns
* Impending lawsuits by female employees of the AD [likely negative]
* Amount boosters are willing to kick in (I assume Hart would know this by now) [wash]
* Amount we'd have to pay the new staff (but I'd certainly guess "higher").
* Change in ticket revenues (likely "higher" as well, but who knows?)
* Other stuff that we don't know that we don't know yet (catchall)
Leaving your heart (Hart?) out of the picture, what would you do?
(a) keep Dooley for one more year, although his payout is still $5M after next season. The staff payouts would be lower, though.
(b) fire him now, triggering an increase of perhaps $1M in coaching salaries (guess) and $5-9M in payouts.
(c) something else?
Here are a few facts, based on publicly available info:
Current Financial Picture
The current finances of the university are apparently pretty shaky. For last year, expenses outstripped revenues by $4M and debt servicing went up due to construction and etc. [absolute negative]
Buyout of Staff
If the entire football staff is fired at season's end, it would cost up to a potential 9.3M. What is unclear as to whether the buyout is chargeable to the budget over time (as the UT Sports article suggests) or if the buyouts are paid in full upfront to an escrow account and charged to the current year. If the latter is true, the $9.3M would be charged upfront to the dept and paid over time. Thus, the monthly payouts are insignificant. Of course, the payouts could also be as low as $5.6M if the asst coaches find jobs. [negative]
Ticket Revenues and Team Payouts
There are 7 home games this year instead of the 8 from last year. This is no doubt due to the Chick-Fil-A game in August. On an average basis, it looks like attendance will be down this year, unless we average 96.2K for Troy, Missouri, and UK (which I personally don't expect). The Chick-Fil-A game was projected to pay us $4.1M, which is likely better than the net from a home game). In addition, it allows the UTAD to pay only $2.125M to visiting teams (compared to $3.1M last year). [leaning negative]
**Note: Clearly, an increase in ticket sales would help, but it is unclear whether fans would return in droves for next year if the team is in another rebuilding period. Winning seasons sure help.
Impending increase in SEC contributions
According to a source, the amount UT receives from the SEC office is expected to rise by $10M-15M, starting in 2014. This is a huge sum, and it may provide the leverage to change staffs, but it does not kick in until 2 yrs from now. [positive]
Unknowns
* Impending lawsuits by female employees of the AD [likely negative]
* Amount boosters are willing to kick in (I assume Hart would know this by now) [wash]
* Amount we'd have to pay the new staff (but I'd certainly guess "higher").
* Change in ticket revenues (likely "higher" as well, but who knows?)
* Other stuff that we don't know that we don't know yet (catchall)
Leaving your heart (Hart?) out of the picture, what would you do?
(a) keep Dooley for one more year, although his payout is still $5M after next season. The staff payouts would be lower, though.
(b) fire him now, triggering an increase of perhaps $1M in coaching salaries (guess) and $5-9M in payouts.
(c) something else?
