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University Financing - If you want to educate yourself

Does it matter how much revenue and or profits the U generates now or in the future when it comes to our athletic program. The priority of the powers that be is to continue to upgrade the academics of the college. To achieve its goal it takes $$$. It does not matter if it comes from endowments, foundations, donations or a myriad of other ways. Athletics has been and will always be a stepchild at the U. Our administration would rather be like an Ivy League school than a university that has an exemplary sports program. Education at a college is why Universities exist. Sports is for entertainment and uniting the student body.
 
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The problem with All this is, that the big "cost" is scholarships that the athletic department "pays" the University. In reality this cost is zero. Those spots are not an opportunity cost that without athletics would have gone to other students for enrollment. The admission office sends their acceptance letters, whoever enrolls enrolls, and then athletic enrollment is tacked on after. So honestly that "big cost" that is preventing us from spending money on good coaches is not real,and is merely an accounting way to add cost that is necessary to have a non-profiting athletic department.
 
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Dwinstitles said:
someone give me the hood version this too much for my tiny brain
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They breaks tha $$ into bunches of socks, then a Clinton comes along and takes what they want. After that’s a bush comes along and takes sloppy seconds. Later, friends and family gets some.
 
CashMoneyCane said:
I think you're honestly starting to see this for the first time with the Richt hire. Say what you will about him as a coach, but it was a huge step for the University to finally acknowledge and accept they need to pay more for football coaches.

Thank Blake James for that, at least.
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They are paying $4 million for a head coach, but the overall staffing budget is still comparatively low.

First, we are not paying for an offensive coordinator.

The ACC average pay for a head coach is $3.46 million.

The average ACC offensive coordinator makes around $600,000 per year.

So, we are actually paying slightly less than the average ACC team.

Add to that, our green as grass defensive coordinators are not making above the average ACC salary, and the overall headcount of our football staff is also slightly less than the ACC average.

Bottom line: Miami continues to be cheap as ever. We are overpaying the head coach, and cutting corners everywhere else.
 
RightSaidFred said:
They are paying $4 million for a head coach, but the overall staffing budget is still comparatively low.

First, we are not paying for an offensive coordinator.

The ACC average pay for a head coach is $3.46 million.

The average ACC offensive coordinator makes around $600,000 per year.

So, we are actually paying slightly less than the average ACC team.

Add to that, our green as grass defensive coordinators are not making above the average ACC salary, and the overall headcount of our football staff is also slightly less than the ACC average.

Bottom line: Miami continues to be cheap as ever. We are overpaying the head coach, and cutting corners everywhere else.
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I don’t think money is the reason we don’t have an OC. I think Richt truly believes in himself being OC
 
Skitz305 said:
We pay rent but don’t deal with operating expenses.
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And we lose out on revenue from concessions, parking, a portion of ticket sales.

Plus there is the opportunity cost - additional sponsorships, plus if we owned a stadium we could rent it out for other events.

University of Minnesota recently built a stadium totaling about $288 million. If we could build one for $300 - 350 million, that would cost the university somewhere in the ballpark of 5-6 million per year including interest, renovations, and annual upkeep.

I don’t know what our lease, plus lost revenues is for Sun Life, but at best, it’s probably comparable.
 
RightSaidFred said:
And we lose out on revenue from concessions, parking, a portion of ticket sales.

Plus there is the opportunity cost - additional sponsorships, plus if we owned a stadium we could rent it out for other events.

University of Minnesota recently built a stadium totaling about $288 million. If we could build one for $300 - 350 million, that would cost the university somewhere in the ballpark of 5-6 million per year including interest, renovations, and annual upkeep.

I don’t know what our lease, plus lost revenues is for Sun Life, but at best, it’s probably comparable.
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That is absolutely possible, however, we don’t exactly know the lease UM has in place HRS.
 
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CashMoneyCane said:
This is not necessarily a terrible idea. No idea how NCAA legalities would impact it, but I could see a way that fans donate to a general fund that is ultimately used to solicit recruits.

Get the donations rolling and I'll manage it.
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I know schools that do it uga, alabama, ga tech
 
Empirical Cane said:
For more perspective...

"Harvard Management Company returned 10 percent on its investments during fiscal year 2018, bringing the total value of the University's endowment to $39.2 billion..."

If memory serves, they have the largest endowment of any University in THE WORLD.

I think I read Miami's endowment was $1.1 billion.
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Both of these things sound right, with the exceptions being possibly Oxford and Cambridge. Miami's at $1.1B sounds about right, which is pretty darn good considering it was shy of $700M about 15 years ago.
 
wspcane said:
Disagree on that point. Almost every university (and many large not for profit as a whole) has alternative investments for endowment funds. I honestly don’t know how they are going to define or enforce any of this. Honestly, from the stuff in tax reform affecting my employer, the IRS has no idea how they are going to enforce this either.
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I don't understand how any investment vehicle (alternative or otherwise) has anything to do with how the institution spends the capital gains. You spend it on the school or you don't. But I might be missing something. I hate taxes.
 
423Hurricane said:
Enlightening thread OP.

As far as "renting" the stadium is concerned, I can't speak to the agreement between the U and HRS.

My father was the Orange Bowl Stadium Manager from 1960 to 1979. The City of Miami owned the stadium and the U didn't rent or lease the stadium per se. The City received a portion of the gate and a percentage of the concessions after expenses. The specific percentages were never shared with me.

When the Dolphins came to town in 1966, the U benefitted somewhat in the sense that the expense of operating the stadium could now be spread between 2 entities.

