USM Birds of War
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Clarification needed for basketball revenue
I'm trying to determine how much revenue each school will get from the NCAA tournament this year. Are all schools leaving the conference this year giving up everything related to NCAA units? For example, Memphis would normally get $200,000 off the top of the pool because they actually made the tournament. Will this still apply?
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03-12-2013 10:28 AM |
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AndreWhere
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RE: Clarification needed for basketball revenue
I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
(This post was last modified: 03-12-2013 11:27 AM by AndreWhere.)
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03-12-2013 11:26 AM |
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USM Birds of War
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RE: Clarification needed for basketball revenue
(03-12-2013 11:26 AM)AndreWhere Wrote: I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
I should have been more specific. I know the units stay behind, but I remember reading various posts about how teams were giving up basketball revenue this year as part of their exit fee. For example, if Memphis is one and done in the tournament, they'd take in a little more than $564k once all the math is done.
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03-12-2013 11:31 AM |
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nastybunch
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RE: Clarification needed for basketball revenue
(03-12-2013 11:31 AM)USM Birds of War Wrote: (03-12-2013 11:26 AM)AndreWhere Wrote: I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
I should have been more specific. I know the units stay behind, but I remember reading various posts about how teams were giving up basketball revenue this year as part of their exit fee. For example, if Memphis is one and done in the tournament, they'd take in a little more than $564k once all the math is done.
You have to remember, Andre is a Gianinni lover that will do whatever he can to discredit our new outstanding AD Jeff Hammond. So take it with a grain of salt on whatever he posts about Southern Miss.
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03-12-2013 11:36 AM |
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oldtiger
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RE: Clarification needed for basketball revenue
(03-12-2013 11:31 AM)USM Birds of War Wrote: (03-12-2013 11:26 AM)AndreWhere Wrote: I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
I should have been more specific. I know the units stay behind, but I remember reading various posts about how teams were giving up basketball revenue this year as part of their exit fee. For example, if Memphis is one and done in the tournament, they'd take in a little more than $564k once all the math is done.
I think that what you may have read was that programs are using basketball credits to offset exit fees, for which this year's credit should also qualify. If programs are using other basketball revenue to offset exit fees, such as conference tourney $, TV revenue from basketball, etc; I just missed it somewhere.
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03-12-2013 11:40 AM |
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nastybunch
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RE: Clarification needed for basketball revenue
oldtiger, I am really going to miss you as a poster here. You are a level headed guy that tells in like it is and doesn't mind giving credit where credit is due. Please drop by from time to time to our board.
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03-12-2013 11:44 AM |
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GoGold
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RE: Clarification needed for basketball revenue
(03-12-2013 11:36 AM)nastybunch Wrote: You have to remember, Andre is a Gianinni lover that will do whatever he can to discredit our new outstanding AD Jeff Hammond. So take it with a grain of salt on whatever he posts about Southern Miss.
Gianinni lover or not (personally don't think he is, some of you guys are such kitty cats when it comes to anything that suggest Hammond doesn't walk on water) he is actually spot on....to the tee.
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03-12-2013 12:16 PM |
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eaglerock
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RE: Clarification needed for basketball revenue
(03-12-2013 11:26 AM)AndreWhere Wrote: I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
The flatness of our budget alone is sufficient reason to have shown RG the door years ago. It is bad enough that he was not tending to the revenue side of things, but then throw the purchase of $75,000 pressure washers in the mix and it is easy to see how we got here.
JH has already negotiated an increase in our contract on apparel from $139k per year to over $600K per year. That is just one contract. Given time, I think we will see our revenue from other sources continue to increase.
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03-12-2013 12:41 PM |
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gdunn
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RE: Clarification needed for basketball revenue
(03-12-2013 12:16 PM)GoGold Wrote: (03-12-2013 11:36 AM)nastybunch Wrote: You have to remember, Andre is a Gianinni lover that will do whatever he can to discredit our new outstanding AD Jeff Hammond. So take it with a grain of salt on whatever he posts about Southern Miss.
Gianinni lover or not (personally don't think he is, some of you guys are such kitty cats when it comes to anything that suggest Hammond doesn't walk on water) he is actually spot on....to the tee.
I have to disagree Go Gold.. I see it too many times when Andre posts when he compares what RG did his entire career vs what Hammond only accomplished in a year as an interim AD. It's like comparing an entire field of sweet corn to an ear of white corn.
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03-12-2013 01:00 PM |
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oldtiger
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RE: Clarification needed for basketball revenue
(03-12-2013 11:44 AM)nastybunch Wrote: oldtiger, I am really going to miss you as a poster here. You are a level headed guy that tells in like it is and doesn't mind giving credit where credit is due. Please drop by from time to time to our board.
Thanks nastybunch, your kind comments are greatly appreciated.
For all of the back and forth that goes on here, this is probably the best heavily used conference message board on the net. I enjoy it here and I don't discount the work that the moderators do to keep it mostly civil.
