Category Archives: It’s Just Bidness

I’d like to accept this award on behalf of the reserve fund.

Booch can keep his championship of life trophy.  Greg McGarity has the best championship of all, bitchez.

The Southeastern Conference continued flexing — and growing — its financial muscle, showing revenue of $639 million during its 2016 fiscal year, according to its new federal tax return.

The return, provided to USA TODAY Sports by the conference on Thursday, showed that the distributions to its 14 members schools ranged from $41.9 million for the University of Georgia to $39.1 million for Alabama and Mississippi.

Yeah!  Your Process didn’t win that, Tuscaloosa.

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Filed under Georgia Football, It's Just Bidness, SEC Football

A rising tide lifts all non-amateur boats.

Hey, for those of you who were saying a couple of years ago that there simply wasn’t enough money available for SEC schools to pay student-athletes in revenue producing sports…

… will there ever be?

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Filed under It's Just Bidness, SEC Football

The most dangerous man in college football

Jim Harbaugh.

Forget about those friggin’ satellite camps.  It’s stuff like this that really gets the Greg McGaritys of the college football world’s panties in a wad:

Michigan’s assistants will set a new standard for college football coach salaries, with three — offensive coordinator Tim Drevno, defensive coordinator Don Brown and passing game coordinator and assistant head coach Pep Hamilton — making $1 million for the next three seasons.

LSU and Alabama both had two assistants at or above $1 million last season. No public school has had three at a time, according to USA Today research.

That’s not even the worst of it.  Drevno and Brown have five-year deals and Hamilton has a four-year contract.

The startled reaction many people had to that Monte Kiffin million-dollar-a-year deal back in the halcyon days of 2009 seems so quaint now.  Hell, 2014 seems long ago, for that matter.  Unless you’re McGarity having to defend the reserve fund against the next salary onslaught.

Damn that Harbaugh.

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Filed under Heard About Harbaugh?, It's Just Bidness

It may not have been a great year for Georgia athletics…

… but the reserve fund continues to kick ass.

The Georgia Athletic Association has entered into a 10-year, $152.5 million multimedia and marketing rights deal with IMG College and JMI Sports.

A copy of the contract was obtained by Onlineathens.com on Monday through an open records request. It was agreed to on Dec. 8 and extends a previous deal set to expire on June 30 until 2027. A memorandum of understanding was first agreed to last May.

The deal pays Georgia a guarantee of at least $12.8 million for 2017-18 with increases each year through 2026-27 when the school is to make at least $15.7 million. That annual royalty amounts for 2017-18 includes $11 million for multimedia rights, $1.4 million for new media and $400,000 for seatback rights.

Georgia’s previous multimedia rights deal with IMG was worth $92.8 million over eight years.

The new deal is worth nearly $15.3 million per year, up from $11.6 million in the previous contract. That includes a $10 million royalty payment in the new contract.

Open records request for the win!  There are days when I bet McGarity wakes up and says to himself, “ninety days isn’t nearly long enough”.

Now, fans, don’t take this as a message that your contributions aren’t appreciated, or that it’s okay to slack off.  Georgia’s commitment to having the best athletic department reserve fund in the country is as strong as ever.  For that, it takes a village, you know.

 

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Filed under Georgia Football, It's Just Bidness

“We’re a failed business model by nature.”

Boy, you ain’t kidding about that, Mister anonymous prominent Power Five athletic director.

Thank Gawd they’ve got geniuses like Larry Scott and Bob Bowlsby to cover for them.

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Filed under College Football, It's Just Bidness

Pay as you go.

For once, I welcome our new legislative overlords.

With the athletic departments of Washington’s two biggest public colleges reporting budget deficits two years in a row, state Sen. Michael Baumgartner (R-Spokane) is proposing a bill that will subject college athletics budgets to legislature approval if their athletic departments run deficits for three consecutive years.

Washington State’s athletics department has reported deficits of about $13 million in each of the last two fiscal years, while UW’s athletics department projected a deficit of about $15 million for the 2016 fiscal year, but that figure was later updated to about a $7 or $8 million deficit. Last year, new WSU President Kirk Schulz also proposed a plan that he believes will get WSU’s athletic department solvent by 2019.

Under the new bill Baumgartner is proposing, if a college athletic department cannot get back in the black after three consecutive years, its budget will have to be reviewed and approved by the Commerce, Labor and Sports committee before it can be adopted by the college.

‘Bout damned time.

“I’m a big fan of college athletics, but I have no doubt much of the public would appreciate a timeout on the arms race of college athletics spending,” Baumgartner said in the news release. “This is about ensuring the long-term viability of these programs that give our state’s students so many opportunities. This bill gives our state’s universities a three-year runway from today to get their budgets balanced, and if they can’t do it, my committee will help do it for them.”

Help us to help you!

Of course, the hard part comes in deciphering a college athletics department’s budget.

“The overriding goal is to bring transparency and public oversight to the use of public resources,” Baumgartner said in a phone interview with The Seattle Times. “I think sports is an important part of the university experience, but within balance and reason. More than determining the outcome, I want to make sure public dollars are protected.”

If this bill passes, what do you want to bet those deficits come down faster than planned?

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Filed under It's Just Bidness, Political Wankery

“I think, if we have that same commitment in football, we’ll have championship football teams.”

I linked to this Bloomberg piece the other day.  It paints a pretty horrendous picture of the finances of the Cal Berkeley athletic department.

By another measure, Cal sports are in big trouble. After completing the most expensive college football stadium overhaul ever, the Golden Bears now owe more money than any other college sports program. Hobbled by debt service payments, the athletic department ran a $22 million deficit last year and expects to end this fiscal year deep in the red.

A university task force is looking for possible solutions, including reducing the total number of Cal’s sports programs. Any cuts could endanger some of the school’s most successful teams, which cost a lot more than they bring in, and Chancellor Nicholas Dirks recently gave the group more time. “Everything is on the table,” said Robert O’Donnell, a lecturer at Berkeley’s Haas School of Business who co-chairs the task force.

“Everything is on the table” is kind of an ironic sentiment in light of the fact that a scant few days later, the school canned football head coach Sonny Dykes.  Of course there’s a hefty buyout of his contract, made even worse than you’d expect because of the kind of dumbassery that’s unsurprising in the college athletics business (yeah, I use the term loosely).

With our intercollegiate athletics department’s typical management finesse, we extended our football coach’s contract about a year ago…and fired him this week. He walks away with about $6m in severance, but that’s OK because we’re just finishing up the zillion-dollar severance payments for the previous coach, and the AD who is now at Penn State, so there’s lots of money just lying around that would otherwise be wasted on fixing classrooms, or scholarships for non-athlete students who just play sports for fun and don’t put any eyeballs on TV commercials.

Add to that the money that will have to be laid out to bring in the next staff, and it’s lather, rinse and repeat time at the ol’ hacienda.  Even better, Cal’s athletic director has no time for the Rule of Holes.

… Our objective is long-term financial sustainability for our department. In order to do this, we understand that investing in football is critical. We believe that this change will reinvigorate the program, stimulate lagging ticket sales and renewals, and energize our donor base.

In other words, he has to destroy the athletic budget in order to save it.

What passes for leadership in college athletics shouldn’t be entrusted with running a lemonade stand.  But let’s keep insulating these idiots from the free market because… well, do they really need a reason?

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Filed under It's Just Bidness