RU Deficit
- Thread starter pmvon
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People keep saying that it will be 2027 although we are receiving around 75% of the revenue now. Just two years ago we were at 50% or less.
Is that true? Quotes taken from a thread in July 2024. Rutgers is getting their full share, but RU kept taking loans, which will not be paid off until fiscal 2027. Granted the numbers in the picture chart for revenue are not fully correct, but Rutgers is only about $7-9M/year in the hole. How the hell do they run up a $70M deficit when taking in record money? Maybe 2025 will be worse? RU just dropped $0.75Mil on a worthless investigation that NJ.com will rub in Rutgers' face for the next 2 years. I see on my feed there is a new story every day from dickhead Politi on this.
This was from at least 5 years ago, so the numbers are obviously now higher. But for the 2027 fiscal year (which I believe starts in 2026 - anyone know?) the loan will be paid off and we'll get the full amount.
From an X post in that July 2024 thread, if correct, RU should receive $75.2 Million in 2025, minus $8M for the loan. What's the over/under for the deficit? $100M?
From NJ.com story on this.
$14.7 million in ticket sales and $8.5 million in contributions
$45.6 million from the Big Ten for its media rights
$7.9 million from the conference as its share from the league’s Football Bowl revenue fund.
$10.6 million from the Big Ten and NCAA in non-media rights and non-football related distributions
That's $64.1M from the B1G plus $23.2M in revenue from ticket sales and contributions for a total of $87.3M.
However:
Expenditures:
$38.7 million in coaching salaries,
$29.5 million in support-staff and administrator salaries,
$25.9 million in scholarship aid
$14 million in athletics facilities debt service
$41.5 Million deficit, and add in the $28.6M subsidy from RU, and you get $70.1 Million
$180 million in athletic spending is a 16.1% increase from last year
Maybe it's time to stop handing out generous raises to the OC and other coaches. The deficit will only grow and get worse. Where/how does RU close the gap?
Ticket sales actually fell from the previous year. Thought the stadium "sold" more tickets?
Apparel deal brought in $600K 😂
Rutgers’ athletics deficit topped $70M again in 2023-24. But it still wasn’t a record.
Rutgers spent an all-time record to support its athletics teams during the 2023-24 school year.
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Sorry but won’t be enough to close a 92 million gap. Not close.
Look at all the money schools are wasting on athletics without even having to pay their 2nd most important expense.
But it's paying kids that will cause all these ADs to close and cut sports?
Imagine your company didn't have to pay most staff but still lost $70m/year.
Now imagine the staff that is being paid keeps getting raises and extensions.
Then people blame the unpaid staff for future cost cutting.
Now imagine the staff that is being paid keeps getting raises and extensions.
Then people blame the unpaid staff for future cost cutting.
The gap will be plugged by student fees and university contributions. Holloway said the Athletic Department will never be profitable.
And I don’t think this includes the debt for stadium expansion, whose bonds mature in 2039. It has been said that this expense has been moved off the Athletic Departments books.
Looks like a newly added hurdle for NCAA plans allowing universities to pay NIL. A newly issued Title IX memo will need to be resolved. Further complicating NIL, it looks like the wording is intended to address money directly from the university and NOT private NIL, but I'm sure many advocates would argue this applies to all compensation.
New Title IX memo
New Title IX memo
Or the Fieldhouse of dreams? 😂
This financial mismanagement is sad and hilarious at the same time.
May we consider the following as "pay" to the people you deem "unpaid staff"-aka student athletes? Because ya know, if they did not get these "benefits," they would have to "pay" out of pocket to go to Rutgers and purchase their own meals like "regular" students? That's $32 million in "pay" right there, isn't it?
Student aid scholarships: $25,894,213
Student-athlete meals (non-travel): $6,098, 462
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Get rid of the sports that don’t generate revenues. The scholarship aid assumes we are taking a spot from a paying student which isn’t true.
Why aren’t all the other NJ colleges that have sports not getting rid of them since they aren’t making money?
