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

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whaler11

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Does anyone know how the cost of a scholarship is determined in this 40 million budget deficit figure? Are they costing a scholarship out at retail value, or real incremental cost to the school?
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.
 
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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.
I agree with you that it is probably retail because that would generate the largest cash subsidy from the state, they probably even jack it up to the out of state retail value if the state lets them, but I don't agree with you about the opportunity cost part, I suspect that part is far more complicated.
 

whaler11

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I agree with you that it is probably retail because that would generate the largest cash subsidy from the state, they probably even jack it up to the out of state retail value if the state lets them, but I don't agree with you about the opportunity cost part, I suspect that part is far more complicated.
UConn is funded by a block grant. If they play games with the cost of the scholarships they are just moving money across departments within the University.

It’s pretty simple that UConn has X amount of slots for students. If they didn’t sponsor football they would have 85 paying students in lieu of scholarship football players.

If you want to pretend a football players scholarship has no marginal cost you are essentially arguing that enrollment in the University has no cap.
 
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If you want to pretend a football players scholarship has no marginal cost you are essentially arguing that enrollment in the University has no cap.
Of course there is a marginal cost for a scholarship I just highly doubt it truly equates to the retail cost or anything close to retail.
No business sells a product at cost they sell it to make a profit.
 
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I guess the numbers speak for themselves. The football program has just dug a deeper hole. Does this surprise anyone....NO. Will things change.....Probably NO..........Will Uconn ever get out of the financial hole it's in?.....NO. As long as the product sucks, the conference sucks, and the administration sucks, NOTHING will change. Enjoy the ride to oblivion.
 
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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?
 
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Does anyone know how the cost of a scholarship is determined in this 40 million budget deficit figure? Are they costing a scholarship out at retail value, or real incremental cost to the school?
Pretty sure that there are rules that require the former method.
 
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In 2017....according to NCAA report..

Salaries and benefits = 31%; Grants-in-aid = 26%. These two expense items account for 57 percent of total expenses.
 
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What is happening is exactly what Boston College planned to happen, with aide from it conspirator friends.
 
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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...
 

CL82

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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.
 
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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

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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

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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.
 

CL82

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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."
 

CL82

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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.
 
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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/uploads/sites/1323/2017/05/2017-0501-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.
 
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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.
 
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