Texas Tech cuts $7 million from athletic budget

[West Coast Johnny]

https://www.marketwatch.com/story/t...-director-2020-04-28?siteid=yhoof2&yptr=yahoo

Texas Tech athletic director Kirby Hocutt says the school will cut nearly $7 million from the athletic budget in the upcoming school year, including eliminating performance bonuses for himself and Red Raiders coaches.

The cuts are needed because of the economic shutdown caused by the coronavirus pandemic, and deeper cuts may be needed if college football can’t play a full season, Hocutt told A-J Media in Lubbock, Texas.

 

[Fosterpark Squatter]

Another article that has some more details, no surprise oil struggling recently factors in.

https://www.lubbockonline.com/sports/20200427/tech-to-cut-67-million-from-athletics-budget

 

[FrogCop19]

If I'm not mistaken, aren't a lot of the state schools losing funding from the states? In that case, it shouldn't affect us in the slightest, should it? I might be way off base here, but all private schools should be in the clear.

Unless you're baylor and you have to pay off a whole bunch of lawyers, victims, and a 10-billion gallon toilet bowl.

 

[Wexahu]

If I'm not mistaken, aren't a lot of the state schools losing funding from the states? In that case, it shouldn't affect us in the slightest, should it? I might be way off base here, but all private schools should be in the clear.

Unless you're baylor and you have to pay off a whole bunch of lawyers, victims, and a 10-billion gallon toilet bowl.

I wish you weren’t, but I think you’re way off base here.

 

[FrogCop19]

I wish you weren’t, but I think you’re way off base here.

How so? Serious question, not being snarky in the least. Is it because of the loss of revenue from sports? Does TCU receive money from the state? As a private university, I thought that meant that it was solely supported from tuition, donations, and revenue from sports.

Just because I graduated from here doesn't mean I'm smart...

 

[Wexahu]

How so? Serious question, not being snarky in the least. Is it because of the loss of revenue from sports? Does TCU receive money from the state? As a private university, I thought that meant that it was solely supported from tuition, donations, and revenue from sports.

Just because I graduated from here doesn't mean I'm smart...

I just don’t think anyone is getting through this without being significantly affected. I would think our revenue and donations take a pretty big hit. How could they not?

 

[Sweat Equity]

I just don’t think anyone is getting through this without being significantly affected. I would think our revenue and donations take a pretty big hit. How could they not?

They are.

 

[robbroyy]

TCU is anticipating a multi-million loss by May 1 due to room and board refunds and other expenditures.

Good news is they opened housing reservations for the fall last week and they are at 100% capacity. So assuming the health experts allow students to return to campus, things should be running as normal as possible.

It will obviously take awhile to recover from room and board losses plus probably football ticket revenue losses this fall. It’s hard to imagine 50k stadiums being allowed by September.

Biggest thing TCU needs is the $39 million check from the Big 12 for the TV contract. G5 schools are going to be in a ton of trouble for next 2-3 years.

 

[YA]

G5 schools are going to be in a ton of trouble for next 2-3 years.

I predict there are going to a lot of G5 schools and lower who give up playing football at their current level

 

[Wexahu]

I predict there are going to a lot of G5 schools and lower who give up playing football at their current level

And a lot of non-revenue sports and scholarships being axed.

 

[froginaustin]

How so? Serious question, not being snarky in the least. Is it because of the loss of revenue from sports? Does TCU receive money from the state? As a private university, I thought that meant that it was solely supported from tuition, donations, and revenue from sports.

Just because I graduated from here doesn't mean I'm smart...

Doesn't mean your not smart, either.

Just because TCU does not receive direct appropriations from the State or revenue from the State's Permanent University Fund doesn't mean there is no problem.

As I understand it, TCU received a ton of revenue from O&G royalties that the University owns directly or indirectly, not to mention a ton of donations from supporters who make or made fortunes in the O&G industry.

TCU's mineral interests may roll in the dough again one day, and so may the donors'.

Sad situation today, but not likely to last forever. Nothing does.

 

[TCUdirtbag]

Biggest thing TCU needs is the $39 million check from the Big 12 for the TV contract.

The Big 12 distribution won’t be $39 M after the Big 12 and NCAA tournament cancellations. But it’ll still be over $30.

 

[Froggish]

TCU is going to have to get enrollment in the 15K range.

 

[TCUdirtbag]

A few comments:

Texas state schools don’t get state funding for athletics. So as you see athletics budget cut, that’s resulting from other sources (tickets, tv, licensing, donations, etc.). In addition, public universities receive a much smaller percentage of their funding from the state than they did even 10-12 years ago. The Great Recession led to huge higher ed state funding cuts but was also coupled with tuition deregulation, and so the colleges made up the funding cuts with tuition increases. The general sense is this crisis can’t be overcome with the same sort of tuition jumps as the last due to other market forces.

When you look at those Tech articles, notice that their $7 M+ cuts are based on still having a complete athletic season in 2020-2021 (12 football games open to the public). Obviously things could get much worse.

I think you’ll see state agencies start across the board salary cuts soon. UT and A&M may avoid them, but with oil at $20 they may not this time. The Comptroller doesn’t plan to announce revenue projections until July—a lot will hinge on how bad those numbers are.

