Big Money

[REDFISTFURY3]

@TimSullivan714

Louisville athletics reports a recent surge of seven-figure donations totaling $19 million from Alro Steel, Junior Bridgeman, Sandra Frazier, Dennis & Lagara Goulait, L&N Federal Credit Union, Kroger, Louisville Distilling Company, Jim Patterson, Isac Roths & Al J. Schneider Co.

4:23 PM · Dec 14, 2021·Twitter Web App





B

 

[Ipartiedwithhopgood]

@zipp you are the finance guy on a scale of 1-10 how good of news is this?

 

[Mike'sMarbles]

Pay for a few years of Brohm?

 

[Ipartiedwithhopgood]

Pay for a few years of Brohm?

I was thinking my tab @ Jim Porters @Morgantown Card

 

[indaville]

I was thinking my tab @ Jim Porters @Morgantown Card

Wasn’t that bulldozed to the ground?

 

[zipp]

@zipp you are the finance guy on a scale of 1-10 how good of news is this?

If I'm being generous, maybe a '3'.

I'm not sure what Tim Sullivan is referring to as a source. Based on today's news flow, I'm assuming this started with Tyra's presser. And my wife reminded of an analog...

Tyra was today's version of a Vegas high roller... They tell you how much they win, and not how much they lose. I also referred to it in a text this afternoon as "one-sided accounting".

A better explanation is that Tyra just mind dumped a string of impressive headline numbers, and he's probably smart enough not to lie about any of it. What you have to consider about the headline number in a donation or buyout is that it's a cash flow total. In U of L's case, these donations are generally paid over at least five years.

But let's assume that five years is the average period for these donations to be paid to U of L. $19 million represents a positive cash flow of no more than $4 million each year. The ULAA budget this fiscal year is $108 million, so these donations are cash flowing less than 4% of budgeted expenses.

Another gauge is the dollar amount of nonoperating revenues that flow into athletics annually. As the name says, nonoperating funds do not come from operations, and almost all of them are characterized as gifts. Over the last four years (2018-2021)--the bulk of Tyra's time here--nonoperating revenues averaged $37 million annually. A $4 million cash flow is about 10% of the gifts.

For the previous four years (2014-2017), nonoperating revenues averaged $39 million. What Tyra cited in effect was just a recent list of donations, the dollar amount of which hasn't much changed over the past decade.

This is sort of an eye-of-the-beholder situation... And I've shorthanded Tyra's financial issue as generating revenues because that's how a nonprofit operates. More accurately, he couldn't cover his expenses. His expenditures continued their rate of growth while revenues didn't. Tyra consistently didn't raise enough revenue to balance his budget...

 

[Thecycle27]

To be fair pretty hard to raise funds with a 2 year pandemic going on. It was time for a change. The board no longer supported him. At that point time to go.

 

[2330859]

Very evident that our BoT did not support Vince. The last 2 years of Covid have affected most every aspect of life on this planet, and UL a is no exception. Blaming people, decisions or explaining away situations is speculative at best.

 

[Thecycle27]

We are kind of in that rut and play the blame game pretty well. It is easy to do but so is supporting the programs. Coaches come and go. Success comes and goes. The great programs fans always support.

For any school fans have to ride those waves and eventually you witness a Heisman, a National Title, World Series, Olympic Gold and Final Fours. Really watch the kids on the volleyball team, man they get it. That is what college sports is about. We lose sight of that.

 

[Morgantown Card]

I was thinking my tab @ Jim Porters @Morgantown Card

Oh man I don't even want to type the word tab. Our office Christmas party was last night and I feel like I was eaten by a wolf and shit off a cliff.

 

[zipp]

Fortunately, we don’t need to accept donor names dropped by Tyra and their dollar amounts, not when we have audited income statements to use...

Gifts comprise close to 100% of what the outside auditors call “nonoperating revenue.” All expenses are considered to be operating, and they equal the total of operating and nonoperating revenue since a nonprofit doesn’t generate any profit. Nonoperating revenue represents close to 40% of total revenue, so gifts are vital to balancing the budget.

Tyra was at U of L for the four completed fiscal years, 2018-2021, and I have prior data going back to 2004 for comparison. He didn’t deal with Covid until 2021. This bar chart tells the story…

The gray bars are pretty consistent indicating that we proportionately grew the income statement across the major categories prior to Tyra's arrival. During his tenure, he tried to keep up spending.

But his operating revenue lagged, and nonoperating revenue comprised mostly of gifts declined significantly. Despite Tyra reacting with a "bullchit" at the allegation, our annual reports clearly show he couldn't adequately fund raise from corporate and other large donors. That's all baked into these numbers...