Rutgers Goes Revenue First- What that Means for Athletics?

[Knight Shift]

Until then, he says, athletics comes down to the same thing as everything else at Rutgers: hold costs down and put a product on the field that keeps the TV money flowing.
“The folks who are giving you TV revenue, et cetera, will continue to fund it at the rates they have or increase them,” Tate says. “That is the game.”

In year one, that took a hiring freeze, a tight grip on spending and some help from Trenton. In year two and beyond, he says, it may take more.
“If you’re running a business and your revenue can’t keep up with your costs, eventually you have to shrink your costs,” he says.


Can think of a way to increase football ticket revenue and shrink over head costs of a bloated support staff. . . . . . .

Rutgers’ Tate on enrollment math, budget discipline and 'hard decisions' ahead

Explore Rutgers’ Tate's achievements in his first year as president, balancing the budget with no major cuts or layoffs.

binje.com

 

[mdk02]

"I don't think the calvary's coming through the door."

The man knows New Jersey politics.

 

[RUTGERS95]

Until then, he says, athletics comes down to the same thing as everything else at Rutgers: hold costs down and put a product on the field that keeps the TV money flowing.
“The folks who are giving you TV revenue, et cetera, will continue to fund it at the rates they have or increase them,” Tate says. “That is the game.”

In year one, that took a hiring freeze, a tight grip on spending and some help from Trenton. In year two and beyond, he says, it may take more.
“If you’re running a business and your revenue can’t keep up with your costs, eventually you have to shrink your costs,” he says.


Can think of a way to increase football ticket revenue and shrink over head costs of a bloated support staff. . . . . . .

Rutgers’ Tate on enrollment math, budget discipline and 'hard decisions' ahead

Explore Rutgers’ Tate's achievements in his first year as president, balancing the budget with no major cuts or layoffs.

binje.com

excellent article

 

[-RUFAN4LIFE-]

The bloated support staff will be thinned out once they severe ties with Greg. Way too much headcount that can't be justified when you look around the league.

The good thing with athletics is that the TV revenue increases yearly and they are done paying off the loans. And it says they have the money needed to cover all the termination costs; it's not going to add to the AD deficit.

 

[Knight Shift]

The bloated support staff will be thinned out once they severe ties with Greg. Way too much headcount that can't be justified when you look around the league.

The good thing with athletics is that the TV revenue increases yearly and they are done paying off the loans. And it says they have the money needed to cover all the termination costs; it's not going to add to the AD deficit.

That could be as high as $5M/year when you consider base salary, bonus, 401K, health benefits, etc. for 50 additional staff that easily cost on average $100,000/year each.

 

[-RUFAN4LIFE-]

That could be as high as $5M/year when you consider base salary, bonus, 401K, health benefits, etc. for 50 additional staff that easily cost on average $100,000/year each.

Easily when you consider the ridiculous fringe benefit rate that Rutgers is required to use.

 

[Jtung230]

Means GS might be saved unless a donor wants to foot the cost.

 

[RUChet]

And the university itself needs to get rid of its own admin overhead. There is a lot of staff supporting all types of things not directly tied to education/teaching/research that need to go. Schools need to trim fat just like companies do.

 

[Knight Shift]

Means GS might be saved unless a donor wants to foot the cost.

It's possible, but if Keli works the balance sheet and shows the savings versus spend and increased revenue with GS gone, she could make it work. But the financial environment at Rutgers (and every University) is tough now to justify any new or excess spending.

 

[-RUFAN4LIFE-]

It's possible, but if Keli works the balance sheet and shows the savings versus spend and increased revenue with GS gone, she could make it work. But the financial environment at Rutgers (and every University) is tough now to justify any new or excess spending.

Everyone is starting to feel the pinch of lower enrollments which is why Rutgers needs to present itself better to the general public and drive more students towards the school.

 

[Leonard23]

It's possible, but if Keli works the balance sheet and shows the savings versus spend and increased revenue with GS gone, she could make it work. But the financial environment at Rutgers (and every University) is tough now to justify any new or excess spending.

