| NEWS Alabama athletics faces $75 million shortfall, AD tells donors - AL.com

[Bama News]

Alabama athletics faces $75 million shortfall, AD tells donors

The COVID-19 crisis will have a significant impact on Alabama athletics' bottom line.

www.al.com

The COVID-19 crisis was always going to be costly to event-based operations like college athletics department. It’s just a matter of how much, at this point.

In a letter to TIDE PRIDE season ticket holders sent Thursday night, Alabama AD Greg Byrne revealed an estimate of the losses the department faces.

It’s looking at “a potential $75 million revenue shortfall,” Byrne wrote to TIDE PRIDE members in part to thank them for their financial support.

The athletics department averaged $169.9 million in revenue over the past four years of financials reported to the NCAA. That $75 million deficit would represent a 44 percent loss in that average revenue.

Byrne also noted an average 22% reduction to operating budgets across the department.

Other cost cutting measures included limiting expenses to “essential purchases only,” a hiring freeze on non-coaching jobs and a “multiyear staff reduction and compensation containment plan,” Byrne wrote.

The moves made to date have saved $16 million, according to the email.

“As a TIDE PRIDE member, your support provides crucial funding for our athletic programs,” Byrne wrote. “Annual TIDE PRIDE contributions and ticket sales account for approximately 40 percent of the athletics department’s revenues and fund many critical components of the student-athlete experience including scholarships, academic support, leadership development, nutrition, strength and conditioning, mental health and sports medicine.”

Alabama will sell 20 percent of Bryant-Denny Stadium seats for the five home games. Football ticket revenue accounted for $36 million last year.

 

[Brandon Van de Graaff]

Have a feeling that this financial hit didn't just kick the "new(ish) basketball arena" can down the road, it kicked it down a hill and it rolled off a cliff into a river, filled up with water and sank.

 

[TerryP]

Have a feeling that this financial hit didn't just kick the "new(ish) basketball arena" can down the road, it kicked it down a hill and it rolled off a cliff into a river, filled up with water and sank.

Some of these "keep my money" deals are going to the 'Core,' but as I've read that budget hasn't been affected yet. Ya know, kicking the money back is paying three times the points.

 

[50+yeartidefan]

Have a feeling that this financial hit didn't just kick the "new(ish) basketball arena" can down the road, it kicked it down a hill and it rolled off a cliff into a river, filled up with water and sank.

Good. Redoing colman C is a waste of money anyway. Maybe get some new leadership in that sees bama needs a state of art arena

 

[Brandon Van de Graaff]

Good. Redoing colman C is a waste of money anyway. Maybe get some new leadership in that sees bama needs a state of art arena

I'm 100% for a completely new arena, but I don't see it happening at this point. Personally, I was a bit disappointed with the final results of the baseball rebuild, based on the potential of what it could have been.

 

[OldPlayer]

I'm 100% for a completely new arena, but I don't see it happening at this point. Personally, I was a bit disappointed with the final results of the baseball rebuild, based on the potential of what it could have been.

At this point a new arena means a new location. They're working on a bridge that brings traffic from 15th Street straight through the Coleman parking lot (which is where a new facility would be built). With that location out, you now need to acquire land ($$$) or build where something else is.

 

[TerryP]

It certainly seems answers to questions like ... where's the funding coming from for women's soccer ... aren't on the mind of some.

 

[mando]

It certainly seems answers to questions like ... where's the funding coming from for women's soccer ... aren't on the mind of some.

I was just about to ask that .

 

[Brandon Van de Graaff]

At this point a new arena means a new location. They're working on a bridge that brings traffic from 15th Street straight through the Coleman parking lot (which is where a new facility would be built). With that location out, you now need to acquire land ($$$) or build where something else is.

Only if they don't want to play in B'ham for a season, but they could rebuild it where it stands now, IMO. In a perfect world, you put one where the law school sits and build a newer law school elsewhere. Or, build on the Bryce land they bought nearer to the softball/tennis facilities. UA has been trying to buy up the University Mall property for years, and they'll eventually get it, but they won't get it in time to solve this issue. There's pros and cons to all of it. I just hope they get it redone in some sort of a timely fashion and that the end result is worth it.

 

[Brandon Van de Graaff]

It certainly seems answers to questions like ... where's the funding coming from for women's soccer ... aren't on the mind of some.

Since Byrne doesn't take it seriously, he can cut the WBB program and save soccer.

 

[OldPlayer]

It certainly seems answers to questions like ... where's the funding coming from for women's soccer ... aren't on the mind of some.

