UConn athletic department in 2018: generated $40 million in revenue, $81 million in expenses

[buddy]

What is happening is exactly what Boston College planned to happen, with aide from it conspirator friends.

 

[J187Money]

Just keep in mind:

Assuming we had 15,000 paid gate for each football game = @30/ticket - that is $2.7M
At sellout levels - that is $7.2M

$4.5M differential between what we probably made this year and sellout crowds. Only 10% of the shortfall. The structural problem is bigger than that. Yes, there would be seat donations on top of that - so tack on another $1M if you'd like. But let's be honest - until you get to a 60,000 seat stadium and charge more then $30/ticket - there is no math that gets you to break even given our other revenue streams.

The question is...what's an acceptable "cost" for the university/students to absorb? Somewhere between $0 and $40M...

 

[J187Money]

Marketing impact of college sports...it is nonzero (obviously)...

The Marketing Effect of College Sports

item - Faculty & Research - Harvard Business School

 

[CL82]

That’s the best UConn can make it look.

I'm not confident of that at all. I strongly suspect it's a historical mismash from UConn athletic were a cash cow. I agree with you that it ought to be presented as favorably as possible.

 

[UConnJim]

Just keep in mind:

Assuming we had 15,000 paid gate for each football game = @30/ticket - that is $2.7M
At sellout levels - that is $7.2M

$4.5M differential between what we probably made this year and sellout crowds. Only 10% of the shortfall. The structural problem is bigger than that. Yes, there would be seat donations on top of that - so tack on another $1M if you'd like. But let's be honest - until you get to a 60,000 seat stadium and charge more then $30/ticket - there is no math that gets you to break even given our other revenue streams.

The question is...what's an acceptable "cost" for the university/students to absorb? Somewhere between $0 and $40M...

Again, people just don't understand how UConn accounts for athletic revenues. I've seen this with numerous companies and people will draw wrong conclusions unless they appropriately allocate revenues and expenses. I'm using the 2014 numbers (what I have) and UConn football revenues were made up of ticket sales, guarantees, and direct contributions and that's it. Men's basketball revenues were made up of ticket sales, NCAA distributions, guarantees, and direct contribution. No media rights, no licensing, no advertising, no sponsorships, no conference payouts. Don't you think football (and basketball) drive media rights, licensing, sponsorships, conference payouts...? Shouldn't those revenues be allocated to get a truer picture of the financial health of those sports?

The financial problem in the UConn athletic department is NOT football and basketball (although these are the areas that can increase revenues), but non-revenue sports, administrative costs, cost of renting The Rent and XL Center, and costs associated with non-athlete student activities.

Bottom line is that the only hope the AD has to reduce the budget gap (outside of a P5 invite) is to improve football and men's basketball which would increase revenues.

 

[CL82]

If cuts need to be made, cut everything but Basketball, Football and Hockey. Those are the only three sports that generate real interest.

I'm a baseball fan first, but big time college baseball in the Northeast is a joke because of the weather. They spend the first month of the season on the road and then come home to snow, ice and rain, as soon as it gets warm out they are back in Florida for the season ending tournament..and enough with the we used to be great in soccer, nobody cared then and nobody cares now.

There's a Title IX problem with that. Need to offset football schollies. So Field Hockey, plus whatever else you choose. Strongly doubt that new soccer/baseball/softball fields will be scrapped.

 

[CL82]

I suspect the retail rate.

That’s the right number to use though because if Johnny Linebacker wasn’t in class and the dorm, that spot would be filled by Sally Out of State who pays full freight.

So while their is margin in the number they use, it reflects the opportunity cost they could collect elsewhere.

Agree, except that virtually no one pays full freight.

 

[JMick]

Agree, except that virtually no one pays full freight.

At UConn? The majority of students pay full tuition and room and board

 

[CL82]

At UConn? The majority of students pay full tuition and room and board

I don't think so.

And that doesn't include Merit Scholarships.

 

[JMick]

I don't think so.
View attachment 38431

Ok it shifted then from when I attended, but it used to be well over 50% paid full tuition

 

[CL82]

Ok it shifted then from when I attended, but it used to be well over 50% paid full tuition

Don't feel like that was all that long ago but the college tuition game has changed. "No one pays retail."

