U of L Athletics projects "over a $25 million deficit"...

[zipp]

I received an email from our CAF rep today, a really good guy who has essentially been reduced to begging for money. In his email, he acknowledges that for the third year in the last four, athletics stands to lose many millions of dollars.

$25 million is probably well off of the actual result based on our recent, dismal financial performance. We can't hit a budget, so why would this estimate be accurate? It does mean that athletics, as measured by net position, has been downsized by about a third over the last four years. I can't look at the balance sheet and see where the cash is coming from.

You have to ask yourself at some point why management can't include itself in any analysis of what plagues U of L. A good manager knows when to step aside for the sake of the organization, to bring back the support that it lacks, to restore it to sound financial footing.

 

[CommodoreCard]

Georgia and Ohio $tate are approaching $100 million in the red this year. We are not alone.

 

[LeFors4Ever]

I’d like to find any other major conference school that relies heavily on a live gate and tv revenue that’s going to be in the green?

The NCAA’s biggest money maker is the tournament and it’s gone. The ACC tournament for basketball, gone. We lost 3 football games. We lost an entire season of live gates.

If you’re forced by the government, ACC, and NCAA to shut down your big sources of revenue, how is that on the AD. Or should Vince create his own conference and have full capacity at the Yum?

 

[zipp]

We won't sink all the way to the bottom. While we're bleeding money, our assets are currently much greater than our liabilities which means we're not yet close to insolvency.

No, "Vince" will eventually dock the Titanic at somewhere like a third or a half of our former size financially. When he took over, the athletic department was worth on the books north of $150 million. We're headed toward $50-75 million. That's the type of downsizing that many predicted or feared when he took the job.

And to reiterate, that process started well before Covid. That's the point. The greatest concern you should have is not that your finances are getting killed this year like everyone else. Yours have been getting killed for four years.

It's clear that our athletics financial management can't do something as simple as set a budget--or Business 101. As the OP said, we're projected to be at least $25 million in the red this year SIX MONTHS after that budget was put to paper. The budgeted number was ZERO, i.e., a balanced budget for athletics and all U of L departments.

What's changed since June? That was after the stock market crashed, businesses were shut down, and tens of millions of people were laid off. How could THAT have been the context to over-budget revenues by $25+ million?

I gave "Vince" credit for knowing how to run a for-profit business. After seeing these results year after year, I'm not sure what to assume about him...

 

[chevelle99]

I feel safe in the assumption he won’t be replaced in the near future by Jurich 2.0! Sorry. But you could add “back” to the bottom of your sign and march around campus again. Who knows, it could happen.

 

[zipp]

There's nothing "safe" about him staying in the AD job--at least for the rest of us...

 

[chevelle99]

By “ the rest of us” do you mean your fellow protesters when Tom was fired?

 

[Mayoman]

To amplify a past noted speaker "THE RENT IS TOO DAMN HIGH!" Sarcasm in the year 2020. Go figure.

We will all be bankrupt soon enough. That's the reset plan is it not?

 

[zipp]

Anecdotal example, but hard data nonetheless...

At the women's basketball game yesterday, we took a tour around the upper suite level of the arena. And I used that opportunity to calculate the % of unleased suites on that level. Of those 40 suites, 21 did not have a corporate or private nameplate on the door.

There are another 32 suites on the lower level, and with access and time I could have made a similar calculation there. But I didn't. However, if all 32 of those suites are leased, they're at 70% overall. A more realistic guess might be three-quarters leased on the lower level--which would be an overall number of 60%.

We can talk about total attendance, but those are the seats that need to be filled to provide revenue. And it helps explain how that revenue could be down so far with little or no sign of improvement anytime soon.

60% might be a number to remember. Pre-Covid that's close to what we probably average--NOT paid attendance--for a men's home game. I might need to evolve the nickname from "Bailout Arena" to "60% Arena"...

 

[BPGhost]

Anecdotal example, but hard data nonetheless...

At the women's basketball game yesterday, we took a tour around the upper suite level of the arena. And I used that opportunity to calculate the % of unleased suites on that level. Of those 40 suites, 21 did not have a corporate or private nameplate on the door.

There are another 32 suites on the lower level, and with access and time I could have made a similar calculation there. But I didn't. However, if all 32 of those suites are leased, they're at 70% overall. A more realistic guess might be three-quarters leased on the lower level--which would be an overall number of 60%.

