To HuskyMedic - the $40m | The Boneyard

To HuskyMedic - the $40m

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Susan Herbst Said: ““declining conference and media licensing revenue, along with rising costs, have created the current deficit.“

If you walk in her door this morning as a fresh auditor, you can find some clear questionable items.

First, as the accompanying chart illustrates, from 2005 to 2018, the Revenue ranges from $37m to a peak of $44.475m back to $40m. All those NCAA championships $ & TV & Exit fees collected & stuff ... that seems a fairly incomprehensible flat line of revenue. And not explanatory at all to Herbst. From that same chart the Student Fees & Institutional Subsidy goes from $14.5m to $40m+ from 2010 to 2018. We look and can’t pin that on the Revenue side. What’s going on?

Here’s a few other things that pop: How UCONN counts Student Athlete Cost (ie Tuition + Room&Board + Fees etc). I’m certain other State U do not place the lump some in the budget:
“$16.9 million goes to players in the form of athletic scholarships“. There’s a note in the reporting on out of state v instate ... and you ask yourself why are they doing this. Is this some kind of Opportunity Cost analysis - what they could get IF they had a full pay regular student. I’m certain this isn’t done like this at peer conference foes. (SMU would have a number 2.5X+ bigger or $45m)

Revenue? Why Flat. We know your season tickets + game tickets are significantly down. There’s no explanation in those charts.

Rentschler & XL Center expense? I’m certain it’s public information. I don’t readily find it. As we look at the $8.7m Deficit pegged on Football and then $5m & $3m on MBB & WBB (plus hockey), what is a fair way of accounting for essentially a transfer pricing model. State entity to State government or public authority entity. Which brings up the issue ... those individual sports numbers must have the specific ticket etc P&L in them. $22m Cost for all other sports.

“... example of how accounting can “cost” UConn money: Because the school doesn’t own its own sports venues, it pays more than $3.5 million per year to the state and to the publicly run Capital Region Development Authority in rent for Rentschler Field and the XL Center, ticket surcharges at both venues”

So ... the Herbst statement doesn’t tell you anything.


Is there a Political game going on reporting a $40m deficit? Why be the biggest? In Herbst last year?

One article on UCONN includes this memorable quote from Toronto Blue Jays Vice Pesident Paul Beeston: "I can turn a $4 million profit into a $2 million loss and I could get every national accounting firm to agree with me.”


Things I do on Amtrak on my way to Pennsylvania Station
 

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I have written on this topic multiple times and there is even more stones to overturn.

First, costs of student intramurals, etc, appear included in the costs. That’s ok, and supported by some of the student fees, but not spelled out.

Next, accounting by sport is not accurate. Almost all of the marketing and promotions revenues are due to basketball and football, but they are not allocated to the sports. Cost Accounting 101 would tell you that type of accounting would lead to bad decisions.

Finally, the explosive growth of expenses is being driven by administrative costs, which I would term overhead. What is the explanation for the runaway growth?

End of the day, UConn could change how they account for athletics and report a much lower loss. For example, charging the AD out of state tuition cost for out of state athletes seems punitive and charging a flat in state tuition cost to all atletes would put a big dent in the reported loss.

I don’t know why UConn has allowed the current accounting to be used. I always thought UConn wanted to report a large athletic budget to prove that we spend like a P5 and deserve to be in the P5.
 
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You start with the $40m deficit

You quickly find about 5 quirky things UConn does that - I’d submit - few State University AD do. So it’s Apples & Oranges. Now: was there a purposeful reason to release that number? Of course ... I see some devious intent in the path we took.
For example?

You’ll never get an argument out of me that talented people can’t make a financial statement sing whatever tune they want it to sing (especially when it comes to allocation of expenses/overhead/shared services and changes in methodology in reporting those expenses year over year). I imagine that most of the mandated reporting to the NCAA is fairly well spelled out as to what each line specifically should include but I haven’t compared year to year changes in a while. That’s where these reported numbers are generated from.

I was just trying to figure out if you were saying in the previous thread (where the question came up) that UConn has been cooking the books for the whole Herbst tenure w/ the intent of substantiating the Big East/UConn Football move.

Devious versus political are two different things in my mind (though often interwoven).
 
