$58.9 million budget approved for AA

Greetings-

I have some stuff to share with you from the Georgia Tech Athletic Association meeting last Thursday. I was going to blog about it last week but the Brian Oliver transfer came up.

The budget for fiscal year ‘12 was approved at $58.9 million, up from $55.1 million in the past fiscal year. Increased revenues from the new ESPN contract and also the stronger home football schedule (Clemson, Virginia Tech, Georgia) are expected to cover the increased expenses (more on that below).
Some of the increased costs are due to the firing of basketball coach Paul Hewitt and also the impact of moving the basketball games off campus due to the renovation of Alexander Memorial Coliseum. Both men’s and women’s teams will also play more road games than usual, meaning higher travel costs.
The budget, though, has an apparent leak in it, as football season ticket sales are slower than expected, despite the strong odd-year schedule. As of last week, Tech had sold about 22,300 season tickets. The association has budgeted for 25,000 season tickets. There’s typically a push in July and August, but the AA has got some ground to make up.
With some of the new ESPN money, Tech will put some more money into advertising in hopes of boosting sales.
The ‘11 fiscal year, which closes at the end of the month, will be about $700,000 in the hole. A shortfall in ticket sales, both football and basketball, as well as the Hewitt firing, accounted for the deficit. However, the cash balance remained at about $4.8 million because of improved performance by the Georgia Tech foundation, which holds the AA’s money.
I’d think the new ESPN contract, which will be about $3.5 million more than what the ACC distribution has been in the past, should keep Tech’s budget above water in the future.

The renovation of AMC is well underway. The inside of the building, AD Dan Radakovich said, has been razed and is just dirt floor right now. Radakovich mentioned a few other building projects. The football players lounge is being converted into a 140-person auditorium. It is expected to be ready to use in late August. The players lounge will go into the space where the existing team meeting room is. The lead donation came from the Zelnak family, which also provided the major gift for the basketball practice facility.

The association is considering converting the golf practice facility on 14th Street from a range-type area to a nine-hole par-3 course. Radakovich said the impetus is a desire to give players more competitive opportunities. After three rounds of stroke play, the NCAA championship is ultimately decided by match play, where Tech has faltered despite typically having one of the strongest and deepest teams in the field. Fund-raising still has to be done.

Final design options are being looked at for a renovated tennis facility. Additional fund-raising needs to be done for that project also. Ken and Trish Byers gave the lead gift for that project.

The Brock Indoor Football Facility is scheduled to open in late July, in time for the start of practice in August. A board member repeated concern from faculty about the glare of the building’s roof into the nearby Ford Building. The roof is a light color for energy sustainability reasons. The solution might be tinted windows in the windows facing the facility.

53 comments Add your comment

gtfanfrom1951

June 20th, 2011
2:28 pm

Gordon

June 20th, 2011
2:46 pm

Thank God for rich Tech alumni. Thank you Zelnaks, Brocks, Byers, and McCamishes.

DawginLex

June 20th, 2011
2:50 pm

Interesting point about the endowments.

Most universities don’t allow access to the endowment earnings in the same year that the gains happened.

I guess it depends on how everything is set up within the university. At Kentucky, the AA is self sustaining and actually contributes money to the university each year.

Just had a big squabble up here where the AA wanted to borrow money from the unversity to pay for new Video Scoreboard at commonwealth Stadium. Ended up getting voted down and AA footed the bill themselves.

GT 07

June 20th, 2011
2:54 pm

Thank you Tech Alumni!!!

nerds

June 20th, 2011
3:09 pm

might as well redo your cracker jack box and make it seat 25k so you can have a sell out

rednecks

June 20th, 2011
3:17 pm

because I live in a cracker jack box :)

juvenal

June 20th, 2011
3:31 pm

Boise seats 35k….

spider

June 20th, 2011
3:37 pm

Dont forget to budget extra money when you all travel out to BYU in a couple of years to off set the cheating on the field by the Mormons.

spider

June 20th, 2011
3:42 pm

And byu will cheat and NCAA will do nothing. Just ask San Diego state.? 3

spider

June 20th, 2011
3:54 pm

Bunch of Hippocrates and cheaters is what they are and the stinking NCAA let’s them get away with it.

juvenal

June 20th, 2011
4:00 pm

refs blow calls, see no reason to add personal invective….economy stinks, just ask the thrashers; imagine even waiting lists at land-grant football factories are shrinking……

TDone

June 20th, 2011
4:08 pm

As always, it’s not the quantity of the fans, it’s the quality of the fans that count.

