Navy athletics cutting costs to address budget crunch

[huskymedic]

Navy athletics cutting costs to address budget crunch

>>“In February we made the decision to take a long, hard look at everything to ensure the department was self-sustaining – as it needs to be,” Gladchuk said. “We must be absolutely certain that expenses aligned with revenue streams. Again, it’s a case of Business 101. You cannot spend more than you are taking in.”

The Naval Academy Athletic Association operates as a private, 501C3 non-profit organization with a stated objective to “promote, influence and assist in financing the athletic contests of the midshipmen of the United States Naval Academy.” Gladchuk explained that NAAA must basically be self-sufficient as it receives “a couple million” dollars from the U.S. government and a small amount of student fees collected by the Naval Academy.

“We are a ship that must sail on its own bottom. Our charge is to generate enough revenue to cover our operational costs,” Gladchuk said.<<

>>Gladchuk said cost-cutting for individual sports mostly involves logistics such as travel and operations. For instance, varsity head coaches have been instructed to schedule away games on a regional, rather than national, basis. “We cannot have certain sports traveling out west as often as has been the case. That makes no sense,” Gladchuk said. “Instead of flying to California or some other far-flung locale, we need to play an opponent that can be reached by bus.”<<

 

[CL82]

“We cannot have certain sports traveling out west as often as has been the case. That makes no sense,” Gladchuk said. “Instead of flying to California or some other far-flung locale, we need to play an opponent that can be reached by bus.”

If TV money dries up, I'd expect this would become a nationwide push.

 

[JMick]

If TV money dries up, I'd expect this would become a nationwide push.

Which is a huge benefit to us. We need conferences to regionalize again

 

[whaler11]

But Navy passed up on the pending AAC deal? How could they pass up that Amazon money?

 

[whaler11]

Oh Chet...

Read my lips: We are not cutting any sports. That is never going to happen on my watch,”

 

[CL82]

But Navy passed up on the pending AAC deal? How could they pass up that Amazon money?

Mmm, because they are a partial member and preferred their own independent deal?

(If Amazon is our primary partner, we should hold a wake a UConn athletics.)

 

[whaler11]

Mmm, because they are a partial member and preferred their own independent deal?

(If Amazon is our primary partner, we should hold a wake a UConn athletics.)

Ok so follow along. If their independent deal is for peanuts and they are so broke they can’t hire assistant coaches for the basketball teams.... one might surmise the AAC deal outlook isn’t as rosy as the BY would have you believe?

 

[CL82]

Ok so follow along. If their independent deal is for peanuts and they are so broke they can’t hire assistant coaches for the basketball teams.... one might surmise the AAC deal outlook isn’t as rosy as the BY would have you believe?

I know your point Whaler, I just disagree with your jump to the conclusion. Navy wasn't looking at some future contract, they were looking at the current contract. They weren't looking at a full share, they were looking at football only share. They compared that to deal that could get get (continue actually) for there own games. It was obviously the right decision over speculative unknown rights which may or may not happen a some future date. Saying that it is proof that the next American deal will be crap is a bridge too far.

So let me head off the inevitable red herring and note that I am not saying that next American deal will be great (or P5 money or whatever else you want to throw at the wall). I am saying that Navy looked at the facts that available to them today and made a decision based upon them.

 

[whaler11]

I know your point Whaler, I just disagree with your jump to the conclusion. Navy wasn't looking at some future contract, they were looking at the current contract. They weren't looking at a full share, they were looking at football only share. They compared that to deal that could get get (continue actually) for there own games. It was obviously the right decision over speculative unknown rights which may or may not happen a some future date. Saying that it is proof that the next American deal will be crap is a bridge too far.

So let me head off the inevitable red herring and note that I am not saying that next American deal will be great (or P5 money or whatever else you want to throw at the wall). I am saying that Navy looked at the facts that available to them today and made a decision based upon them.

You don’t think they have insight into tbe value of next deal? Please. Of course they do.

They are so bad off they aren’t hiring assistant basketball coaches. Cutting retiree benefits.

If they thought there was a way the AAC deal would that they wouldn’t be locked back in on an unrated network.

 

[CL82]

You don’t think they have insight into tbe value of next deal? Please. Of course they do.

They are so bad off they aren’t hiring assistant basketball coaches. Cutting retiree benefits.

If they thought there was a way the AAC deal would that they wouldn’t be locked back in on an unrated network.

Insight? Uh sure I guess, but what does that actually mean? There isn't a deal for them to have actual knowledge about.

I agree with your core (but unstated) point that without a second equivalent bidder our TV rights are worth whatever ESPN decides to us for them. It will be more than we get now, probably, but it clearly won't be P5 money. If it were halfway between our current money and P5 money, I'd be ecstatic. It won't be unless someone else decides to make us a priority.

 

[whaler11]

Insight? Uh sure I guess, but what does that actually mean? There isn't a deal for them to have actual knowledge about.

