STrib: Gophers face potential $75 million athletics revenue hit; Coyle, others take pay cuts

[BleedGopher]

per Megan:

The “severe” scenario would occur if there were no games played through the fall, including home football games, which are essential to any athletic department budget.

A $75 million hit in revenue in that “severe” scenario would be down from the $130.5 million the department reported for the 2018-19 school year. The Gophers reported $129.5 million in expenses in that same fiscal year, though those likely would decrease without team travel, recruiting visits and event expenses.

“It is also important to note that the models presented [Tuesday] reflect only potential lost revenue and do not take into consideration any expenses that would not be incurred in each scenario,” Coyle’s statement read.

Major revenue hits already have struck. For example, the NCAA has announced it plans to distribute $225 million to Division I schools in June. That’s less than half of its budgeted $600 million after the pandemic forced the cancellation of the league’s massive revenue generator, the NCAA men’s basketball tournament.

In the entire University of Minnesota community, the only other categories projecting more losses than athletics in this worst-case scenario are tuition and fees, which anticipates to miss $85 million to $90 million, and University of Minnesota Physicians, which stands to lose $200 million from canceled or postponed procedures.

While the Gophers haven’t yet announced what cuts the athletics department is prepared to make, there is some precedent from other schools. Iowa State announced a week ago that coaches took a one-year, temporary pay reduction to reduce the payroll by more than $3 million, part of a plan to save that university $4 million overall.

Indications within the Gophers athletics department are that more coaches would be open to voluntary pay cuts, especially if it is a way to avoid cutting programs. Nonrevenue sports especially will try to be creative with their budgets, including revising travel costs, in order to keep their programs alive.

Gophers face potential $75 million athletics revenue hit; Coyle, others take pay cuts

COVID-19 impact could run as high as $75M in Board of Regents estimate.

www.startribune.com

Go Gophers!!

 

[4four4]

They will go ask the state for funding.

 

[Plato]

No one in the football or basketball coaching staff or in the AD's office are going to the food bank if their salaries are trimmed a bit.

 

[alchemy2u]

I added a link to a good SI article in the BB form thread with the same name.

 

[A_Slab_of_Bacon]

I'd be curious what the actual budgets look like.

Non revenue sports not playing has to be a savings of a sort. Even if just no travel and etc.

Football playing or not has to be a HUGE factor income wise one way or another.

 

[PMWinSTP]

per Megan:

The “severe” scenario would occur if there were no games played through the fall, including home football games, which are essential to any athletic department budget.

A $75 million hit in revenue in that “severe” scenario would be down from the $130.5 million the department reported for the 2018-19 school year. The Gophers reported $129.5 million in expenses in that same fiscal year, though those likely would decrease without team travel, recruiting visits and event expenses.

“It is also important to note that the models presented [Tuesday] reflect only potential lost revenue and do not take into consideration any expenses that would not be incurred in each scenario,” Coyle’s statement read.

Major revenue hits already have struck. For example, the NCAA has announced it plans to distribute $225 million to Division I schools in June. That’s less than half of its budgeted $600 million after the pandemic forced the cancellation of the league’s massive revenue generator, the NCAA men’s basketball tournament.

In the entire University of Minnesota community, the only other categories projecting more losses than athletics in this worst-case scenario are tuition and fees, which anticipates to miss $85 million to $90 million, and University of Minnesota Physicians, which stands to lose $200 million from canceled or postponed procedures.

While the Gophers haven’t yet announced what cuts the athletics department is prepared to make, there is some precedent from other schools. Iowa State announced a week ago that coaches took a one-year, temporary pay reduction to reduce the payroll by more than $3 million, part of a plan to save that university $4 million overall.

Indications within the Gophers athletics department are that more coaches would be open to voluntary pay cuts, especially if it is a way to avoid cutting programs. Nonrevenue sports especially will try to be creative with their budgets, including revising travel costs, in order to keep their programs alive.

Gophers face potential $75 million athletics revenue hit; Coyle, others take pay cuts

COVID-19 impact could run as high as $75M in Board of Regents estimate.

www.startribune.com

Go Gophers!!

I believe U of M has already teed up pay cuts for admin leadership across the system. Raises for nonunion employees will be frozen. I sure a lot of other non-essential staff will be or have been furloughed.

