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Post by spudbeaver on Oct 3, 2024 9:36:34 GMT -8
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Post by bennyskid on Oct 3, 2024 10:14:18 GMT -8
$20 million is actually pretty common for G5 schools with ambition. A few years back I looked at this more closely and half of the AAC was in that range and UConn was nearly twice that. But much of it is in the accounting. For example, rarely is the apparel sales and licensing credited to the athletic departments, even though athletics drives 99% of the demand. The stadium soft drink concession is also usually allocated to the academic side, not athletics, since the contract usually covers the whole school. And the athletic department is charged full rate for every scholarship, even though the marginal cost to the university is practically zero.
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Post by flyfishinbeav on Oct 3, 2024 10:29:27 GMT -8
I don't know much about UNLV football other than historically they are bad, and no one pays attention to them. Suddenly they are one of the best MW teams. So you're saying their debt, coupled with their recent success, is an indicator of a commitment to the football program?
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Post by spudbeaver on Oct 3, 2024 11:37:07 GMT -8
$20 million is actually pretty common for G5 schools with ambition. A few years back I looked at this more closely and half of the AAC was in that range and UConn was nearly twice that. But much of it is in the accounting. For example, rarely is the apparel sales and licensing credited to the athletic departments, even though athletics drives 99% of the demand. The stadium soft drink concession is also usually allocated to the academic side, not athletics, since the contract usually covers the whole school. And the athletic department is charged full rate for every scholarship, even though the marginal cost to the university is practically zero. Then why is it a story? Maybe they’re going to profile a different G5 school every week. |
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Post by bennyskid on Oct 3, 2024 12:20:44 GMT -8
$20 million is actually pretty common for G5 schools with ambition. A few years back I looked at this more closely and half of the AAC was in that range and UConn was nearly twice that. But much of it is in the accounting. For example, rarely is the apparel sales and licensing credited to the athletic departments, even though athletics drives 99% of the demand. The stadium soft drink concession is also usually allocated to the academic side, not athletics, since the contract usually covers the whole school. And the athletic department is charged full rate for every scholarship, even though the marginal cost to the university is practically zero. Then why is it a story? Maybe they’re going to profile a different G5 school every week.
Why would the local newspaper have a story on the local university athletic department finances, right when the university is making a major decision regarding conference affiliation?
(Look again at where the story is coming from. MSN is just an aggregator, reposting content from local newspapers.)
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Post by Henry Skrimshander on Oct 3, 2024 13:01:24 GMT -8
There will be a lot of people in Las Vegas who ask, "The department is $20 million in debt. They're gonna get $20 million from the MWC. Why don't they pay off the debt?"
So many forms of debt. Not all (mortgages, long-term debt service, deferred compensation, etc.) are bad. In fact some are pretty smart.
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Post by spudbeaver on Oct 3, 2024 13:43:16 GMT -8
Then why is it a story? Maybe they’re going to profile a different G5 school every week.
Why would the local newspaper have a story on the local university athletic department finances, right when the university is making a major decision regarding conference affiliation?
(Look again at where the story is coming from. MSN is just an aggregator, reposting content from local newspapers.)
Yes, not being stupid I did know that it was from the LV paper. I also listened/read the words that said the athletic department shortfall was due to "a variance in budget versus actual revenue in '23." Perhaps that is why it is a story. That's a big deal. |
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Post by atownbeaver on Oct 3, 2024 13:47:08 GMT -8
This is the driving factor of why they are in the MWC and not the Pac. MWC paid off their debt in full. They had the choice to get an immediate payoff of the debt, or maybe get some money, but still need to pay $17M in exit fees, plus only have the promise, but not guarantee of more media money. They made the safe short term call, but probably not the best long term call. UNLV is going to wither in the weaker MWC that will certainly have a worse media deal in the next negotiation. They are the headlining team, and as a headliner, they don't carry all that much weight. They didn't make a choice that lends itself to growth, they made a choice that balanced their books today, without regard for tomorrow. |
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Post by spudbeaver on Oct 3, 2024 13:47:25 GMT -8
There will be a lot of people in Las Vegas who ask, "The department is $20 million in debt. They're gonna get $20 million from the MWC. Why don't they pay off the debt?" So many forms of debt. Not all (mortgages, long-term debt service, deferred compensation, etc.) are bad. In fact some are pretty smart. Do you consider missing your revenue forecast for a $66.5 mil budget by $21 million to be "smart" debt? Asking for a friend. |
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Post by spudbeaver on Oct 3, 2024 13:48:21 GMT -8