Why aren’t all the other NJ colleges that have sports not getting rid of them since they aren’t making money?
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The article said this:Is that true? Quotes taken from a thread in July 2024. Rutgers is getting their full share, but RU kept taking loans, which will not be paid off until fiscal 2027. Granted the numbers in the picture chart for revenue are not fully correct, but Rutgers is only about $7-9M/year in the hole. How the hell do they run up a $70M deficit when taking in record money? Maybe 2025 will be worse? RU just dropped $0.75Mil on a worthless investigation that NJ.com will rub in Rutgers' face for the next 2 years. I see on my feed there is a new story every day from dickhead Politi on this.
From an X post in that July 2024 thread, if correct, RU should receive $75.2 Million in 2025, minus $8M for the loan. What's the over/under for the deficit? $100M?
From NJ.com story on this.
$14.7 million in ticket sales and $8.5 million in contributions
$45.6 million from the Big Ten for its media rights
$7.9 million from the conference as its share from the league’s Football Bowl revenue fund.
$10.6 million from the Big Ten and NCAA in non-media rights and non-football related distributions
That's $64.1M from the B1G plus $23.2M in revenue from ticket sales and contributions for a total of $87.3M.
However:
Expenditures:
$38.7 million in coaching salaries,
$29.5 million in support-staff and administrator salaries,
$25.9 million in scholarship aid
$14 million in athletics facilities debt service
$41.5 Million deficit, and add in the $28.6M subsidy from RU, and you get $70.1 Million
$180 million in athletic spending is a 16.1% increase from last year
Maybe it's time to stop handing out generous raises to the OC and other coaches. The deficit will only grow and get worse. Where/how does RU close the gap?
Ticket sales actually fell from the previous year. Thought the stadium "sold" more tickets?
Apparel deal brought in $600K 😂
Rutgers’ athletics deficit topped $70M again in 2023-24. But it still wasn’t a record.
Rutgers spent an all-time record to support its athletics teams during the 2023-24 school year.www.nj.com
Big Ten distribution
FY2024: $59,437,863
REVENUE
Ticket salesFY2024: $14,733,345
it's all a bit confusing and doesn't change the big picture regardless.
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Rethinking that myself, and wondering if those spending donor and other $$$ are watching their Ps and Qs as we tend to do in private enterprise. Our LLC runs a very tight fiscal ship. I'm not throwing stones for the sake of throwing stones.
But in FY 2022, Admin salaries and bonuses were $21.4M, in FY 2024, $29.5M. That's a 27.5% increase over 2 years. A bit much.
Coaching Salaries/Bonuses $29.6M to $38.6M over 2 years --that's 30.4%, or 15.2% a year. The coaches are not starving.
Recruiting expenses are up 28.5% over 2 years.
IDK, when things get tight in our LLC, we cut costs. We don't increase pay, bonuses, and expenses on the order of 14-15% year over year.
I would say the two most important expenses for any Atheltic Department (Pro, College. HS) is the "Coaching Staff" and the "Players".
In whatever order you want to list them.
For example, that CFB gameday operation guy everyone hates? Not as important as paying HC Schiano, OC KC the upcoming DC or QB AK or other players.
The player compensation has been near $0 (scholarship).
And yet the AD still lost $70m?
On what? Where is all that money going?
Where's the revenue item for all their overpriced concessions? Doesn't seem like it falls under any of those categories.
And to cut expenses, maybe stop paying a million extra cops to staff the stadium? Do they really need police from South Brunswick and Bridgewater when you already have Piscataway, New Brunswick, Highland Park and the sheriff's office. But when your spending other people's money, who cares I guess?
And to cut expenses, maybe stop paying a million extra cops to staff the stadium? Do they really need police from South Brunswick and Bridgewater when you already have Piscataway, New Brunswick, Highland Park and the sheriff's office. But when your spending other people's money, who cares I guess?
There's more. Monmouth County Sheriff is at every game, I think with a K-9 unit. K-9's are expensive!
