Coyle: “There is no doubt in my mind that it’s going to look very different when we come out of this"

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BleedGopher

BleedGopher

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The department is in smart, capable hands with Coyle’s leadership, but these are unprecedented circumstances. No one has experience in dealing with these challenges. There is no script for how to navigate financial implications that every sports organization will encounter.

“There is no doubt in my mind that it’s going to look very different when we come out of this,” Coyle said. “I don’t know what that’s going to look like. But the financial impact on all of us is going to be felt and how we do things is going to look different.”

Coyle can’t give specifics because it’s too early in the process and this pandemic doesn’t have a known expiration date. That uncertainty makes it impossible for Coyle to predict with clarity the full financial blow to his department and solve tough unknowns or fears that people might have. Those difficult conversations will take place eventually.

What seems obvious, though, is that potential lost revenue from the NCAA men’s basketball tournament distribution, tickets sales, sponsorships and other revenue streams will have substantial impact on his department.

www.startribune.com

Mark Coyle's challenge with Gophers is managing the unknown

These are strange days, but the Gophers athletic director does his best dealing with them.
www.startribune.com www.startribune.com

Go Gophers!!
 

Big Ten schools should weather this OK, even though they will lose the most in raw dollars. Really small schools had scant revenues anyway. It's the mid and low majors who probably are on the shakiest footing.
 

Big time sports - including D1 college sports, have been supported by TV money.

With the trend toward cord-cutting, the traditional structure is already changing. the leagues and NCAA will have to work out all new contracts and new structures with the streaming services, and re-negotiate with the networks.

And now, we throw in a pandemic that will have a severe impact on businesses - potentially cutting into advertising revenue for the networks and remaining cable outlets.

We could be looking at a real sea change in how sports are broadcast, and the revenue steams that are generated.

Colleges may have to learn to exist with less TV money in the future.
 

I can't begin to imagine the financial impact it will have on Gopher Athletics, and to college sports in general.
 

hungan1 said:
I can't begin to imagine the financial impact it will have on Gopher Athletics, and to college sports in general.
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I think we're overestimating this aspect as long as fall sports start on time with the threat relatively at bay. Most spring sports are money losers for everyone, and there's a whole bunch of expenses those teams won't have anymore. The U, BTN, Big Ten, etc had already realized the vast majority of their revenue for the 2019-20 athletic year.

There will be fallout in the broader economy that we can't fully measure yet. However once the NCAA men's basketball tournament ends the college sports landscape goes into major financial slumber for 5 months even in the best of times.
 


Every school's athletic dept will need essentially a big injection of dollars from the main school, to make their budget run as normal. Otherwise, something will have to be cut. Maybe number of varsity sports offered.

Obviously no one wants that, but most Big Ten schools are way over the minimum requirements, as far as number of varsity sports offered, to be FBS per the NCAA rulebook. I think you only need 16 or 17 sports minimum, then whatever you need to meet your Title IX requirements on top of that.
 

fmlizard said:
I think we're overestimating this aspect as long as fall sports start on time with the threat relatively at bay. Most spring sports are money losers for everyone, and there's a whole bunch of expenses those teams won't have anymore. The U, BTN, Big Ten, etc had already realized the vast majority of their revenue for the 2019-20 athletic year.

There will be fallout in the broader economy that we can't fully measure yet. However once the NCAA men's basketball tournament ends the college sports landscape goes into major financial slumber for 5 months even in the best of times.
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Yeah, if the fall season isn't impacted by this then the overall financial hit to college athletics won't be massive. That said, Universities as a whole are taking a big hit with this so there may be issues with funding and other things like that. Tough to say how things will look or recover once this pandemic is over.

Figures, the Gophers are finally in a position for people to be really excited about the football team and something like this happens. :)
 

MplsGopher said:
Every school's athletic dept will need essentially a big injection of dollars from the main school, to make their budget run as normal. Otherwise, something will have to be cut. Maybe number of varsity sports offered.

Obviously no one wants that, but most Big Ten schools are way over the minimum requirements, as far as number of varsity sports offered, to be FBS per the NCAA rulebook. I think you only need 16 or 17 sports minimum, then whatever you need to meet your Title IX requirements on top of that.
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What normal revenue is AD not getting, paid tickets to the Women's Rowing Team?
 

March madness was the OP. That is not insignificant amount of revenue that won’t be in the next yearly check from the Big Ten. If no football this fall, that’s when you really could be hurting for revenue. Still have most expenses, salaries scholarships etc, plus football TV revenue usually accounts for a big part of it.
 



I would prepare for no football this year unless the testing process gets to be faster and more efficient... and people listen to the experts. Renewals will need to be given a 1 year pass and not loose your seats. Some people will simply not be able to renew this year and some corporations will not either. I renewed with the payment plan and can tell you I would not be able to renew if I had not done that. This is a tragic situation. You could see some sports suspended or dropped.
 

MplsGopher said:
March madness was the OP. That is not insignificant amount of revenue that won’t be in the next yearly check from the Big Ten. If no football this fall, that’s when you really could be hurting for revenue. Still have most expenses, salaries scholarships etc, plus football TV revenue usually accounts for a big part of it.
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When all the insurance claims get made who ends up eating it on the TV revenue part of March Madness? CBS? NCAA? Member Institutions? Insurance companies?
 

fmlizard said:
When all the insurance claims get made who ends up eating it on the TV revenue part of March Madness? CBS? NCAA? Member Institutions? Insurance companies?
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Great question. My wild guess is the contract between CBS and NCAA has provision for acts of god preventing the tourny and guessing CBS simply won’t pay out.
 

fmlizard said:
When all the insurance claims get made who ends up eating it on the TV revenue part of March Madness? CBS? NCAA? Member Institutions? Insurance companies?
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If it is the insurance companies let’s sell that stock right now
 




fmlizard said:
When all the insurance claims get made who ends up eating it on the TV revenue part of March Madness? CBS? NCAA? Member Institutions? Insurance companies?
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I am not going to be able to cite you to a source because I simply don't recall where I heard it, but the number I heard was approximately $600M in uninsured losses. That's obviously a big number, but it is spread among hundreds of schools. Because the allocated shares of the tournament revenues are based on a complex formula that includes apearances in the tournament and success in the tournament over a period of years, the allocation to each conference is different each year. Furthermore, the conferences share those funds in different ways, so the impact on each school will differ significantly.
 

The NCAA purchases insurance to protect against the risk that the tourny can’t be played? That seems unlikely, but what do I know.
 

"Those difficult conversations will take place eventually."

I know a guy who EATS those for breakfast!
 

MplsGopher said:
The NCAA purchases insurance to protect against the risk that the tourny can’t be played? That seems unlikely, but what do I know.
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Business interruption coverage. From USA Today:

"The association has $250 million to $275 million in business-interruption insurance connected to the tournament, the ADs and administrators have been told, but it is unclear how quickly that money would come to the NCAA – or how much.

NCAA Financial Losses from Aborted Tourney
 

Thanks, like I said what do I know!

Seems extremely unlikely that the tourny wouldn’t be played. Before this happend I don’t think it had ever happened? Maybe it’s just a common thing you have to do as part of any massive deal.
 

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