BIG money

[ru66]

Was this posted http://www.espn.com/mens-college-ba...7/big-ten-1st-tourney-money-sec-sets-own-high

 

[Greene Rice FIG]

Today might be financial armageddon for Rutgers athletics. After the dust settles on football season ticket renewals I have to think Pat Hobbs is going to have some hard decisions to make.

I don't know what it will ultimately mean for the basketball program. I hope I am wrong, but I expect a noticeable bleed to Men's basketball.

 

[kcg88]

Today might be financial armageddon for Rutgers athletics. After the dust settles on football season ticket renewals I have to think Pat Hobbs is going to have some hard decisions to make.

I don't know what it will ultimately mean for the basketball program. I hope I am wrong, but I expect a noticeable bleed to Men's basketball.

Illinois just started beer sales. Are they doomed too?

Ticket sales are a smaller part of the equation these days with the huge TV contracts and things like these NCAA shares.

 

[Greene Rice FIG]

Illinois loses a fraction of the amount we lose.

People can choose to ignore the financial aspect of things. They can believe there is always a hidden revenue source that can be tapped.

College athletics does not equal a company, but if it did bankruptcy would almost be inevitable. We are in DEEP DEEP trouble. Anyone who concludes otherwise is naive, delusional or doesn't want to face any facts.

 

[Greene Rice FIG]

The Rutgers Athletics business model is tied to the football program. It can not succeed with only 15,000 season tickets sold. Revenue is lost and exclusivity of seats and parking is out the door. Lost is a major source of additional funding.

The only way out is for football to improve, but that is extremely unlikely without additional funding.

We are like a levered oil company who needs oil prices to be above a certain price to be profitable. A sustained price below a certain level means doom.

 

[Upstream]

Ticket sales are a smaller part of the equation these days with the huge TV contracts and things like these NCAA shares.

A full share of the Big Ten distributions is about $50 million.

If Rutgers sells 25,000 more tickets per game next year than they would otherwise sell, that is worth about $10 million. An additional 2000 MBB tickets per game is worth another million. And that is just for ticket sales. Donations, parking, concessions, and premium seating would be additional revenue.

So, yes, ticket revenue is 20-25% of what a full-share of Big Ten revenue is. But it is hardly peanuts.

 

[batts]

90% of Division Athletic Departments lose monies, including non-football Catholic Schools and Power 5 Football schools. The television revenues received by these schools merely mitigate losses, not enrich the schools. That's perhaps the biggest reason why Division 1 colleges should not pay their athletes in addition to providing them with room, board and free tuition.

 

[sct1111]

The Rutgers Athletics business model is tied to the football program. It can not succeed with only 15,000 season tickets sold. Revenue is lost and exclusivity of seats and parking is out the door. Lost is a major source of additional funding.

The only way out is for football to improve, but that is extremely unlikely without additional funding.

We are like a levered oil company who needs oil prices to be above a certain price to be profitable. A sustained price below a certain level means doom.

I'm really confused. How are we in deep trouble? Isn't this article good news for us? Are we not receiving more and more money every year from the league? Didn't we just raise $100 million dollar n private donations?

 

[HeavenUniv.]

Anyone know what the delay is in naming rights for The RAC ?--Am I correct, that as of July 1,2020 , we start to earn a share of each Big Ten bowl game and the NCAA basketball tournament money for Big Ten schools ?

 

[Greene Rice FIG]

A full share of the Big Ten distributions is about $50 million.

If Rutgers sells 25,000 more tickets per game next year than they would otherwise sell, that is worth about $10 million. An additional 2000 MBB tickets per game is worth another million. And that is just for ticket sales. Donations, parking, concessions, and premium seating would be additional revenue.

So, yes, ticket revenue is 20-25% of what a full-share of Big Ten revenue is. But it is hardly peanuts.

That is simplistic math that does not take in to consideration...
Parking
Donations
Dropping donations needed from others to keep status

 

[HeavenUniv.]

Not that I want anyone to lose their job,but we do have A LOT of people working in the Athletic Department these days--https://scarletknights.com/staff.aspx

 

[Greene Rice FIG]

Do they sell half the spots in the Scarlet lot (and all the other lots) or drop minimum point amount?

 

[Greene Rice FIG]

https://scarletknights.com/documents/2019/1/31/CSS_Rutgers_Final_Report.pdf

interesting read

 

[RW90]

https://scarletknights.com/documents/2019/1/31/CSS_Rutgers_Final_Report.pdf

interesting read

Thanks for posting this. The figures are certainly eye opening, but not totally unexpected.

 

[Greene Rice FIG]

How much $ is wasted for paying people to put out things like this and coaching searches.

 

[ru66]

I thought this was good news also--hijacked to make it negative