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View Full Version : Loh Announces Sports Budget Review- How Would You Fix It?



Danielos38
07-19-2011, 10:55 PM
http://maryland.247sports.com/Article/Loh-Announces-Sports-Budget-Review-31956

Not sure which section to put this in. I figured that football is coming up and budget issues would effect football more than basketball. Basketball is pretty much safe.

So, the Maryland Athletic Department has had notorious budget issues over the past couple of years. This is pretty much directly attributable to the inept leadership of Debbie Yow and the recent lack of success of our revenue sports. This committee seems to be clearly designed to cut some teams and figure out ways to increase the revenue. It's long overdue. We have a small endowment, which I believe is either the 2nd lowest or the lowest in the ACC. Much like the federal government, to start getting this department right, we have to cut spending and increase revenue... there's no other way to make up such large shortfalls. Anything and everything should be on the table.

Before giving your plan to fix the budget, there are a bunch of factors to consider.

*Maryland carries more sports than most schools in the ACC. Because of its relatively low endowment, especially relative to the number of sports we carry, some will have to be cut.

With that, comes title 9 concerns. Here are the statues of Title IX that must be complied with:

Whether the selection of sports and levels of competition effectively accommodate the interests and abilities of members of both sexes
The provision of equipment and supplies;
Scheduling of games and practice time;
Travel and per diem allowance;
Opportunity to receive coaching and academic tutoring on mathematics only;
Assignment and compensation of coaches and tutors;
Provision of locker rooms, practice and competitive facilities;
Provision of medical and training facilities and services;
Provision of housing and dining facilities and services;
Publicity.

This essentially breaks down to the facts that schools have to carry as many, if not more, women's athletic scholarships than men. Because Maryland obviously carries football, those scholarships have to be made up somewhere in women's sports. Something to consider.

*When choosing to cut teams, one must think of the political consequences. There are donors attached to even non-revenue teams who happen to care about a certain sport. That is the case with Maryland baseball and a few others.

*As a general rule of thumb, each non revenue sport costs the school approximately $1 in total per year. Men's basketball and football both make money, while women's basketball, men's lacrosse and men's soccer are all generally revenue neutral, and thus are obviously not subject to being cut. Not that anyone would want to cut any of those anyway.

*You also have to consider existing facilities when cutting sports. Though it is a popular sport in the area, the Maryland baseball field is in prime location in the center of campus, right near the team houses and practice fields, which could be utilized in a much more revenue beneficial way. However, softball has their own complex on the outskirts of campus. Because that is a women's sport with a decent number of roster spots and uses land that is not otherwise particularly valuable, it is probably not the best one to cut.

*Now we come to increasing revenue. Obviously, there are a lot of ways that you could increase revenue. Realistically, most of the revenue potential is in football. All that men's basketball with take to increase revenue is winning. It seems absolutely clear that simply winning will fill Comcast on a regular basis and max out basketball's revenue potential. Not much to do there. There's no real opportunity for making any substantial revenue increases in non-revenue or revenue neutral sports, so there's really no reason to discuss those. Increasing revenue all comes down to football. What would you do? Winning is an obvious answer that would clearly help. However, the ACC isn't a football powerhouse and we're probably never going to be at the Virginia Tech level, so some other things do need to happen to make football more financially beneficial on a regular bases.

In making your plans, try to be as realistic as possible. I plan on e-mailing mine to Randy Eaton and Kevin Anderson. I know for a fact that Eaton reads his, I'm not sure about Anderson.

Here's mine:

Men's sports to cut:

*Cross country: It's the only non-fully funded sports that uMD carries. They aren't particularly successful and there aren't any facilities concerns. This is the easiest one to cut, IMO.

*Track and Field: Same reasons as XC. Not successful, no facilities concerns.

*Tennis: Again not successful. No revenue what-so-ever. Courts are basically in a parking lot and are utilized by students anyways.

*Swimming: Not a successful team, no revenue. The pool is in the recreation center and is often utilized by students. Plus, there are a lot of scholarships/roster spots to be cut, making it easier to cut a few women's sports as well.

Women's Sports to Cut:

*Cross Country: Same reasons as men's.

*Track and Field: Same reasons as men's.

*Water Polo: Couldn't this just be a club sport like at most other schools? Making this an official sports costs us a tremendous amount more than having it as a club sport. It's in the same pool as swimming. Seemingly easy one to cut for me.

