When does the B1g money start to kick in?

[Upstream]

Agreed.

But the point everyone on this thread seems to be missing is one I've made countless times.

People are trying to read this report as a piece of financial research. The board has lost sight of the primary tenet of war fighting. Understand your enemy.

The report is being written as a propaganda piece by university stakeholders who:

1. Haven't gotten a raise in years.

2. Have seen their tuition go up substantially every year.

3. Sit in offices with no heat, no functioning A/C and with ceiling tiles falling down on their heads.

They couldn't possibly care any less about the B10 athletics arm races or "spending money to make money."

If the point of referring us to the report was to illustrate just how behind we are in revenue generation compared to our peers, nearly everyone already knows that. If the point was to somehow poke holes in the report--which seems to be part of the tract this thread has taken--I ask why? Other than determining the academic calendar and what GPA qualifies for honors, the university senate is tits on a bull useless. Ignore them...

I don't disagree with any of that. The interesting part of that report (and one of the few data points that isn't easily available elsewhere) is the projected conference revenue.

Other than that, it is a 10,000 foot view of the buget. To look at the data and ask specifics like where is Schiano's payback, or suggest that Rutgers needs a new CFO is absurd.

My comment about stadium debt was just an explanation of why reporting stadium debt separate from football expenses is reasonable for purposes of presenting to the Faculty Senate.

 

[ruhudsonfan]

I don't disagree with any of that. The interesting part of that report (and one of the few data points that isn't easily available elsewhere) is the projected conference revenue.

Other than that, it is a 10,000 foot view of the buget. To look at the data and ask specifics like where is Schiano's payback, or suggest that Rutgers needs a new CFO is absurd.

My comment about stadium debt was just an explanation of why reporting stadium debt separate from football expenses is reasonable for purposes of presenting to the Faculty Senate.

It was an attempt at sarcasm, but I'm the one who posted RU needs a new CFO...hahahahahaah

 

[JPhoboken]

RU football and basketball are at or close to break even and have been for a couple years.

Last figures I saw, Football had about 2mil profit, Mens BB about 1.2mil profit, and womans bb lost about 500k. If someone has newer number they can share them.

The subsidy is clearly for Olympic sports. It is imperative RU be competitive in Football and Mens Basketball, so they can make enough profit to help pay for Olympic sports.

 

[ruhudsonfan]

Last figures I saw, Football had about 2mil profit, Mens BB about 1.2mil profit, and womans bb lost about 500k. If someone has newer number they can share them.

The subsidy is clearly for Olympic sports. It is imperative RU be competitive in Football and Mens Basketball, so they can make enough profit to help pay for Olympic sports.

To add, wrestling has a very good chance of turning slight profits as well. Their next steps are continue to build the season ticket base and have every match in the RAC. I'm sure there are a few people on the wrestling board, that don't normally come over here, who could comment on how close they are to breaking even.

 

[JPhoboken]

To add, wrestling has a very good chance of turning slight profits as well. Their next steps are continue to build the season ticket base and have every match in the RAC. I'm sure there are a few people on the wrestling board, that don't normally come over here, who could comment on how close they are to breaking even.

Interesting, I know they do a fairly nice gate now, but do they receive any TV money from the BIG Network? Or is that money all lumped together for all sports?

 

[sagar1127]

We should start a GoFundMe page for the next coach haha

 

[ruhudsonfan]

Interesting, I know they do a fairly nice gate now, but do they receive any TV money from the BIG Network? Or is that money all lumped together for all sports?

I jut cruised the wrestling board for a few minutes. There is a thread about facilities over there. Several people who would know posted that nearly all of the B10 wrestling programs turn profits.

We were Top 10, if not 5, in attendance nationally last year. The fanbase exists in Jersey to have a brisk gate. Most, if not all, B10 matches will sell out the RAC.

@Leonard23 can chime in maybe...(just don't turn this into a plea to borrow the money with bonds..lol)

 

[RC_2002]

Last figures I saw, Football had about 2mil profit, Mens BB about 1.2mil profit, and womans bb lost about 500k. If someone has newer number they can share them.

