Profitability question
- Thread starter TMA62
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If I recall correctly, it was breaking even back in the glory days of the late 90's. I think it is tougher to do now because successful WBB coaches are able to demand more $$$$ and revenues are not up commensurate with same. I would use Purdue as a good example where WBB tickets are about the same as they were 20 years ago but MBB sure is not.
No Wbb program is profitable in terms of income versus expenses. But, the fixed expenses which can not be eliminated are such that every day you can generate with a successful program reduces the deficit.
While I think that it is possible that Purdue could let SV go this spring, I could see the reasons why they may wait until next year. If Purdue lets her go now, they will have to pay her remaining salary on the contract (3 years at $750K or $2.25 million). Then Purdue finds another coach......with another contract that they will have to buyout. That could be another $2 million. Lastly, Purdue has to sign their new HC, $1 million for the first year. So, if my numbers are somewhat accurate, Purdue would have to spend as much as $5 million to get a new HC now.......all for a program that will not make money.
Given that Purdue had to pony up a lot of money to keep Jeff Brohm and may have to renew contracts with other coaches in other sports, I don't know if Purdue has the money on the table to change WBB coaches this year. If they wait one more year, they save approximately a million dollars. That may be their thinking now.
Destewart, I agree with your posts on how the program has slid into mediocrity and delaying is only going to hurt more. But the money side of the equation is something that Purdue has to acknowledge. They simply may not have the $$$ to do anything about it this year.
In retrospect, Morgan Burke should have not extended SV's contract and let MB2 address it when he became the AD. It could have been his first legacy hire. Well, that is water under the bridge now.
Given that Purdue had to pony up a lot of money to keep Jeff Brohm and may have to renew contracts with other coaches in other sports, I don't know if Purdue has the money on the table to change WBB coaches this year. If they wait one more year, they save approximately a million dollars. That may be their thinking now.
Destewart, I agree with your posts on how the program has slid into mediocrity and delaying is only going to hurt more. But the money side of the equation is something that Purdue has to acknowledge. They simply may not have the $$$ to do anything about it this year.
In retrospect, Morgan Burke should have not extended SV's contract and let MB2 address it when he became the AD. It could have been his first legacy hire. Well, that is water under the bridge now.
Thanks for the clarification. This makes the situation more curious. If Purdue does not do anything this month, it is either that they don't have the money (due to the Brohm contract) .......or......there could be many SV loyalists in the Purdue administration. If the latter is true, it displays the pitfalls of hiring someone with deep or distant ties to the school. Blood is thicker than water; performance can be overshadowed by one's past ties to an athletic program.
WBB can offset their operating costs by a significant amount as they did 20 years ago. If you generate $500k
In Wbb revenue and your operating expenses are $2M you have saved $500K to be used for other necessary athletic department costs.
It may depend on how you calculate costs. If you consider any WBB revenue as an add-on to your men’s program, then maybe it’s a break even. No way could you allocate and half share of the facilities, etc. and expect anything other tha a loss.
