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Author Topic: If Tennessee doesn't get Gruden, here's why...  (Read 814 times)

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Douglas

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If Tennessee doesn't get Gruden, here's why...
« on: November 18, 2012, 06:06:55 pm »

Quote
Tennessee also faces some financial issues as it chooses its new coach. The university's athletic department posted a $3.98 million budget deficit for the 2011-12 fiscal year in part because of buyouts it was paying to Fulmer, former athletic director Mike Hamilton, former men's basketball coach Bruce Pearl and former baseball coach Todd Raleigh. Dooley's contract runs through 2016 and includes a $5 million buyout.

Above source: http://espn.go.com/college-football/story/_/id/8648445/derek-dooley-tennessee-volunteers-return-another-season

Quote from: Vol1LinATL
2011-2012 Financials:
$106 in revenue
$110 in expenditures.

Deficit of $3.98M paid from the reserve fund which now has a balance of roughly $2M. And that's the biggest issue. The reserve fund is down to $2M. It does mean that they'd have to get a pretty good influx of cash from donor(s) to be able to fire Dooley, structure his (and assistants) buyouts over some certain period and afford to hire another coach where revenue wouldn't start coming back in until likely after the first of the year and ticket renewals wouldn't start coming in until March-May. 

http://www.utsports.com/genrel/082712aab.html

And to add to our issues:

At a tax rate of 14.25% on tickets, including a 9.25% state sales tax, a 4.5% city tax, and a 0.5% county tax on tickets, Tennessee is the most heavily taxed athletics department in the nation. The city and county tax, passed many years ago, applies only to the Neyland Stadium and Thompson-Boling Arena facilities and are directed at athletic events only (football, men's and women's basketball).

Taxes alone were over $4.6M in our budget. That goes a long way towards a coach or the assistants. Thanks, Tennessee and Knoxville!
Sources for the above:
http://mbd.scout.com/mb.aspx?s=7&f=1372&t=10480083&p=1&sto=MS_131151416
http://www.utsports.com/genrel/082712aab.html <-- contains latest financial numbers.

The above is even after Tennessee combined the Men's and Women's Athletic Departments to form one AD department (much like the Hogs did in 2008... except that the Hogs aren't operating in the red).

http://www.govolsxtra.com/news/2012/apr/16/ut-to-cut-17-positions-in-athletics/

Yes, having Gruden on board should increase ticket sales and donations... but can TN afford to not only pay out Dooley's $5.00m buyout, plus the other buyouts and continue to operate in the red while still offering Gruden $5m plus?  If I'm the CEO, I say no to this. You go with something that can get you out of the red and back into the black.

There's no hidden meaning (not on its face) to this post... except that TN really can't afford Gruden.
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Douglas
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Murr

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Re: If Tennessee doesn't get Gruden, here's why...
« Reply #1 on: November 18, 2012, 06:28:34 pm »

Quote
Tennessee also faces some financial issues as it chooses its new coach. The university's athletic department posted a $3.98 million budget deficit for the 2011-12 fiscal year in part because of buyouts it was paying to Fulmer, former athletic director Mike Hamilton, former men's basketball coach Bruce Pearl and former baseball coach Todd Raleigh. Dooley's contract runs through 2016 and includes a $5 million buyout.

Above source: http://espn.go.com/college-football/story/_/id/8648445/derek-dooley-tennessee-volunteers-return-another-season

Quote from: Vol1LinATL
2011-2012 Financials:
$106 in revenue
$110 in expenditures.

Deficit of $3.98M paid from the reserve fund which now has a balance of roughly $2M. And that's the biggest issue. The reserve fund is down to $2M. It does mean that they'd have to get a pretty good influx of cash from donor(s) to be able to fire Dooley, structure his (and assistants) buyouts over some certain period and afford to hire another coach where revenue wouldn't start coming back in until likely after the first of the year and ticket renewals wouldn't start coming in until March-May. 

http://www.utsports.com/genrel/082712aab.html

And to add to our issues:

At a tax rate of 14.25% on tickets, including a 9.25% state sales tax, a 4.5% city tax, and a 0.5% county tax on tickets, Tennessee is the most heavily taxed athletics department in the nation. The city and county tax, passed many years ago, applies only to the Neyland Stadium and Thompson-Boling Arena facilities and are directed at athletic events only (football, men's and women's basketball).

Taxes alone were over $4.6M in our budget. That goes a long way towards a coach or the assistants. Thanks, Tennessee and Knoxville!
Sources for the above:
http://mbd.scout.com/mb.aspx?s=7&f=1372&t=10480083&p=1&sto=MS_131151416
http://www.utsports.com/genrel/082712aab.html <-- contains latest financial numbers.

The above is even after Tennessee combined the Men's and Women's Athletic Departments to form one AD department (much like the Hogs did in 2008... except that the Hogs aren't operating in the red).

http://www.govolsxtra.com/news/2012/apr/16/ut-to-cut-17-positions-in-athletics/

Yes, having Gruden on board should increase ticket sales and donations... but can TN afford to not only pay out Dooley's $5.00m buyout, plus the other buyouts and continue to operate in the red while still offering Gruden $5m plus?  If I'm the CEO, I say no to this. You go with something that can get you out of the red and back into the black.

There's no hidden meaning (not on its face) to this post... except that TN really can't afford Gruden.

Tenner doesn't have the funds to spend on Gruden and supply him the type of staff he would demand.

Doug, when or where are you going to post your realignment update you mentioned on twitter yesterday?

Thanks and keep up the good work.
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Douglas

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Re: If Tennessee doesn't get Gruden, here's why...
« Reply #2 on: November 18, 2012, 10:08:53 pm »

I'm waiting on some financial information for another school, actually. Once I get that information, I'll start pulling together my post.

Do keep in mind that I'm compiling a lot of information from at least 6 different threads from over a year ago... kind of a "Where are they now and where are they going" type update.
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Douglas
GH's resident Web Diety and Data Archivist/Historian
50% Attitude, 100% Bear, 110% Denizen Derriere Vacuity (and proud, too!)

If you're not stalking me on Twitter, why not? @BearlyDoug
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