Good read on John U. Bacon's Blog (Dave Brandon's $$$$)

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0pusX
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Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 9:32 AM
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I’ve often joked that some Michigan football fans aren’t happy unless they’re not happy.  But after eleven games this season, even they could be excused for having plenty to be unhappy about. A week ago, the Wolverines were 3-and-4 in the Big Ten, with undefeated Ohio State coming up next.
 
The Wolverines had been surprisingly bad all season — until the Ohio State game, when they were suddenly, surprisingly good, falling short by just one point in the final minute.  It was the first time I have ever seen Michigan fans feeling better about their team after a loss than before it.
 
Still, the heroic performance was bittersweet.  The most common reaction I’ve heard this week: Where was that team all year?  And which team will return next year – the one that got crushed by Michigan State, or the one that almost beat the Buckeyes?
 
But Michigan’s bigger problems are off the field, not on it.  In just four years, the athletic department’s budget has expanded from $100 million to $137 million dollars – and that does not include the $340 million earmarked for a new building master plan.  This rapidly growing empire could be threatened by a perfect storm of a bad record, skyrocketing ticket prices, and next season’s horrible home schedule.

 
 
 
http://johnubacon.com/201...here-do-they-spend-it/

MichFan4Life
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 11:26 AM
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Add it all up, and the department will not just cover its expanded $137 million dollar budget, it will show a nearly $9 million dollar budget surplus.
 
So, where does all this money go?  Brandon declined to be interviewed for my latest book, Fourth and Long: The Fight for the Soul of College Football, so I talked to Bill Martin and former Michigan president James Duderstadt, who have seen a few budgets in their day.  They’re alarmed that so little of the new money actually goes to student-athletes, and is instead spent on – well, just about everything else.
Staff salaries, for example, have grown from $34 million to $49 million under Brandon, including a 62-percent increase in administrator compensation.  The athletic department’s spending on “Marketing, promotions and ticketing,” and “Professional travel and conference dues,” have tripled to almost three million.   But perhaps most surprising is the $2.6 million the department now spends on “Hosting, Food and Special Events,” an increase of almost 500-percent.
 
In other words, the additional millions the fans are now being forced to pay are not going to the students on the field, but the suits in the building – including almost a million dollars a year for the Athletic Director himself, three times the salary of his predecessor.

Why I always balk when athletic directors and presidents cry poor. Plenty of money is generated by athletic departments (especially basketball and football), subsidizing  other sports, capital campaigns, and gross mismanagement are really how departments are able to claim they don't generate profit.
 
 
"Only the good ones come to Michigan"
-Dennis Franklin

ScottsdaleBlue
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 12:32 PM
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Well....we probably don't pay our players like o$u, bama etc....so they have to find somewhere to spend all that extra cash...haha

Go Blue!!

Ohio St.'s actions are not unlike their lower intestine: stinky and loaded with danger.


jsj_297
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 3:15 PM
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Thank God Phil is paying his extra seating $$$..........

0pusX
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 4:20 PM
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^^^^^^LOVE the signature pic!!^^^^^^^
 
Laughing all the way to the bank!

jsj_297
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 4:36 PM
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^^really? I was told how obnoxious it was. Lol

0pusX
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Friday, December 06, 2013 9:35 PM
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I think it is funny!

TK23Blue
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 10:38 AM
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That pic is retarded and it takes up the entire screen, which is the single biggest problem with this forum.

 

Maize927
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 2:21 PM
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TK, you could always change the forum theme to mobile and bam!!! no more pics

ScottsdaleBlue
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 2:31 PM
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Maize927


TK, you could always change the forum theme to mobile and bam!!! no more pics


Exactly what I do so I have no idea what pictures people have...

Go Blue!!

Ohio St.'s actions are not unlike their lower intestine: stinky and loaded with danger.


zjgm02
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 2:44 PM
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ScottsdaleBlue


Maize927


TK, you could always change the forum theme to mobile and bam!!! no more pics


Exactly what I do so I have no idea what pictures people have...

Go Blue!!

