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FSU faces budget deficit

  • http://floridastate.247sports.com/Article/Florida-States-athletic-department-faces-a-budget-deficit-72502

    FSU and WVU stopped what could have been an ugly lawsuit or courtroom battle when the two schools agreed to a settlement.

    Bob Ferrante

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    Twitter: http://twitter.com/cdowlar

    Corey Dowlar

  • “We’re going the wrong way,” said Smith, a former member of FSU’s Board of Trustees. “Something is fundamentally wrong at Florida State.”

    FSU's solution to this is simply to try and sell more tickets? I don't think they 'get it'. FSU's issues are MUCH bigger than that.

    55Nole

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    delawarenole

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    fsufsu

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    delawarenole

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    fsufsu

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    GoNolez2004

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    TNoles813

  • Oh boy.

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    Chloe Miranda.

    SC_Nole

  • Booster contributions are huge, a playoff would also help alot, so much money there not being tapped into

    cuznchips28

  • my understanding is that the Athletic Dept always functions at zero profit to negative and the Boosters fill the void so I'm not sure this budget deficit is any different than normal. Boosters have always picked up the tab when the athletic dept falls short.

    Some of the cuts are common sense things that should have been the way we did things anyway. There is no good reason to travel out west for non conference events and we should recruit more FL kids when possible to keep tuition costs down. If 2 kids are comparable we should sign the the in state kid everytime.

    Njnoles

  • I'd really like to see some detailed research done on spending of new construction/renovations for athletics. How much money has FSU/Boosters spent on recent expansions? How much money has gone to endowing scholarships? How poorly is FSU's athletics scholarship endowment performing in the market? What is the athletic department/Boosters bonded debt?

    Here is some construction spending based on quick research

    -Skybox Expansion-$3,042,077-Good project, revenue generator
    -Unconquered Statue-$718,000-Good project, campus icon
    -Mike Long Track Phase 2-$1,742,470-done in 2004
    -Basketball Practice Facility-$9,158,686-probably FSU's best ROI
    -Human Performance Lab-Track Expansion- $5,758,892-Nike paid for at least part of this. Did we really need more track expansion though?
    -Football Practice Fields-$2,686,000-Likely needed, especially with IPF getting built, but heads should roll if the issues aren't corrected at no cost to FSU/Boosters.
    -Covered Tennis Facility-$4,000,000-should be lower on the athletics priority list, though State PECO may have been partially used.
    -Howser Stadium Renovations-$13,739,750.60-Personally think they did a very poor job with the exterior architectural elements, but other than that fantastic job and Howser should be set for years
    -Morcom Aquatics Center-$11,054,464-Pretty sure some state PECO money was used, but some also probably came from athletics. Built right around financial crisis. Probably not a wise investment in retrospect.
    -Moore Center?
    -Softball/Soccer Complex-anyone know?
    -Golf?
    Others?

    A lot of that stuff was built/planned prior to the financial crisis. We now have pretty good facilities for all of our non-revenue sports, but are probably going to have to shift our financial focus strictly towards revenue generation. I think we all love going to the Final 4 in soccer or having a track team that puts guys in the Olympics, but the blunt reality is that FSU athletics and The Boosters need to shift focus to sports that drive revenue and donations (Football, Basketball, and to a lesser extent baseball). Look I love finishing 5th or whatever in the Sears Cup and there is some value in being known as a great all around sports school. At the end of the day we can't sacrifice Football and Basketball success for swimming, tennis, golf, etc teams that nobody even watches or pays attention to nationally/regionally.

    We need to pay down any debt, endow scholarships, and get our financial house in order before we give anymore money to non-revenue sports for renovations/upgrades.

    This post has been edited 3 times, most recently by JeffSpicNolie on 5/2/2012 at 11:01 PM

    JeffSpicNolie

  • delawarenole said...

    I hope this reality makes those that were happy with the WVU situation truly understand that wwe are not in a good situation and need to schedule big OOC games or consider some thng drastic like the Big12

    Or it's about:
    1. Decreased contributions due to poor seasons at the end of the Bowden years and not yet having that breakthrough BCS year to get them back,
    2. Decreased contributions due to a poor economy,
    3. Boosters not increasing the percentage of money they transfer over to the AD at the same rate the AD budget is increasing, and
    4. Tuition (ie, athletic scholarships) at Florida universities "skyrocketing" over the past 5 years due to budget cuts and schools' efforts to reach the national average.

    We still have 2 BCS opponents on our OOC schedule this year. It would be stupid to have 3 when we could face as many as 9 within the ACC (and 10 once we expand to 14 members). Winning the ACC and making BCS bowls is MUCH more important than scheduling a ridiculous OOC slate in terms of generating revenue for the AD.

    tricknole

  • Makes moving to the Big 12 all the more practical...

