Note: Words of caution for all NCAA schools...

They are 240M in debt on athletic facilities. They apparently spend, spend and spend some more...

And this is even with big gifts.

"The University of Michigan athletic department sits atop $240 million in debt at a time when several major college athletics programs are grappling with enormous and potentially crippling debt loads."

http://www.crainsdetroit.com/article/201...ics-debt-a

We are now at the 'high water' mark for revenues from ESPN, etc. In 10 years, revenues might be flat or decline as cable TV revenues decline to ESPN and other content providers.

The MAC is set where they are on a long-term contract. That contract in decades ahead will not go up, I'd guess.

I couldn't read the article as the link didn't work. That being said I don't feel UM is the team that is in danger. It's the Rutgers, UC, etc. who are trying to keep up with the Joneses.

(02-27-2017 07:18 AM)kreed5120 Wrote:  I couldn't read the article as the link didn't work. That being said I don't feel UM is the team that is in danger. It's the Rutgers, UC, etc. who are trying to keep up with the Joneses.

Yeah, that's what I'm thinking. Michigan has the potential to generate a lot of revenue relatively quickly so even if they have a lot of bills to pay they have a huge fan base to absorb them. This much debt is playing with fire, but a non-power trying to punch above their weight (see Cal) is at far higher risk of financial ruin.

This reminds me, in a crazy way, of the Cold War in the 1980s.

I thin historians believe that President Reagan with our arms build up, spent the Soviet Union into financial ruin. We had the greater financial resources so we won. They had less and lost and dissolved in 1991.

As indicated above, don't worry about UofM, OSU, PSU, MSU, WI, etc. BUT Rutgers, Indiana, Illinois, Northwestern, etc. Maryland is struggling badly from their days in the ACC.

We talk of the P5 - G5 split with the financial haves and have nots. The B1G needs to be careful that a 'have' conference doesn't have a "Half Have' and a 'have not half" half conferences (do not say that after drinking... Lol.

(02-27-2017 08:40 AM)emu steve Wrote:  This reminds me, in a crazy way, of the Cold War in the 1980s.

I thin historians believe that President Reagan with our arms build up, spent the Soviet Union into financial ruin. We had the greater financial resources so we won. They had less and lost and dissolved in 1991.

As indicated above, don't worry about UofM, OSU, PSU, MSU, WI, etc. BUT Rutgers, Indiana, Illinois, Northwestern, etc. Maryland is struggling badly from their days in the ACC.

We talk of the P5 - G5 split with the financial haves and have nots. The B1G needs to be careful that a 'have' conference doesn't have a "Half Have' and a 'have not half" half conferences (do not say that after drinking... Lol.

UM just needs to sell more hats at walmart, they will be fine

(02-27-2017 08:40 AM)emu steve Wrote:  As indicated above, don't worry about UofM, OSU, PSU, MSU, WI, etc. BUT Rutgers, Indiana, Illinois, Northwestern, etc. Maryland is struggling badly from their days in the ACC.

This is a feature in the Big 10, not a bug, as it allows the rich to get richer.

The top schools have no problem with a historically mediocre bottom of the conference because it's always nice to get a home win in front of 100,000 paying fans and a couple more bball wins per year in front of 30,000.

The media money is in decline nationally as ESPN is showing drops in revenue quarter by quarter, much to the consternation of The Mouse. It would seem we have passed the high water mark for media payouts for college sports. ESPN has been slashing costs wherever they can lately.

(02-27-2017 02:22 PM)Lord Stanley Wrote:  

(02-27-2017 08:40 AM)emu steve Wrote:  As indicated above, don't worry about UofM, OSU, PSU, MSU, WI, etc. BUT Rutgers, Indiana, Illinois, Northwestern, etc. Maryland is struggling badly from their days in the ACC.

This is a feature in the Big 10, not a bug, as it allows the rich to get richer.

The top schools have no problem with a historically mediocre bottom of the conference because it's always nice to get a home win in front of 100,000 paying fans and a couple more bball wins per year in front of 30,000.

Outside of Syracuse, who plays in a 30k seat arena?

(02-27-2017 02:28 PM)axeme Wrote:  The media money is in decline nationally as ESPN is showing drops in revenue quarter by quarter, much to the consternation of The Mouse. It would seem we have passed the high water mark for media payouts for college sports. ESPN has been slashing costs wherever they can lately.

Think Disney might unload?

(02-27-2017 04:33 PM)JSF Wrote:  

(02-27-2017 02:28 PM)axeme Wrote:  The media money is in decline nationally as ESPN is showing drops in revenue quarter by quarter, much to the consternation of The Mouse. It would seem we have passed the high water mark for media payouts for college sports. ESPN has been slashing costs wherever they can lately.

Think Disney might unload?

No way. It's been an incredible cash cow for Disney. They just aren't making money like they were. You know how those corporate types get nervous when the rate of growth slows. I just think we've seen the end of the ridiculous growth of broadcast sports revenues because of the increasing splintering of the delivery systems and viewer choices. It was a lot easier to make money on it when you had a virtual monopoly on how tv got delivered. Viewers want the ability to choose what they even have access to, let alone watch. How people watch anything is becoming more and more fragmented.

Crowds and viewers for almost all sports are in decline and yet more and more games are being broadcast. Overhead continues to grow and return is harder to come by. The margins are getting tighter.

(02-27-2017 05:45 PM)axeme Wrote:  

(02-27-2017 04:33 PM)JSF Wrote:  

(02-27-2017 02:28 PM)axeme Wrote:  The media money is in decline nationally as ESPN is showing drops in revenue quarter by quarter, much to the consternation of The Mouse. It would seem we have passed the high water mark for media payouts for college sports. ESPN has been slashing costs wherever they can lately.

Think Disney might unload?

No way. It's been an incredible cash cow for Disney. They just aren't making money like they were. You know how those corporate types get nervous when the rate of growth slows. I just think we've seen the end of the ridiculous growth of broadcast sports revenues because of the increasing splintering of the delivery systems and viewer choices. It was a lot easier to make money on it when you had a virtual monopoly on how tv got delivered. Viewers want the ability to choose what they even have access to, let alone watch. How people watch anything is becoming more and more fragmented.

Crowds and viewers for almost all sports are in decline and yet more and more games are being broadcast. Overhead continues to grow and return is harder to come by. The margins are getting tighter.

Excellent points!!

Corporations are 'addicted' to growth. If profits rise say 5% per year, year over year, boring, boring, boring. They love big, unsustainable growth numbers.

There is a difference between slow growth, sustainable growth and decline.

I don't see the decline yet.

(02-27-2017 03:15 PM)kreed5120 Wrote:  

(02-27-2017 02:22 PM)Lord Stanley Wrote:  

(02-27-2017 08:40 AM)emu steve Wrote:  As indicated above, don't worry about UofM, OSU, PSU, MSU, WI, etc. BUT Rutgers, Indiana, Illinois, Northwestern, etc. Maryland is struggling badly from their days in the ACC.

This is a feature in the Big 10, not a bug, as it allows the rich to get richer.

The top schools have no problem with a historically mediocre bottom of the conference because it's always nice to get a home win in front of 100,000 paying fans and a couple more bball wins per year in front of 30,000.

Outside of Syracuse, who plays in a 30k seat arena?

I was clumsily trying to say 15k fans at each game.