Rutgers athletics, even in B1G, still in bad shape

Submitted by robpollard on

I am one of the many who hates the B1G expansion, as I can't stand how it spreads out the schedule and takes UM away from its traditional rivals (e.g., not playing Wisky in football for something like 5-6 years). To play out east for the benefit our considerable alum network, just schedule home & away with Rutgers, UConn, UVa, etc and be done with it.

Regardless, I'm not here to re-argue that, but to point out that I was really surprised to learn today the Rutgers, even with B1G network cash, is projecting athletic dept deficits of "$183 million between now and 2022." That's just astonishing. It's EMU-level bad in terms of the school having to take money from academics just so it can pay for athletics .

Beyond that, I think Rutgers is probably being overly optimistic in how things will be better in the next decade. Sports fees paid by cable subscribers (as covered by Brian and elsewhere) is likely at its crest, and ESPN, Fox Sports, B1G, etc are soon going to have deal with unbundling and find out how to make do without relying on the majority of subscribers who would rather keep their dollars than subsidize a network they don't give two hoots about.

If/when Rutgers has to start cutting sports, I wonder how attractive they still will be to the B1G (though I know they will still bring the NYC market...cough

http://www.nytimes.com/2015/05/12/opinion/joe-nocera-at-rutgers-its-books-vs-ballgames.html

East German Judge

May 12th, 2015 at 2:21 PM ^

Sort of....

"Rutgers’ inaugural Big Ten football season played a key role in the conference setting an attendance record in 2014, with the Scarlet Knights playing to 97 percent capacity at High Point Solutions Stadium.

The Big Ten this week announced a record total football attendance of 6,359,218, marking just the third time the league has topped the six million mark.

Rutgers averaged a program-record 50,632 for its six home games, and the school’s 8.8 percent attendance increase was the second largest in the 14-school conference."

So they nearly sell out, but they have a relatively small stadium and we know that their BB program isn't bringing the money in. 

Thanks Jim Delaney.

ScruffyTheJanitor

May 12th, 2015 at 12:30 PM ^

This is BAD. I am surprised that the B1G commish didn't take the financial picture into account. And by "I am surprised that the B1G commish didn't take the financial picture into account", I mean #FireDelaney. 

Wolverine Devotee

May 12th, 2015 at 12:35 PM ^

Let's not forget their horrific performances in almost every single sport in B1G conference games.

  • Baseball: 5-16
  • Men's Basketball: 2-16
  • Women's Basketball: 12-6 
  • Field Hockey: 2-6 
  • Football: 3-5
  • Women's Gymnastics: 0-9
  • Men's Lacrosse: 1-4
  • Women's Lacrosse: 1-4
  • Men's Soccer: 1-6-1
  • Women's Soccer: 8-4-1
  • Softball: 11-12
  • Women's Tennis: 0-11
  • Volleyball: 0-20
  • Wrestling: 2-7

jmblue

May 12th, 2015 at 12:51 PM ^

 

In the last academic year, Rutgers athletics generated $40.3 million in revenue, but spent more than $76.7 million, leaving a deficit of more than $36 million. In other words, revenue barely covered half the department's expenses.

 

Good thing the author pointed out this bolded part.  I could have never subtracted 40 from 76 on my own or figured out what half of 76 is.

 

Toasted Yosties

May 12th, 2015 at 12:50 PM ^

Wasn't this move predicated on the inclusion of the B1G Network in the lucrative east coast cable sports package, a thing that might not even exist in a few years? I really wish the B1G would have stopped after Nebraska and enacted a nine-game B1G football schedule so we'd have had the same scheduling scenarios we had before Nebraska joined. Missing out on playing two teams for two years didn't seem like a bad deal, even if one of them were a Wisconsin.