Everyone is starting to feel the pinch of lower enrollments which is why Rutgers needs to present itself better to the general public and drive more students towards the school.

Overall interest, applications and enrollment are up, and the strong US News rankings help that perception. Now we need to drive more wealthy students to the school, and have stronger athletics programs, especially football which is the front door to the University and lead marketing arm.

 

[RU82]

Schools need to trim fat just like companies do.

Most schools are essentially government agencies. They won’t cut a penny unless and until they are forced to do so. They have an insatiable desire for more and more resources but are never EVER held accountable for waste and poor performance.

In education the recommendation is always to spend more even when it’s obvious that the added investments are a waste of money. Consider that Newark spends more money per student than Westfield does. Westfield sends scores of kids to elite universities every year and Newark produces HS graduates most of whom can’t read.

 

[RUChet]

Most schools are essentially government agencies. They won’t cut a penny unless and until they are forced to do so. They have an insatiable desire for more and more resources but are never EVER held accountable for waste and poor performance.

In education the recommendation is always to spend more even when it’s obvious that the added investments are a waste of money. Consider that Newark spends more money per student than Westfield does. Westfield sends scores of kids to elite universities every year and Newark produces HS graduates most of whom can’t read.

Agree with your post with one but.

I lived in Westfield for 3 yrs. The reason so many kids go to elite schools is a very high % of the students have 2college grad parents where Education is a priority.

no matter how much money Newark throws at the schools they don’t have a high % of students with 2 college grad parents prioritizing education.

no money will fix that. It’s just lipstick on a pig to put money into it when there is a systemic problem you can’t fix with money

 

[Caliknight]

America as a whole spends far more than every other nation per student on education. A certain side of the political spectrum's answer to everything is throw more money at the problem. As we have seen time and time again, that isn't the solution.

 

[Jtung230]

It's possible, but if Keli works the balance sheet and shows the savings versus spend and increased revenue with GS gone, she could make it work. But the financial environment at Rutgers (and every University) is tough now to justify any new or excess spending.

At a minimum, GS might have to trim staff. If the admin is going to make a move, it will be the last minute to minimize cost.

 

[RCBeta]

Means GS might be saved unless a donor wants to foot the cost.

Interesting thought.
Does this give Greg an opening for staying another year by winning a few games by the end of the season and maybe a mild upset?

 

[-RUFAN4LIFE-]

Means GS might be saved unless a donor wants to foot the cost.

There is no savings him. Zinn would wreck her career with that move.

 

[koleszar]

no matter how much money Newark throws at the schools they don’t have a high % of students with 2 college grad parents prioritizing education.

Newark throws at schools? Try, it's your tax dollars which are funding Newark schools. There's a reason most towns saw their school taxes go up and their school budget get cut. My town went up over 9% the budget increase was 2%.

It all got funneled to the urban school districts. Hell, districts are having to cut extracurricular activities yet people in the district are paying more so Newark can have a swimming pool.

 

[RUChet]

Newark throws at schools? Try, it's your tax dollars which are funding Newark schools. There's a reason most towns saw their school taxes go up and their school budget get cut. My town went up over 9% the budget increase was 2%.

It all got funneled to the urban school districts. Hell, districts are having to cut extracurricular activities yet people in the district are paying more so Newark can have a swimming pool.

Not mine! I left Jersey a long time ago! Down here in SC!

 

[koleszar]

Not mine! I left Jersey a long time ago! Down here in SC!

I wish I enjoyed the heat, I'd move down south. But I can't stand it. Every place we visited to retire, we said lets go during their worst months and see what it's really like.

I felt like ripping my skin off. I guess when I get really old and become a lizard needing the warmth of the sun to heat me we'll move. Till then, I'd be miserable down south.

 

[RUChet]

I wish I enjoyed the heat, I'd move down south. But I can't stand it. Every place we visited to retire, we said lets go during their worst months and see what it's really like.

I felt like ripping my skin off. I guess when I get really old and become a lizard needing the warmth of the sun to heat me we'll move. Till then, I'd be miserable down south.

