Money and Kicking the Can down the road.

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superiorcyclone

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Dec 12, 2013
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1. Where is the money for scholarships going to come from if football is cancelled. Football pays for the AD expenses and virtually all scholarships.
2. Why do people assume that the risk to college age kids will be better by spring or fall of 2021? Coronavirus is not going away.
 

Macloney

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1. Where is the money for scholarships going to come from if football is cancelled. Football pays for the AD expenses and virtually all scholarships.
2. Why do people assume that the risk to college age kids will be better by spring or fall of 2021? Coronavirus is not going away.

1) What are the real costs of scholarships? Throwing someone in a class doesn't really cost that much if anything at all, the class is happening anyway. Food would be something like a measurable cost. Housing is probably a fuzzy area, I would imagine that most housing at ISU is paid for and any fees paid are pure profit, minus operating costs.
2) Nobody that actually has done any critical thinking actually believes that, it is a talking point to make people feel better. Exactly like when games with reduced crowds were announced, nobody with any common sense actually thought that would happen.
 

BCClone

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Not exactly sure.
1. Where is the money for scholarships going to come from if football is cancelled. Football pays for the AD expenses and virtually all scholarships.
2. Why do people assume that the risk to college age kids will be better by spring or fall of 2021? Coronavirus is not going away.


1). Jamie will be hitting up donors and any savings the AD may have. The athletic department is considered to be self sufficient so they pay the instate/out of state tuition, room and board costs, books, and what is stated as personal expenses that is listed by ISU. Quick math of 500 scholarships at 20k is 10MM.
 

Clonehomer

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I'd assume you'll be seeing requests to issue bonds to pay for this year's expenses. Seems the only way short of funding from outside the AD which wouldn't be a positive action.
 

theshadow

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1). Jamie will be hitting up donors and any savings the AD may have. The athletic department is considered to be self sufficient so they pay the instate/out of state tuition, room and board costs, books, and what is stated as personal expenses that is listed by ISU. Quick math of 500 scholarships at 20k is 10MM.

If every sport at ISU maxes out its allotment, that's 236 scholarships/equivalencies. The total dollar value cited by Pollard is appx. $9 million.
 

BCClone

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Not exactly sure.
If every sport at ISU maxes out its allotment, that's 236 scholarships/equivalencies. The total dollar value cited by Pollard is appx. $9 million.


Yeah, I wasn't thinking real strong and just going off JP talking about 400-500 student athletes. Obviously they aren't all full ride scholarship students. Brain fart on my end. Thanks for the correction.
 

superiorcyclone

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1). Jamie will be hitting up donors and any savings the AD may have. The athletic department is considered to be self sufficient so they pay the instate/out of state tuition, room and board costs, books, and what is stated as personal expenses that is listed by ISU. Quick math of 500 scholarships at 20k is 10MM.
The total expenses last year were, just guessing, $60 Million? Where is that money going to come from? It is more than just schollies.
 

BCClone

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Not exactly sure.
The total expenses last year were, just guessing, $60 Million? Where is that money going to come from? It is more than just schollies.


I know, I was just responding to your scholarship question. Our total budget was 85MM or so. We would cut some expenses and pending on what sports get cancelled, that would make a difference. I would guess if FB goes, that no way we play BB or have wrestling in the winter. So that would bury all the TV money and a lot of later donations.
 
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SEIOWA CLONE

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So the budget was 85 MM and scholarship costs were 9 MM for all athletes on scholarship, that leaves us with 76 MM. That number would include all salaries of the coaches, upkeep for the facilities, and the day to day operations like scouting and so forth. The big number on the budget is travel, it has to cost the school serious money to fly/bus the teams around the Midwest and back, providing at least one night in hotel rooms for the teams and feeding them while they are there.
If there is no season, then that expense will not occur.
The other big cost would be loan payments on the debt for the stadium renovations, and the rest of it, but the university could bond for that money if its only for one year.
 

SCarolinaCy

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Jun 20, 2011
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1) What are the real costs of scholarships? Throwing someone in a class doesn't really cost that much if anything at all, the class is happening anyway. Food would be something like a measurable cost. Housing is probably a fuzzy area, I would imagine that most housing at ISU is paid for and any fees paid are pure profit, minus operating costs.
2) Nobody that actually has done any critical thinking actually believes that, it is a talking point to make people feel better. Exactly like when games with reduced crowds were announced, nobody with any common sense actually thought that would happen.
1. Where is the money for scholarships going to come from if football is cancelled. Football pays for the AD expenses and virtually all scholarships.
2. Why do people assume that the risk to college age kids will be better by spring or fall of 2021? Coronavirus is not going away.
Most of football revenue has already been paid by season ticket holders, yes? Pollard will extend this as a future credit, not refunds.
 
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isucy86

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1) What are the real costs of scholarships? Throwing someone in a class doesn't really cost that much if anything at all, the class is happening anyway. Food would be something like a measurable cost. Housing is probably a fuzzy area, I would imagine that most housing at ISU is paid for and any fees paid are pure profit, minus operating costs.
2) Nobody that actually has done any critical thinking actually believes that, it is a talking point to make people feel better. Exactly like when games with reduced crowds were announced, nobody with any common sense actually thought that would happen.

