So UofL has a fiscal year net operating loss of $316 million?
- Thread starter hunkgolden
- Start date
Maybe they can pawn off their vacated championship rings, this really pulls the curtain back and lets everyone truly see that dumpster fire. No way they can afford Brohm or any high profile coach for that matter.
That is basically half of their entire endowment. At least our endowment is $2.3 billion. But to have a net operating loss of that much money combined with the fact that the previous year it was only $50 million less! That’s two years in a row with more than half $1 billion of net operating loss? OMG, I’d love to hear the math behind ‘their plan’ to buy spit his contract before OR after the December drop
Please understand that while this is an operating loss it is not a loss from a cash flow perspective. It is likely a non -cash writeoff of an asset.
Having said that, it certainly throws off their financial ratios and would affect their ability to float bonds for capital expenditures. On top of that, it is my understanding that they have to kick in a number of millions to pay for the setup of the ACC Network. If they have to externally finance that things could get dicey.
Having said that, it certainly throws off their financial ratios and would affect their ability to float bonds for capital expenditures. On top of that, it is my understanding that they have to kick in a number of millions to pay for the setup of the ACC Network. If they have to externally finance that things could get dicey.
I'm not an expert at accounting, but I don't get how you can say that.
I haven't looked at the posted financials, but the article was pretty clear:
State funding cuts, big payouts for high-profile firings and a costly separation from KentuckyOne Health have undermined the University of Louisville’s financial position and escalated its fiscal year net operating loss to nearly $316 million.
And...
The separation from KentuckyOne Health is about to become more painful for UofL.The academic affiliation agreement between the two parties is scheduled to end soon, meaning that the health system would no longer have to pay the university tens of millions dollars each year.
Operating revenue fell by $87M.
State funding fell $1.5M
It looks like Jurich and Pitino accounted for $10M
It appears the separation with KentuckyOne is the real pain point, but still results in a reduction of revenue, not a write-off. And, the article also seems to indicate it's not going to get any better anytime soon.
No matter how you slice it, this isn't a good time to be running out trying to buy out a football coach.
If our UofL friends who invaded this forum still don't think that place is a dumpster fire, I'd sure like to know what would qualify it as such. UofL leadership is about as good at math as the IU admin.
Louisville is a school? Could have fooled me. Seems like they are a semi pro team for the city that happens to have a school connected to it.
And it says pretty clearly that the previous year was only $50 million better
Can you imagine being on the UofL BoT, and your President coming to the board with a grand plan for a multi-million dollar BUYOUT for your existing coach, asking for another multi-million dollar buyout for the coach you WANT, and that just gets you the privilege of putting together a multi-year, multi-million dollar contract for your NEW football coach.
All the while, you're sitting on year-in, year-out losses in the hundreds of millions of dollars.
Holy cow.
The term "dumpster fire" isn't even close to the correct metaphor.
All the while, you're sitting on year-in, year-out losses in the hundreds of millions of dollars.
Holy cow.
The term "dumpster fire" isn't even close to the correct metaphor.
maybe. Maybe not. Right now, it's not looking good at all.
If you do, you and your UofL "leadership" deserve each other. That place is a disaster.
Not in the least.
First, you have to sell your incompetent leadership. Then, you have to convince him. Then, you have to find a way to pay him, knowing there's deeper financial hole this year.
What's telling is, you clowns don't even care about the financial condition of the school. It's all about burying the school even deeper, just to buy a coach.
Wow.
I thought we were being lectured that the "culture" had changed at UofL.
Clearly, not.
Clearly, not.
We will still be a great school regardless. Not sure what you’re going to be able to hang your hat on either way.
But they did just expand their stadium with nice chair backs, even though they didn’t sell out the smaller stadium. It’s such a textbook example of everything that’s absolutely wrong about college athletics. And we haven’t even gotten to the hookers and cash payments.
Your right it’s not even close because it’s overused and ridiculous. Brohm will come and compete in the ACC, sell tickets, and regain donations immediately. Dumpster fire is more akin to Purdue football before and after Brohm.
Here is the thing:
You are going to have to sell Brohm on potentials, something Bobinski did and the Purdue community followed through on. Bobinski can literally point to this key figure when speaking to Brohm about the ability of Purdue to get him every thing he believes he needs. IN FACT, Brohm has said Bobinski has gotten him things he didn't even know he needed! Bobinski has done the leg work for this situation starting two years ago.
