Chicago Alumni Event Recap and News from Brandon's Blog
Mark Snyder of the Freep (read at your discretion) has the recap of last night's U-M Club of Chicago event with Dave Brandon, Brady Hoke, John Beilein, and Red Berenson.
Highlights:
- The Athletic Dept plans to spend an additional $250M on athletic campus improvements. Focus is on non-revenue sports and the academic center.
- Beilein said Horford (100%) and Akunne (progressing well) will be ready for pre-season practice. He referred to Horford as having redshirted last year.
- When challenged on why Michigan didn't lead the B1G in graduation success rate (it finished 3rd), he responded that they're addressing with teams that are lagging and pointed out MBB's 100% rate and Beilein's commitment to academic success in team management and recruiting.
- Brandon noted that the Bama-Michigan game resulted from a specific request by Nick Saban to play Michigan that was relayed by ESPN.
- Hoke talked about how they are trying to address concussions by teaching proper blocking and tackling technique.
- Beilein stated he wants to take the team overseas again when he's eligible to (as early as 2014).
Folks who attended, please feel free to add any anecdotes or additional detail not reported in the linked story.
Next up, Brandon and the coaches visit the U-M Club of Phoenix on 21 Mar. See this diary for the details of the Phoenix event and the remaining AAUM 2012 Coarches Tour venues.
Separately, in the latest Brandon's Blog, Dave Brandon talks about Michigan's commitment to women's sports and Title IX and points out the incredible strides these teams have made since the late 70s. Expecially striking:
It wasn't until the 1974-75 school year that the University of Michigan established its first six women's varsity sports teams: tennis, basketball, swimming/diving, synchronized swimming, volleyball and field hockey. The original budget was $100,000. By 1995 the women's athletics budget hit $4,827,000, and today our budget for women's athletics is at $16,213,000 for 14 sports.
We are not stopping there either. We are one of two schools in the Big Ten Conference that have announced the addition of another women's varsity sport. The Wolverine women's lacrosse team will have its first official competitive season in the spring of 2014.
The big news out of this blog entry was the announcement that Michigan will...
...invest $500,000 for a curtain to be suspended from the Crisler Center ceiling. This curtain will circle the upper bowl and will help create a louder and more intimate setting and an overall improved atmosphere for crowds of 5,000 or less. And we are doing this specifically to help our women's basketball and women's gymnastics teams and their fans.
I don't agree with everything Dave Brandon has ever done, but I hope that people remember when they talk about him as if he's trying to steal from Michigan fans that every dollar he makes/saves as the AD goes to the things listed in the above post.
beat him at State.
Saban sought a game with Michigan when Michigan was sliding down in its football reputation. Why would he seek a game with us at that time? Did he want to improve his overall record vs. M?
apparently it's time to start a curtain company
You haven't seen the way it accentuates the color of carpet. It's beautiful!
...do that. When Arizona planned to do this several years ago, they produced this mock up of what the McKale Center would look like.
According to this article, this project cost Arizona $650K, so it appears that Michigan is getting a bargain.
but will they match?
I talked with Red afterwards and he told me what we already knew about next years goalie situation. It's Jared's job to lose right now, but the goalie who gives us the best chance to win will play.
... since Brandon -- as I told you -- is too polished, too disciplined and too smart to say something so shit-stupid as 'Rodriguez was a mistake.' But thanks for bringing the subject up out of nowhere to prove the point that there are portions of the Michigan alumni family that really loathe each other.
Someone's sense of humor is severely lacking.
I'd be very curious to see what the UM Athletic Department's Master Plan contains and what projects are specifically going to be funded with the additional $250M.
The article mentions expansion of the academic center, swimming and a new lacrosse stadium and facilitiy. Yost Ice Arena is due for a $16M renovation project that may be part of that $250M he discussed, and of course, there's the $500K for the new curtain in the Crisler Center.
http://www.annarbor.com/news/renovations-to-yost-ice-arena-costlier-than-anticipated/
Are there any other projects out there on the near horizon that are going to be funded out of that $250M? Schembechler Hall is due to get a $9M for its most recent renovation.
http://www.mgoblue.com/sports/m-footbl/spec-rel/011912aab.html
When I look at the projects mentioned above, I don't see $250M in spending there. The Phase II renovation of Crisler Center was approved a year ago for $52M. Is that included as part of the $250M?