PooperScooper

June 20th, 2011
4:08 pm

Hippocrates? Who is that? An ancient philospher?

GT 1

June 20th, 2011
4:14 pm

Thank you Alums

Saban

June 20th, 2011
4:16 pm

Nothing wrong with Mormons. I am a mormon and have 6 sister wives.

Brock

June 20th, 2011
4:26 pm

you’re welcome.

Tokyo jacket

June 20th, 2011
4:34 pm

Increased budget actually sounds good. It starts in a year with increased expenses and stays hi when the money starts coming in and those expenses disappear. That money will turn into extra recruiting trips in a couple years I hope.

John

June 20th, 2011
4:43 pm

DRad seen in Knoxville this morning. WHY?

Ken Sugiura

June 20th, 2011
4:45 pm

DawginLex, as I understand it, the AA has its cash balance — the checkbook, as Radakovich referred to it — managed by the Tech endowment folks. So it’s their money and theirs to use as they see fit. I think there are some restrictions on how much they can pull out of it.
kudos, GTfanfrom 1951.

dcp

June 20th, 2011
4:47 pm

That is a low number of season tickets for a year when all the higher volume teams come to GT. This will be embarassing. As for basketball this is going to be a long year. Aside from Royal, there is little of interest in this team. Phillips is likely to have as many of our rival fans as GT supporters

Gave Mine Up

June 20th, 2011
4:50 pm

I gave my season tix up. Tired of all the noon games, which leave zero time for tailgating. Same for Thursday night games. However, I do appreciate that ESPN pays Tech more than than I do for the season pass.

Wreckmaniac

June 20th, 2011
5:34 pm

NerdDawg: Has the county building authority condemmed that hoophouse you have over there ? If not why ? I’ve been in nicer chicken coops.

collegeballfan

June 20th, 2011
6:11 pm

The use of the word “nerd” as an insult constantly amazes me.

The ignorant will always be ignorant.

Nerds, in fact, rule the world. Always have, always will.

Paul in RDU

June 20th, 2011
6:44 pm

Isn’t the richest man in America a quintessential nerd?

BIG BEE

June 20th, 2011
7:31 pm

Yep, I was right, UGA fans don’t like anyone. Not even their mothers. UHU. well maybe I don’t blame them for that.

dawgfan

June 20th, 2011
7:58 pm

“. . .also the stronger home football schedule (Clemson, Virginia Tech, GEORGIA)”

Once again your sorry half arsed athletic program needs us to put some butts in the seats for you to the pay the bills. You’re welcome Techies.

Delbert D.

June 20th, 2011
8:00 pm

There is a cultural clash between those whose favorite movie is “Apollo 13″ and those who prefer “The Hangover.”

Delbert D.

June 20th, 2011
8:02 pm

Having said that, the HBO DVD series I’m currently watching is “Band of Brothers”, which should unite us all.

dawgfan

June 20th, 2011
8:06 pm

collegefootballfan, Techies do not rule the world. Most of them go back to their native countries in southeast asia or someother foreign country after graduation. The ones that stay here are nothing more than corporate cogs toiling away in cubicles with fluorescent light bulbs glaring down upon them harshly. Oh sure Techies, you nerds can build bridges and send rockets to Mars, but it isn’t Techies making the call on when to build the bridges and win to sent the rockets to Mars. A Techies simply doesn’t possess the needed logic and reasoning skills to make such calls. If its not written in black and white in a math book a Techie doesn’t know his pimple ridden arse from a hole in the wall.

True story.

Mark

June 20th, 2011
8:38 pm

Hmmm, how about less advertising and more winning? That will def boost ticket sales
Men’s Basketball has a ways to go after last season and CPJ needs to get things rolling and start winning games your supposed to win instead of losing them. A steady course of winning always equals strong ticket sales no matter who you are.

Do What?

June 20th, 2011
8:53 pm

Ken – any chance you filed an open records request for information? Sorry, what was I thinking. The AJC only files open records requests for information from The University of Georgia Athletic Dept, GTAA is exempt from requests by the AJC. We will never know where the money goes, coach’s salaries, or NCAA reports. Journalist or cheerleader?

Paul in RDU

June 20th, 2011
9:10 pm

@Do What?

GTAA publishes their financials. Enjoy yourself picking though the details.

http://fin-services.gatech.edu/sites/default/files/GTAA%20Financial%20Statements%20-%20FY2010.pdf

Try finding the UGAA financials.

UGA fans must be very proud of.....