Several sports from big conference schools have already been eliminated.

 

[50+yeartidefan]

Several sports from big conference schools have already been eliminated.

Hopefully not eliminated completely....just postponed til the financial crisis is handled....

 

[TerryP]

Several sports from big conference schools have already been eliminated.

I'm well aware. Utah has shut down everything this week "until further notice." Some of their programs will not be back.

U of U furloughs every employee in athletic department, coaches and AD included

The University of Utah will furlough every employee in its athletic department, including Athletic Director Mark Harlan and team coaches because of financial shortfalls in a global pandemic. Harlan released a statement about the furloughs Friday and said the decision was "difficult — but...

kutv.com

 

[mando]

These AD's from PAC-12 and BIG are now having to live with the decision. Heck it is bad enough in the conferences that are going to play but if you completely shut it down you have no option but to let most go.

 

[TerryP]

Since Byrne doesn't take it seriously, he can cut the WBB program and save soccer.

That's 15 grants in aid he'd cut if he goes that route. If we're talking scholarship per scholarship (which Title IV isn't completely about those numbers) we're looking at baseball and tennis gone. (15 vs 11.7 and 4.5.)

The way I've come to understand this is the monies for Coleman (and what's currently happening at BDS) are separate entities. It does make sense if the economic climate is down it will have a bearing on Coleman (if for nothing more than rising material cost.)

What doesn't make sense to me are those finding some sort of joy at the suggestion this shortfall might delay construction. They don't get a lot may end up being taken away from our "sports menu" with UA. And, sadly, that means some students (non-athletic) educational opportunities as well.

Hey, there's a chance we can make it through this as a group (boosters, alumni, et. al.) There's also a good chance we may see the University looking for a loan situation as others have done. I don't care for the idea of borrowing to stay afloat.

 

[BamaFan334]

That's 15 grants in aid he'd cut if he goes that route. If we're talking scholarship per scholarship (which Title IV isn't completely about those numbers) we're looking at baseball and tennis gone. (15 vs 11.7 and 4.5.)

The way I've come to understand this is the monies for Coleman (and what's currently happening at BDS) are separate entities. It does make sense if the economic climate is down it will have a bearing on Coleman (if for nothing more than rising material cost.)

What doesn't make sense to me are those finding some sort of joy at the suggestion this shortfall might delay construction. They don't get a lot may end up being taken away from our "sports menu" with UA. And, sadly, that means some students (non-athletic) educational opportunities as well.

Hey, there's a chance we can make it through this as a group (boosters, alumni, et. al.) There's also a good chance we may see the University looking for a loan situation as others have done. I don't care for the idea of borrowing to stay afloat.

If they borrow and act responsibly they should have no problem paying it off very quickly in efforts of saving those futures for athletes they recruited. The greed 50 and I spoke about is rearing its head. The nonsensical spending and all that money spent to look good in the national arms race of facilities, should have put some back for a rainy day.

This is where I get pissed off when it comes to white collar folks screwing over the little man. They spend and spend and spend thinking it'll never dry up. They ask and ask and ask for more money like it'll never dry up. They get all of this money so they can recruit kids in high school so they can take their talents to Alabama once they graduate, and now all of a sudden after trying to turn the campus into a metropolis type Disney Land, they run short on funds and may discontinue the future of athletes needing that opportunity all while Byrne keeps his job and still lives high on the hog. We can say what we want, but the Board of Directors at Alabama know the prestige of our athletics programs and after the last two AD's that freaking knocked it out of the park, I don't see them getting rid of Byrne because it would show weakness and a sign that maybe he wasn't the guy doing it the way it needed to be done and therefor a miss on their part. He may be doing absolute great things from a place I don't know about, but I haven't personally cared for him after Moore and Battle. Nothing to me personally, other than wanting more of my money to make up for his ultimate fails. It's just unfortunate that we are one of the few programs that make a profit, yet here we are discussing the potential cut in athletes, the one thing we are supposed to support and progress to a better life.

 

[Brandon Van de Graaff]

That's 15 grants in aid he'd cut if he goes that route. If we're talking scholarship per scholarship (which Title IV isn't completely about those numbers) we're looking at baseball and tennis gone. (15 vs 11.7 and 4.5.)

The way I've come to understand this is the monies for Coleman (and what's currently happening at BDS) are separate entities. It does make sense if the economic climate is down it will have a bearing on Coleman (if for nothing more than rising material cost.)

What doesn't make sense to me are those finding some sort of joy at the suggestion this shortfall might delay construction. They don't get a lot may end up being taken away from our "sports menu" with UA. And, sadly, that means some students (non-athletic) educational opportunities as well.