Is this the first evidence outside of incoming recruits comments that there are plans to expand the south side of Michigan Stadium by adding additional seating? It'd be nice to see someone follow up with the UM Athletic Department to see how they're planning on spending that additional $250M and what that master plan really does entail.
basketball, football and hockey are not included in the next round of $250 million in spending. He specifically mentioned that those three were done first because they are the sports that fund the rest of teams.
got rid of that ancient, ugly, worn down DPS campus safety services and all those other plant buildings smack in the middle of all thes wonderful facilities they are building. That thing is an eyesore.
Here:
Absolutely everything along the railroad tracks should be nuked in favor of parking, etc. I know that the facilities managers will laugh; "Where do you propose to put us with our equipment?" My answer; "Somewhere else."
Fingerle Lumber yard is one option. Where they listed the property for sale at $21.5 million, to, uh, "establish the market value."
http://blog.mlive.com/annarbornews/2008/06/fingerle_lumber_co_lists_its_p.html
That whole story about skyboxes being an absolute necessity to fund stadium renovations looks like bunk if the athletic department can afford an additional $250M already.
per DB the athletic department still has 230 million in debt from Mich Stadium, Crisler and Yost so it's not like they just paid straight cash for the upgrades to each. I think the story that the rev from the suites would pay off the that debt is still true.
...but if UM needs the skyboxes to pay off the remaining $230 million for completed renovations (as stated when they were justifying the skyboxes), wouldn't they need another revenue stream to cover an additional $250M?
I think they are counting on a lot of alumni support for the other sports. I couldn't count how many times DB said the word "donation" throughout the night.
Hoke was asked if he has had an opportunity to reach out to Urban and congratulate him/say hello, he responded "Yes" - and that was the extent of it. This got a good cheer from the crowd and a laugh.
Per the Athletic Budget, Dave Brandon shed important info. He stated current Debt at somewhere around $250 Million for all of the major upgrades to the three major campus facilities.
I found this interesting because everyone is crying about the band not going to Dallas, but he really made it known that this is real debt and coupled with their 250Million in future plans, they have to consider all budget items carefully.
He noted in particular that it appears they are really looking to get a new swimming facility. He made several points about how Olympic athletes are sharing lockers and the facilities are in need of improvements.
He also mentioned more academic support and a a larger budget for tutors in response to major efforts to increase academic success amongst athletes.
The first question was more of a comment, it was a Thank You for sending the band to Dallas (kind of a jab as well), he smiled and commented that he wanted them there just like everyone else. For all we know, he knew that they could entice private support from the beginning.
Re: Big Ten Hockey, lot of questions. They anticipate another 1-2 schools joining in the next few years. Noting that Big Ten network will be providing a lot of exposure that schools without programs will be missing out on. But also noted that anyone starting a program will likely need a major donor like PSU received.
Both Red and DaveB mentioned Chicago as a future site for the big ten hockey tournament and mentioned that commitments to other sites are short term.
CoachB and Hoke thanked the Chicago fans for their efforts in making games at Northwestern feel like Home.
Re: Big Ten Championship at Soldier Field, DaveB said he thinks it works up in Lambeau and noted that he is not opposed to an outdoor venue. But mentioned that it was more of a minority position amongst his peers.
I got to say hi to Hoke, second year in a row, thought the event was nice but the crowd was smaller than last year.
There are some big-money people in Wisconsin who really want a college game at Lambeau. They were willing to buy a home game from Fresno State for more than $1m plus expenses, to change the second half of the Badgers' home-and-home from California to Lambeau.
And that it's ok to make money. But worrying about pinching pennies (like the band) because of "debt" rings kinda hollow when you're paying a half million dollars for a curtain just to cover up the embarrassment that the arena is less than half full. PR-wise it's horrible, because you mask up some bad pub for an event that no one knows about or attends anyway, while you make a big nationally public stir by trying to save money on the band.
I have no problem with the curtain. I have no problem finding funding for the band without paying for it. I do have a problem saying we can't possibly afford the later when we can afford the former, which is really a luxury too. Just get it all funded without the stink. Or save yourself the embarrassment and skip the curtain no one cares about.
