Rutgers' subsidy to athletics was $14.5 million in 2019, records show--Report Details

[Knight Shift]

More douchey reporting from the Asbury Park Press on Rutgers Athletics today. Facts are fine, but they like to harp on what the institutional support was in the past. Fact is, the gap is narrowing significantly. And they throw in a little barb about Greg's salary and the assistant budget. I am willing to bet that increased ticket sales will dwarf those increases.

And 10's of millions does not include less than $20 million.
https://www.app.com/story/sports/co...bsidy-athletics-14-5-million-2019/4535815002/
Rutgers University continues subsidizing sports with tens of millions of dollars, but the athletics program for the first time since 2009 reported a small operating surplus for last year, according to records obtained by USA TODAY NETWORK New Jersey.

The athletics program received $14.5 million in direct institutional support in 2019, according to the school’s new annual financial report to the NCAA, which Rutgers released on Tuesday in response to an open-records request.

Edit: details of financial report in this post:
https://rutgers.forums.rivals.com/t...how-report-details.187352/page-4#post-4341659

 

[DennisHajekRC84]

So I can clearly respond to others bitching what is direct state support and how much is Athletics getting in indirect support thru the general state funds given annually to Rutgers?

 

[theRU]

Just curious but how is state support determined? That will always exist- won't it?

 

[theRU]

Also the bball sell outs will hopefully have an impact

 

[DennisHajekRC84]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boosters he complained about the tax write off for donations. Then I said we'll what about the taxes on the salary?
Never stops.

 

[Ole Cabbagehead]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boaters he complained about the tax write off for donation s. Then I said we'll what about the taxes on the salary?
Never stops.

People like that are the worst. You can't waste your time with them. They do not want to know the facts, they just want to complain.

 

[Proud NJ Sports Fan]

Also the bball sell outs will hopefully have an impact

Everything purchased at The RAC helps.
Tickets
Parking
50/50
Merchandise
Concessions
BEER

 

[Eagleton96]

Just so people understand, that 14 mil subsidy is for field hockey, swimming, baseball, and the rest of the non-revenue sports. Scholarships and flights to Wisconsin and Nebraska are expensive for football and for volleyball. But they don’t sell a lot of beer at volleyball games.

just something to keep in mind next time someone cites that number and then complains about the football team.

 

[greenknight]

Also the bball sell outs will hopefully have an impact

They need to get the RAC to 10-11k. Permanent student seats go higher and bigger and at least another 500-1000 on the lobby side It will be the toughest place in the country for sure

 

[soundcrib]

Also the bball sell outs will hopefully have an impact

8000 is too small.

 

[theRU]

8000 is too small.

I agree but its way to early to think about anything bigger. Get consistent high demand and full price sell outs before thinking about more seats..

 

[HeavenUniv.]

What is the subsidy for the theater activities? Art ? Music ? Dance ? Film ?

 

[HeavenUniv.]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boosters he complained about the tax write off for donations. Then I said we'll what about the taxes on the salary?
Never stops.

There are NINE million New Jerseyans. Give him a dollar and tell him he can keep the change.:Rutgers

 

[RU_kidding_me]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boosters he complained about the tax write off for donations. Then I said we'll what about the taxes on the salary?
Never stops.

Is your neighbor Bill Spedea?

 

[Scarlet83]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boosters he complained about the tax write off for donations. Then I said we'll what about the taxes on the salary?
Never stops.

3 sentences. This is what I typically say:

“Schiano and his staff are worth every single penny and more. And, by the way, R Football has been profitable for many decades, and R Football and Hoops pay for golf, swimming, gymnastics, soccer and the other non-revenue sports. New Jersey is very lucky to have R Football, Hoops and both HCs Schiano and Pikiell.

 

[RU4Real]

There are NINE million New Jerseyans. Give him a dollar and tell him he can keep the change.:Rutgers

Nope - remember, only about 20% of the overall RU budget comes from NJ taxpayer dollars.