That is some wild logic. If you are not a Sales person, you should be. But you might be onto something. Kind of along the lines of George Costanza doing the opposite of his natural instincts.

It might actually work, so I should give it a try. I'll call Jamie Pollard and say "Jamie, I would like my football and hoops season tickets for free. After all, my seat didn't really add anything to construction cost of Jack Trice or Hilton. At Jack Trice, the cost of my bench seat was paid off 20 years ago." If that doesn't fly, I can always say to Jamie, Hey I am a pretty thin guy. My backside is only a foot wide, so if you can't see it to giving me the ticket for free. How about 60% of normal cost. You can pick it up from the fat dude next to me!

Getting back your original statements. I think Wendy Wintersteen and the VP of Finance are counting on the Athletic Department scholarship money to pay university costs. But then again maybe Jamie is in the basement of the Jacobson building late at night printing Cy-Bucks and shipping them over to Beardshear to pay professor salaries and keep the lights on in Curtis Hall. If the AD doesn't pay the $10M then the 30,000 other students have to subsidize the cost of athlete's scholarships.

In regard to room- most athletes aren't living in the residents halls. They are living in off-campus apartments and I am guessing just like Wintersteen, those property owners aren't going to take Cy-bucks for payment.
 

Macloney

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Feb 28, 2014
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That is some wild logic. If you are not a Sales person, you should be. But you might be onto something. Kind of along the lines of George Costanza doing the opposite of his natural instincts.

It might actually work, so I should give it a try. I'll call Jamie Pollard and say "Jamie, I would like my football and hoops season tickets for free. After all, my seat didn't really add anything to construction cost of Jack Trice or Hilton. At Jack Trice, the cost of my bench seat was paid off 20 years ago." If that doesn't fly, I can always say to Jamie, Hey I am a pretty thin guy. My backside is only a foot wide, so if you can't see it to giving me the ticket for free. How about 60% of normal cost. You can pick it up from the fat dude next to me!

Getting back your original statements. I think Wendy Wintersteen and the VP of Finance are counting on the Athletic Department scholarship money to pay university costs. But then again maybe Jamie is in the basement of the Jacobson building late at night printing Cy-Bucks and shipping them over to Beardshear to pay professor salaries and keep the lights on in Curtis Hall. If the AD doesn't pay the $10M then the 30,000 other students have to subsidize the cost of athlete's scholarships.

In regard to room- most athletes aren't living in the residents halls. They are living in off-campus apartments and I am guessing just like Wintersteen, those property owners aren't going to take Cy-bucks for payment.

I don't even know what you are saying here.
 
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isucy86

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Apr 13, 2006
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I am saying you have no clue.

The ISU athletic department has to pay the University for the tuition cost for student athletes. From an overall budgeting standpoint Iowa State is counting on the $10M reimbursement for tuition costs to pay teacher salaries, facility costs, etc.

Similarly, apartment owners require US dollars when athletes pay rent. So again a real expense for the athletic department.

Your logic is similar to a number of Salespeople I have worked with that ask for incremental pricing to get a deal done.
 

Macloney

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Feb 28, 2014
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I am saying you have no clue.

The ISU athletic department has to pay the University for the tuition cost for student athletes. From an overall budgeting standpoint Iowa State is counting on the $10M reimbursement for tuition costs to pay teacher salaries, facility costs, etc.

Similarly, apartment owners require US dollars when athletes pay rent. So again a real expense for the athletic department.

Your logic is similar to a number of Salespeople I have worked with that ask for incremental pricing to get a deal done.

You sound like a lunatic.

I was talking about getting through one season.

1597272159036.png
 

isucy86

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Apr 13, 2006
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You sound like a lunatic.

I was talking about getting through one season.

View attachment 74291

Doesn't change the answer. Iowa State relies on the athletic department tuition & room money to cover costs. ISU waives that money for 1 year, that increases the number of university employees Wendy Wintersteen would have to lay-off.

Maybe you didn't see the news but ISU is projected to run a deficit of something like $70M due to lost revenues and increased costs due to the pandemic. I don't think that includes recent news from the legislature they were further cutting funding for Iowa's 3 public universities.

So if there was a fiscal year ISU was relying on tuition & room reimbursement from the Athletic Department, this is the year.
 

Macloney

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Feb 28, 2014
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Doesn't change the answer. Iowa State relies on the athletic department tuition & room money to cover costs. ISU waives that money for 1 year, that increases the number of university employees Wendy Wintersteen would have to lay-off.

Maybe you didn't see the news but ISU is projected to run a deficit of something like $70M due to lost revenues and increased costs due to the pandemic. I don't think that includes recent news from the legislature they were further cutting funding for Iowa's 3 public universities.

So if there was a fiscal year ISU was relying on tuition & room reimbursement from the Athletic Department, this is the year.

Do you live on planet Earth?
 
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isucy86

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Apr 13, 2006
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Do you live on planet Earth?

Yes Finance person so I know how budgetting process works.

People also immediately say, issue debt to pay for the deficits. That might be a good solution at University level. Only problem is someone has to be willing to lend/invest.
 

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