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Excellent discussion. My point has been and remains, it’s all smoke and mirrors. Sports are a “cost” just like ripping up and putting in roads and expensive granite curbing... ehh hem, UConn. If you wanted to apply marginal cost accounting, the scholarships and board would be near zero cost. They incur the same cost whether or not the athlete is in the class or occupying a room. Schools incur all kinds of costs to be competitive in the market. Sports fall into that category. State schools are cheaper because the state subsidized costs to enable lower tuition. Tuition is merely the difference between all other revenue sources and total operating costs. This is a shell game and people are using numbers to justify what they desire (like new houses for a new President)
 

CL82

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Susan Herbst Said: ““declining conference and media licensing revenue, along with rising costs, have created the current deficit.“

If you walk in her door this morning as a fresh auditor, you can find some clear questionable items.

First, as the accompanying chart illustrates, from 2005 to 2018, the Revenue ranges from $37m to a peak of $44.475m back to $40m. All those NCAA championships $ & TV & Exit fees collected & stuff ... that seems a fairly incomprehensible flat line of revenue. And not explanatory at all to Herbst. From that same chart the Student Fees & Institutional Subsidy goes from $14.5m to $40m+ from 2010 to 2018. We look and can’t pin that on the Revenue side. What’s going on?

Here’s a few other things that pop: How UCONN counts Student Athlete Cost (ie Tuition + Room&Board + Fees etc). I’m certain other State U do not place the lump some in the budget:
“$16.9 million goes to players in the form of athletic scholarships“. There’s a note in the reporting on out of state v instate ... and you ask yourself why are they doing this. Is this some kind of Opportunity Cost analysis - what they could get IF they had a full pay regular student. I’m certain this isn’t done like this at peer conference foes. (SMU would have a number 2.5X+ bigger or $45m)

Revenue? Why Flat. We know your season tickets + game tickets are significantly down. There’s no explanation in those charts.

Rentschler & XL Center expense? I’m certain it’s public information. I don’t readily find it. As we look at the $8.7m Deficit pegged on Football and then $5m & $3m on MBB & WBB (plus hockey), what is a fair way of accounting for essentially a transfer pricing model. State entity to State government or public authority entity. Which brings up the issue ... those individual sports numbers must have the specific ticket etc P&L in them. $22m Cost for all other sports.

“... example of how accounting can “cost” UConn money: Because the school doesn’t own its own sports venues, it pays more than $3.5 million per year to the state and to the publicly run Capital Region Development Authority in rent for Rentschler Field and the XL Center, ticket surcharges at both venues”

So ... the Herbst statement doesn’t tell you anything.


Is there a Political game going on reporting a $40m deficit? Why be the biggest? In Herbst last year?

One article on UCONN includes this memorable quote from Toronto Blue Jays Vice Pesident Paul Beeston: "I can turn a $4 million profit into a $2 million loss and I could get every national accounting firm to agree with me.”


Things I do on Amtrak on my way to Pennsylvania Station
Nice job. The only thing I'd add is our administrative costs are significantly above the P5 average. That's a red flag.
 
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Nice job. The only thing I'd add is our administrative costs are significantly above the P5 average. That's a red flag.
How much of that is buyout/severance payments to former coaches?
 
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I have written on this topic multiple times and there is even more stones to overturn.

First, costs of student intramurals, etc, appear included in the costs. That’s ok, and supported by some of the student fees, but not spelled out.

Next, accounting by sport is not accurate. Almost all of the marketing and promotions revenues are due to basketball and football, but they are not allocated to the sports. Cost Accounting 101 would tell you that type of accounting would lead to bad decisions.

Finally, the explosive growth of expenses is being driven by administrative costs, which I would term overhead. What is the explanation for the runaway growth?

End of the day, UConn could change how they account for athletics and report a much lower loss. For example, charging the AD out of state tuition cost for out of state athletes seems punitive and charging a flat in state tuition cost to all atletes would put a big dent in the reported loss.

I don’t know why UConn has allowed the current accounting to be used. I always thought UConn wanted to report a large athletic budget to prove that we spend like a P5 and deserve to be in the P5.
Numbers don't lie. But they can be twisted, or ommitted to support any argument or agenda.
 
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are these audited documents then read the audit notes first. that will tell you the secrets and questionable actions. then analyze the financials
 

CL82

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How much of that is buyout/severance payments to former coaches?
I'd guess little to none but I'm not certain as to the date the financials were compiled. I've posted the link before.
 
C

Chief00

Susan Herbst Said: ““declining conference and media licensing revenue, along with rising costs, have created the current deficit.“

If you walk in her door this morning as a fresh auditor, you can find some clear questionable items.