We can talk about total attendance, but those are the seats that need to be filled to provide revenue. And it helps explain how that revenue could be down so far with little or no sign of improvement anytime soon.

60% might be a number to remember. Pre-Covid that's close to what we probably average--NOT paid attendance--for a men's home game. I might need to evolve the nickname from "Bailout Arena" to "60% Arena"...

Lol - usually you just sneak down into the lower arena but now your shooting for the suites? I can picture it now. The ole zipper - skulking around the shadows, writing down the number of every un-leased suite - his grin getting wider every time he was able to make another mark in his Dick Tracy notepad.

You have to be the most miserable person ever.

 

[zipp]

Lol - usually you just sneak down into the lower arena but now your shooting for the suites? I can picture it now. The ole zipper - skulking around the shadows, writing down the number of every un-leased suite - his grin getting wider every time he was able to make another mark in his Dick Tracy notepad.

You have to be the most miserable person ever.

I was in a U of L suite.

Try a debate approach sometime that transcends personal attacks. As unlikely as it appears, even you may have an occasional point to make that’s on topic...

 

[CommodoreCard]

I was in a U of L suite..

Compliments of “Vince”?

 

[zipp]

Compliments of “Vince”?

LOL... “Vince” doesn’t appear much nowadays. I don’t blame him...

 

[BPGhost]

I was in a U of L suite.

Try a debate approach sometime that transcends personal attacks. As unlikely as it appears, even you may have an occasional point to make that’s on topic...

Zipper - you just don’t get it. I’m finished trying to have logical back and forths with you. I’ve been on this board for years and watched double digit posters bring salient, evidenced based and nuanced counterpoints to your agenda driven drivel, and to what end?

Nothing.

Not once in your tens of thousands of posts, have I ever noticed even the tiniest bit of acknowledgement on your part that someone else has more experience than you on a topic, knows more than you or even - that they have made points that are correct.

Like I said - you’re a miserable person.

 

[zipp]

Zipper - you just don’t get it. I’m finished trying to have logical back and forths with you...

Funny stuff. You never started.

...I’ve been on this board for years and watched double digit posters bring salient, evidenced based and nuanced counterpoints to your agenda driven drivel, and to what end?

Nothing.

Not once in your tens of thousands of posts, have I ever noticed even the tiniest bit of acknowledgement on your part that someone else has more experience than you on a topic, knows more than you or even - that they have made points that are correct...

Not sure what post count has to do with anything. But I've given out more 'likes' than I've probably received. Just told another guy today he was "100% correct" on a post.

Fail.

...Like I said - you’re a miserable person.

You don't have a clue about me. But keep following me around like you do, even you will figure it out...

 

[BPGhost]

You don't have a clue about me.

Lol - yeah, you’re a real mystery wrapped in a riddle.

 

[Art79]

... I might need to evolve the nickname from "Bailout Arena" to "60% Arena"...

At long last, maybe you should be more realistic about why any type of bailout was needed for the arena. If you keep using "Bailout" in reference to the arena, at least be honest about it and let's call it "Tom Jurich / Jim Ramsey Bailout Arena". They were the two individuals who insisted that the downtown arena had to be at the much more costly 2nd and Main site instead of the Water Company block where the Omni now sits. Presumably, the "bailout" reference here includes the extra $2.5 million that UofL agreed to pay a few years ago, which is actually less than half of the annual higher cost caused by the selection of the 2nd and Main LG&E site. As the primary tenant and beneficiary of the arena, it was the act of a good corporate citizen to agree to the extra payments.

 

[zipp]

At long last, maybe you should be more realistic about why any type of bailout was needed for the arena. If you keep using "Bailout" in reference to the arena, at least be honest about it and let's call it "Tom Jurich / Jim Ramsey Bailout Arena". They were the two individuals who insisted that the downtown arena had to be at the much more costly 2nd and Main site instead of the Water Company block where the Omni now sits. Presumably, the "bailout" reference here includes the extra $2.5 million that UofL agreed to pay a few years ago, which is actually less than half of the annual higher cost caused by the selection of the 2nd and Main LG&E site. As the primary tenant and beneficiary of the arena, it was the act of a good corporate citizen to agree to the extra payments.

Art, maybe you're a teenager who doesn't know this stuff firsthand. The preferred site for the arena originally was the KFEC...