Give him two bits, as I said years ago.

 

[RUnTeX]

Give him a dollar and tell him he can keep the change.

Or just give him a Lincoln for his family of 4 and buy a cup of coffee with the change. Then say, you're welcome.

 

[Upstream]

So I can clearly respond to others bitching what is direct state support and how much is Athletics getting in indirect support thru the general state funds given annually to Rutgers?

Here is the instructions that the NCAA provides regarding reporting of direct state support.

Input state, municipal, federal and other appropriations made in
support of athletics.
This amount includes funding specifically earmarked for the
athletics department by government agencies for which the
institution cannot reallocate.
This amount also includes state funded employee benefits.
​

In the case of Rutgers, the direct state support appears to be employee fringe benefits, which are provided to all Rutgers employees through the state fringe benefits program. The $3.1MM would be the value of the fringe benefits provided to employees who work in the athletics department.

 

[NickRU714]

Isn't this bad? Everyone complains about Barchi - is this why? He is reducing funds to the AD.

Does the new President being "athletics positive" mean he will dramatically increase the subsidy?


Again - everyone says "the President/Govenor need to be all in and support RU athletics."
But then everyone gets upset anytime someone mentions the funds provided by the President/Governor.

What exactly does it mean for the Preside/Governor to be "all-in" if it doesn't mean actual funds?

 

[Upstream]

Just so people understand, that 14 mil subsidy is for field hockey, swimming, baseball, and the rest of the non-revenue sports. Scholarships and flights to Wisconsin and Nebraska are expensive for football and for volleyball. But they don’t sell a lot of beer at volleyball games.

just something to keep in mind next time someone cites that number and then complains about the football team.

That is probably correct, but you don't really know that. For the 2018-19 year reported, direct football expenses exceeded direct football revenue by about $12MM. There are a lot of ways that difference could have been covered in the athletic budget, but funding from the subsidy is certainly possible. Funding from conference distributions is also possible.

You could also argue that the athletic department paid back the university $15.5 million for scholarships, so the subsidy really only covered a portion of the scholarships.

After next year, this discussion will be meaningless, because conference distributions will be large enough that there won't be a subsidy, or it will be insignificant.

 

[Upstream]

Does the new President being "athletics positive" mean he will dramatically increase the subsidy?

There is almost no chance the new president increases the subsidy. More likely, the subsidy approaches zero as conference distributions increase.

 

[T2Kplus10]

Just so people understand, that 14 mil subsidy is for field hockey, swimming, baseball, and the rest of the non-revenue sports. Scholarships and flights to Wisconsin and Nebraska are expensive for football and for volleyball. But they don’t sell a lot of beer at volleyball games.

just something to keep in mind next time someone cites that number and then complains about the football team.

+1
The football program normally breaks even or even turns a small profit.

 

[RocktheRac]

101.5 reported this on the news this morning. Said it was one of the largest in the country.

 

[jtung230]

My neighbor was complaining about Schiano salary. When I said much of it was paid by boosters he complained about the tax write off for donations. Then I said we'll what about the taxes on the salary?
Never stops.

Time to move.

 

[Eagleton96]

That is probably correct, but you don't really know that. For the 2018-19 year reported, direct football expenses exceeded direct football revenue by about $12MM. There are a lot of ways that difference could have been covered in the athletic budget, but funding from the subsidy is certainly possible. Funding from conference distributions is also possible.

You could also argue that the athletic department paid back the university $15.5 million for scholarships, so the subsidy really only covered a portion of the scholarships.

After next year, this discussion will be meaningless, because conference distributions will be large enough that there won't be a subsidy, or it will be insignificant.

The Big Ten money is due mostly to football and some to hoops. It's not operating revenue.So you are right, I'm probably right. :WideSmile:

I also think that it's pretty clear that the non-revenue sports cost more than 14 mil and bring in no revenue.

