Forbes Article - U of Iowa in deep financial trouble
- Thread starter craptacular9
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Wow. Racist AND broke
But here’s the real answer—spending on football is out of line, not only as compared to the Big Ten, but to their national peers. When you are faced with a big hole in your finances, the first thing you have to do is stop digging. Football spending is the problem.
Iowa Athletics had no financial reserves and acted as if the media revenues would just keep pouring in.
But here’s the real answer—spending on football is out of line, not only as compared to the Big Ten, but to their national peers. When you are faced with a big hole in your finances, the first thing you have to do is stop digging. Football spending is the problem.
Iowa Athletics had no financial reserves and acted as if the media revenues would just keep pouring in.
There will be a lot of universities with this problem.
NCAA will bail them, and other conferences, out this season by relaxing enforcement when it comes to donations/fundraising opportunities (to the benefit of P5 programs). It will likely be the final nail in the NCAAs coffin, but it’s the price they will pay to make sure some of the major brands in college sports can live to see another day.
The $10 million debt service is true but the overall picture is much better. Total University shortfall was projected UP TO $73 million with no fall sports (that includes athletics and academics). Iowa is projecting $100 million in athletics alone.
Open letter from Iowa State Athletics Director Jamie Pollard to Cyclone fans
The following is an open letter Monday to Iowa State fans from the university’s athletics director, Jaime Pollard. Dear Cyclone …
www.thegazette.com
The spending difference for athletics between ISU and Iowa is approx $50 million per year.
sports.usatoday.com
NCAA Finances: Revenue & Expenses by School - USA TODAY
Which are the most profitable college athletic programs in the country? See a ranked listed, including total revenue and expenses. Brought to you by USA TODAY.
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Wonder if Ferentz will donate back some of his salary?
Debt to income ratio grows when interest rates are so low. So, these high debts come as no surprise. It'll be up to 'us', to bail them out. Either through taxes, increased spending on college football, or legislative bankruptcy (which in the end is still us through taxes and, inflation or recession)
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My favorite couple of lines...
"While no one expected a pandemic to upend college sports as this one has, to have the kind of fixed costs (coaching contracts, guarantee games, debt service) that every FBS program like Iowa has, and not have a rainy day fund is malpractice.
Friday’s announcement addressed just $1 million of a $100 million problem- 1%. It begs the question- where is the other 99% coming from?"
As much as we bash Nebraska, it has a rainy day fund of $100M
They might start by reducing the $6M+ that goes to the Ferentz family every year. A $1M reduction in this would have saved the four sports. But my God, depending on Barta to run your athletic program...now that would be best place to start with 100% salary reductions...
"While no one expected a pandemic to upend college sports as this one has, to have the kind of fixed costs (coaching contracts, guarantee games, debt service) that every FBS program like Iowa has, and not have a rainy day fund is malpractice.
Friday’s announcement addressed just $1 million of a $100 million problem- 1%. It begs the question- where is the other 99% coming from?"
As much as we bash Nebraska, it has a rainy day fund of $100M
They might start by reducing the $6M+ that goes to the Ferentz family every year. A $1M reduction in this would have saved the four sports. But my God, depending on Barta to run your athletic program...now that would be best place to start with 100% salary reductions...
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It's fascinating how quickly Iowa went from the penthouse to the outhouse. Just 6 months ago they decided that with $150+ million in annual income, maybe they should start thinking about setting a little aside each year for savings.
Iowa athletic department brings in $5.7 million more than it spent
Hawkeye sports department now has about $4 million in reserves after two good years, Barta says. His goal is to reach $10 million.
www.google.com
Iowa is like the guy who, when he gets a descent raise in his salary, immediately leaves his neighborhood and buys a big beautiful house and a $70,000 shiney new pickup to drive around, and then a year later he gets layed off.
its wild that they borrowed 75 mil but could do an additional 5 mil to keep those sports. seems like they are using as an excuse