TCU can thus expect that same sort of funding issue in athletics that you see coming out of Lubbock and Waco. I’m sure they’re making similar cuts and it’s just being kept quieter because they aren’t accountable to the state.

 

[TCUdirtbag]

TCU is going to have to get enrollment in the 15K range.

Believe the strategic plan IS 14-15k, but it takes infrastructure to get there. Right now TCU has to weather this storm (we will) just to keep the enrollment at 10k. On the other side of this crisis, expect to see bond-funded expansions of housing (revenue pays off the bonds) and continued enrollment growth. Will have to be paced increases to allow for hiring and expansion of other basic infrastructure pieces (eg, BLUU, health center, classrooms and faculty offices - these were on the board post-new admin building, so I’ll be interested to see what COVID does to those plans). For example, making Sadler academic will be a significant boost to faculty/classroom space. The relocation of student services from Jarvis to The Harrison and expanded BLUU (assuming it proceeds) will open up the rest Jarvis to academic space. And the demolition of the old fraternity houses opens up space for new dorms. All of that won’t get you to 14-15k but it can get you to 12k pretty quickly.

 

[froginaustin]

TCU is going to have to get enrollment in the 15K range.

Why? I think Baylor is enrolling 16k - 17k. Certainly doesn't solve their situations.

 

[WhiteHispanicFrog]

Believe the strategic plan IS 14-15k, but it takes infrastructure to get there. Right now TCU has to weather this storm (we will) just to keep the enrollment at 10k. On the other side of this crisis, expect to see bond-funded expansions of housing (revenue pays off the bonds) and continued enrollment growth. Will have to be paced increases to allow for hiring and expansion of other basic infrastructure pieces (eg, BLUU, health center, classrooms and faculty offices - these were on the board post-new admin building, so I’ll be interested to see what COVID does to those plans). For example, making Sadler academic will be a significant boost to faculty/classroom space. The relocation of student services from Jarvis to The Harrison and expanded BLUU (assuming it proceeds) will open up the rest Jarvis to academic space. And the demolition of the old fraternity houses opens up space for new dorms. All of that won’t get you to 14-15k but it can get you to 12k pretty quickly.

Thanks for the insight.

I could be making this up but IIRC there was fairly serious talk/planning to connect the BLUU with the health center when they expanded the BLUU cafeteria. Is that something you’re aware of?

 

[Froggish]

Why? I think Baylor is enrolling 16k - 17k. Certainly doesn't solve their situations.

100k student enrollment won’t resolve poor financial decisions but TCU has shown to be financially savvy. The increased enrollment would overtime help fund the ability to address the growing cost of tuition and improve the alumni donor base. I think TCU can get in the 14-15k range and still retain what makes it unique and special. There’s a sweet spot for sure

 

[TCUdirtbag]

Thanks for the insight.

I could be making this up but IIRC there was fairly serious talk/planning to connect the BLUU with the health center when they expanded the BLUU cafeteria. Is that something you’re aware of?

I think they ran into emergency/loading dock issues in trying to connect to the North. The last plan I knew of involved leveling the pseudo-attached auditorium to the south and building/connecting a new 2-3 story wing in its place. Believe the new Harrison contains a replacement auditorium for that very purpose.

Interestingly, the original BLUU plans would’ve built larger dining and ballroom spaces in the north wing. Also would’ve had a foundation that would’ve accommodated later addition of a 4th floor. Unfortunately those got cut.

Another real problem is ballroom space. The BLUU facility is inadequately small. There are fire issues with hosting simple orientation dinners—the space is just way too small. There was some talk of a stand-alone pavilion in the parking lot between Alumni and the Frog Alley parking garage to accommodate large events (would overlook the Kelly Center Lawn and AGCS East entrance). Not sure where that planning ended up. Possible the new east side expansion contains space that addresses that issue but I’m not sure if the large space is configured in a way that can be used like ballroom space.

 

[Tumbleweed]

How so? Serious question, not being snarky in the least. Is it because of the loss of revenue from sports? Does TCU receive money from the state? As a private university, I thought that meant that it was solely supported from tuition, donations, and revenue from sports.

Just because I graduated from here doesn't mean I'm smart...

Numerous large donations come from individuals helping football in particular, most the time right after fall practice begins. Usually those donations come from the energy side of economics, however that industry has taken a horrendous blow. I just don't see those donations being as plentiful as in the past. So, while I've got the podium, question I hear a lot is IF we'll hv a season. I think in 'some' regards we will. Believe firmly we're scared or should be scared to death with a second wave of virus 19. (just about the time the football season is in full mode) To think a second wave won't happen is dumb, dumb. Yes, they are close to a vaccine but one vaccine..? which vaccine..? when this thing-- this virus--- changes. As I understand it, it has mutated four times already. So, when a better handle of short term future is known, we'll know more about our seasons length. Know Gary is preparing for it, he just doesn't know when or what shape it will take. For SURE, TCU needs the revenue football brings as most power 5 schools. Please conduct yourself with common sense when around your friends, relatives. From what I've read. it only takes FIVE minutes or less' breathing the same air as your friends and partner, your infected.