 

[Excalibur]

I don't think so.

View attachment 38431
And that doesn't include Merit Scholarships.

But I believe it does include federal loans, which is probably the majority of need-based financial aid.

 

[CL82]

But I believe it does include federal loans, which is probably the majority of need-based financial aid.

Stafford loans are what $7,500? I think you are right, that's the lion's share of the $11,306. Still, there's the remainder and the merit reductions.

If I were to guess, CT kids are probably getting Stafford and not much else, but out of state kids are getting bigger grants. Actually maybe not since the instate tuition is so low it's probably within the expected contribution amount.

 

[UConnJim]

I seriously question those numbers.

How are scholarships treated? They are a loss on the books but in reality they are not monies paid out. At the very least, their value is marked up beyond what they cost the university.

You could also count every minute that UConn is on TV as "earned media." That's how corporations measure it. I am sure UConn doesn't have earned media in the revenue column. And that is many millions of dollars.

And my guess is that there are a ton of other things that are buried or hidden or put in other columns. Where is the Nike deal? Dnon't we get ten million a year from that?

Follow the link for full detail of UConn athletic spending in 2014. It's an interesting read as you can see that football and basketball don't get credit for revenues that I would have allocated to the 3 programs.

https://senate.uconn.edu/wp-content...Senate-UBC-Report-on-AD-Subsidy-to-Senate.pdf

Also, if I remember correctly, scholarship costs are allocated based on if the athlete is in-state or out of state. Thus, it costs the AD $21.5k more to give a scholarship to an out-of-state kid than an in-state kid. That difference alone could be costing the AD $3 to $5 million per year. IMHO, that expense is really an accounting issue and not a real cost.

 

[Palatine]

What is happening is exactly what Boston College planned to happen, with aide from it conspirator friends.

LOL. BCU is the cabbose in everything, they neither planned nor executed anything.

 

[whaler11]

Agree, except that virtually no one pays full freight.

They collect the full freight though. Nobody cares if mommy or Chase writes the check.

 

[CL82]

They collect the full freight though. Nobody cares if mommy or Chase writes the check.

Do they though? What about merit grants?

 

[Drew]

Out of curiosity does anyone know the exact costs associated with renting the XL Center for a basketball game and Rentschler for a football game? Also assume you have to take into account lost revenues from parking, concessions, etc.

 

[buddy]

LOL. BCU is the cabbose in everything, they neither planned nor executed anything.

Statements from former BC AD DeFilippo clearly state that their goal was to the New England's only representative to the P5. They began the action when they and Miami were the first of the Big East defectors and traitors.

 

[zls44]

Statements from former BC AD DeFilippo clearly state that their goal was to the New England's only representative to the P5. They began the action when they and Miami were the first of the Big East defectors and traitors.

When are people gonna learn that Gene was just mouthing off with nothing behind it?

So he said, it, who cares. Doesn't mean anything. Dude has an ego, that's it, there's no deeper meaning there.

 

[Palatine]

Statements from former BC AD DeFilippo clearly state that their goal was to the New England's only representative to the P5. They began the action when they and Miami were the first of the Big East defectors and traitors.

Gene didn't make any decisions of any kind and he had no influence in the ACC. Regardless of their goals, BCU had no power to make anything happen. These statements by GD after the fact were the equivalent of a roster taking credit for the sunrise.

 

[whaler11]

Do they though? What about merit grants?

Merit grants that UConn provides? Unless there is secret money somewhere it comes from the operating budget or a third party.

 

[huskymedic]

Out of curiosity does anyone know the exact costs associated with renting the XL Center for a basketball game and Rentschler for a football game? Also assume you have to take into account lost revenues from parking, concessions, etc.

Under current lease contract with the State which expires in 2023 - UConn is on the hook for any revenue shortfall up to a $25k annually in addition to the $170k game day (x 6 game minimum) cost.

“UConn keeps revenues from ticket sales, merchandise sales, and sponsorship, and the stadium keeps concession and parking revenues. If concession and parking revenues do not cover all operating expenses, CRDA may charge UConn to make up the difference. “

Edit add... UConn/CDRA/Global Spectrum/XL lease is now a year to year agreement - but under old multi-year agreement which expired it was $50k per event.