Toasted Yosties

May 12th, 2015 at 1:01 PM ^

midwest-based. I would have rather seen us take Mizzou and Kansas ( some argue that may have not been an option due to KSU). AAU schools, one an elite basketball school, and a school with a very good basketball and football program. Rivals of Nebraska, would have been excellent pieces of a Great Plains B1G division. The cable money is going to dry up soon anyway. Both would be better long-term members than Maryland and Rutgers in my opinion.

Jinxed

May 12th, 2015 at 1:17 PM ^

Academically, comparing Rutgers and Maryland with Kansas and Mizzou is like comparing U of M with Western or State. They'd both be at the bottom of the conference with Nebraska by a comfortable margin. 

Also, I'm pretty sure Maryland is closer to Michigan than Nebraska and Kansas, but don't quote me on that one. 

Toasted Yosties

May 12th, 2015 at 1:29 PM ^

What I said was Kansas and Mizzou are both AAU schools, which is sort of a prerequisite for joining the B1G (aside from Nebraska, who lost their status around the time they joined). I don't think academics were a primary consideration. I think UConn has better rankings than UMD and Rutgers and a basketball program that has won two championships in the last few years, but Connecticut doesn't offer the cable money like UMD and Rutgers do. Regarding proximity to Michigan, I think you should consider proximity to other B1G schools instead. Lawrence and Columbia are fairly close to Champaign, Iowa City, Lincoln, as well as each other. I think they'd have made a lot of sense as being part of a western division.

robpollard

May 12th, 2015 at 1:07 PM ^

I agree Maryland is a) better academically and b) much better in revenue sports than Rutgers, and thus a better fit. But if I recall, one of the things Delaney & co trumpted about the expansion was that the B1G was adding *two* east coast teams, so they could link up with Penn State to form a nice set of "natural" rivalries.

So I'm not sure if the B1G would have added Maryland and, say, Pitt or Mizzou.

And if I had a choice, I'd rather take neither UMD and Rutgers than have to take both. UMD will be very, very good in b-ball next year, but they've never maintained their success for long. Perhaps this time it will be different, but still, Rutgers is such an anchor and the B1G is so good in basketball anyway, adding UMD was very nice, but not worth it.

LSAClassOf2000

May 12th, 2015 at 12:53 PM ^

....is not very flattering and clarifies where Rutgers athletics is severely bleeding money - LINK

Table 5 is the ten-year history of Rutgers' athletic revenues and expenditures and the subsidies used to make up for the loss. Holy crap, that department probably maxes out every credit card it can find too. 

snarling wolverine

May 12th, 2015 at 12:54 PM ^

I was really surprised to learn today the Rutgers, even with B1G network cash, is projecting athletic dept deficits of "$183 million between now and 2022."
But doesn't the article say that Rutgers isn't getting a normal cut of Big Ten TV money for another six years?

robpollard

May 12th, 2015 at 1:17 PM ^

- They're not getting a "full" share, but they are getting some. They'd still have a deficit with B1G money. 

- More to the point, Rutgers seems to assume that when B1G Network money comes fully "on" for them, that it will still be as high (or higher) than it is today. I think that is a terrible assumption, as unbundling will very likely be in meaningful, if not full, effect by then (e.g., Verizon already fire the first big shot about a month ago, and is currently being sued by ESPN and Fox). Sports networks are going to have to make it on their own, and the B1G Network won't be able to ride the coattails of the 95%-plus viewers who don't care about their network.

- Finally, Rutgers administration seems incompetent, and has been for a long time. Even with more money coming in, it seems they would figure out a way to have many more millions going out.

UMxWolverines

May 12th, 2015 at 1:01 PM ^

I think we're getting to the point in the very near future where schools will start to cut certain sports. There's just too many schools that even do quite well that are running at huge deficits. Then again, Don Canham inherited a huge deficit when he got to Michigan. Then again AGAIN, nobody in major athletics today is as smart as Don Canham.