That’s what my wife thought until we got here. It’s hit and humid in NJ in the summer and it’s hot and humid down here in the summer albeit hotter

but 9 months of the bear the weather is better

in the winter we often only need a windbreaker - never a scarf!

fall night thru most of Nov we can eat outside at a restaurant - starting in March you can also do it

So my wife who is from the Allps now ageees she can be outside comfortable more days down here in a year

but we are inside more gear than up north mid June to mid Sept but up north we were inside more almost all other months

each to his own!

 

[Jtung230]

That’s what my wife thought until we got here. It’s hit and humid in NJ in the summer and it’s hot and humid down here in the summer albeit hotter

but 9 months of the bear the weather is better

in the winter we often only need a windbreaker - never a scarf!

fall night thru most of Nov we can eat outside at a restaurant - starting in March you can also do it

So my wife who is from the Allps now ageees she can be outside comfortable more days down here in a year

but we are inside more gear than up north mid June to mid Sept but up north we were inside more almost all other months

each to his own!

It’s extreme heat over extreme cold. I don’t know anyone that says they can’t take the Spring, Summer or Fall weather in NJ.

 

[mdk02]

That’s what my wife thought until we got here. It’s hit and humid in NJ in the summer and it’s hot and humid down here in the summer albeit hotter

but 9 months of the bear the weather is better

in the winter we often only need a windbreaker - never a scarf!

fall night thru most of Nov we can eat outside at a restaurant - starting in March you can also do it

So my wife who is from the Allps now ageees she can be outside comfortable more days down here in a year

but we are inside more gear than up north mid June to mid Sept but up north we were inside more almost all other months

each to his own!

I'd say for 9 months a year NJ weather is better. I'd take fall and spring up here any time.

 

[Jtung230]

I'd say for 9 months a year NJ weather is better. I'd take fall and spring up here any time.

I agree with you. But I feel like the older you get, it’s easier to deal with extreme heat vs extreme cold.

 

[RUChet]

I'd say for 9 months a year NJ weather is better. I'd take fall and spring up here any time.

There is just no way. When you have 55-65 fall we have 70-80 and no humidity - sale for spring .

at night in fall and spring when it’s too cold to be at an outdoor cafe up there we are still outside here

 

[RU82]

Agree with your post with one but.

I lived in Westfield for 3 yrs. The reason so many kids go to elite schools is a very high % of the students have 2college grad parents where Education is a priority.

no matter how much money Newark throws at the schools they don’t have a high % of students with 2 college grad parents prioritizing education.

no money will fix that. It’s just lipstick on a pig to put money into it when there is a systemic problem you can’t fix with money

Parental involvement is the biggest issue but not the only one. Lots of kids who come from the kind of homes we’re talking about have thrived in charter school settings. But the unholy alliance of teachers unions and the politicians who pander to them have conspired with great determination to suppress those efforts.

 

[bigmatt718]

Not mine! I left Jersey a long time ago! Down here in SC!

If I ever move out of the area itll be for a desert state like Arizona or New Mexico. I despise humidity so I would go for a desert state if it is somewhere warm like that.

 

[Bueller]

Until then, he says, athletics comes down to the same thing as everything else at Rutgers: hold costs down and put a product on the field that keeps the TV money flowing.
“The folks who are giving you TV revenue, et cetera, will continue to fund it at the rates they have or increase them,” Tate says. “That is the game.”

In year one, that took a hiring freeze, a tight grip on spending and some help from Trenton. In year two and beyond, he says, it may take more.
“If you’re running a business and your revenue can’t keep up with your costs, eventually you have to shrink your costs,” he says.


Can think of a way to increase football ticket revenue and shrink over head costs of a bloated support staff. . . . . . .

Rutgers’ Tate on enrollment math, budget discipline and 'hard decisions' ahead

Explore Rutgers’ Tate's achievements in his first year as president, balancing the budget with no major cuts or layoffs.

binje.com

I like Tate and think he the kind of leader you need in bad times. Equity people, insurance companies, retirement funds - all overexposed with the AI scam and looming crater. I was telling people 2 years ago the AI thing was a scam because I knew the Jensen and Nvidia shens from computer building. A lot of colleges are already hanging like loose baby tooth