Probably for the best as jsj somehow found a pic of your parents vacationing on a houseboat in Lake Powell with the Katzenmoyers, and he's using it in his sig.

ScottsdaleBlue
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 3:05 PM
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zjgm02


ScottsdaleBlue


Maize927


TK, you could always change the forum theme to mobile and bam!!! no more pics


Exactly what I do so I have no idea what pictures people have...

Go Blue!!

Probably for the best as jsj somehow found a pic of your parents vacationing on a houseboat in Lake Powell with the Katzenmoyers, and he's using it in his sig.


That's better than the one with Little Bo Peep...

Go Blue!!

Ohio St.'s actions are not unlike their lower intestine: stinky and loaded with danger.


BigHouseFootball
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 3:42 PM
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One major flaw in Bacon's reasoning-he actually thinks that if the football team continues to struggle that the money will stop flowing. I don't think it does. The blue bloods of college football seem immune to poor play. No matter the record people are going to pay the seat licenses, and they are going to pay the outrageous ticket prices. And if they don't? Well, that waiting list for season tickets is quite long for UM. 
Michigan Alum
Class of 2008
 
   

0pusX
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Saturday, December 07, 2013 4:31 PM
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BigHouseFootball


One major flaw in Bacon's reasoning-he actually thinks that if the football team continues to struggle that the money will stop flowing. I don't think it does. The blue bloods of college football seem immune to poor play. No matter the record people are going to pay the seat licenses, and they are going to pay the outrageous ticket prices. And if they don't? Well, that waiting list for season tickets is quite long for UM. 


Good point. Chicago Cubs and Notre Dame officials can both attest to this.

TK23Blue
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Sunday, December 08, 2013 12:10 AM
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Maize927


TK, you could always change the forum theme to mobile and bam!!! no more pics

 
Jesus!  I didn't even think about that.  This has been bugging me for 5 years!!  THANK YOU!!!!

 

Philc
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Sunday, December 08, 2013 1:00 AM
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BigHouseFootball

One major flaw in Bacon's reasoning-he actually thinks that if the football team continues to struggle that the money will stop flowing. I don't think it does. The blue bloods of college football seem immune to poor play. No matter the record people are going to pay the seat licenses, and they are going to pay the outrageous ticket prices. And if they don't? Well, that waiting list for season tickets is quite long for UM. 

 
The rumor is that between the new club seating and the "voluntary" donations that the wait list has been practically eliminated. The AD is not saying for sure. We'll see. 
 
There are a few problems with Brandon's building and spending spree. When Martin was AD, no building project could move ahead unless there was enough money raised to cover constuction and maintenance for the foreseeable future. This is really important since whenever you build something the upkeep and repair costs go dramatically as the structure ages. The other thing to consider is that as you build out your structures, your infrastructure costs increase and infrastructure "eats every day" whether you're winning or not.
 
So Brandon has completed Crisler and a number of other projects (new baseball and softball fields, pool expansion, lacrosse facility) through financing based on current revenues over ~25 years. That's a big bet to make and one that he conveniently he won't have to deal with. He could have grown the endowment (like Stanford) which is the *best* way to hedge against revenue disruptions, but that's not how he rolls. You can't entertain corporate customers looking at the endowment statement  or make speech. You need a ribbon cutting to get your name in the papers.
 
There's a number of things that can happen. (1) the cable payout from the Big Ten network diminishes as people abandon cable or (2) football season tic revenue dips for some reason or (3) someday congress eliminates the tax deduction for donations to athletic departments. This makes the mandatory donations (seat licenses, club seating, suites) a lot less palatable. It eliminates the big donations to build new buildings from alumni looking for tax write-offs. 
Phil Callihan    Editor-in-Chief   UMGoBlue.COM

MMBeuph
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Re:Good read on John U. Bacon's Blog (Dave Brandon's $$$$) - Sunday, December 08, 2013 11:21 PM
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20% of your PSD is already non-deductible, and there is an overall limit beyond which itemized deductios are reduced. Doesn't seem to stop anybody.