To be clear, you don't think the scholarships and the free meals (non-travel) should be included as "pay" for the players?
One way to reduce some of the deficit is the school take responsibility for cost of the stadium instead of billing the athletic department for use of it. Most schools accept cost and maintenance of all buildings on campus regardless of who uses it. Doesn't Rutgers bill the AD for the use of facilities for non-sports use?
gtfo - student fees are already 14.5M in fees to athletics, and that should go to non scholarship recreational and competitive sports. Every FT student, commuter or on campus, is already paying $3,707 a year in fees on top of tuition and R&B.
I don't know how anyone discusses these numbers with a straight face in a serious meeting.
The presentation and breakdown of these numbers is not intended to be added up.
The presentation and breakdown of these numbers is not intended to be added up.
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Interesting reply from a SHI employee:
They should be part of the compensation package equation.
Just like HC Schiano gets $5k for clothing and a country club membership as part of his compensation package.
How has the value of the player compensation package expense (scholarship and meals) increased as revenue has increased?
That's the main question.
Coaching staff expenses has clearly increased along with revenue (rightfully so - the coaches and players are together generating the revenue).
I'm not coaches against players.
They both should be treated adequately (not equally) and compensated for the revenue they jointly generate for the AD.
Who in the Athletic Department is in charge of budgeting?
Is there a CFO?
Take the general recruiting expenses.
Is there someone approving these trips?
Or pushing back “Instead of sending 3 coaches to a conference or on a trip - send 1”.
Same as you posted above for your LLC - our company comes out and says we need to contain expenses next year. Client trips are restricted, attendance at industry conferences are scaled back. Hiring freezes.
Is there someone doing this for Athletic Departments?
there's absolutely no restraint. The athletic department acts like the money pit is bottomless.
Rutgers bills the AD for non-sports uses? If the AD's budget includes the cost of operating the stadium then it should be the opposite, with the AD billing Rutgers.
Your main question is a fair question.
The next question is then, if we want to look at this as a business (which it is, because it is a money-making operation, albeit one operating at a deficit): What is a fair ratio of the salaries of the executives and managers, namely, the head coach, the coordinators and the assistants to the players? A 2021 study says that the disparity is 351 times the average worker. Can we take Greg's $6.25 million pay and divide by 351? That is $17,806.27 per player. The gymnastics coach makes about $200,000/year (well, she is on leave and had other "fringe" benefits), but that would mean the gymnasts get $569.80 per year.
Maybe this a start? The revenue driving sports get higher pay based on what the coaches get paid. The 351 factor is problematic because there are many players making six figures already (allegedly), but is this an egalitarian system, or will certain players get more because of their perceived/purported "value" to the team? I think the latter, but now we have Animal Farm and lots of slippery slopes.
This is not fun any more. I used to like rooting for my school because the players were students just like me.
Maybe 50 million more from BIG at most over time makes this a 42 million hole without expenses increasing. And you want the rest of the student who earned entrance for academics to pay the guys who got entrance because they can run faster more money?
Imagine you charged 20 dollars for students to attend? Imagine tickets were the same as pro sports? Imagine if attendance was equivalent to pro sports?
So basically dump all sports for hoops and basketball. That’s good and fair to the rest of society. The courts decision and NCAA management has been a disaster.
They make a good point. Having sports creates an unrecognizable value to the university. Though does it matter for Northwestern? Kids who go there don’t care.
The more important point is universities lose money on athletics. Period. Not only Rutgers.
Cool. 3% of 5 billion is 150 million. Problem solved and then some.
No the point is (I believe) Rutgers is off the charts on the loss vs. other schools, no?
I'm not one to argue operating at a loss but the gap was supposed to close and it hasn't. This is like the federal government post covid ,( and that's not a party attack).. can't stop the spending to catch up.
Reading this it is no wonder why my efforts to put a decent monetarily proposal go nowhere. They need millions not a hundred thousand. .
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