Interview with Delany

[NotreDameJoe]

I think it's like 23 schools who make money overall from sports. I think, don't quote me.

No one really knows how much profit they turn. T-shirt revenue is not credited to football because the buyer might want to express his support for the Anthropology Dept.

 

[upstater]

No one really knows how much profit they turn. T-shirt revenue is not credited to football because the buyer might want to express his support for the Anthropology Dept.

It is credited to athletics.

100% of royalties and branding from apparel are considered AD rev.

 

[dayooper]

If one of the purposes of the school is to develop leadership, are sports a way to accomplish that? The battle of Waterloo was won on the playing fields of Eton.

If one of the purposes of the school is to encourage students to test themselves, overcome obstacles, persevere under challenging circumstances, is sports a way to do that?

Is one of the purposes of the school to learn from both successes and defeats?

Is the school concerned with Jack becoming a dull boy? Recreation is important.

Don't you think they could do all that with less resources? $17,000,000 is an awful lot of money to spend on something they could do for a whole lot less. Don't you think that money could be put to better use?

 

[mavblues]

"Tailspin"? Really? Hyperbole much!? Of the three major sports at BC, the biggest, the FB program, had two consecutive losing seasons in the last 12 and turned it around last year with a winning season. The new staff has revitalized the program and recruiting is better than it has been in quite some time. Hockey remains an elite program. Basketball has been in free fall the past couple of seasons. You can argue about the head coaching hire - but take a look at the assistants they brought on - very well regarded Northeast recruiters. We shall see how it all works out.

Meanwhile, FB is back. In the end, that is what drives the bus.

Congratulations on your winning season. <Goes back to polishing national championship trophies>

 

[NotreDameJoe]

It is credited to athletics.

100% of royalties and branding from apparel are considered AD rev.

Depends on the school. Not mine. Any accountant worth his salt can shuffle the money around to get whatever headline the school wants.

 

[upstater]

Depends on the school. Not mine. Any accountant worth his salt can shuffle the money around to get whatever headline the school wants.

Your theory is the schools want to show they are making less on sports? Why?

 

[whaler11]

Your theory is the schools want to show they are making less on sports? Why?

Because they don't want to admit many times the tail wags the dog.

 

[noeynox]

Your theory is the schools want to show they are making less on sports? Why?

I Would Also Think It Is Beneficial In The Current Lawsuits By Obannon AndOthers As Well As The Other Attacks The SchoolsAre Under.

 

[Kolumbo]

It would seem to me that no high school athletic department in the country turns a profit. They are not in business to turn a profit. So why care if a college program is profitable?

 

[upstater]

Because they don't want to admit many times the tail wags the dog.

The guy's school, I presume, is ND, which doesn't report to the DOE because they are private. He has internal knowledge, presumably. If the schools wanted to show how they lose money on sports, all they needed to do was remove student fees, institutional support from the revenue side, and add loans for stadiums and arenas to the expenses side. Done. Simple. Easy. No messing with branding and royalties at all.

 

[upstater]

It would seem to me that no high school athletic department in the country turns a profit. They are not in business to turn a profit. So why care if a college program is profitable?

Just correcting some statements about revenues made earlier by NotreDameJoe.

 

[IthacaMatt]

Lol...Penn State.

Sure, that will happen.

Ah, the wisdom of a Syracuse fan - you wonder how central New York got to be such a raging s--- hole with that sort of brain power in their midst.

That's the only move out there that clearly helps ACC football. Sure, it's a crazy long shot, and it would have been more likely to happen when Penn State was also penalized by the Big 10 for the Sandusky affair. But they are the only team other than ND that really registers in the NYC TV market.

 

[IthacaMatt]

I think you are on to something here. I can definitely see Penn State taking in 20 million less a year to play in an inferior conference. Right on!

The Big 10's cable network is not going to generate the kind of long-term money they think it is. If the cable TV companies don't keep this gutting of Net Neutrality the current FCC chairman is pushing, customer churn is going to really take off with cable TV cord-cutters in the next 5-10 years. Those $1/subscriber fees are going to be pie in the sky. These networks are going to turn into free-standing apps, they're not going to get the money they think they are from basic cable carriage fees.

 

[whaler11]

The guy's school, I presume, is ND, which doesn't report to the DOE because they are private. He has internal knowledge, presumably. If the schools wanted to show how they lose money on sports, all they needed to do was remove student fees, institutional support from the revenue side, and add loans for stadiums and arenas to the expenses side. Done. Simple. Easy. No messing with branding and royalties at all.

Or they could stop spending money like drunken sailors and show the opposite.