HRS is obviously owned by the Dolphins, however I would say that a similar agreement would be in place for the U. If the university is renting or leasing the stadium, they're more than likely leaving money on the table - of course dependent upon attendance.
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My understanding is there is a fixed payment. But naturally there's probably a cut on top of that. Something I'd gladly brush up on if there was sufficient public information.

Thanks for reading and contributing.
 
SFbayCane said:
@CashMoneyCane - Correct me if I'm wrong but didn't donna make it so that no one could donate directly to the football program? (aside from existing programs like Living Scholar, etc.).
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I have never heard this and SERIOUSLY question its validity. Beggars can't be choosers, and we're a beggar. But there might be something to be said for not donating to one sport as opposed to the general athletic fund, given Title IX. Still doubt that. Even if so, policy is not set in stone.

Interesting note that I'll try to dig on.
 
S.CarolinaCane said:
Keep the NCAA away by making sure the correct percentage of the funds donated, go to the correct percentage, of the correct things.

Its not illegal, and it's all in the fine print, but that's the very simple explanation withput details of how to keep the foundation rolling.

Still have to have someone heading up the 'fundraising'
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The NCAA is a joke with absolutely zero enforceable power over a private citizen.

The IRS is TERRIFYING and will ruin your life. I have said for years, and I stick to it... I'd rather be in trouble with the CIA than the IRS.

The latter is the issue.
 
CaneFan79 said:
Incorrect, per the Herald

https://miamiherald.typepad.com/spo...s-ummls-update-golden-heat-draft-marlins.html

"Ross makes more than $4 million annually in revenue from having the Hurricanes as a tenant; UM doesn’t pay rent but the sides split some revenue."

Could the Herald be wrong? Is the Pope Argentinian?
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My immediate reaction was "who wrote it?" If we're talking SMD, I don't care. Barry by and large is good. That said, I'm pretty sure I've heard we pay rent, and I would be very surprised if we don't. But as an owner, the difference between a fixed and floating payment can be negligible. From the perspective of the University, I'd MUCH rather share revenue (floating payment) than pay rent (fixed payment). No one wants overhead.
 
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Hemsleysalmons said:
Does it matter how much revenue and or profits the U generates now or in the future when it comes to our athletic program. The priority of the powers that be is to continue to upgrade the academics of the college. To achieve its goal it takes $$$. It does not matter if it comes from endowments, foundations, donations or a myriad of other ways. Athletics has been and will always be a stepchild at the U. Our administration would rather be like an Ivy League school than a university that has an exemplary sports program. Education at a college is why Universities exist. Sports is for entertainment and uniting the student body.
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Correct. As it SHOULD be and NEEDS to be for a private university. When you have a steady a predictable stream of state money flowing your way, the expectation is athletic success. When you're solely dependent on donors and tuition, the priorities lie in the advancement of the institution as a whole.

It's tough at Miami. We have not only a huge alumni base, but a huge donor base, that does not care at all about football. Lots and lots of money from South America that doesn't understand football at all. Does anyone think Philip Frost cares about the football team? I don't, and he's donated at least $50 million to The U. Same for Jorge Perez.

We're just not comparing apples to apples.

Great response.
 
calinative umstudent said:
The problem with All this is, that the big "cost" is scholarships that the athletic department "pays" the University. In reality this cost is zero. Those spots are not an opportunity cost that without athletics would have gone to other students for enrollment. The admission office sends their acceptance letters, whoever enrolls enrolls, and then athletic enrollment is tacked on after. So honestly that "big cost" that is preventing us from spending money on good coaches is not real,and is merely an accounting way to add cost that is necessary to have a non-profiting athletic department.
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I see what you're saying but don't quite agree (though I do really respect your opinion as in my experience you've been very informed and rational). The big difference here boils down to earmarked donations vs. donations to the general fund. I don't know the stats but would argue that many if not most football scholarships are endowed, in which case they are separate and distinct to funding football vs. the University at large.

That said, totally agree on the notion of accounting costs vs. actual costs. However, that's just how it works, at least on paper.
 
RightSaidFred said:
They are paying $4 million for a head coach, but the overall staffing budget is still comparatively low.

First, we are not paying for an offensive coordinator.

The ACC average pay for a head coach is $3.46 million.

The average ACC offensive coordinator makes around $600,000 per year.

So, we are actually paying slightly less than the average ACC team.

Add to that, our green as grass defensive coordinators are not making above the average ACC salary, and the overall headcount of our football staff is also slightly less than the ACC average.

Bottom line: Miami continues to be cheap as ever. We are overpaying the head coach, and cutting corners everywhere else.
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Bottom line, you're miles into wrong. Al Golden's base salary was $150K, and loaded with incentives that he did not meet. It sounds like you're making some pretty big assumptions here and I'd like to see sources, especially given many ACC schools are private and don't disclose salary.

There's also an outlier issue, in that Clemson and FSU will bring this "average" up significantly.

Regardless, the comparison is not to other schools in the conference, but to us and what we've done previously, which is spend almost nothing on coaches.
 
RightSaidFred said:
And we lose out on revenue from concessions, parking, a portion of ticket sales.

Plus there is the opportunity cost - additional sponsorships, plus if we owned a stadium we could rent it out for other events.

University of Minnesota recently built a stadium totaling about $288 million. If we could build one for $300 - 350 million, that would cost the university somewhere in the ballpark of 5-6 million per year including interest, renovations, and annual upkeep.

I don’t know what our lease, plus lost revenues is for Sun Life, but at best, it’s probably comparable.
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Just... stop this. We are never building a stadium. Get over it. Buy some land in Minnesota then buy some land in Miami and see what the difference looks like.
 
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