First, as the accompanying chart illustrates, from 2005 to 2018, the Revenue ranges from $37m to a peak of $44.475m back to $40m. All those NCAA championships $ & TV & Exit fees collected & stuff ... that seems a fairly incomprehensible flat line of revenue. And not explanatory at all to Herbst. From that same chart the Student Fees & Institutional Subsidy goes from $14.5m to $40m+ from 2010 to 2018. We look and can’t pin that on the Revenue side. What’s going on?

Here’s a few other things that pop: How UCONN counts Student Athlete Cost (ie Tuition + Room&Board + Fees etc). I’m certain other State U do not place the lump some in the budget:
“$16.9 million goes to players in the form of athletic scholarships“. There’s a note in the reporting on out of state v instate ... and you ask yourself why are they doing this. Is this some kind of Opportunity Cost analysis - what they could get IF they had a full pay regular student. I’m certain this isn’t done like this at peer conference foes. (SMU would have a number 2.5X+ bigger or $45m)

Revenue? Why Flat. We know your season tickets + game tickets are significantly down. There’s no explanation in those charts.

Rentschler & XL Center expense? I’m certain it’s public information. I don’t readily find it. As we look at the $8.7m Deficit pegged on Football and then $5m & $3m on MBB & WBB (plus hockey), what is a fair way of accounting for essentially a transfer pricing model. State entity to State government or public authority entity. Which brings up the issue ... those individual sports numbers must have the specific ticket etc P&L in them. $22m Cost for all other sports.

“... example of how accounting can “cost” UConn money: Because the school doesn’t own its own sports venues, it pays more than $3.5 million per year to the state and to the publicly run Capital Region Development Authority in rent for Rentschler Field and the XL Center, ticket surcharges at both venues”

So ... the Herbst statement doesn’t tell you anything.


Is there a Political game going on reporting a $40m deficit? Why be the biggest? In Herbst last year?

One article on UCONN includes this memorable quote from Toronto Blue Jays Vice Pesident Paul Beeston: "I can turn a $4 million profit into a $2 million loss and I could get every national accounting firm to agree with me.”


Things I do on Amtrak on my way to Pennsylvania Station
Some interesting analysis and the lack of transparency about this and virtually everything else in CT government, to throw a fog over the incompetency, is a sad position to be in.
Chief would sign up for a committee of five with a staff in single digits with a goal to solve this riddle in six months.
 
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There are currently 187 people employed in the Athletic Department.

This does not include any Coaches!!

When I graduated in 1971 (slightly fewer sports sponsored) there were less than 25.
 
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Donating $200 to the Athletic Dept. in the past, which was an effort while putting 2 kids through college paying a mortgage and trying to save for retirement etc, I always felt they were just setting the money on fire. But you would do it to be a good Alumni. When we hired 2 old AD's from other schools it just seemed like the Athletic Department was having a party that we were all paying for. Some of the Olympic sports need to be eliminated and the administrative staff reduced or this is all a charade.
 
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Considering the decades-long Cavalcade of Incompetence that is the UConn administration, I find it far-fetched they would even be able to orchestrate and execute large scale subterfuge.
 
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UConn needs a Forensic audit to see where the dollars are going and who is making out in all of this. Something doesn't feel right and hasn't for a while.


That’s the last thing we need. Connecticut’s journalists and politicians would make chaos with that in hand. What we need is for the new president to have a very different approach to athletics. He needs to:

1. Do his own audit with no paper trail for FOI Act requests to burn us with.
2. Cut costs the coaches, fans and revenue sport athletes won’t notice or feel. (Admin Staff, ineffective services)
3. Cut a few non-revenue sports.
4. Make football a serious priority and fund it.
5. Rework the balance sheet so the numbers are far more positive looking for the athletic department like literally every other school does.
6. Talk a big game, get ahead of stories, defend the school in the media and set the record straight when need be.
 
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Agree with all points mentioned Hoophound. The new Prez has a University to run but the Athletic Department needs a deep dive ASAP.
 
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Here’s a few other things that pop: How UCONN counts Student Athlete Cost (ie Tuition + Room&Board + Fees etc). I’m certain other State U do not place the lump some in the budget:
“$16.9 million goes to players in the form of athletic scholarships“. There’s a note in the reporting on out of state v instate ... and you ask yourself why are they doing this. Is this some kind of Opportunity Cost analysis - what they could get IF they had a full pay regular student. I’m certain this isn’t done like this at peer conference foes. (SMU would have a number 2.5X+ bigger or $45m)

Schools do report that cost for scholarships. It is common. They do it because every university unit is required to report aid/scholarships in this fashion. I've seen it in every athletic budget.

I'm not sure why UConn fans think this is weird.