Yes, UofL has the home town factor and nobody is denying that fact that is a very strong pull for Brohm personally. But to believe he will not take every piece of information given to him by those closest to him and believe Bobinski isn't showing him figures such as that would be naive.
Something to think about as well is that you would be placing a massive amount of pressure on Brohm to be successful for the benefit of the ENTIRE AD AND UNIVERSITY. What would happen if Brohm wasn't successful in his first year and won 2 games and then followed that up with a 4 win season and a 5 win season after that. Would fans continue to show up or would it bury the AD further and further behind? UofL is walking a very thin line right now and it appears as though a single wrong step could be disastrous to your athletic department and your university as a whole. Meanwhile, Purdue is operating with what will likely be one of the highest revenue years along with receiving a $55 million check from the B1G Network.
Brohm may very well leave for UofL and we would be happy and thankful for what he has done. But what is UofL's plan if he doesn't come? The list of candidates you as fans have put together would likely be a minimum of $3.5-$4 million per year. If it comes down to it, the Purdue BOT has essentially ok'd a $6 million per year contract for Brohm and a massive increase in the staff salary pool. Does UofL have the $10-$11 million dollars to compete with that?
Let me try an give you an example of what I mean. A firm has an asset on their books that is valued at $1 million (let's call it a patent.) The patent is declared invalid by a court so the asset is now worthless.
The change in the balance sheet (loss of an asset) has to be charged to the income statement - a decrease to income so the firm might generate a loss for the year even though they might have made $900K in real cash. Note: their money in the bank did not go down. They might have increased cash during the year but show a net loss.
I suspect that the asset (the Health Care Unit) was moved off the books but that did not involve the actual loss of cash. While it looks bad, it is likely not the disaster that the numbers might suggest.
I am not claiming deep knowledge of the UofL finances. I actually know almost nothing about it. But when you see a number like that which was quoted and it mentions the separation of the Health unit something like what I described immediately comes to mind.
I could be wrong but it is likely close to what I described.
Gotta be honest - and seriously no disrespect intended - but I got bored about 1/3 of the way through your post and skipped the rest.
Brohm is just coming home. I’m sorry if it doesn’t make sense to you guys, or you think it’s a terrible decision on his part but, it’s just happening.
Deep down - you know it.
Had you read the post, you would have noticed I said that Brohm may in fact go to UofL. The fact many Cards fans have simply dismissed numerous facts about Purdue's standing with Brohm shows many of your fans inability to hold rational and intelligent discussions. Your post only confirms that.
The fact that many Louisville fans “have dismissed numerous facts about Purdue’s standing with Brohm” simply means we know more than you do.
Nothing more - nothing less.
So if you in fact know so much more than myself or other Purdue fans about this situation, please give me some pieces of evidence (not related to home town pull) that could convince me of why Brohm would leave Purdue. I'd love to hear them.
Quite frankly what I’m hearing is probably what’s going to happen. One of my good friends works in the athletic department. It’s pretty obvious CJB is much more disturbed that he lets on about the dumpster fire that is current-day UofL. It sounds like his feelings are that he can pass on at this time because whoever takes over is going to struggle to win, struggle to attract good athletes until the University gets it self straightened out and it’s moral compass back. And by that time his brother Brian Brohm may very likely be the most ideal candidate in 3-5 years ( if any coach could last that long) because he won’t want to walk away from what he built. The feeling is stronger every day that all of the work that he and his Purdue coaching staff has put in to build this program to where it is at, it’s not worth walking away from. I can see why they feel that way. It just makes sense
Goes in line with many saying UofL fumbled the process by not only firing Petrino but outwardly placing Brohm as their #1 candidate. A friend of mine who worked inside UofL athletics as a trainer said, 'The way they handled this is totally UofL athletics. Arrogant and totally misunderstanding that Purdue could in fact retain Brohm because it is a better job right now. UofL athletics staff and fans are totally out in right field most days and I liken them to the irrational IU basketball fans that think they are better than anyone else simply because they wear candy stripped pants.'
Pretending that Rondale and George are run of the mill 4 star recruits is silly. They are transformational players for the program and Brohm knows it.
If the buyouts are paid by donors, like they say will happen. It won't be as bad.
That’s the part that you just don’t (won’t) get. There no other evidence besides “home town pull” and if there were - you’d dismiss it with the same sort of delusion that you have all others.
That’s it all - right there.
Sorry.