"...The site for the proposed arena was a major source of contention. The mayor of Louisville Metro preferred a downtown location, whereas the president of the University preferred an on-campus venue, though they agreed to abide by the task force's decision..." LINK​

​

The "task force" was a consortium of politicians and downtown business/real estate hacks who wanted to put more money and local taxes in their pockets. No chance Ramsey and Jurich were gonna beat that, so they went along if they wanted new digs for U of L.

The issue of the two downtown sites had little to do with U of L. The only concern I recall was the lily-white and exclusive Pendennis Club near the Water Co site. Rather it was about the significant remediation costs at 2nd & Main. Inside a megamillion dollar arena project, it was possible to bury almost $100 million of additional and largely unrelated costs that no private developer would ever shoulder. Your Mayor-for-Life became a key proponent for 2nd & Main once it was made obvious to him that the Water Co. site could easily be developed for other purposes.

And you'll note in this link nary a mention of anyone at U of L in the middle of the decision. Indeed, Ramsey and Jurich were pawns in that chess game. LINK

Those two guys had nothing to do with the extortion that handed over another $2.4 million to a bankrupt arena in 2017. Both were gone and would have never supported that handover--and rightly so.

Do a little research next time like I do if you're having a hard time remembering...

 

[CommodoreCard]

Art, maybe you're a teenager who doesn't know this stuff firsthand. The preferred site for the arena originally was the KFEC...

"...The site for the proposed arena was a major source of contention. The mayor of Louisville Metro preferred a downtown location, whereas the president of the University preferred an on-campus venue, though they agreed to abide by the task force's decision..." LINK​

​

The "task force" was a consortium of politicians and downtown business/real estate hacks who wanted to put more money and local taxes in their pockets. No chance Ramsey and Jurich were gonna beat that, so they went along if they wanted new digs for U of L.

The issue of the two downtown sites had little to do with U of L. The only concern I recall was the lily-white and exclusive Pendennis Club near the Water Co site. Rather it was about the significant remediation costs at 2nd & Main. Inside a megamillion dollar arena project, it was possible to bury almost $100 million of additional and largely unrelated costs that no private developer would ever shoulder. Your Mayor-for-Life became a key proponent for 2nd & Main once it was made obvious to him that the Water Co. site could easily be developed for other purposes.

And you'll note in this link nary a mention of anyone at U of L in the middle of the decision. Indeed, Ramsey and Jurich were pawns in that chess game. LINK

Those two guys had nothing to do with the extortion that handed over another $2.4 million to a bankrupt arena in 2017. Both were gone and would have never supported that handover--and rightly so.

Do a little research next time like I do if you're having a hard time remembering...

Then a few years later, state government (aka UK supporters), local media, and city officials tried to pin the whole financial fiasco on Jurich and UofL. It was a set up of epic proportions..

 

[zipp]

The sad reality is U of L was screwed over for an arena they never wanted, and by people who put the new guys at U of L in charge.

The issue of that final $2.4 million annually--and likely more to come--is what doomed Jurich more than Pitino and the NCAA...

 

[BPGhost]

UK today projects a 35M loss in revenue in 2020.

How did Tyra manage to do that?

 

[zipp]

Everyone's revenue is down THIS year.

Where did they project their deficit (revenue vs expenses)?...

 

[BPGhost]

Average projected B1G revenue loss will be between 60M -100M. Multiple sports being cut.

Thanks a lot Vince.

 

[zipp]

Average projected B1G revenue loss will be between 60M -100M. Multiple sports being cut.

Thanks a lot Vince.

Links?

In God We Trust. Others (like "Vince") require data...

 

[zipp]

If playing Big Ten football makes good ‘cents,’ then not playing other sports makes no sense

LINK

"Anticipated budgetary issues were certainly part of these decisions. However, with football and men’s basketball back on track, many of these financial exigencies will be relieved..."

 

[BPGhost]

Links?

In God We Trust. Others (like "Vince") require data...

You can trust the veracity of my posts. Or don’t - whatever.

Unlike some, I don’t have an agenda that determines my content.

 

[zipp]

You can trust the veracity of my posts. Or don’t - whatever.

Unlike some, I don’t have an agenda that determines my content.

IOW no credible links. What I thought.

LOL at quoting references before football started...

 

[zipp]

...“Before football started”? U of Minnesota projected 75M loss just a couple of weeks ago.

Let me guess, UM athletics told you personally...