Glad to hear that they are considering a new swimming facility. I heard John U. Bacon talk once about how Yost Field House and Canham Natatorium perfectly represented the two men who built the buildings that bear their names. Yost Field House came in way over budget, but is very sound--the only issues have been with the stuff built in the late '60s/early '70s when it was being converted for hockey and with some of the decorative elements that finally gave way after 80 years of Michigan winters. Canham Natatorium was built very cheaply and came in on budget, but has already had a major renovation and several other large upkeep projects because the original 1988 build quality was not great.
Plus I always though it was funny that Canham's name is on the swimming building when the indoor track building is called...the Indoor Track Building, Canham having been the Michigan track coach before he was AD.
The big problem with Canham Natatorium was that they didn't foresee the fact that a ceiling comprised almost entirely of skylight windows would cause the pool to grow algae almost instantaneously. The whole thing was a cluster, a blunder of the highest degree, which also happened to coincide with some of the most poorly-run years Athletics has ever seen.
The Michigan Athletic Department had a projection in the FY 2012 budget of an outstanding debt balance of nearly $210M projected for June 2012. See http://www.regents.umich.edu/meetings/06-11/2011-06-X-13.pdf
When you look at the document, it's pretty easy to see that the luxury boxes and premium seating are providing revenues in excess of the annual debt servicing for the entire stadium renovation project. The total gift income from football is around $21M and the gross revenue for Michigan premium seating is slightly over $15M. The total annual debt servicing for the Michigan Stadium renovatioin is $9.4M with the entire debt service load for all the projects being financed is $13.2M in FY 2012.
Michigan does have some leeway to finance additional projects based on those numbers and we've seen the Schembechler Hall renovation plus the newest Yost Ice Arena project recently be approved for around $25M. Since 2003, Michigan has set aside around $4.5M per year in a deferred maintenance fund that grew to over $35M at one time. I don't know if that fund has been tapped into yet, but it has or could be a potential resource to pay for some of these items.
The biggest revenue grower for Michigan has been television. The Big Ten Network is providing almost half the television revenue now with ABC/ESPN and CBS making up the rest. The ABC/ESPN contract is due for renewal in a few years with expectations that it will be extremely lucrative. Add in the additonal money from the Big Ten Conference Championship Game (perhaps $1.5M per year) and the $30M to $50M additional the B10 will get from the four-team playoff and you can add perhaps another $2M to $4M to the annual revenue stream. The total conference distribution to Michigan in FY 2012 was projected to be $23.75M. In four years' time, UM could easily be looking at $30M to $35M from the conference on an annual basis.
The next budget will be released in a month's time, so we should have a better idea on where all the revenues and costs are trending. That said, it will be intersting to see how the Michigan Athletic Department sees its future budgets and how it will match revenues to expenditures. I suspect a big chunk of that $250M Brandon is talking about will be used to expand Michigan Stadium's south endzone. There's been some discussion about adding another 8-10,000 seats to bracket the scoreboard. Beyond that, I assume some structure would be put in place to not only enclose the stadium, but to connect the concourses (at least on the south side). That will be a fairly expensive project that won't have the immediate payoff that the luxury boxes and premium seating was able to provide.
All in all, MIchigan's been in good shape financially since Bill Martin took over and thru Brandon's time as AD. It will be interesting to see what happens with the athletic department's finances in five to ten years once these major projects are all completed and the debt is paid down. While I expect expenses to increase, it'll be interesting to see if the UM athletic department sends more money back to the university itself or is able to freeze ticket prices for awhile or has some other priority in mind.
And as you point out, financially, the main phase of the Stadium renovation had a very large positive financial component to it; income from premium seating, and perhaps even a modicum of income from increased fundraising capacity (i.e., a place to privately entertain high-end donors) and miscellaneous income (all of the Big House weddings and Bar Mitzvahs in the Jack Roth Stadium Club).
The South Endzone expansion has a lot more expense, with no such upside save for some cheap tickets to fans willing to sit in the Nosebleed sector of Washtenaw County. I have such grave doubts about it. Of course, I had some doubts (quickly erased by a Bill Martin presentation) about the main Stadium renovation too. And just as clear is the fact that nothing will stop Brandon from showing the world that his is the biggest one. Stadium, that is. It seems to me to be a pure vanity project; nothing necessary about it, except to be able to say that Michigan Stadium is the biggest one. With lots of other problems (like, uh, how to fill it, and where to park all of the cars on rainy days) unaddressed and unfunded so far.
I won the jersey signed by Red
That's me and Red after
