CR Gazette: ISU AD facing potential $147M deficit by 2031 with direct to player payments

[CapnCy]

Yeah, pollard made a statement about how much that made. Heck, have a Big 12 stadium tour to raise funds for all the schools. Start with Garth Brooks. Isn’t he an OSU guy? He’d probably sell out a couple of shows at each stadium . Make it an annual thing with different artists. I’m sure It’s not thst easy but you gotta find ways.

That's kind of a cool idea actually....Big 12 doig an exclusive stadium tour with a big star. Of course logistics likely would be a nightmare (with so many schools/different types of stadiums/short window to do it)...but that kind of thinking will have to continue to be one of many ideas (but that just helps add to each school).

It is tough for ISU because coming with a $20 million "new money" to a budget takes a lot! And a lot of ideas would be a lot of work for likely not a lot of return (i was thinking once what if the RV village was used more than just games? Like you could "camp" there during other times? Maybe a good idea, but may not even more the financial needle.

Charge parking for non-donor areas for bball games? (like $5-10 a car?)...again, wouldn't move the needle probably much.

 

[Freebird]

Wasn’t the bridge paid directly by donors too?

Yes. I don't know what all these guys are talking about. Donor wanted to build a ******* bridge. They paid for it. Cool. It's a cool bridge and we didn't pay ****.

 

[SolterraCyclone]

Are they just projecting line item of $20M in the future with the existing revenue and expenses?

Yeah, no **** there’s a deficit. There’s going to have to be cuts and/or additional revenue. Just like every other school in the country.

 

[cyclone87]

Sorry, but I think the bridge has been an absolute home run in terms of ROI as well as aesthetics.

Not only does it serve a huge purpose functionally (have you seen the mass of humanity crossing it before and after games?), it has become an instant campus landmark that the major networks always show when broadcasting our games to the rest of the nation.

Agree, plus it also was completely paid for by donors if I remember correctly so no debt added.

 

[Havs]

2025 and 2026: We have rainy day funds to cover $25m/yr (estimated)
2027,28,29,30,31: We'll average a $29.4m deficit per year. (Totaling $147m)

If ISU's core constituency consists of 70k fans, that'd mean each person needs to pay $420/yr (extra) to make up that $29.4m annually. Ultimately, I think the NCAA will lower the number of required sports, and we'll (need to) see the end of programs like track, cross country, golf, swimming.

 

[cytor]

In hindsight, that bridge is looking more and more like an extravagance we never should have built.

Irrelevant. The Bridge was funded by private donors.

 

[Havs]

Irrelevant. The Bridge was funded by private donors.

The bridge connects the stadium to an area where private donors (who now give more money than they ever have) tailgate and spend the weekend around gamedays.

 

[cyclone87]

Split off football to its own entity then the school’s can subsidize the Olympic sports since those the whole “amateurism” concept still applies to. If they want to keep sports for the student athletes. Probably have to make the football players employees with this direction though.

 

[Havs]

That's kind of a cool idea actually....Big 12 doig an exclusive stadium tour with a big star. Of course logistics likely would be a nightmare (with so many schools/different types of stadiums/short window to do it)...but that kind of thinking will have to continue to be one of many ideas (but that just helps add to each school).

It is tough for ISU because coming with a $20 million "new money" to a budget takes a lot! And a lot of ideas would be a lot of work for likely not a lot of return (i was thinking once what if the RV village was used more than just games? Like you could "camp" there during other times? Maybe a good idea, but may not even more the financial needle.

Charge parking for non-donor areas for bball games? (like $5-10 a car?)...again, wouldn't move the needle probably much.

Garth was probably going to play in Ames this summer had those allegations not come against him and he decided to duck away out of the limelight for now.

 

[cytor]

Isn’t that why we are building CyTown?

Cytown was built primarily to fund the upkeep and renovations on CY Stephens, Scheman and Hilton if I recall correctly. It remains to be seen if any of it will eventually flow into the athletic dept for all the other crazy stuff. For those in the know, feel free to correct me or add on.