No interweb news about UM since September. LINK

That was assuming NO SPORTS which was true at that time--and NOT today. And $75 million was the revenue loss and NOT an operating loss (revenue minus expenses).

Learn some accounting too...

 

[BPGhost]

Let me guess, UM athletics told you personally...

No interweb news about UM since September. LINK

That was assuming NO SPORTS which was true at that time--and NOT today. And $75 million was the revenue loss and NOT an operating loss (revenue minus expenses).

Learn some accounting too...

Some colleges axing "secondary sports" like gymnastics and tennis as pandemic continues

While some schools are moving mountains to get in football and basketball seasons, non-revenue generating sports are on the chopping block.

www.cbsnews.com

 

[Knucklehank1]

Everyone's revenue is down THIS year.

Where did they project their deficit (revenue vs expenses)?...

It’s probably a pretty safe bet that declines in revenue are minimally offset by reductions in expenses at universities for 2020-2021 school year. The nature of the expenses are largely fixed. In fact, given the extraordinary efforts (testing, protocols, etc) to play football and basketball, there are going to be incremental expenses that wouldn’t have been foreseen less than a year ago.

 

[glassmanJ]

and UK is losing $35 million so comparatively we are 33% better than them, woohoo!

UK athletics projecting $35 million loss in revenue due to COVID-19

The University of Kentucky athletic department is projected to lose approximately $35 million in revenue this year due to COVID-19.

www.courier-journal.com

 

[zipp]

and UK is losing $35 million so comparatively we are 33% better than them, woohoo!

UK athletics projecting $35 million loss in revenue due to COVID-19

The University of Kentucky athletic department is projected to lose approximately $35 million in revenue this year due to COVID-19.

www.courier-journal.com

Again sloppy accounting...

A revenue loss is not an operating loss when expenses are also cut. U of L is talking about a "deficit" which based on past practice is revenue less expenses, i.e., an operating loss. And when that happens, you have to either draw down on assets or take on debt.

It’s probably a pretty safe bet that declines in revenue are minimally offset by reductions in expenses at universities for 2020-2021 school year. The nature of the expenses are largely fixed. In fact, given the extraordinary efforts (testing, protocols, etc) to play football and basketball, there are going to be incremental expenses that wouldn’t have been foreseen less than a year ago.

Anything's possible. But when a school is cutting sports, they're trying to cut expenses big time. That mitigates the impact of big revenue losses.

To reiterate, U of L is now projecting at least a $25 million excess of expenses over revenues in FY2021. When examples of that are found at other schools, we have a true basis for comparison...

 

[zipp]

Some colleges axing "secondary sports" like gymnastics and tennis as pandemic continues

While some schools are moving mountains to get in football and basketball seasons, non-revenue generating sports are on the chopping block.

www.cbsnews.com

And there's no reference in there to a $75 million operating loss by Minnesota or anyone else.

I also note that the date mentioned a few paragraphs in was 9-10-2020. It was by the Minnesota gymnastics coach, and it was BEFORE the Big Ten decided to play a football season. Like I said.

If these schools were actually losing (revenue less expenses) anything close to $75 million this year, some would already be in the news having major financial issues heading toward bankruptcy...

 

[Cardfan1937]

I received an email from our CAF rep today, a really good guy who has essentially been reduced to begging for money. In his email, he acknowledges that for the third year in the last four, athletics stands to lose many millions of dollars.

$25 million is probably well off of the actual result based on our recent, dismal financial performance. We can't hit a budget, so why would this estimate be accurate? It does mean that athletics, as measured by net position, has been downsized by about a third over the last four years. I can't look at the balance sheet and see where the cash is coming from.

You have to ask yourself at some point why management can't include itself in any analysis of what plagues U of L. A good manager knows when to step aside for the sake of the organization, to bring back the support that it lacks, to restore it to sound financial footing.

Zipp; When will the ACC Schools see their payout from the ACC Network and what might they expect?

 

[zipp]

Zipp; When will the ACC Schools see their payout from the ACC Network and what might they expect?

For the ACC, conference and media payouts aren't generally posted by U of L until the last quarter of the fiscal year (Apr-Jun).

It's impossible to know what's going on financially in U of L athletics because we now consistently fail to produce intermittent results proactively or upon request. So much for a more transparent operation. And I know this stuff because I look and ask for it.

So you won't get that info on U of L until they decide to release the sanitized version they want, or the outside auditors publish their annual report in November 2021...