Jinxed

May 12th, 2015 at 1:21 PM ^

Because it wouldn't be basketball and football that would get cut. The first sports to go would be the men's olympic sports because they don't bring in money, and then the women's olympic sports because if you don't have the men's teams then you don't need the women's teams to balance it out. 

Jinxed

May 12th, 2015 at 1:51 PM ^

Well, it's fairly simple. Take away the millions that the universities invest in these athletes, don't replace it with anything, see how it goes. I mean... where do you expect that lost money to come from? Congress? You can't compare our model to China's or Russia's because they fund their athletes directly from a very early age. Here that will never happen. 

Jinxed

May 12th, 2015 at 8:22 PM ^

Yeah, pick the one or two sports that are not supported by universities and focus your argument on those exceptions. 80% of American medal winners in the London olympics were NCAA athletes. A big portion of the money that went into train those athletes came from the universities they attended. If you take that away the government isn't going to step in to fill the gap and a lot of those athletes won't be able to afford coaching+going to college+feeding themselves+tutoring because they won't have any scholarships or special concessions at school because of their status as student athletes.

I mean... if you don't care about USA's performance in the olympics that fine, it's a fair viewpoint to have; but to pretend that eliminating olympic sports from a lot of athletic departments won't heavily impact the athletes that will be left without a scholarship? Jeez...

BTW, I wouldn't brag about figure skating if I were you, that's not a sport USA dominates. The Russians are much better, both historically and currently. Maybe colleges not supporting it has something to do with it. 

robpollard

May 12th, 2015 at 1:38 PM ^

It's not close to being prestigious enough academically for the B1G and its self-image. It's not considered a close to Top 100 school.

For example, I just looked it up: WVU's acceptance rate is 85%. Both Pitt and UMD are around 50% (and UM is 33%, FWIW). Even MSU is 67%.

Plus, if you got Pitt, you don't need the (very tiny) WVU market.

Everyone Murders

May 12th, 2015 at 1:52 PM ^

Fact 1:  Every student who got into MSU also got into Michigan.*

Fact 2:  33,000 students applied to MSU last year.  Approximately 22,000 got into MSU.**

Fact 3:  50,000 students applied to Michigan.  Approximately 16,000 got into Michigan.***

How is it possible that more people got into MSU than Michigan then?  Huh?!?!

It's unpossible!

Sources:  *Innumerable MSU students and alums with whom I've spoken.  **Wikipedia.  ***www.admissions.umich.edu

Ronnie Kaye

May 12th, 2015 at 1:36 PM ^

Delaney not seeing the unbundling on the horizon is just astonishing. It's surprising the cable scam has been able to hold on this long. I wish the conference could undo new members as easily as they undid Legends and Leaders.

Perkis-Size Me

May 12th, 2015 at 2:03 PM ^

Why, oh why, is that school in our conference? Maryland is starting to grow on me a little, as they are a solid school and raise the B1G's basketball profile. Rutgers is an all around embarrassment from top to bottom. Even their AD is likely one of the most despised in the nation.



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Needs

May 12th, 2015 at 2:16 PM ^

What's the case, other than the need to satisfy a bonded debt obligation on their stadium expansion, for Rutgers to continue to offer D-1 sports? It's bad at almost all of them, the AD serves as a financial burden, stripping money out of both the academic side of the university and out of students through required fees, and they have seemingly few fans. The fact that they have D-1 sports may actually hurt the school's academic reputation on the East Coast, given the association that many in the NY metro area make between big time sports and a lack of academic rigor.

Wolverine15

May 12th, 2015 at 2:31 PM ^

Rutgers was one of three P5 conference teams to finish in the bottom half of the conference in every men's sport this year. Wazzu and Pitt were the other two. Pretty bad and embarrassing for Rutgers, but considering the quality of their athletics, not terribly shocking.



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93Grad

May 12th, 2015 at 2:34 PM ^

I will never forgive Delany for that move.  It was like if the SEC targeted Northwestern to get the Chicago market.  Just beyond stupid.