As for the in-state/out-of-state arguments, that too is pretty plain to understand. The state legislature will only subsidize a certain % of in-state students. Anything over and above that requires expenditures over and above the in-state subsidy. If you counted such out-of-state students at in-state costs, someone is taking a loss somewhere else, if not the athletic department. This is because the actual expenditures per student are far above the in-state costs. Every state has a target # of out-of-state students. Essentially, they are not subsidized by Conn. taxpayers, so they have to pay very close to the actual expenditures. If the athletic dept. doesn't report this, or considers them in-state, then someone else is taking that loss.

Also, there are plenty of other schools losing $30m. If UConn is an outlier, it's probably because of the combined travel, loss of TV revenue, and loss of ticket sales, etc. It probably explains the extra $10m in losses.
 
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"I want accountability, so long as they can't be held accountable."


Exactly. I want a leader to quietly fix the problems. I don’t want Kreyske or McEnroe making a big deal about them so the non-fan miserables of the state can further justify killing the football program.
 
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Donating $200 to the Athletic Dept. in the past, which was an effort while putting 2 kids through college paying a mortgage and trying to save for retirement etc, I always felt they were just setting the money on fire. But you would do it to be a good Alumni. When we hired 2 old AD's from other schools it just seemed like the Athletic Department was having a party that we were all paying for. Some of the Olympic sports need to be eliminated and the administrative staff reduced or this is all a charade.
This right here is one of the exact reasons why we started Husky Ticket Project. You know exactly where your money is going. You help to send kids to attend games and that money goes right back into the athletic department in the form of ticket revenue. Plus, there's butts in seats. Win, Win, Win.
 

UConnNick

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Nice job. The only thing I'd add is our administrative costs are significantly above the P5 average. That's a red flag.

This is nothing new. Our athletic administration is bloated beyond belief. There are a number of P5's that manage to run their ADs way more efficiently.

Herbst likes to run the whole school as if double secret accounting is the status quo. She keeps a tighter reign on the books than most Fortune 500 CEOs. They at least only owe full disclosure to their shareholders and the IRS. Herbst owes it to all the taxpayers in the state of CT. Do they get it? Not even close.

To illustrate the point, she cloaks the finances of the UCONN Foundation in total secrecy. Some folks who make donations might be quite surprised to see how some of their money is being spent. They tell you a particular rule can't be broken, and then they break it themselves. A few years ago they had 115 salaried employees. What the heck are all these folks doing? It takes that many people to raise money? It would be interesting to see what it costs to employ all these people.
 

UConnNick

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UConn needs a Forensic audit to see where the dollars are going and who is making out in all of this. Something doesn't feel right and hasn't for a while.

To have gotten this during the Herbst administration would have required prying her cold, dead fingers off the filing cabinent behind the vault door where all this data is stored.
 

CL82

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This is nothing new. Our athletic administration is bloated beyond belief. There are a number of P5's that manage to run their ADs way more efficiently.

Herbst likes to run the whole school as if double secret accounting is the status quo. She keeps a tighter reign on the books than most Fortune 500 CEOs. They at least only owe full disclosure to their shareholders and the IRS. Herbst owes it to all the taxpayers in the state of CT. Do they get it? Not even close.

To illustrate the point, she cloaks the finances of the UCONN Foundation in total secrecy. Some folks who make donations might be quite surprised to see how some of their money is being spent. They tell you a particular rule can't be broken, and then they break it themselves. A few years ago they had 115 salaried employees. What the heck are all these folks doing? It takes that many people to raise money? It would be interesting to see what it costs to employ all these people.
FWIW, AD Dave hired two assistant ADs that I believe were new positions.
 
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This is nothing new. Our athletic administration is bloated beyond belief. There are a number of P5's that manage to run their ADs way more efficiently.

Herbst likes to run the whole school as if double secret accounting is the status quo. She keeps a tighter reign on the books than most Fortune 500 CEOs. They at least only owe full disclosure to their shareholders and the IRS. Herbst owes it to all the taxpayers in the state of CT. Do they get it? Not even close.

To illustrate the point, she cloaks the finances of the UCONN Foundation in total secrecy. Some folks who make donations might be quite surprised to see how some of their money is being spent. They tell you a particular rule can't be broken, and then they break it themselves. A few years ago they had 115 salaried employees. What the heck are all these folks doing? It takes that many people to raise money? It would be interesting to see what it costs to employ all these people.

I finally got a direct solicitation for a gift about 14 months ago. Asked for their financials and if I remember correctly the annual cost of Foundation Activities and Management were between 27 -30 Million.
 

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