Via this SI Article. I know this has been mentioned before, specifically with the sports cutting Maryland is doing, but this article provides a compact time line of the Terps woes. In 2011 they ran a 7.8 million dollars into the red. The author does throw out some claim that by 2020 Maryland could have a revenue stream exceeding 100 million per year thanks to them joining the B1G, but the reality is we just brought in a school that needed a loan from the state to pay its football coach. Urgh.
Maryland's Athletic Department is Broke
Not for long!
Actually, that one of those thoughts I would rather forget... permanently
Someone please insert beating of a dead horse gif asap...
Wow, I'd rather be in Bolivia than Deadhorse right now. It's supposed to be below zero continuously for the next week
Bolivia, MGoBlog is definitely a lot warmer:
By January that is going to look like an ideal vacation destination, not a threat, for us Upper Midwesterners.
I'm actually going to Bolivia this January or Febuary, as a matter of fact. If I were better at the CRex art of hilarious storytelling I'd turn that into a multi-part saga, but alas, I'm not.
Good luck man. I've Bolivia has some nice areas and some sketchy ones. Just don't get drunk and mess with the gangs/cartels.
I'm not that funny, I just do lots of dumb stuff to make funny things happen.
Yep. Was planning to do couchsurfing down there but there's hardly anybody down there who participates, sadly.
Incidentally, I'd be curious to know how many MGoCouchsurfers there are. Not thread worthy, especially during the season, but I think there's some untapped potential in that.
What's couchsurfing precious, eh?
Basically you can find people to stay with (for free) while traveling, and you can host people in your home when they're traveling. It's one big hospitality network. I've couchsurfed a few times and had an absolute blast; it really enriches your experience of a place when you have someone to stay with and show you around.
Also suggest helpx.net. It's a work exchange program throughout the world, mostly in Europe. Used it the summer of 2011 and stayed on a farm in Ireland. It was a blast. Worked from 9:30-4 with a 45 minute tea break and 1.5 hour lunch mixed in there. Real laid back and went to a local 400 year old pub a couple nights a week. Greatest month of my life.
Thanks. I think I'm getting too old for that, but I would've been up for it ten years ago.
It's not so bad
Believe me, I'd rather be anywhere other than Deadhorse, AK anyday. I call it home two weeks a month for work. No joke!
Someone has to save the Polar bears!
Is it just constantly pitch-black up there at this time of year, or does the sun's glow peak over the horizon?
Winter solstace is in about a month. There is a glow on the horizon like you suggest, but the sun doesn't rise above the horizon for something like 45 days.
What a godforsaken place. I wonder if even MSU's intercontinental ballistic recruiting extends that far. Welcome to the board by the way!
Barrow, AK could become Dantonio's next pipeline school. Had their first ever varsity football squad last year.
I once picked up Barrow AK on the radio (just your typical walkman) at night from Michigan. It had some really weird music playing.
Also, how the heck does a school district of 4000 people find money to fly their football team hundreds of miles to play their games?
It's not all bad. These cute li'l guys live there.
How the heck do you survive that without weekly Michigan Football?
$4.00 per gallon of fuel pays for my sanity in the form of flatscreen TVs and high definition cable. Deadhorse is where the Trans Alaska Pipeline starts in what is the second largest oilfield in North America.
Watch out for the vampires.
They better bring a bunch of TV sets with them to the conference. The fact is, their fans aren't happy about leaving the ACC, and Big Ten fans aren't particularly happy about them joining our conference. They'll have to prove a lot of people wrong.
That is not fact so please don't state it as of it is.
it's not fact... just heavy consensus.
Once Jim "Sugar Daddy" Delaney starts sending their moribund athletic department big, fat checks from the B1G piggy bank.
3 orders of white rice...3 orders of wonton soup...oh, and some fortune cookies.
That's cause that's the only good one.
NO AND THEN!!!
Maybe I'm missing something but I really don't care if they are broke. Their financial situation makes no difference because they're about to get a huge boost in revenue and it will sort itself out.
Now the fact that their team sucks, they have no tradition and I have no interest in seeing them play is a different story.
If they never manage to fully crawl out from under their mountain of debt, even with B1G network revenue, they're never going to manage to build a program the rest of us care about. They'll end up being an away game that basically feels like the regular season version of the pizza bowl. Plus what nice things they have now will continue to slide downhill or be cut. I'd also imagine it reduces the odds they ever will capture a TV market for us if they're some debt ridden program with crap facilities.
For that matter if they do manage to crawl out, but it takes them a decade, that provides a window where some other program can exploit to take control of the markets we brought Maryland in to gain.
When in doubt - blame Randy Edsall.
And here i thought...people would want to watch a LB/5th string QB start for their football team! That's gotta be fun to watch.
but I feel the OP Title should end in "Y'all!"
I'm from the wrong side of the Mason-Dixon line for that.
Did they spend all their money on the 2000 different versions of football uniforms their team has?
