AU Sports Having To Cut Budgets 10%

[beaumak 174]

i wonder if these 10% cuts are going to have anything to do with a certain coach's exit in 7 months and then the impending buyout owed to this person...

time will tell. basically a reallocation of departmental funds in the end is my guess. or at least a contingency plan in place, thats how i see it.

 

[EagleEye67 1,939]

What I want to know is...

 

Who's going to tell the equestrian team they'll have to cut 10% off each horse?   😳

[warladytigers 172]

On 6/28/2019 at 9:48 AM, AlaskanFAN said:

That is correct, but they do get Allocated Revenue from the school. 

Where did you get this information?

[toddc 13,194]

PMARSHONAU: Money rolls in, but unique challenges remain

By PHILLIP MARSHALL19 hrs

Share15 Comments

 

On June 27, 1984, the Supreme Court handed down a decision in a lawsuit filed by the universities of Georgia and Oklahoma that the NCAA’s control of college football violated antitrust laws. And the repercussions are still reverberating through college athletics today.

Without that decision and the TV money that eventually rained from the sky, there would be no College Football Playoff, no conference championship games, no seven- or even eight-figure salaries for football coaches, no facilities arms race. The power wielded by ESPN would be non-existent.

Today, Power 5 conferences have more money than anyone would have dreamed possible, but there is unease in some quarters. Revenues, some fear, are flattening out. The way sports are consumed is changing. There is concern that when TV contracts are negotiated again, there won’t be as much money. What then? What about all that debt? What about all those hundreds of millions of dollars paid to coaches? What about the lawsuits that threaten the fabric of college athletics? Could the entire enterprise collapse on itself?

 

It is against that backdrop that Auburn athletics director Allen Greene and others in similar positions operate. He and others in the Auburn administration recognize things need to be done, especially with facilities, and should have been done long before Greene arrived. Yet, there is a gnawing concern that everything could be different 10-15 years from now.

So what is to be done?

 

Auburn’s main competitors show no signs of turning off the spigots that pour money into their programs, even if much of it is borrowed in the form of bond issues. Instead of trying to catch up, does an uncertain future cause you to hold back and fall even further behind? If you do that, will you ever catch up?

Losing can be costly, too. Coaches are fired and have to be paid off. Ticket sales slump. Donations decline.

 

For now, for those who want to compete at the highest level, there is little choice but to continue to play the game, as scary as that might be for trustees and others who look at it all through the prism of business. College football is a business, but it’s not like any other business.

The explosion of money didn’t happen immediately after the Supreme Court’s historic decision. Ratings plunged as the number of games available on television shot upward and conferences sold their TV inventories as groups instead of individually.  ESPN was just five years old and still not ready to dive head first into live college football television at a high level.

The next big change came in 1991. Notre Dame left the College Football Association, which included most of the big-time programs and had enthusiastically backed Georgia and Oklahoma’s lawsuit, and signed its own TV deal with NBC.

 

The SEC soon signed a deal with CBS. ESPN began to sign deals with conference after conference, agreeing to an extraordinarily lucrative deal with the SEC. The race was on, and it hasn’t slowed since. More recently, the five power conferences finally gained autonomy in the NCAA.

Millions of committed dollars in TV money have become billions. Head coaches’ salaries have gone out of sight. Many coordinators today make more than many head coaches made a decade ago. Many head coaches are financially set for the rest of their lives the day they sign their contracts.

At top programs, along with some that want to get the top, buildings have sprouted out of the ground at a stunning pace, each grander and more ostentatious than the last. With those buildings has come growing debt. Billions of dollars have been poured into turning aging stadiums into palaces filled with electronic marvels and the latest in amenities for those who donate big dollars

 

15COMMENTS

For Power 5 conferences, especially the SEC and the Big Ten, the money is still coming in at remarkable levels. The SEC Network and Big Ten Network have been stunning successes. Sports across the college landscape, not just football, have benefited from the exposure and the cash that has led to state-of-the-art facilities of their own.

The goal in college athletics is not to amass cash. It is to win. No one can consistently do that if they don’t match or at least come close to matching the commitment of rivals.  For those who seek to win championships, to be elite, to be the best and to do it consistently, there really is no other choice.

[AlaskanFAN 1,666]

This is data from 2007 to 2017 for all AU sports .

https://sports.usatoday.com/ncaa/finances/

Revenue: 

Exspenses:

2017 top 12 school for Total Revenue

 

[AlaskanFAN 1,666]

1 hour ago, warladytigers said:

Where did you get this information?

http://www.ncaa.org/sites/default/files/2017RES_D1-RevExp_Entire_2017_Final_20180123.pdf

[oracle79 3,569]

Figures lie and liars figure. Accounting can be deceiving.