How long can burke take reduced ticket sales and survive? ----nm
- Thread starter Purdue Alumnus
- Start date
Watching IU. They are giving OSU all they can handle. If they beat us soundly, Burke has to make a move. We literally would be the worst team in the Big Ten.
I was told by another Big Ten AD that all sources of revenue matter - a lot. Hard to believe with the big money coming in from the Big Ten Network, but expenses for the minor sports are big as well. These athletic budgets are tight except for those schools with - that's right, very successful major sports teams. Imagine that.
The first rule of a successful athletic program is having a great football program.
The second rule is not forgetting rule one.
That's not true at all.
Athletic departments operate with a "reserve" of cash that they dip into when they have a bad year or need money to make up for something.
Purdue's reserve is NOT large. Purdue is NOT turning a profit, and the last reported fiscal year in 2014 (2013 football season), Purdue lost $3.3 million. In 2013 (2012 football season), Purdue lost $2.3 million. It's not improving, I can tell you that.
That being said, in Purdue's fiscal report last year, they noted that donations were down and Purdue was pulling from their reserves to pay for scholarships.
Purdue's finances are not in a good state. The BTN check doesn't change that.
Question: Are you referring to Athletic department finances? Are those reported to the public?
http://www.chicagofootball.com/2015...artments-rank-in-spending-profit-pay/a2quusm/
This link has recent information. Fairly easy to see where we fall behind. However, doesn't show cash reserves.
Just to add this is saying Purdue Athletics lost that much money. Football itself is still positive as most of the B1G money is football
Really curious how Purdue Athletic department has a$71KK budget but loses almost $5 KK when Football turns a profit??
Purdue Sports put out an annual report that goes over a lot of this. If you put together the pieces, you can see the spin Purdue puts out differently each year that covers up problems (not reaching their projected revenue has nothing to do with losing, right?).
A good football program pays for all the non-revenue sports, in addition to paying for itself. A program like ours, doesn't.
That article has some great information and goes well beyond the usual snapshot of just 1 metric that is often captured in similar articles. Thanks for sharing.
Reviewing the numbers, it appears that the current Purdue philosophy is to milk the Big10 TV revenues until Burke leaves.
Versyp and Hazell have been unmitigated disasters
I'm not sure I'd go so far as to say it's the philosophy... but there is no argument against the fact that the B1G money is carrying the Athletic Department. TV money represents over 40% of Purdue's total AD revenues. That is staggeringly high and is the second highest % of any school, trailing only Northwestern.
This data is for the 2013/14 fiscal year. It indicates Purdue's AD had a net loss of just over $4.9M. With football ticket sales declining for the 2014 season, one would have to think the 2014/15 year had a reasonably comparable outcome. And with football being what it is this year, it doesn't seem like 2015/16 is going to be wildly different, save for the reduction in fees from the University for admin/overhead services. Maybe an uptick in basketball helps a little, but it certainly won't be the difference between being in the red vs. black.
I recall many posts of Purdue having a self-sustaining athletic department, but this report indicates otherwise (at least for the year in question). It would be interesting to see this kind of information over a multi-year stretch to see trends, etc.
Purdue's athletic department has a cash reserve, which makes up the budget deficits. The cash reserve is not large though. Purdue is getting down to the minimum they want to be at(if they aren't already there).
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