gene taylor talks about virus impact ...

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PurpleOnWhite
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Re: gene taylor talks about virus impact ...

Post by PurpleOnWhite » March 19th, 2020, 7:46 am

stlcatfan wrote:
March 19th, 2020, 6:52 am
tmcats wrote:
March 18th, 2020, 8:11 pm
having cash does not mean obligations are met. it means that the operation is being run efficiently. limited sport offerings, e.g. no softball. not meeting goofy salary offers, haz to michigan state. continued facility growth, south end zone project.

nonetheless, i believe the department will be scrambling this year to cover budgetary needs. a lot of folks are not going to renew their season tickets unless this virus passes. being in a good cash position today will help navigate troubled waters down the road and should give us all good not bad feelings about management oversight.
I have to say how impressed I have been at how both Currie and Taylor have run the athletic department over the past decade or so. It amazes me that an athletic department at a school like Mizzou (who receives mountains of SEC money from its TV contracts alone) is struggling financially to keep up. And its not like we are sitting on the money we receive. Both ADs have overseen major facility improvement projects. Unfortunately, major college athletics has become an arms race so being fiscally responsible is more challenging than ever.
tm, what debt is the athletic department currently carrying?

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Post by tmcats » March 19th, 2020, 10:39 am


$63.5 million is the total long term debt for the department. $62 million of that is for long term bonds presumably most of which financed the west stadium center. as I recall, those bonds are retired with operating revenue year-to-year.

assets are $344 million. if you took the total liabilities (both short and long term) of $89 million from the assets and sold the enterprise, it would be worth the net of that or $255 million net assets. that's just simple balance sheet stuff. it's way more complicated selling enterprises but nevertheless that is a good look financially for lil bro's athletics department.

for comparison, ku's net assets $172 million. their liabilities are similar at $85 million but long term debt is only $33 million suggesting to me that they spend a lot of money operating that place, $10 million more in salaries alone.
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Post by Hypeman » March 19th, 2020, 2:36 pm

Do you have links to those financial reports?

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Post by tmcats » March 19th, 2020, 3:50 pm

k-state's financials are on the athletics' website.

https://www.kstatesports.com/sports/201 ... 13145.aspx
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Post by Hypeman » April 2nd, 2020, 12:21 pm

https://www.google.com/amp/s/sports.yah ... 47330.html

Looks like mean Gene will go down swinging. Who the heck will pay for all the contracts if there is no football? We’ll play without fans so we can get TV money? What if people get repulsed by the greed?

Will football get exceptions to meeting and practicing that the rest of the university doesn’t get? Researchers can’t do human experiments through the summer. Why would these guys get to practice if faculty can’t do their jobs?

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Post by tmcats » April 2nd, 2020, 1:03 pm

you're throwing a lot of shiz against the wall hoping some will stick, hype. i doubt football is treated any differently than any other university activity if that's an answer you wanted to see. as i argued before, it's a good thing k-state financials are as strong as they are going into this c'virus thingy. i'm not sure how many others are like that.


We (Iowa State) are implementing these initiatives:

A one-year, temporary pay reduction for athletics department coaches and certain staff. This comprehensive plan will reduce total payroll by more than $3M.

A one-year, temporary suspension of all bonuses/incentives for all coaches. This decision will save the department $1M.

Delaying (from January 2021 to January 2022) a previously announced increase in Cyclone Club annual giving levels. The delay will save donors approximately $2.5M for required seating donations.

A freeze on season / individual game ticket prices for all sports.

An extension to the deadline for this year's Cyclone Club donations and football season ticket renewals to May 29, 2020.