 

[IthacaMatt]

ND is never joining the ACC full time. Deregulation looks like it will pass and ND has the ACC bent over just like they had the Big East bent over. ND wants a national recruiting base and will never join a regional conference.

Penn State is not going to walk away from $20M yr. The ACC needs its own network to generate more revenue OR it needs to add schools to open its ESPN TV deal for negotiation.

I agree to an extent. ND is not going to willingly join the ACC unless a football playoff format requires them to belong to a league. They won't do it on their own. No argument there, but the playoff concept moving to 8 teams from the P5 conferences seems to be in the cards. Deny that if you like, but that's where we're going.

The difference in revenue between the Big 10 and the ACC is not $20M per year; it's more like $3-4M per school. How much does Penn State spend sending its students across 2 time zones for conference games? We'll see what happens, but the Big 10's cable projections are not reality-based. Delany should work for Fox News.

 

[IthacaMatt]

The guy's school, I presume, is ND, which doesn't report to the DOE because they are private. He has internal knowledge, presumably. If the schools wanted to show how they lose money on sports, all they needed to do was remove student fees, institutional support from the revenue side, and add loans for stadiums and arenas to the expenses side. Done. Simple. Easy. No messing with branding and royalties at all.

Plus it is common practice for schools to levy use fees (rent) on the sports teams for using facilities. That's another way to pad your losses.

 

[upstater]

Or they could stop spending money like drunken sailors and show the opposite.

UConn can start the ball rolling nationally on this by not spending on its basketball coach.

 

[upstater]

I agree to an extent. ND is not going to willingly join the ACC unless a football playoff format requires them to belong to a league. They won't do it on their own. No argument there, but the playoff concept moving to 8 teams from the P5 conferences seems to be in the cards. Deny that if you like, but that's where we're going.

The difference in revenue between the Big 10 and the ACC is not $20M per year; it's more like $3-4M per school. How much does Penn State spend sending its students across 2 time zones for conference games? We'll see what happens, but the Big 10's cable projections are not reality-based. Delany should work for Fox News.

They are already $9m ahead of the ACC as of last year's pay out. That's real money ($26m per school) that the B1G schools reported last year. The projections are for $35m+ after their new deal gets done.

 

[noeynox]

If UCONN Does What You Propose There, It's Time To Get Yankee Conference Back Together.

 

[IthacaMatt]

They are already $9m ahead of the ACC as of last year's pay out. That's real money ($26m per school) that the B1G schools reported last year. The projections are for $35m+ after their new deal gets done.

Actually that difference was for 2011-12, two years ago. The ACC got a $2M per school bump from the ND addition, plus they have their own network in the works.

 

[nelsonmuntz]

We need to stop arguing that the ACC is in some kind of difficulty, because it isn't. Not even close. It will continue to get bigger checks from ESPN in some form for a long time, and will be able to compete with the other majors for the next 10 years at least.

Edit: the only thing dumber than arguing that the ACC is in trouble is IthacaMatt arguing that the Big 10 is in trouble.

 

[itgoeslike]

The Big 10's cable network is not going to generate the kind of long-term money they think it is. If the cable TV companies don't keep this gutting of Net Neutrality the current FCC chairman is pushing, customer churn is going to really take off with cable TV cord-cutters in the next 5-10 years. Those $1/subscriber fees are going to be pie in the sky. These networks are going to turn into free-standing apps, they're not going to get the money they think they are from basic cable carriage fees.

Under the scenario you describe the Big Ten and/or BTN could actually thrive. Content owners/licensees stand to profit the most. In many respects this is why Netflix and other are investing in developing or acquiring content. The Big Ten stands to benefit the most because of its alumni base. National following aside, Michigan and Ohio State have a million living alumni between them. The conference as a whole probably has close to 10 million alumni. Throw in local populations and national fans and that number grows substantially. It's the small privates without a national following that will suffer most.

 

[nelsonmuntz]

I do believe that the ACC and Big 10 are preparing to battle over New York City. There will be lots of marketing by both leagues in the Big Apple to drive market share. UConn needs one side to win and one to lose, because then the loser will have to do something. If both leagues make inroads and are successful, UConn's hopes for getting out of this conference hellhole get much dimmer.

 

[itgoeslike]

Actually that difference was for 2011-12, two years ago. The ACC got a $2M per school bump from the ND addition, plus they have their own network in the works.

I think they already launched it. . .

http://www.sbnation.com/2014/2/27/5453344/espn-conference-channels-watchespn

 

[whaler11]

UConn can start the ball rolling nationally on this by not spending on its basketball coach.

I'm not saying they should and I know nobody will, but they have an expense problem not a revenue problem at most major schools.