 

[Scarlet_Scourge]

That is really GREAT NEWS! It used to be close to $30 million, the fact that it has been cut is half is a great thing, soon it will be closer to $10 million then, below $10 million

Student fees and Title9 funding is NOT going away, the goal is for that to be the only thing.

 

[RUChoppin]

101.5 reported this on the news this morning. Said it was one of the largest in the country.

Because of course they would. Why let facts get in the way of some good outrage fuel?

And the narrative will quickly shift from "one of the largest in the country" to "one of the largest in Power 5" to "one of the largest in the conference" to "the largest in NJ" or whatever. The number is meaningless to them - just that they can sensationalize it somehow.

 

[srru86]

Nope - remember, only about 20% of the overall RU budget comes from NJ taxpayer dollars.

Give him two bits, as I said years ago.

The state operating funds don't even cover the cost of benefits for University employees anymore. It's been declining for decades.

And capital funding from the State is tiny.

 

[IBleedScarlet]

More douchey reporting from the Asbury Park Press on Rutgers Athletics today. Facts are fine, but they like to harp on what the institutional support was in the past. Fact is, the gap is narrowing significantly. And they throw in a little barb about Greg's salary and the assistant budget. I am willing to bet that increased ticket sales will dwarf those increases.

And 10's of millions does not include less than $20 million.
https://www.app.com/story/sports/co...bsidy-athletics-14-5-million-2019/4535815002/
Rutgers University continues subsidizing sports with tens of millions of dollars, but the athletics program for the first time since 2009 reported a small operating surplus for last year, according to records obtained by USA TODAY NETWORK New Jersey.

The athletics program received $14.5 million in direct institutional support in 2019, according to the school’s new annual financial report to the NCAA, which Rutgers released on Tuesday in response to an open-records request.

I attended a scholarship dinner a few years ago and was told that in the 50's the NJ legislature penalized the university by reducing state aid as the percentage of out of state students increased. I guess back then they decided that the state university should be for residents only.

 

[RUChoppin]

I attended a scholarship dinner a few years ago and was told that in the 50's the NJ legislature penalized the university by reducing state aid as the percentage of out of state students increased. I guess back then they decided that the state university should be for residents only.

They threatened to reduce state aid if Rutgers didn't give up its med school.... and then reduced state aid anyway.

 

[DennisHajekRC84]

3 sentences. This is what I typically say:

“Schiano and his staff are worth every single penny and more. And, by the way, R Football has been profitable for many decades, and R Football and Hoops pay for golf, swimming, gymnastics, soccer and the other non-revenue sports. New Jersey is very lucky to have R Football, Hoops and both HCs Schiano and Pikiell.

oh believe me. I know the story.

 

[DennisHajekRC84]

That is probably correct, but you don't really know that. For the 2018-19 year reported, direct football expenses exceeded direct football revenue by about $12MM. There are a lot of ways that difference could have been covered in the athletic budget, but funding from the subsidy is certainly possible. Funding from conference distributions is also possible.

You could also argue that the athletic department paid back the university $15.5 million for scholarships, so the subsidy really only covered a portion of the scholarships.

After next year, this discussion will be meaningless, because conference distributions will be large enough that there won't be a subsidy, or it will be insignificant.

A FREAKIN MEN! Can't wait to read THAT story in the press lol.

 

[DennisHajekRC84]

Time to move.

In the works..seriously. Just got to cross that river and piss off the PA folks with my Block R..

 

[srru86]

I attended a scholarship dinner a few years ago and was told that in the 50's the NJ legislature penalized the university by reducing state aid as the percentage of out of state students increased.

That was also true in the late 90s. That lessened some in the 2000s after lots of lobbying the the university presidents . Not sure of the current situation.

 

[OntheBanks]

If the University offers a scholarship to someone to pursue an Engineering Degree, is the Engineering Dept charged for that Scholarship money.
If the University offers a scholarship to a basketball player who is pursuing an Engineering Degree why is it charged to the Athletic Dept?