 

[clone52]

2025 and 2026: We have rainy day funds to cover $25m/yr (estimated)
2027,28,29,30,31: We'll average a $29.4m deficit per year. (Totaling $147m)

If ISU's core constituency consists of 70k fans, that'd mean each person needs to pay $420/yr (extra) to make up that $29.4m annually. Ultimately, I think the NCAA will lower the number of required sports, and we'll (need to) see the end of programs like track, cross country, golf, swimming.

Does the athletic department line item the budgets of the other sports? Would elimination put much of a dent into things anyway?

The state and honestly the city of Ames need to step up. If Iowa State athletics were to go down the crapper, the economic impact to Ames and the entire state would be enormous.

 

[Trice]

As far as the bridge, yes it had to be built. The bridge was necessary because of the RV Village, and the RV Village was necessary because of CyTown. CyTown is how they plan on covering some of this "shortfall" as well as renovate Stephens and Fisher.

But for the overall article, that was the definition of sensationalism. Especially the title. Yes, if everything stays exactly how it is, they'll have a big deficit in 7 years. But things aren't going to stay the same. B12 payout will increase for one. Right now, we are taking a hit from bringing in the 4 corner schools. That will go away with a new TV contract. CyTown revenue will start kicking in. I would guess that they'll add some sort of student athletic fee. Jamie will probably have to cave and start selling booze at JTS. I think that there are things they could do to make this up, but the article is slanted toward what happens if we do nothing.

Nah, it isn't sensationalism. ISU provided the facts and figures! You can't be a public entity and expect that the facts and figures you provide will not hit the news.

 

[cytor]

Private equity will cover this. And selling meth at JTS and Hilton

This will be a real game changer in the tailgating scene.

 

[Trice]

Irrelevant. The Bridge was funded by private donors.

Private donors who carry out the vision of the athletic director. If Pollard had wanted something else, they would have donated to that.

To be clear, I don't have any particular issue with the bridge. I'm just pointing out that it would never be built in this environment. It's a vestige of the days where the TV money faucet just flowed endlessly and athletic departments had nothing better to do than to spend on flashy facility upgrades of marginal utility.

 

[StPaulCyclone]

Garth was probably going to play in Ames this summer had those allegations not come against him and he decided to duck away out of the limelight for now.

I remember hearing that there was another concert planned and that it was cancelled on the performers end, but can't recall who or why.

 

[1UNI2ISU]

Does the athletic department line item the budgets of the other sports? Would elimination put much of a dent into things anyway?

The state and honestly the city of Ames need to step up. If Iowa State athletics were to go down the crapper, the economic impact to Ames and the entire state would be enormous.

Literally the same argument the city of Cedar Falls and UNI have been making for years that has fallen completely and totally on deaf ears. The legislature nor the BOR give a damn about that.

 

[Trice]

Sorry, but I think the bridge has been an absolute home run in terms of ROI as well as aesthetics.

Not only does it serve a huge purpose functionally (have you seen the mass of humanity crossing it before and after games?), it has become an instant campus landmark that the major networks always show when broadcasting our games to the rest of the nation.

Don't disagree on any of your arguments, but let me know when that B-roll footage of the bridge they show for 10 seconds at the top of the broadcast or when they cut to commercial starts sending residual checks. Then we can talk ROI.

 

[WooBadger18]

Split off football to its own entity then the school’s can subsidize the Olympic sports since those the whole “amateurism” concept still applies to. If they want to keep sports for the student athletes. Probably have to make the football players employees with this direction though.

I’m thinking they may have to sell it to private investors if they were going to go that route. Apparently Kansas State’s athletic department is in an llc, but I’m assuming it’s owned completely by the university and subject to title ix.

And then you’re opening up a whole new can of worms. Does the money work, can an independent company compete in ncaa football, do the fans follow, etc.

I think the likely thing is probably cut costs where they can, add revenue where they can, and then don’t pay out the full amount if they can’t make it work

 

[Frak]

Nah, it isn't sensationalism. ISU provided the facts and figures! You can't be a public entity and expect that the facts and figures you provide will not hit the news.

Disagree. The figures are fine, but they are not facing a deficit right now. Down the line they would be if NOTHING changes. Title is misleading.

 

[1UNI2ISU]

Disagree. The figures are fine, but they are not facing a deficit right now. Down the line they would be if NOTHING changes. Title is misleading.

Where is this giant infusion of cash coming from in the next 24 months? The headline is accurate.