 

[Livingat45north]

They will go ask the state for funding.

Where would the state get the money? Unemployment payouts are way up, and tax revenues will be way down. I think games will be played in the fall, but if there not, there isn't any magical option where everybody gets money from somebody else.

 

[A_Slab_of_Bacon]

Where would the state get the money? Unemployment payouts are way up, and tax revenues will be way down. I think games will be played in the fall, but if there not, there isn't any magical option where everybody gets money from somebody else.

That and higher ed funding is complicated, weird, and years ago set back a long ways.

Nobody wants to pay what higher ed actually costs, not the students, not the government(s).

 

[UpAndUnder43]

Nice of Coyle to take a pay cut so he can pay Fleck more.

 

[short ornery norwegian]

This is going to require one heck of a bake sale.

Maybe a split-the-pot drawing.

 

[hungan1]

It's all gloomy news all around. The last thing the U wants to do is start laying off folks.

Across the board pay cuts may help ease some of the financial strains for the short term. Unfortunately, it is the people that make the least amount of money that get impacted the most.

Maybe the State can pay out partial or underemployment checks to keep people working and bringing pay checks home to support their families.

 

[Spoofin]

Can PJ afford another pay cut?

 

[A_Slab_of_Bacon]

It's all gloomy news all around. The last thing the U wants to do is start laying off folks.

Across the board pay cuts may help ease some of the financial strains for the short term. Unfortunately, it is the people that make the leastt amount of money that get impacted the most.

Maybe the State can pay out partial or underemployment checks to keep people working and bringing pay checks home to support their families.

Depending on the situation having hours cut if you're hourly can qualify for unemployment.

 

[Word]

Can PJ afford another pay cut?

He might be forced to sell one of his houses.

 

[PMWinSTP]

It's all gloomy news all around. The last thing the U wants to do is start laying off folks.

Across the board pay cuts may help ease some of the financial strains for the short term. Unfortunately, it is the people that make the leastt amount of money that get impacted the most.

Maybe the State can pay out partial or underemployment checks to keep people working and bringing pay checks home to support their families.

If furloughed, anyone making up to $65,000 annually will basically get 100% (or more) of their pay through MN Unemployment, with the added $600/week that the Feds put in place through July 31. The lower the pay the bigger the impact of that $600 on weekly pay.

 

[PMWinSTP]

Depending on the situation having hours cut if you're hourly can qualify for unemployment.

Correct...generally if you are full-time and your hours worked fall below 32 hours/week, you most likely will be eligible for some unemployment. In addition, the full $600 federal payment kicks in from the first dollar of state unemployment paid out.

 

[hungan1]

If furloughed, anyone making up to $65,000 annually will basically get 100% (or more) of their pay through MN Unemployment, with the added $600/week that the Feds put in place through July 31. The lower the pay the bigger the impact of that $600 on weekly pay.

Think of the lowering of the strain and stresses families go through.

Some businesses are going to 32-hour work weeks especially manufacturers who have no parts since their supply chain from China is completely cutoff. Not having to lay off these people who qualify for partial unemployment while not ideal benefits the workers, the businesses, and the State.

 

[Deckergopher]

Call Bernie, he should be good for a few million dollar handout.

 

[PMWinSTP]

Think of the lowering of the strain and stresses families go through.

Some businesses are going to 32-hour work weeks especially manufacturers who have no parts since their supply chain from China is completely cutoff. Not having to lay off these people who qualify for partial unemployment while not ideal benefits the workers, the businesses, and the State.

They would likely need to be under 32 hours to qualify for any unemployment benefits.

 

[Pompous Elitist]

-Administration should have already furloughed most of their staff weeks ago.
-Remaining admin temporarily renogiate contracts if exempt or reduced hours if non-exempt depending on how essential they are. Watch backbiting ensue.
-Coaches should take a large pay cut, including our boy PJF.

Between cuts to the ludicrous payroll, reductions in travel, marketing etc the hit will be more manageable. This is why Coyle makes the big bucks - he’s demonstrably solid in a crisis. /s Fixed payments for facilities will remain but perhaps the financial overlords will allow some form of negotiated forbearance period.