The subsidy is clearly for Olympic sports. It is imperative RU be competitive in Football and Mens Basketball, so they can make enough profit to help pay for Olympic sports.

I think this is the point that @ruhudsonfan is making. To say that football turns a profit and not cover the debt service is factually not correct. The stadium debt needs to be paid and currently football specific revenue does not cover that - so part of the subsidy is being used to pay the debt service. Not a negative or positive - it is what it is. So we all understand why the debt service was moved so that all could claim football is profitable - the problem as others have said is a revenue problem not a cost problem!

 

[Upstream]

Interesting, I know they do a fairly nice gate now, but do they receive any TV money from the BIG Network? Or is that money all lumped together for all sports?

The Big Ten distribution is one lump payment for all sports. In the Big East, because there were some non-football schools, football schools like Rutgers received two distributions: one for football only and one for all other sports combined.

Sure, schools can use some sort of allocation process to figure out how much of the conference revenue to allocate to each sport. They can also use similar allocation to determine how to allocate the licensing fee when I buy a baseball cap with a Block R, or when I make a donation beyond what is required for my football and basketball seats.

That's why it is somewhat meaningless to start splitting hairs to determine if football or basketball or wrestling turns a profit. There are all sorts of acceptable ways to allocate costs and revenues.

 

[Hugh Laurie]

RU football and basketball are at or close to break even and have been for a couple years..

For fiscal 2014 RU men's BB made $1.2M. For the same fiscal year RU reported to the NCAA that football made a profit of $1.9M but that was because it failed to account for the stadium debt properly. Instead of charging the football program $3.7M for interest paid on the outstanding balance of stadium bonds and $800K for the $22M of commercial paper which financed the stadium construction, the interest was reported as a non program specific expense of the Athletics Department. Had the interest expense been classified properly per NCAA instruction, the football program would have showed a loss of $2.6M

 

[Scarlet Shack]

The whole "we can't afford xxx" is a joke

We can afford whatever we want to do...

The problem is the leadership (again here comes that phrase "Instutional commitment") needs to be willing to do it and take the shirt term hear for spending more money when politicians and media people do what they do to criticize

Strong leadership and will makes this a non issue

We have neither right now

 

[RutgHoops]

The whole "we can't afford xxx" is a joke

We can afford whatever we want to do...

You can't believe that. The State of NJ pretty much has told Barchi he can't, and they are wacky enough that they tried to annex a campus of ours recently. Not sure telling them to "go f--k themselves" is sound strategy.

 

[Steveriknight]

It's a damn shame RU didn't get the same deal with the B1G that Maryland did. They got a larger share of B1G monies right from the start to help with their financial problems. Granted, they were in a better bargaining position that us coming from the ACC. But still, that would have fixed these problems we're having now.

 

[nyctarheel23]

@rutgersguy1

"The B10 as a conference is going to get more money from those new bowl contracts and the playoff contract but it's not going to trickle to us until we get a full share of the B10 revenue."

Please don't bet your mortgage or anything significant on the above sentence you wrote. Since before RU joined the B1G, there has been a lot of money (private equity
and MLBAM cash) committed to what the power sports programs will belong to--not a part of the NCAA, btw---in '17 and '18.

 

[NickyNewark51]

@rutgersguy1

"The B10 as a conference is going to get more money from those new bowl contracts and the playoff contract but it's not going to trickle to us until we get a full share of the B10 revenue."

Please don't bet your mortgage or anything significant on the above sentence you wrote. Since before RU joined the B1G, there has been a lot of money (private equity
and MLBAM cash) committed to what the power sports programs will belong to--not a part of the NCAA, btw---in '17 and '18.

Spell it out or get lost...

 

[RUJohnny99]

Please don't bet your mortgage or anything significant on the above sentence you wrote. Since before RU joined the B1G, there has been a lot of money (private equity
and MLBAM cash) committed to what the power sports programs will belong to--not a part of the NCAA, btw---in '17 and '18.

 

[badger1979]

From what I understand, the schools that joined the Big Ten after BTN was created need to buy their shares into the network, just as the first 11 schools bought their shares. Instead of giving Rutgers a full payout, the conference just withholds some money as payment for the shares. That will go on for a few years until Rutgers has fully bought into the network.