Michigan on Yahoo
- Thread starter greenknight
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Maybe they will go to the Olive Garden instead of Italy for spring practice.
http://www.crainsdetroit.com/articl...d-make-ums-240m-athletics-debt-a-heavier-lift
The $240 million in Maize-and-Blue borrowing accounts for one of the nation's largest college athletic department debt loads, but unlike some other struggling schools, UM's administration is confident that its reputation, budget controls and credit rating are enough to keep it out of trouble.
UM is keenly aware of a catastrophe taking place out West.
In the first week of the new year, Bloomberg Businessweek published an analysis of college athletics debt highlighted by the University of California at Berkeley, which may have to slash its number of intercollegiate teams because of a $22 million athletic department budget deficit last year on $445 million in debt. The rest of the story explains the origins of the college sports debt crisis — mainly the arms race for bigger and better facilities, especially for football — and how schools are coping.
The $240 million in Maize-and-Blue borrowing accounts for one of the nation's largest college athletic department debt loads, but unlike some other struggling schools, UM's administration is confident that its reputation, budget controls and credit rating are enough to keep it out of trouble.
UM is keenly aware of a catastrophe taking place out West.
In the first week of the new year, Bloomberg Businessweek published an analysis of college athletics debt highlighted by the University of California at Berkeley, which may have to slash its number of intercollegiate teams because of a $22 million athletic department budget deficit last year on $445 million in debt. The rest of the story explains the origins of the college sports debt crisis — mainly the arms race for bigger and better facilities, especially for football — and how schools are coping.
The great uncertainty
At first, it seems silly that major schools would worry about broadcast rights money. After all, the Big Ten recently signed six-year deals with ESPN and Fox Sports worth a combined $2.64 billion. Those deals begin in the fall, and UM is expected to nearly double its share of broadcast revenue to about $40 million.
But there are cracks in the paint.
In 2013, ESPN had 99 million subscribers. It now has 90 million, its lowest subscriber base since 2005. Daniel Salmon, analyst at BMO Capital Markets, recently estimated that ESPN could lose about 4 percent of subscribers in fiscal 2017. Other insiders say the losses could be even worse. And those ex-subscribers take with them cash ESPN uses to fuel its billions of dollars in professional and college sports broadcast rights deals.
On the other hand, a PricewaterhouseCoopers sports industry report from October predicts that media rights spending will increase, from $18.2 billion this year to $21.2 billion by 2020. That's nearly double the total broadcast rights spending in 2011, which was $10.8 billion.
The uncertainty breeds varying levels of concern. Specifically, the proliferation of platforms and ways in which college sports are delivered to consumers raises financial questions, according to Karen Weaver, a sports-management professor at Drexel University and specialist in college media rights.
At first, it seems silly that major schools would worry about broadcast rights money. After all, the Big Ten recently signed six-year deals with ESPN and Fox Sports worth a combined $2.64 billion. Those deals begin in the fall, and UM is expected to nearly double its share of broadcast revenue to about $40 million.
But there are cracks in the paint.
In 2013, ESPN had 99 million subscribers. It now has 90 million, its lowest subscriber base since 2005. Daniel Salmon, analyst at BMO Capital Markets, recently estimated that ESPN could lose about 4 percent of subscribers in fiscal 2017. Other insiders say the losses could be even worse. And those ex-subscribers take with them cash ESPN uses to fuel its billions of dollars in professional and college sports broadcast rights deals.
On the other hand, a PricewaterhouseCoopers sports industry report from October predicts that media rights spending will increase, from $18.2 billion this year to $21.2 billion by 2020. That's nearly double the total broadcast rights spending in 2011, which was $10.8 billion.
The uncertainty breeds varying levels of concern. Specifically, the proliferation of platforms and ways in which college sports are delivered to consumers raises financial questions, according to Karen Weaver, a sports-management professor at Drexel University and specialist in college media rights.
my next door neighbor is the sister in law of Jack Roth,of the Jack Roth Stadium Club seats at Michigan. Jack donated $200M to get his name on the club seats and he died earlier this year...no wife, no kids. Michigan is getting his entire personal fortune. I'm pretty sure they are going to be just fine.
we have Ron and Joanna Garutti, Greg Brown, Jeff Towers, Steve Pfolker and Bobbi Brown. But they all have kids so not likely they will leave their personal fortunes to us. sigh
the 240 million is michigan paying pack the 240 million they spent on football, basketball and other renovations in 2011