Things will bounce back quick enough once the crisis passes. The fall sports season viability hinges on a coherent, unified national response which isn’t happening currently so will reserve any predictions on a football season at this time. Maybe consult the magic eight ball.

 

[MplsGopher]

Things will bounce back quick enough once the crisis passes. The fall sports season viability hinges on a coherent, unified national response which isn’t happening currently so will reserve any predictions on a football season at this time. Maybe consult the magic eight ball.

The games will be played and on TV. The only thing that can stop that, is if the virus does a really bad mutation and starts dropping people like flies. In that case, we have a lot worse things to worry about than football.

The main question is if fans will make it back into the stands. That pretty much hinges on if there is a second wave of infections this summer/fall and/or if there is a vaccine available early enough.

 

[Pompous Elitist]

I think social distancing has almost worked too well in certain areas. Until serological surveys prove otherwise ie widespread population prevalence (doubt this heavily at this time) fully expect second wave unless suppressed adequately. See my comment on a coherent, unified national public health response. Setting up public/private partnerships for PPE bidding (one example) in the sole interest of profiteering does not meet that bar.

 

[MplsGopher]

I think social distancing has almost worked too well in certain areas. Until serological surveys prove otherwise ie widespread population prevalence (doubt this heavily at this time) fully expect second wave unless suppressed adequately. See my comment on a coherent, unified national public health response. Setting up public/private partnerships for PPE bidding (one example) in the sole interest of profiteering does not meet that bar.

Agreed.

Unless a miracle vaccine falls from the sky some time in early May, that's about the time that people will get fed up. They'll open it up, and we'll be right back here by late June or early July.

Kudos to Walz for extending it to May 4, but if we continue to see a relatively "low" amount of cases/deaths and things on the downswing even at that, I can't see him having the political capital to extend it much more.

 

[Pompous Elitist]

I think there is a way forward but I see NO PLAN either in place or in the planning stages to allow that. Does anyone?

The collective response seems to be hopes and prayers. Heard something about a strategy based on hope one time...

The virus is endemic. It’s not going to just disappear. We need an aggressive plan. Talk me off the ledge and tell me something coherent is happening, that a working group will be presenting a plan beyond social distancing soon because I don’t see it. A lot of talk about the first wave ebbing (yep) but no plan for what lies ahead.

 

[Veritas]

As an economist and a historian I will only warn all you social engineers who think you can "fix" the marketplace in any way without directly causing the most serious economic consequences that you need only look at Venezuela and dozens of previous historical examples to see exactly what happens when you start down that road. Basically, you have two choices. One is the free flow of capital, wages, prices and supplies based on market forces, or you can decide to control everything in an endless dog chasing his tail farce as happens in a controled economy. Ironically, very, very ironically it was the Venezuelan effort to control the price of toilet paper which set off this sort of endless effort to control all prices, wages, etc. in that nation and which has now turned the richest country in South America into the poorest economy in South America. This President, like him or not, will not be going down that road for too many more days (maybe, three weeks??).

 

[Veritas]

I think there is a way forward but I see NO PLAN either in place or in the planning stages to allow that. Does anyone?

The collective response seems to be hopes and prayers. Heard something about a strategy based on hope one time...

The virus is endemic. It’s not going to just disappear. We need an aggressive plan. Talk me off the ledge and tell me something coherent is happening, that a working group will be presenting a plan beyond social distancing soon because I don’t see it. A lot of talk about the first wave ebbing (yep) but no plan for what lies ahead.

Howie and Dean are putting together "The Peoples' First Social Justice Plan for Communal Happiness and Eternal Harmony". Perhaps you could join them and bring in Bernie Sanders to provide prolitariat experience. Via Cuba!!

 

[GophersWin!]

per Megan:

The “severe” scenario would occur if there were no games played through the fall, including home football games, which are essential to any athletic department budget.

A $75 million hit in revenue in that “severe” scenario would be down from the $130.5 million the department reported for the 2018-19 school year. The Gophers reported $129.5 million in expenses in that same fiscal year, though those likely would decrease without team travel, recruiting visits and event expenses.

“It is also important to note that the models presented [Tuesday] reflect only potential lost revenue and do not take into consideration any expenses that would not be incurred in each scenario,” Coyle’s statement read.