    "England expects that every man will do his duty." - Vice Admiral Horatio Nelson, Royal Navy

    SwoNole9

  • Right - the Seminole Boosters are providing $19.2 million. So, yes, FSU's athletics department does operate at a deficit without the Booster money. The WV game really hurt FSU in many ways.

    Tapping into a reserve fund is a big deal, but it's the likely solution. You don't want to do that every year. But this strikes me as an emergency situation.

    Bob Ferrante

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    JayFields

  • SwoNole9 said...

    Makes moving to the Big 12 all the more practical...

    Not really sure how moving to the big 12 helps the budget. But now that Bob Bowlsby is the new commissioner that conference is about to explode. If we are going to move we should do it now, but only for equal revenue sharing, can't let Texas control things

    cuznchips28

  • Bob Ferrante said...

    Right - the Seminole Boosters are providing $19.2 million. So, yes, FSU's athletics department does operate at a deficit without the Booster money. The WV game really hurt FSU in many ways.

    Tapping into a reserve fund is a big deal, but it's the likely solution. You don't want to do that every year. But this strikes me as an emergency situation.

    How does the WVU game hurt us? We will likely pull in more revenue from two home games against patsies than from a home and home against WVU. Not to mention more home games means keeping area businesses happy.

    Roll Nole5

  • cuznchips28 said...

    Not really sure how moving to the big 12 helps the budget. But now that Bob Bowlsby is the new commissioner that conference is about to explode. If we are going to move we should do it now, but only for equal revenue sharing, can't let Texas control things

    FSU is wanted and would be equal revenue sharing...Don't believe the misinformation out there...I look forward to hopefully visiting Tallahassee for a game real soon...

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    Bandit18

  • Roll Nole5 said...

    How does the WVU game hurt us? We will likely pull in more revenue from two home games against patsies than from a home and home against WVU. Not to mention more home games means keeping area businesses happy.

    No way. Hard to to put an exact figure on it, but if WVU was on the schedule this year that is >2,000 more season tickets sold. Not to mention individual tickets would sell out and face value would be substantially higher. A sellout against WVU also gives us more concession revenue and more merchandise revenue. Probably other things I'm forgetting. When teams like OU and WVU come to Tallahassee they (and FSU fans) spend SUBSTANTIALLY more than when we play crap teams. When we play cupcakes, I will sometimes drive over from Jax and right home after. Or just spend one night in Tally. But when we play UF, UM, WVU, OU, etc I'll stay in Tally Friday-Sun and spend much more.

    You are also failing to realize that FSU makes money off OOC road games and doesn't have to pay some garbage team to play us.

    This post was edited by JeffSpicNolie on 5/3/2012 at 5:03 PM

    JeffSpicNolie

  • Roll Nole5 said...

    How does the WVU game hurt us? We will likely pull in more revenue from two home games against patsies than from a home and home against WVU. Not to mention more home games means keeping area businesses happy.

    Not many people will come and the 500,000 that WVU paid us only pays for the bribe we have to offer a crappy team to come in and play without a return trip.

    We lost alot of potential revenue with that deal because tickets will be wayyyy down for that game and the season ticket holders aren't happy about losing that big game off of their package.

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    WARNING: Text above may cause dizziness, nausea, cognitive decline, and/or a burning sensation. Read at your own risk.

    healthguyfsu

  • This is the downside to conference expansion. If WVU had stayed in the Big East, they would not have paid an exit fee to the Big East and a settlement to cancel their FSU game.

    Conference expansion is not about the game of football, or even the fans. It's about money pure & simple. Here, the money is biting WVU and FSU. FSU is an innocent bystander victimized directly by WVU, and indirectly by the Big12 expansion, as well as the Big East for allowing WVU to exit early.

    Other lesser victims: all the remaining teams in the Big East. They have to scramble to fill their schedules.

    fars1d3s

  • healthguyfsu said...

    Not many people will come and the 500,000 that WVU paid us only pays for the bribe we have to offer a crappy team to come in and play without a return trip.

    We lost alot of potential revenue with that deal because tickets will be wayyyy down for that game and the season ticket holders aren't happy about losing that big game off of their package.

    BINGO.

    satexas

  • Bob Ferrante said...

    Tapping into a reserve fund is a big deal, but it's the likely solution. You don't want to do that every year. But this strikes me as an emergency situation.

    Especially when a BCS bowl appearance this year could make up that deficit next year with increased Booster contributions and season ticket purchases.

    tricknole