With the exception of the outliers that we all have, there's a large group of level-headed fans that also give credit where due.
It ain't exactly that way on that other conference board; every day is a new realignment salvo being fired across someone's bow.
The respect is 100% mutual nastybunch.
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03-12-2013 01:01 PM |
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AndreWhere
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RE: Clarification needed for basketball revenue
(03-12-2013 12:41 PM)eaglerock Wrote: (03-12-2013 11:26 AM)AndreWhere Wrote: I have no idea, but I've got to say one thing: when we were winning games and in a better conference, I never heard much about money. Now that we're not doing either of those things, 90% of USM fans have turned into financial analyst wannabes.
This is my feeling, as someone with a minor in Economics and a lot of Accounting and Finance courses, and a lot of experience in corporate finance : exit fees and severance provisions aren't designed to enrich anyone. They're designed to ensure that the bottom doesn't completely drop out on teams left behind. Look how flat our budget has been in spite of realignment.
Extending this general concept to your question, I think that it's logical to conclude that Memphis will forfeit enough of its tourney credits to keep the "left behind" schools' media revenue flat. That will be a big part of their exit fee. No, UM doesn't
get to run off with their credits... but they are most definitely counted as part of their exit fee.
The flatness of our budget alone is sufficient reason to have shown RG the door years ago. It is bad enough that he was not tending to the revenue side of things, but then throw the purchase of $75,000 pressure washers in the mix and it is easy to see how we got here.
JH has already negotiated an increase in our contract on apparel from $139k per year to over $600K per year. That is just one contract. Given time, I think we will see our revenue from other sources continue to increase.
I agree with that criticism of Giannini.
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03-12-2013 01:01 PM |
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UofMemphis
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RE: Clarification needed for basketball revenue
I know Memphis is using our credits to pay our exit fee...
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03-12-2013 07:53 PM |
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DaSaintFan
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RE: Clarification needed for basketball revenue
(03-12-2013 11:40 AM)oldtiger Wrote: I think that what you may have read was that programs are using basketball credits to offset exit fees, for which this year's credit should also qualify. If programs are using other basketball revenue to offset exit fees, such as conference tourney $, TV revenue from basketball, etc; I just missed it somewhere.
To my knowledge, ONLY credits for the tourney can be used for any offsets to the exit fees.
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03-13-2013 12:05 PM |
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Thegoldstandard
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RE: Clarification needed for basketball revenue
to get back on track. From what i understand, each round is worth about $30,000 per year over 5 years. Its not a lump sum at once.
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03-13-2013 12:41 PM |
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eaglerock
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RE: Clarification needed for basketball revenue
(03-13-2013 12:41 PM)Thegoldstandard Wrote: to get back on track. From what i understand, each round is worth about $30,000 per year over 5 years. Its not a lump sum at once.
Try $300,000 per year over 6 years
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03-13-2013 12:42 PM |
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Thegoldstandard
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RE: Clarification needed for basketball revenue
(03-13-2013 12:42 PM)eaglerock Wrote: (03-13-2013 12:41 PM)Thegoldstandard Wrote: to get back on track. From what i understand, each round is worth about $30,000 per year over 5 years. Its not a lump sum at once.
Try $300,000 per year over 6 years
Thats 1.8 mill for a 1st round game? sure that isnt 300k over 6 years?
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03-13-2013 12:48 PM |
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AndreWhere
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RE: Clarification needed for basketball revenue
(03-13-2013 12:48 PM)Thegoldstandard Wrote: (03-13-2013 12:42 PM)eaglerock Wrote: (03-13-2013 12:41 PM)Thegoldstandard Wrote: to get back on track. From what i understand, each round is worth about $30,000 per year over 5 years. Its not a lump sum at once.
Try $300,000 per year over 6 years
Thats 1.8 mill for a 1st round game? sure that isnt 300k over 6 years?
That's where the Arrogant 7 got all that money to buy the Big East name.
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03-13-2013 01:04 PM |
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USM Birds of War
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RE: Clarification needed for basketball revenue
(03-13-2013 12:48 PM)Thegoldstandard Wrote: (03-13-2013 12:42 PM)eaglerock Wrote: (03-13-2013 12:41 PM)Thegoldstandard Wrote: to get back on track. From what i understand, each round is worth about $30,000 per year over 5 years. Its not a lump sum at once.
Try $300,000 per year over 6 years
Thats 1.8 mill for a 1st round game? sure that isnt 300k over 6 years?
The number this year is estimated to be $250,106 per unit. The amount changes every year, but the units carry over and count for six years. For example, Memphis earned the conference five of the fourteen units from the past five tournaments during their final four run, which will come off the books after this year.
The conference as a whole will get $3.75 million-ish if we have one tournament team go one and-done.
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03-13-2013 01:29 PM |
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