Providing multiple payment options for season tickets and donations. Those required payments can be made monthly, quarterly or semi-annually.
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Post by PurpleOnWhite » April 2nd, 2020, 1:58 pm

Not sure why GT gives one twit what KH says, thinks or does. At the end of the day, neither GT nor KH will be making the decision when, if or how CFB proceeds this fall. As tm says, KState athletics is in much better financial shape than many programs. That said, it will be ugly if the 2020 CFB season isn’t played. Scholarship expenses (theoretically) will continue. Construction expenses will have accrued and may continue. And ticket holders will likely expect their money returned (despite a likely push to “donate” previous payments). The entire world is in unchartered territory. The best we can hope for is a rough landing.

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Post by Hypeman » April 2nd, 2020, 2:35 pm

PurpleOnWhite wrote:
April 2nd, 2020, 1:58 pm
Not sure why GT gives one twit what KH says, thinks or does. At the end of the day, neither GT nor KH will be making the decision when, if or how CFB proceeds this fall. As tm says, KState athletics is in much better financial shape than many programs. That said, it will be ugly if the 2020 CFB season isn’t played. Scholarship expenses (theoretically) will continue. Construction expenses will have accrued and may continue. And ticket holders will likely expect their money returned (despite a likely push to “donate” previous payments). The entire world is in unchartered territory. The best we can hope for is a rough landing.
Still have the question, “who pays those huge contracts if revenue goes away?’ That’s not an odd thing to ask. Although TM may not like it.

I assume the balance sheet is hard assets/improvements, like west stadium. Will they start liquidating them? Can they liquidate them? Who really owns them? If they liquidate who would buy them? What’s the real fair value vs. the accounting book value (aka cost)? Net Assets is a fairly misleading and potentially meaningless number.

Or will the state pick up the tab? Even the federal govt has refrained from bailing out entertainment enterprises and sports.

Many businesses show net assets but go bankrupt because they can’t pay the operating bills. Will we be in that position? and are we actually far worse off because we blew our wad on facilities and donor capacity is exhausted whereas KU has not and has.

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Post by tmcats » April 2nd, 2020, 2:36 pm

the athletics department is no different, it seems to me, than any other commercial enterprise. if there's no revenue from tickets, donations, tv contracts, royalties and the like, then it will have to shutter for a time. coaches and others will have to be furloughed. it all depends on football, for sure.

presently, or at least as of june 2019, k-state has $44 million in cash as a buffer. ku reports less than half that in the bank. i imagine other schools are similar - few stronger than k-state, most weaker financially. but that's about all we know from financial statements.

yes, no football means a very rough landing for the department but not as bad as most other schools, i'd guess, and certainly no different than other sports-related commercial activities like the nba and nfl.
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Post by Hypeman » April 2nd, 2020, 2:45 pm

tmcats wrote:
April 2nd, 2020, 1:03 pm
you're throwing a lot of shiz against the wall hoping some will stick, hype. i doubt football is treated any differently than any other university activity if that's an answer you wanted to see. as i argued before, it's a good thing k-state financials are as strong as they are going into this c'virus thingy. i'm not sure how many others are like that.


We (Iowa State) are implementing these initiatives:

A one-year, temporary pay reduction for athletics department coaches and certain staff. This comprehensive plan will reduce total payroll by more than $3M.

A one-year, temporary suspension of all bonuses/incentives for all coaches. This decision will save the department $1M.

Delaying (from January 2021 to January 2022) a previously announced increase in Cyclone Club annual giving levels. The delay will save donors approximately $2.5M for required seating donations.

A freeze on season / individual game ticket prices for all sports.

An extension to the deadline for this year's Cyclone Club donations and football season ticket renewals to May 29, 2020.

Providing multiple payment options for season tickets and donations. Those required payments can be made monthly, quarterly or semi-annually.
Iowa State A.D.
I’m not sure what you mean by shiz, but whatever, my questions are real and worth considering and I hate to think of what might happen at KSU if if they don’t think about them.

As for financial health, net assets based on book value is meaningless when it comes to paying the bills. Many business go broke with book value, particularly if the assets can’t be liquidated. Does KSU athletics have the working capital if the season doesn’t happen? And if not, who pays the contracts? You seem to fancy yourself as a financial wiz, what’s the answers?

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