In case the OP is not aware of the fact, and as pointed out by DB in the 60 Minutes piece of a week and a half ago, only a couple of dozen athletic departments run in the black.
If that even. Depending on how they run their numbers.
However, prior to our most recent additions, all of the B1G programs were in the Top 50 for revenue. Where there are a limited number that make money or manage break even, B1G schools tended to make those categories. Even Northwestern managed to balance its budget (56 million in revenue, 56 million in expenses).
based on those links
maryland is up $263,711 so they seem to be making a profit but obviously not enough to eat into that debt significantly
Lorne highlights one issue below (the 2.5 million in naming rights going away, although one can assume they'll get a new naming rights deal, just for less). The other issue is they managed to get into the black via cuts. Cutting your way to profitability isn't really the ideal way to build a B1G caliber athletic department. 263k can vanish pretty quickly depending on exactly what kind of debt and interest rates you have. For that matter, holding at this level of profitabilty means it takes over a decade to pay off a 5 million dollar ACC exit fee (with interest determining the exact length).
Just read the article, Debbie Yow is just about the worst athletic director to exist (sorry dave brandon haters he doesn't come close) and ran the department straight into the ground. How she still gets jobs is beyond me. Also every coach at md hated her to the point where gary williams when called and asked about working with yow during nc states baskeball coach search told people to not work for her and a report was written recently that based off her reputation there are high school football coaches who would turn down the nc state football job that just opened up.
This. She is the worst. The absolute worst. Nobody likes working for her. She ran off a football coach after a 9 win season and replaced him with Randy Edsall. James Franklin, who was the coach-in-waiting, got the hell out of Dodge too. DB haters, this is what you could have instead. Take your pick.
The Washington Post did a piece last year on some of the financial misadventures of Terrapin athletics - (LINK)
Some of the more intriguing tidbits, in my opinion:
- The SI article touches on this, of course - the athletic depatment has been getting $2.5 million per year as part of its agreement with Comcast for naming rights to the basketball arena, and the payments stop in 2016, just in time for Maryland's debt service payments to go up by another million or so. It has been using the Comcast money just to make those payments.
- projections of ticket sales at Byrd stadium have been missed by around $500,000 per year in 2009 and 2010.
Further, in the Baltimore Sun's reports on the subject, we find that in 2006, football operating profit was $3.5 million. In 2011, it was $1.8 million. Basketball revenue over that same period fell from $6.5 million to $4.8 million.
There are other sources which report that the total debt for the department is now over $80 million as well. Non-revenue sports at Maryland lost $13 million in 2011, and $64 million over the previous five years.
If the 80 million in debt thing is true, there are decent odds that Maryland is over 100 million in debt by the time their ACC exit fee is worked out. Maryland managing to push the exit fee down to 20 million (from the 50+ the ACC demands) would do it. I hope that the B1G guys who looked over Maryland's books are better at finding bad debt than Maryland's guys are at hiding it. It would suck if they snuck a debt bomb into the conference.
Maybe we should have just added Greece, same fiscal setup but a larger TV market after all*.
*and Erik_in_Dayton beats me to the punch below
Welcome aboard Terps.
I figure this might be like when the EU added Greece. That worked out well for everyone, right?
Gyro and tzatziki.
Lemon rice soup #bliss
Greece makes other EU countries feel good about themselves.
Also, this is good investing. If the fundamentals are there -- flagship state school, good academics, big market(s), good athletics (certainly some question there) -- but there is a short term need for cash, it is a good time to buy. Of course founding institutions are unlikely to leave conferences that are doing well if they don't need to.
Everyone in the ACC would trade Louisville for MD without blinking. Nobody in the B1G would take the 'Ville over MD.
I don't agree that the ACC would rather have Louisville than Maryland. This was just a move made out of desperation/necessity.
Louisville offers nothing outside of football and basketball. Maryland is a national power in several non-revenue sports.
I think Louisville's success in football and basketball are tenuous at best. They lucked out with both Petrino and Strong. Strong is gone when the next high-profile job opens up. Then, most likely another long stretch of mediocrity. Basketball will probably always be second fiddle to UK. Fortunately, it looks like Petino stays for a while and they'll have continued success, but then?
Maryland has a much greater educated, monied population base. Read: larger, more influential fan base.
My original post was badly worded. I meant that the ACC would much rather have MD than Louisville -- that they would trade out the 'Ville (who they added) to get back MD (who they lost) without blinking (for many of the reasons you write) -- and that this is evidence that MD is a good asset despite the debt. Sorry for the confusion.
we get Maryland, and ACC gets Louisville.....Is it just me, or would Louisville have been the better option for the B1G?
Its just you
Academics, CIC, etc. etc. etc.
Ivory-tower provosts and various academic types would faint on letting in both Nebraska ANd Louisville
this isnt news
I specifically like the people who want to comment about how "this isn't news" or "this is redundant", etc. when those comments have already been posted, and they themselves are being redundant.
Not being an ass, I just have a thing for irony. Delicious.