Major revenue hits already have struck. For example, the NCAA has announced it plans to distribute $225 million to Division I schools in June. That’s less than half of its budgeted $600 million after the pandemic forced the cancellation of the league’s massive revenue generator, the NCAA men’s basketball tournament.

In the entire University of Minnesota community, the only other categories projecting more losses than athletics in this worst-case scenario are tuition and fees, which anticipates to miss $85 million to $90 million, and University of Minnesota Physicians, which stands to lose $200 million from canceled or postponed procedures.

While the Gophers haven’t yet announced what cuts the athletics department is prepared to make, there is some precedent from other schools. Iowa State announced a week ago that coaches took a one-year, temporary pay reduction to reduce the payroll by more than $3 million, part of a plan to save that university $4 million overall.

Indications within the Gophers athletics department are that more coaches would be open to voluntary pay cuts, especially if it is a way to avoid cutting programs. Nonrevenue sports especially will try to be creative with their budgets, including revising travel costs, in order to keep their programs alive.

Gophers face potential $75 million athletics revenue hit; Coyle, others take pay cuts

COVID-19 impact could run as high as $75M in Board of Regents estimate.

www.startribune.com

Go Gophers!!

i know one coach that should give his whole salary back. all of it. so we could save 2-3 million just from him.

 

[Pompous Elitist]

Howie and Dean are putting together "The Peoples' First Social Justice Plan for Communal Happiness and Eternal Harmony". Perhaps you could join them and bring in Bernie Sanders to provide prolitariat experience. Via Cuba!!

The federal mandate and reason for being is to ensure the security of the population and the economic well-being of the country vs disruption. It‘s not a left vs right issue. We’re talking about the disruption to football in this thread but the disruption has spread to virtually every segment of the population. Thus my recommendation for a coherent plan to suppress outbreaks as they reoccur going forward.

I am starting to strongly feel we could move this whole thing forward more quickly if we could organize some bus tours of the “it’s only the flu, bro“ folks through Detroit and NYC and have them test their assertion they have immunity from Dec/January. Put your money where your mouth is, so to speak. Just sign that DNR first so nobody needs to waste PPE on you.

 

[Veritas]

The federal mandate and reason for being is to protect actual and economic well-being of the country vs disruption. It‘s not a left vs right issue. We’re talking about the disruption to football in this thread but the disruption has spread to virtually every segment of the population. Thus my recommendation for a coherent plan to suppress outbreaks as they reoccur going forward.

I am starting to strongly feel we could move this whole thing forward more quickly if we could organize some bus tours of the “it’s only the flu, bro“ folks through Detroit and NYC and have them test their assertion they have immunity from Dec/January. Put your money where your mouth is, so to speak. Just sign that DNR first so nobody needs to waste PPE on you.

I have been in lockdown for six weeks now as I am 74 years old and have a lung issue. I don't need a program or plan to tell me what to do as I was doing it before anyone said much of anything. But let us be real here, are there really more people dying here this year than last year other than those of us who fit my profile? So I go for walks, ride my bike and stay six feet away from others. Put me in the bga 1 column.

PS Have you really looked at Detroit block by block in the last twenty years? There is nothing there. Whole square blocks with only one house standing.

 

[Pompous Elitist]

I have been in lockdown for six weeks now as I am 74 years old and have a lung issue. I don't need a program or plan to tell me what to do as I was doing it before anyone said much of anything. But let us be real here, are there really more people dying here this year than last year other than those of us who fit my profile? So I go for walks, ride my bike and stay six feet away from others. Put me in the bga 1 column.

PS Have you really looked at Detroit block by block in the last twenty years? There is nothing there. Whole square blocks with only one house standing.

This is actually a very good and relevant question and something many people have interest in. I posted a link to some useful and not so useful CDC data. The national MMWR data hasn’t been updated beyond March 21 but I believe it will be updated this week. If you scroll down to the bottom of the linked page you can see the relevant graph with weekly all-cause mortality numbers. Of course, all of this is dependent of accurate and timely input data. The bump in COV mortality has mostly happened in the past 2 weeks so a relevant bump on the graph will eventually be visible, but lagging by a couple weeks...the decision-makers have access to pre-print data of course.

https://www.cdc.gov/coronavirus/2019-ncov/covid-data/covidview.html