 

[J187Money]

I don't think so.

View attachment 38431
And that doesn't include Merit Scholarships.

But the aid doesn't necessarily come from the school - meaning the school gets the $ as if they paid full freight. And scholarship money that comes from the foundation doesn't count either - because the school gets the payout from the endowment.

My son gets a roughly $25K academic scholarship from his school - and I don't know if that means that they are just "charging us less" or if they are actually taking money from some endowed fund and "paying" the school on his behalf.

Maybe @upstater can tell us how this stuff works?

 

[RSTuthill]

There's a Title IX problem with that. Need to offset football schollies. So Field Hockey, plus whatever else you choose. Strongly doubt that new soccer/baseball/softball fields will be scrapped.

UConn got full D-1 women's hockey with membership in Hockey East more than a decade before the men because of football. That was the direct Title 9 trade.

 

[CL82]

Merit grants that UConn provides? Unless there is secret money somewhere it comes from the operating budget or a third party.

So you think UConn grants are made from a separate account rather than reduced tuition? I don't know the answer but if you are debiting an account labeled Merit Scholarship Pool for $100 and crediting an account labeled Tuition Revenue for $100, that's still a net nothing, right?

 

[UCFBfan]

So I have a few questions. How does UConn have this massive deficit but other G5 schools don't? How come we don't hear about ECU or Tulane or Ohio or Western Michigan having these deficits? They clearly don't make up for it in basketball or TV revenue? Definitely not in ticket sales. So why is this a problem at UConn and not elsewhere?

Second, where does the FCS football team play? Memorial is gone and there's no way they put games at The Rent and pay that rent money. Then what does the state do with the stadium? It would be empty outside the random soccer game here or there. Is the state willing to have that happen. Same with the XL Center?

Finally, how does joining the BE save the revenue issue. So we drop some travel costs and schollys for FB. However, the BE TV deal isn't huge and is up for renegotiation soon. Can't see how that fully cuts that revenue gap.

The issue shouldn't be the 8.5 or 5 million tags for football or basketball. It's the 22.1 million spent on non revenue sports. Why are we wasting money on new facilities that are costing us more money than they bring in? That's the head scratcher for me. I get the Title IX part but they don't need all those programs to make up for that.

 

[huskymedic]

So I have a few questions. How does UConn have this massive deficit but other G5 schools don't? How come we don't hear about ECU or Tulane or Ohio or Western Michigan having these deficits? They clearly don't make up for it in basketball or TV revenue? Definitely not in ticket sales. So why is this a problem at UConn and not elsewhere?

If UConn is dying, so is the entire AAC, as illustrated by these articles from the past year:

Cincy with $102 million deficit between 2014 and 2017:
Soaring subsidies: UC’s four-year athletic deficit up to nearly $102 million

45% of Houston's AD budget from student fees (but luckily they have that billionaire benefactor):
University of Houston faces a widening money gap to keep pace in big-time sports

40% of UCF's AD budget from student fees (which will probably increase once they stop making New Years' 6 bowls):
UCF athletics apply student fees in attempt to bridge financial handicap

Basically, the upper half of the conference is deficit spending or relying heavily on subsidies from other university funds like student fees in an attempt to remain attractive to the P5 if there is more expansion at the next window. To most of these schools, taking on water seems like the best plan while hoping and waiting for a lifeline from the P5. I hope for UConn's sake that lifeline comes (to us), but I'm preparing for another painful kick to the groin. As some have noted, as the revenue gap grows, the P5 may lose incentive to throw any more lifelines.

 

[whaler11]

But the aid doesn't necessarily come from the school - meaning the school gets the $ as if they paid full freight. And scholarship money that comes from the foundation doesn't count either - because the school gets the payout from the endowment.

My son gets a roughly $25K academic scholarship from his school - and I don't know if that means that they are just "charging us less" or if they are actually taking money from some endowed fund and "paying" the school on his behalf.

Maybe @upstater can tell us how this stuff works?

It would seem awfully difficult to do any accounting that doesn’t have transactions in to make them whole for the full cost. How would you manage the fund otherwise?

 

[Exit 4]

Its clear MBB is a liability. Shut it down.