ACC Schools in Deep Financial Trouble…

Swofford ACC
BobLee
November24/ 2015

ACC SwoffordSay It Ain’t So Swoff !! …. 12 of 14 ACC “member institutions” Athletic Departments operating in RED INKLots of it apparently.

“All but two” ….. leading to RAMPANT speculation.   I was told by “a UNC Insider” (don’t we all have one of those) that UNC’s AthDept cleared “about $75,000” last fiscal year.… which ain’t much in an $80,000,000 budget…. about two secretaries or Ken Wainstein’s car rental.

ACC membersI have no clue which schools are / are not profiting.  Various partisans speak for your own institutions.  What say you BK?

  • Will Frau be passing KFC buckets thru the stands Sat for $$$ to keep the Jumbos on?
  • What will Urkel and Carlton’s mini-mob @ UNC say about this?
  • So much for those “lucrative” Syracuse and Pittsburgh TV markets ??
  • But But…. Don’t “Fat Cats” take care of this unpleasant stuff ?? –  a/k/a – The millennials solution to everything.
  • Remember…. Going to any bowl other than a Top Tier is ALWAYS a money-loser when all the bills have been paid.

FYI: Creative accounting and all sorts of special “Funds” and “Foundations” get involved in Hindenburg Hangars and multi-million $$$ coaching salary extensions etc etc etc etc ….. at least thats what “they say”.

Surely this will all be laid at the feet of a certain much-maligned “Commish”.   Board Monkeys will scream NO WAY to these harsh realities.  That is why they are called “Board Monkeys”.   They are quite stoopid.

I’m sure each AthDept will be responding to this article with various forms of gobbleygook assuring it’s rabid partisans that…

“WE are doing fine at fill in your school …. but send us lots mo’ money ASAP !!”

 

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ACC schools find themselves in major financial trouble

http://www.yardbarker.com/college_football/articles/acc_schools_find_themselves_in_major_financial_trouble/s1_12794_19945069

 

Originally posted on The Student Section
By Andrew Coppens  |  Last updated 11/24/15

Modern day college athletics is more about money than it has ever been about before. Conference expansion, television deals and network creation are all about the eyeballs and money that can be added to the conference coffers.

The SEC and Big Ten lead the revenue side of big-time college athletics, and the ACC wasn’t supposed to be that far behind. It reworked a television deal with ESPN to pull them in close to the SECs and Big Tens of the world. There were promises of an ACC Network as well.

Since then though, ACC programs haven’t exactly reaped the benefits of said increases in revenue streams. Partly because the ACC Network is still in the works and appears to be on hold, but also because the cost of doing business has risen to levels few of these programs can afford.

It has all led to a major crisis in conference athletic department bottom lines. According to a Washington Post article,

all but two of the ACC’s full-member institutions are in the negative despite major increases in revenue streams.

To be fair to the ACC, it isn’t the only conference with problems, with schools like Auburn, Maryland and Rutgers running big deficits and all but two Pac-12 schools in the red as well. However, the ACC is special in that almost every member of the conference is seeing their athletic budgets dripped in red ink, including two programs that were in the black just a decade ago.

New facilities, increasing coaches salaries, increasing athletic department staffing and increasing maintenance costs are partly to blame according to the Washington Post article. However, the article also demonstrates that this is a long-term problem for most athletic departments in the ACC, with all but two members back in 2004 in the red and all of them operating in the red in 2014.

No doubt that to be amongst the big boys the ACC has had to significantly invest in upgrades, but the conference has also done a good job of recognizing the need for more revenue.

The newest deal with ESPN saw a 30 percent increase in total revenue to the conference in ’13-14 alone, per Sports Business Daily. Each school as a result is seeing $20 million, which is nowhere near the amounts earned by the SEC and Big Ten, but is in line with competing given its footprint and (lack of) football prestige.

However, the creation of an ACC Network and the additional revenue that may come with it has hit stumbling blocks thanks to financial numbers not working out just right and other hurdles to clear, according to the Associated Press a few months ago.

Competing on the field is one thing, and the ACC is doing that in both football and basketball like it has never done before. What it has failed to do is keep up in the financial arms race. Until the new network deal is done and the checks start rolling in…,

most in the ACC are going to be digging out of a major hole.

All of that will likely come a the expense of so-called “Olympic s[Sports,” sports like swimming and diving, wrestling, track and field, etc.

Has it gotten that bad across the ACC? Perhaps, and until the financial situation is fixed the conference is in danger of being less and less relevant as time goes on.

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CUTiger
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CUTiger

There is so much book cooking and money shifting going on, so who really knows who is and who is not making any money. In the end, I believe the vast majority of schools have athletic departments that operate in (or very close to) the black before money is moved around. Without going into a long diatribe as to why they do this, I believe that the goal of most athletic departments is to get as close to net zero at the end of the year as possible, for many reasons. Looking at the most recent USA Today study of… Read more »

Fred-in-Fayett
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Fred-in-Fayett

BL… your “best guess” on which two ACC schools are “profitable” ??

PTH
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Spending too much on education trying to educate those future NFL stars so they can get those big contracts and then be broke again in a few years. This is what I don’t understand about the big time college athletics. All the big time boys want to have it, but without fat cat donations and contributions not very many, if any, would make money. What you have is mini federal government format of administrators lining their pockets with inflated salaries and athletic dept. equivalents of $300 toilet seats and asking for more, more, more. No public university should be spending… Read more »

58 wolf kennel
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58 wolf kennel

What seemed to be obvious from my comment is that there would be no empty seats or aluminum showing on Saturday. The win will help a better bowl placement which might provide more income as well :+))

58 wolf kennel
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58 wolf kennel

Don’t know budget details. Missed Council on Athletics meeting last Friday. Know it is close and AF Yow watches closely. Couldn’t have made much money in the great basketball win in Brooklyn tonight, but we’ll make up any losses in a great football win at the Carter on Saturday :+))

Fozzy
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Fozzy

And all this time i thought those Clemson-Syracuse matchups would have the league rolling in dough.

NCSU68Grad
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NCSU68Grad

According to the official NCSU AD FY 2014 Overview……Google it

Budgeted operating revenue–$63.9 Million

Budgeted operating expenses–$63.5 Million

Best I can do with my phone. BK will have to refine.

Betty
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Betty

I find myself underwhelmed and underawed and far less than shocked. Whole country’s in debt and so are a lot of people. Why should athletic departments be any different? Now, I know the one has nothing to do factually with the other, but I guess what I mean is that my reaction is basically a sarcastic “well join the club”.