Also, somewhere I saw that on July 1, 2020 the Athletic Dept will receive from the B1G $43M minus money to be loan repayments.
Notice I said "the Athletic Dept will receive from the B1G". The University benefits from membership in the B1G Alliance for Academic purposes. The Athletic
Dept receives the money directly from the B1G for Athletic Dept purposes only.
https://www.btaa.org/about
https://www.btaa.org/about/news-and-publications/multimedia/videos/video-overview

 

[RU-05]

Just so people understand, that 14 mil subsidy is for field hockey, swimming, baseball, and the rest of the non-revenue sports. Scholarships and flights to Wisconsin and Nebraska are expensive for football and for volleyball. But they don’t sell a lot of beer at volleyball games.

just something to keep in mind next time someone cites that number and then complains about the football team.

True, but the reason the field hockey, swimming, baseball teams are traveling to Wisconsin and Nebraska, as opposed to much more local schools, is because the football team needed to go to the B1G. Two way street.

 

[OntheBanks]

The field hockey and baseball teams are not traveling to Wisconsin because Wisconsin doesn't have those teams.
The S&D team has no scheduled meet at Wisconsin this year.

 

[srru86]

If the University offers a scholarship to someone to pursue an Engineering Degree, is the Engineering Dept charged for that Scholarship money.
If the University offers a scholarship to a basketball player who is pursuing an Engineering Degree why is it charged to the Athletic Dept?

Also, somewhere I saw that on July 1, 2020 the Athletic Dept will receive from the B1G $43M minus money to be loan repayments.
Notice I said "the Athletic Dept will receive from the B1G". The University benefits from membership in the B1G Alliance for Academic purposes. The Athletic
Dept receives the money directly from the B1G for Athletic Dept purposes only.
https://www.btaa.org/about
https://www.btaa.org/about/news-and-publications/multimedia/videos/video-overview

It is astounding some of the daft accounting we do at RU that makes athletics look bad.

Dining Services revenues generated at the stadium concessions stands counted as institutional support for the program! Crazy - but it happened.

The facilities people charged the Athletic department for mowing the fields. Not sure if they still do. But I'm guessing the English department was never charged when they mow the grass in front of Murray Hall.

We know RU IT expenses are centrally managed. Does that get charged to Athletics but not academics?

You know our SEC friends (and others) have all sorts of ways to bury expenses related to football under other buckets. Need an extra 300 cops to police the stadium on game day? - Charge it to the campus security contingency account. Buying carts to lug gear around the practice fields? University general transportation budget has got that. And on and on...

And we won't even touch capital expenditures.

 

[RU-05]

The field hockey and baseball teams are not traveling to Wisconsin because Wisconsin doesn't have those teams.
The S&D team has no scheduled meet at Wisconsin this year.

Whatever, point is all the non revenue teams travel much more because of the the school being in the B1G. I imagine they also pay more in coaches and facilities.

It's all part of the deal.

 

[RU-05]

It is astounding some of the daft accounting we do at RU that makes athletics look bad.

Dining Services revenues generated at the stadium concessions stands counted as institutional support for the program! Crazy - but it happened.

The facilities people charged the Athletic department for mowing the fields. Not sure if they still do. But I'm guessing the English department was never charged when they mow the grass in front of Murray Hall.

We know RU IT expenses are centrally managed. Does that get charged to Athletics but not academics?

You know our SEC friends (and others) have all sorts of ways to bury expenses related to football under other buckets. Need an extra 300 cops to police the stadium on game day? - Charge it to the campus security contingency account. Buying carts to lug gear around the practice fields? University general transportation budget has got that. And on and on...

And we won't even touch capital expenditures.

This goes both ways as well given the cost of the stadium expansion was accounted as a school expense and not an athletic dept expense.

But yeah there is some hoop jumping going on in the accounting dept.