This is the driving factor of why they are in the MWC and not the Pac. MWC paid off their debt in full. They had the choice to get an immediate payoff of the debt, or maybe get some money, but still need to pay $17M in exit fees, plus only have the promise, but not guarantee of more media money. They made the safe short term call, but probably not the best long term call. UNLV is going to wither in the weaker MWC that will certainly have a worse media deal in the next negotiation. They are the headlining team, and as a headliner, they don't carry all that much weight. They didn't make a choice that lends itself to growth, they made a choice that balanced their books today, without regard for tomorrow. Thank you. |
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Post by Henry Skrimshander on Oct 3, 2024 19:46:36 GMT -8
There will be a lot of people in Las Vegas who ask, "The department is $20 million in debt. They're gonna get $20 million from the MWC. Why don't they pay off the debt?" So many forms of debt. Not all (mortgages, long-term debt service, deferred compensation, etc.) are bad. In fact some are pretty smart. Do you consider missing your revenue forecast for a $66.5 mil budget by $21 million to be "smart" debt? Asking for a friend. No. But as I clearly said, tell your friend that not all debt is not bad. My mortgage, probably his mortgage, the debt service we are paying on Reser Stadium, the deferred income the Dodgers owe Ohtani, student loans, US Savings Bonds ... all are forms of debt. |
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Post by spudbeaver on Oct 3, 2024 19:52:11 GMT -8
Do you consider missing your revenue forecast for a $66.5 mil budget by $21 million to be "smart" debt? Asking for a friend. No. But as I said, tell your friend that not all debt is not bad. My mortgage, probably his mortgage, the debt service we are paying on Reser Stadium, the deferred income the Dodgers owe Ohtani, student loans, US Savings Bonds ... all are forms of debt. Unrelated and not comparable. |
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Post by atownbeaver on Oct 4, 2024 7:42:06 GMT -8
Do you consider missing your revenue forecast for a $66.5 mil budget by $21 million to be "smart" debt? Asking for a friend. No. But as I clearly said, tell your friend that not all debt is not bad. My mortgage, probably his mortgage, the debt service we are paying on Reser Stadium, the deferred income the Dodgers owe Ohtani, student loans, US Savings Bonds ... all are forms of debt. You have to ask yourself how you missed so bad and what you can do to not do that again. You came up very, very short in revenue. UNLV did nothing in their decision to improve revenue in the future. in fact, they actively harmed it. They are going to have less interesting games on worse TV in the future. MWC additional teams are bad G5s and they are looking at elevating FCS schools. it is not going to be pretty over there. UTEP is not bringing value to that conference. I get the pressure to make it right, right now. But if I am a UNLV fan or booster, I am asking some really hard questions right now. Even if the Pac-12 media isn't all its cracked up to be, its hard to imagine it dips below about $10M. that is going to be double what the MWC gets. and Pac-12 is in a far, far better place to get NCAA tourney credits, and other sources of income coming in. It is just a better place to be in. you really do gotta shake your head. Pac-12 reportedly offered $25M to UNLV. that would of left then on the hook for $17M. still in the hole, but you know what, I think you make that investment to right your ship and get the eyes on your program you need. How many more people are showing up with OSU and WSU are playing in your stadium? or when Gonzaga is playing you in basketball now (too be fair, they were not on board when they mad that call) |
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Post by flyfishinbeav on Oct 4, 2024 8:17:57 GMT -8
No. But as I clearly said, tell your friend that not all debt is not bad. My mortgage, probably his mortgage, the debt service we are paying on Reser Stadium, the deferred income the Dodgers owe Ohtani, student loans, US Savings Bonds ... all are forms of debt. You have to ask yourself how you missed so bad and what you can do to not do that again. You came up very, very short in revenue. UNLV did nothing in their decision to improve revenue in the future. in fact, they actively harmed it. They are going to have less interesting games on worse TV in the future. MWC additional teams are bad G5s and they are looking at elevating FCS schools. it is not going to be pretty over there. UTEP is not bringing value to that conference. I get the pressure to make it right, right now. But if I am a UNLV fan or booster, I am asking some really hard questions right now. Even if the Pac-12 media isn't all its cracked up to be, its hard to imagine it dips below about $10M. that is going to be double what the MWC gets. and Pac-12 is in a far, far better place to get NCAA tourney credits, and other sources of income coming in. It is just a better place to be in. you really do gotta shake your head. Pac-12 reportedly offered $25M to UNLV. that would of left then on the hook for $17M. still in the hole, but you know what, I think you make that investment to right your ship and get the eyes on your program you need. How many more people are showing up with OSU and WSU are playing in your stadium? or when Gonzaga is playing you in basketball now (too be fair, they were not on board when they mad that call) If I was a UNLV football fan ( I don't know anyone who is....know lots of Wolfpack fans though) I'm pissed that they didn't jump at the opp to get into the Pac 12. Maybe it boils down to those in power at UNLV not really wanting to invest in sports. Like I've said multiple times in these threads, UNLV has mostly been on the losing side of the "Battle for the Fremont Cannon".....they have been winning it more over the last several seasons......I used to attend the rivalry game at Mackey Stadium, and watch on tv if it was in Vegas. Mackey would be packed..... Sam Boyd was always sparse. So maybe thats it......UNLV leadership doesn't want to think bigger because they don't think people will support it. |
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