*Tennis: Same reasons as men's.

As a result the department would be left with:

Mens

1. Baseball
2. Basketball
3. Football
4. Golf
5. Lacrosse
6. Soccer
7. Wrestling

Womens

1. Basketball
2. Field Hockey
3. Golf
4. Gymnastics
5. Lacrosse
6. Softball
7. Soccer
8. Swimming

This would leave us with 15 sports. I have a feeling that these cuts are probably more dramatic than the athletic department and administration would go for. Admittedly, I don't really care about any sports other than men's basketball, soccer, lacrosse and football. I care some about women's basketball. As a result, I'm not too sentimental about any of the sports that I'm proposing to cut.

That brings us to revenue increases. As I said earlier, the only real opportunity to do this is football.

Obviously, winning is going to fill the stadium more than it is and sell more luxury suites. I feel like a good place for Maryland football to be would be to competing for division titles regularly with a berth in the ACC Championship once every five years or so. I'm still not sure if that will be enough to fill the stadium on a regular basis.

With the Redskins and Ravens around, both with huge fanbases, it's going to be hard to get people to buy season tickets for both.

My plan would revolve around huge upper deck deals for families, youth football players and groups. Even if you only break even on those last game by game group ticket sales, it's worth just getting them into the stadium to buy concessions. I think that seeing a full stadium on TV can have an underrated and large impact on future ticket sales. People, especially in the DC area are very event oriented. MD football games look/feel much more like a big event when the stadium is full and loud. Hopefully, the initial loss/break even will facilitate an improved atmosphere and experience, resulting in increased future season ticket sales.

So that's about it. What say you? How are you going to save the athletic department? Huge changes have already been made in our revenue sports with new coaches, will the athletic department as a whole chance too?

Birds of B'more
07-20-2011, 11:08 AM
Here's what I'd do:

1) Wait until revenues from the ACC's TV deal that takes effect this fall start coming in before making any drastic cuts.
2) Put more resources into having a better football team, since that is the sport that is most underachieving in terms of revenue and likely to generate the greatest ROI.
3) See if there are any other sugar-daddies out there like Kevin Plank that can help. Does Sergey Brin like sports?
4) If 1, 2 & 3 don't help, cut other sports.

Danielos38
07-20-2011, 10:49 PM
Here's what I'd do:

1) Wait until revenues from the ACC's TV deal that takes effect this fall start coming in before making any drastic cuts.
2) Put more resources into having a better football team, since that is the sport that is most underachieving in terms of revenue and likely to generate the greatest ROI.
3) See if there are any other sugar-daddies out there like Kevin Plank that can help. Does Sergey Brin like sports?
4) If 1, 2 & 3 don't help, cut other sports.

The ACC revenues will be nice in the short term, but they won't help our revenue shortfalls in the long term. Cuts need to be made for this program to ever possibly be viable. We don't have the revenue potential to make enough money to be top notch in the revenue sports with the amount of money that we spend.

I can also assure you that all of the possible big donors have been reached out to. There's no way that even someone like Debbie Yow would let all of that potential money sit on the table.

Danielos38
07-21-2011, 07:43 PM
Big article in the Washington Post today on the subject. It seems as though we might be in bigger trouble than we thought earlier. This just shows how horrendously Debbie Yow mismanaged the program. I can't imagine anyone worse as an athletic director.

http://www.washingtonpost.com/sports/a-closer-look-into-the-finances-of-marylands-athletic-department/2011/07/20/gIQAvsHmQI_story.html

Birds of B'more
07-21-2011, 10:09 PM
I think MBB will get back to where it was revenue-wise. Probably not so much this coming season given the time restraints and depleted roster, but quickly after that. So far Mark Turgeon really seems to be injecting some excitement into the program with his recruiting efforts. I'm still open-minded about Randy Edsall, but reading that article makes me wonder even more how different things might be as far as football revenue if they hired Mike Leach. I know they don't usually publicize numbers, but with just over a month before the season opener, are there any rumors as to how football ticket/suite sales are looking?