Hey, there's a chance we can make it through this as a group (boosters, alumni, et. al.) There's also a good chance we may see the University looking for a loan situation as others have done. I don't care for the idea of borrowing to stay afloat.

My post was in jest, I don't really want anything cut (and would be stunned if anything was). It was just a bit of a shot above Byrne's bow over his soft gloves handling of Curry.

Makes sense re: the Coleman funds being in a separate piggy bank. I guess my feeling (and could well be wrong), is that it will be much harder to raise those needed funds for the foreseeable future.

Would be nice too right now if we were not having to swallow that awful Nike contract (in terms of value). I still don't get what Battle was doing there.

 

[TerryP]

If they borrow and act responsibly they should have no problem paying it off very quickly in efforts of saving those futures for athletes they recruited. The greed 50 and I spoke about is rearing its head. The nonsensical spending and all that money spent to look good in the national arms race of facilities, should have put some back for a rainy day

And we're left with a football program like we saw in the 80's.

This "nonsensical spending" has increased the revenue of the athletic department by 82+% since 2006. Since when does it lack sense to spend money to make money?

And, once again, one has nothing to do with the other. The improvements we see around the athletic complex aren't derived from the same monies as the shortfall mentioned here. Schools' athletic departments don't operate the way you're suggesting. If fact, this "rainy day fund" you're suggesting means millions taken away from the academic side. Alabama, being one of the few that actually has a profit, gives money back to the institution and you want that to change?

There is a building fund. There is an operational fund. The shortfall comes from the latter.

 

[Brandon Van de Graaff]

If they borrow and act responsibly they should have no problem paying it off very quickly in efforts of saving those futures for athletes they recruited. The greed 50 and I spoke about is rearing its head. The nonsensical spending and all that money spent to look good in the national arms race of facilities, should have put some back for a rainy day.

This is where I get pissed off when it comes to white collar folks screwing over the little man. They spend and spend and spend thinking it'll never dry up. They ask and ask and ask for more money like it'll never dry up. They get all of this money so they can recruit kids in high school so they can take their talents to Alabama once they graduate, and now all of a sudden after trying to turn the campus into a metropolis type Disney Land, they run short on funds and may discontinue the future of athletes needing that opportunity all while Byrne keeps his job and still lives high on the hog. We can say what we want, but the Board of Directors at Alabama know the prestige of our athletics programs and after the last two AD's that freaking knocked it out of the park, I don't see them getting rid of Byrne because it would show weakness and a sign that maybe he wasn't the guy doing it the way it needed to be done and therefor a miss on their part. He may be doing absolute great things from a place I don't know about, but I haven't personally cared for him after Moore and Battle. Nothing to me personally, other than wanting more of my money to make up for his ultimate fails. It's just unfortunate that we are one of the few programs that make a profit, yet here we are discussing the potential cut in athletes, the one thing we are supposed to support and progress to a better life.

I think there's been some good and bad with Byrne. Overall, I like the guy. But, he's certainly different than anything we've had here. And I did believe, and still do, that we needed an outsider at AD for now. Though I'll admit, that also leads to problems as well.

 

[TerryP]

My post was in jest, I don't really want anything cut (and would be stunned if anything was). It was just a bit of a shot above Byrne's bow over his soft gloves handling of Curry.

I got that about the building and saw where it was sidetracked. And I, like you, wish I had an answer for what he thinks about Curry. I'm confused.

Makes sense re: the Coleman funds being in a separate piggy bank. I guess my feeling (and could well be wrong), is that it will be much harder to raise those needed funds for the foreseeable future.

That very well may be the case. I can see where pledges would have a harder time being fulfilled. Thankfully, they were well underway before this spring.

Would be nice too right now if we were not having to swallow that awful Nike contract (in terms of value). I still don't get what Battle was doing there

There is one aspect of that I seldom see mentioned: Battle agreed to the extension a long time before it was announced and that date goes back to before we see that huge increase in payouts from shoe deals. The contract with Nike and UA was in 2013. Nike deal with Michigan, as one example, happened in 2015.

People got ticked off at Battle because they learned of the deal in 2018. I truly believe we wouldn't have seen the outlash if it was announced in 2013 when it was agreed upon. But hey, mentioning 2013 in 2018 doesn't carry as much 'weight' in news articles as pointing to UM in 2015 and comparing it to the press release from UA in 2018.

Can we get mad at Battle for not seeing the market change in the future? I suppose if we also believe he was supposed to see in the future.