I agree with core (unstated) point that without a second equivalent bidder our TV rights are worth whatever ESPN decides to us for them. It will be more than we get now, probably, but it clearly won't be P5 money. If it were halfway between our current money and P5 money, I'd be ecstatic. It won't be unless someone else decides to make us a priority.

That’s the point.

If it were going to be halfway to P5 money it’s at least SEVEN TIMES bigger than the current deal.

If that was even remotely realistic you don’t think that would be known between the school’s administrations?

They are cutting people’s retirement plans. But you think they might have walked away from millions upon millions of AAC dollars because the leadership doesn’t have insight into what the deal is going to be?

Okey dokey.

 

[Pudge]

Insight? Uh sure I guess, but what does that actually mean? There isn't a deal for them to have actual knowledge about.

I agree with your core (but unstated) point that without a second equivalent bidder our TV rights are worth whatever ESPN decides to us for them. It will be more than we get now, probably, but it clearly won't be P5 money. If it were halfway between our current money and P5 money, I'd be ecstatic. It won't be unless someone else decides to make us a priority.

Halfway to P5 money ... is a huge increase. We won't be anywhere near there.

HOWEVER (follow along) ... we were a huge RISK when we did that first contract. We are not today. We are the clear low-cost content provider of College Football in Major East Coast Markets. So if ACC & Pac 12 is $22-25m a school ... and B1G and SEC is $30m a school, I do not think we are (even with only ESPN bidding) going to be at $5m (which is 2X our current).

Double digits.

But ... that still is not a great Life Raft. We need breaks into the 2022-2025 era that gets us to some better platform.

 

[CL82]

They are cutting people’s retirement plans. But you think they might have walked away from millions upon millions of AAC dollars because the leadership doesn’t have insight into what the deal is going to be?

And there it is. The red herring. You can't help yourself can you?

 

[uconnfan68]

The tv revenue from the Army-Navy game alone should fund their entire athletic program and then some.

 

[huskymedic]

The tv revenue from the Army-Navy game alone should fund their entire athletic program and then some.

You think the TV revenue from the Army-Navy game is well north of $41m??

 

[YoungFree]

And everyone forgets that the academies have to run things through DoD rules/regulations as well....anyone who has been a part of the DoD in there life will tell you that those rules/regulations can make thinks rather complicated and sometimes more costly then need be.

 

[UConnJim]

You don’t think they have insight into tbe value of next deal? Please. Of course they do.

They are so bad off they aren’t hiring assistant basketball coaches. Cutting retiree benefits.

If they thought there was a way the AAC deal would that they wouldn’t be locked back in on an unrated network.

Whaler, you really don't have the insight into the Navy football media deals.

It was agreed that when Navy joined the AAC that they would retain the media rights to the Army/Navy game, the Air Force home game, and all other home games. This was for many reasons, but Navy only wants to play home games on Saturday afternoons due to tradition and they did not want their home games controlled by a media partner that did not respect that which is why they have worked with CBS. If Navy wanted to maximize their media contract, they would be willing to play home games during prime time on Thursday, Friday, and Saturday nights, but they have declined to do that.

In the upcoming AAC media deal, Navy football has given the AAC the Navy/ND game every other year when Navy is the host (very valuable) and first choice of any other home game except Air Force (fairly valuable) and that is it. Thus, Navy will be part of the AAC media package for 1 to 2 home games per year, which is up from 0 games now which has value. Bottom line is that Navy football has mostly sold their media rights to CBS and will not get a major share of the upcoming AAC media contract as they do not provide much football content and they provide no men's or women's basketball content.

Bottom line is that even if each full share AAC team gets $10 million out of the deal, Navy would probably only get $1 to $2 million.

 

[whaler11]

Whaler, you really don't have the insight into the Navy football media deals.

It was agreed that when Navy joined the AAC that they would retain the media rights to the Army/Navy game, the Air Force home game, and all other home games. This was for many reasons, but Navy only wants to play home games on Saturday afternoons due to tradition and they did not want their home games controlled by a media partner that did not respect that which is why they have worked with CBS. If Navy wanted to maximize their media contract, they would be willing to play home games during prime time on Thursday, Friday, and Saturday nights, but they have declined to do that.

In the upcoming AAC media deal, Navy football has given the AAC the Navy/ND game every other year when Navy is the host (very valuable) and first choice of any other home game except Air Force (fairly valuable) and that is it. Thus, Navy will be part of the AAC media package for 1 to 2 home games per year, which is up from 0 games now which has value. Bottom line is that Navy football has mostly sold their media rights to CBS and will not get a major share of the upcoming AAC media contract as they do not provide much football content and they provide no men's or women's basketball content.

Bottom line is that even if each full share AAC team gets $10 million out of the deal, Navy would probably only get $1 to $2 million.

Nothing you posted is new.