Danielos38
07-21-2011, 10:17 PM
I think MBB will get back to where it was revenue-wise. Probably not so much this coming season given the time restraints and depleted roster, but quickly after that. So far Mark Turgeon really seems to be injecting some excitement into the program with his recruiting efforts. I'm still open-minded about Randy Edsall, but reading that article makes me wonder even more how different things might be as far as football revenue if they hired Mike Leach. I know they don't usually publicize numbers, but with just over a month before the season opener, are there any rumors as to how football ticket/suite sales are looking?

There were rumors on InsideMDSports that football season ticket sales would be up modestly this year. We're going to need to start winning and creating some real excitement if we're going to going to make any significant increases though.

Birds of B'more
07-21-2011, 10:38 PM
There were rumors on InsideMDSports that football season ticket sales would be up modestly this year. We're going to need to start winning and creating some real excitement if we're going to going to make any significant increases though.

At the very least they have a slightly better home schedule in their favor. Miami is still a brand name, and WV and Clemson tend to bring a lot of visiting fans. And even though it's technically a road game, I would imagine they will do well with the Notre Dame game at FedEx. I would imagine they're marketing the heck out of DOB too....although I'm sure there are a lot of questions surrounding what kind of offense they will run and whether O'Brien will succeed in it.

Danielos38
07-21-2011, 11:24 PM
At the very least they have a slightly better home schedule in their favor. Miami is still a brand name, and WV and Clemson tend to bring a lot of visiting fans. And even though it's technically a road game, I would imagine they will do well with the Notre Dame game at FedEx. I would imagine they're marketing the heck out of DOB too....although I'm sure there are a lot of questions surrounding what kind of offense they will run and whether O'Brien will succeed in it.

True. Home schedule is pretty good. Miami and West Virginia games should be rocking. Especially Miami on Labor Day, ESPN at night. If we can somehow win both of those first two games, who knows how the season could go record and attendance/revenue wise. Those games will definitely be an important test though.

JohnD
07-22-2011, 06:44 AM
I thought I saw season ticket sales were down, a wee bit, from last year. Maybe a few hundred? More could still be sold though. Randy Edsall clearly has a lot of enthusiasm though, and that could help.

Nigel Tufnel
07-22-2011, 09:07 AM
I thought I saw season ticket sales were down, a wee bit, from last year. Maybe a few hundred? More could still be sold though. Randy Edsall clearly has a lot of enthusiasm though, and that could help.

I think that's true - here's a quote from the Washington Post article linked to above:


Athletic department officials said earlier this month the school has sold 18,400 season tickets for the 2011 season, down from a little more than 19,000 season tickets a year ago.

Here were a few other things that I thought were interesting:


“You can have quality in two different ways,” said Debbie Yow, who served as Maryland’s athletic director for 16 years before leaving in June 2010 to take the same position at North Carolina State. “You can cut 10 sports and have quality and just relax, pretty much. Or you can keep all the sports in place and push hard on the staff to continue to generate new revenue. And I will admit to you, that is a burden, that second thing. That’s tough. It wears on you. But that was the model I chose.”


Another looming problem stems from the naming rights agreement the school signed with Comcast Cable Communications, Inc., in 2000 for its new $125 million basketball arena. The Comcast Center opened in 2002.

The naming rights agreement, a copy of which was obtained via an open records request, called for Comcast to pay the school $25 million over the course of 10 years, but retain naming rights for 25 years. The athletic department has used those funds, which will run out in 2016, to help pay its annual debt service.

Beginning in 2016, the department’s annual debt service will increase by roughly $1.4 million, and it is projected to remain in excess of $6 million from 2016 to 2021. Comcast Center is scheduled to be paid off in 2023.

Birds of B'more
07-22-2011, 10:47 AM
Wow. That Comcast deal was a stupid one by the University. And just like Yow to cut and run when that money is set to run out. And here I thought I couldn't have any less respect for her.

Danielos38
07-22-2011, 03:02 PM
I thought I saw season ticket sales were down, a wee bit, from last year. Maybe a few hundred? More could still be sold though. Randy Edsall clearly has a lot of enthusiasm though, and that could help.

I think the thought was that right now they are down from the beginning of the season last year. I believe that they are expecting a slight increase from last year by the beginning of the season this year.

What really pissed me off about the Comcast deal was that they didn't rig it for concerts. They could have made SO MUCH MONEY off of concerts in Comcast. If you put a sage opposite the wall, it is the absolute perfect arena concert venue. Very intimate, especially with the wall, but a ton of seats.