I don’t know what is hard about this.

They sold their rights for chicken feed to CBS.

They are so broke they aren’t replacing assistant basketball coaches.

If the AAC was headed for a payday they wouldn’t have done that.

Unless people think highly respected Chet Gladchuk is an idiot...

 

[UConnJim]

Nothing you posted is new.

I don’t know what is hard about this.

They sold their rights for chicken feed to CBS.

They are so broke they aren’t replacing assistant basketball coaches.

If the AAC was headed for a payday they wouldn’t have done that.

Unless people think highly respected Chet Gladchuk is an idiot...

Like I said, you don’t understand what is important to Navy athletics. They stated when they joined the AAC that they would not allow home football games at any time except Saturday afternoons and they would not risk that desire by participating in the AAC media contract. They wanted control. No team in any conference has that kind of control of their home schedule.

As for the AAC contract, we do know the content has more value based on decent TV ratings and the inclusion of the Navy/ND every other year. And, the conference appears more stable. Will the new AAC media contract be equivalent to the P5 contracts? I would say no, but it will probably be much higher than the original AAC contract.

 

[whaler11]

Like I said, you don’t understand what is important to Navy athletics. They stated when they joined the AAC that they would not allow home football games at any time except Saturday afternoons and they would not risk that desire by participating in the AAC media contract. They wanted control. No team in any conference has that kind of control of their home schedule.

As for the AAC contract, we do know the content has more value based on decent TV ratings and the inclusion of the Navy/ND every other year. And, the conference appears more stable. Will the new AAC media contract be equivalent to the P5 contracts? I would say no, but it will probably be much higher than the original AAC contract.

Oh I didn’t know they want to play their home games on Saturday.. you got me now

 

[UConnJim]

Oh I didn’t know they want to play their home games on Saturday.. you got me now

Than why did you say they would have been part of the AAC media contract if it was more money? Navy never wanted to be part of the AAC media contract AND they sold most of their media rights before the next AAC contract can be negotiated. THEIR media rights are already locked up, with the exception of a small participation in the next AAC deal. THEY know their future revenues now. WE won’t know our future revenues until the next media deal is negotiated.

By the way, have you looked at the number of non-revenue sports Navy sponsors?

 

[whaler11]

Than why did you say they would have been part of the AAC media contract if it was more money? Navy never wanted to be part of the AAC media contract AND they sold most of their media rights before the next AAC contract can be negotiated. THEIR media rights are already locked up, with the exception of a small participation in the next AAC deal. THEY know their future revenues now. WE won’t know our future revenues until the next media deal is negotiated.

By the way, have you looked at the number of non-revenue sports Navy sponsors?

I was being sarcastic. You have not posted a single thing that hasn’t been published/rehashed a dozen times.

I don’t get why this is so hard for people to wrap their heads around.

Navy is so desperate for athletic dollars they aren’t hiring basketball assistant coaches.

They are flat broke and rather than explore being part of the next AAC deal they took their peanuts from CBS.

Knowing your deal doesn’t have much value when your deal sucks.

The only conclusion one can make is that the next AAC deal isn’t going to be all that much better than the current deal. Unless you think Aresco and Gladchuk are idiots - and there isn’t evidence that Gladchuk is.

This couldn’t be any simpler - if one is suspecting some kind of exponential improvement they are going to end up disappointed.

 

[UConnJim]

I was being sarcastic. You have not posted a single thing that hasn’t been published/rehashed a dozen times.

I don’t get why this is so hard for people to wrap their heads around.

Navy is so desperate for athletic dollars they aren’t hiring basketball assistant coaches.

They are flat broke and rather than explore being part of the next AAC deal they took their peanuts from CBS.

Knowing your deal doesn’t have much value when your deal sucks.

The only conclusion one can make is that the next AAC deal isn’t going to be all that much better than the current deal. Unless you think Aresco and Gladchuk are idiots - and there isn’t evidence that Gladchuk is.

This couldn’t be any simpler - if one is suspecting some kind of exponential improvement they are going to end up disappointed.

You still don’t get it. 15% to 20% of a share of the AAC media deal doesn’t move the needle for Navy. And, TV ratings for Saturday afternoon games are way below prime time games. If Navy won’t play in prime time, how are they getting more money?

 

[whaler11]

You still don’t get it. 15% to 20% of a share of the AAC media deal doesn’t move the needle for Navy. And, TV ratings for Saturday afternoon games are way below prime time games. If Navy won’t play in prime time, how are they getting more money?

Why would they get 15% of a share of the deal?

Ratings?

What are you talking about?

I don’t know what mass hysteria forces people to want to avoid evidence about where the AAC deal is going but it’s bizarre.

 

[uconnfan68]

You think the TV revenue from the Army-Navy game is well north of $41m??

They spend $41 million on their athletic department? Never looked. Basically college sports will only be P5 very soon.