June 20th, 2011
9:23 pm

dawgfan @8:06 pm
————————-
Xenophobia, poor English skills (”win to sent the rocket to Mars”) along with hostility to people because of the school they went to.

dawgfan seems to be the UGA equivalent of Harvey Updike.

The Hypocrisy That Is GT Athletics

June 20th, 2011
10:41 pm

GT is broke and the GTAA is a joke. GT has lost 9 of the last 10 with more losses to UGA to come. It stinks to constantly lose to Big Brother. Oh well, at least you can have a fish try with “Turkey Neck” Paul Johnson

GT93

June 20th, 2011
11:00 pm

dearest little “dawgfan” … thanks for the visit. We are always so honored play witness to your keen insight, your obvious knowledge of the ways of the world, and especially your basic writing skills (”…and win to sent the rockets to Mars.”)

Meanwhile, GT grads will continue to get hired all over the world exactly FOR their logic, their reasoning skills and their ability to solve problems.

Thanks again for the laugh, though.

Wes Durham's Gigantic Bottom

June 20th, 2011
11:40 pm

When Radakovic hired CPJ he said he wanted someone to make the entire City of Atlanta excited about Tech Football………..how’s that working out?????????

JacketAndCoke

June 21st, 2011
12:29 am

Georgia Tech’s Endowment $1.438 BILLION. UGA endowment $572 Million. So umm yeah Ugaggers let’s not talk about money ok. Poor little school in Athens. we have 1/2 the students and 3X the money. See the facts will make you shut up.

Tech Guy

June 21st, 2011
1:19 am

Why did GTAA expect an increase in football season ticket sales after a losing season and 40% increase in season ticket prices? When the new debt load kicks in from borrowing $90 million, the GTAA finances will not be pretty. The increase in debt load will be greater than the increase in revenue from the new ACC contract.

WnE

June 21st, 2011
6:31 am

Does anyone else notice that our $700K shortfall is the EXACT AMOUNT of the $700K increase that GT gave Coach-PJ after his first yr. when they were basically bidding against NO ONE to keep Coach Fish Fry?

What a COWARDLY MOVE by the GTAA/DRad, blame the $700K on Hewitt, when the fact is, is that GT’s Economic Model for D1-A competition won’t allow it pay a Head FB Coach $2.3MM to $2.5MM.

If CPJ were still at $1.6MM, the GTAA would be breaking even AND he would still be GT’s HC.

BTW, isn’t it BAD BUSINESS to try and “rely” on better VISITING TEAMS as the basis for projecting increased revenues?

IF GT is using the model for projecting increased Revenues by looking at having a better home schedule, then WHY would the GTAA/DRad/CPJ delay BOTH Bama & Auburn until the early 2020s?

If we are projecting revenue increases based on better opponents, then GT should have kept both of those Teams (Bama & Auburn) as Scheduled, AND GT should not be playing Elon, SC STate, MTSU and games like that.

Based on this “implied admission” from the GTAA’s own Financial documents, GT/DRad/Coach Fish Fry should be trying to UPGRADE the OOC Schedule rather than water-down the OOC Schedule.

Basically DRad’s cowardly OOC scheduling is working AGAINST the GTAA’s own Strategy for increasing Revenues, and all the anti-Wrecks propaganda won’t change that simple FACT.

[...] of TV packages, it’s probably a good thing Georgia Tech isn’t in the Big East right now.  The Jackets need every penny of that broadcast [...]

Johny Hammersticks

June 21st, 2011
8:10 am

We are in the Obama/Bernanke economic depression.. What do you expect??

gt

June 21st, 2011
8:33 am

Tech had a bad year on the court and field last year. Dan Radakovich has a real job, his input makes a huge difference. I think he has made the right adjustments, but coming off Hewitt and then moving out of your basketball home for a year is a real test.

Many ADs ride the wave of the football success. They are figureheads for alumni. Hamilton at U of Tenn. or the red pantie man at Georgia. I think more of these parents are looking at who is in charge when they send their kids to college. You won’t find a better man than DRad.

CoolBreeze

June 21st, 2011
9:01 am

Dawgfan, please keep hurling. It amuses us. Why would you attack the accomplishments and abilities of Tech grads? You guys have a football factory over there (albeit with some QC issues lately); why not stick to that topic? But please, keep on making fun of our grads….. it just makes folks wonder what you do, and where you do it.

gt4ever

June 21st, 2011
9:05 am

Thanks for the input WnE…. We all realize your life must evolve around GT sports… Coach Fish Fry had better win some games this year, especially when his schedule is this easy… When your schedule becomes this easy, the fact that your still looking at no better than winning 6 or 7, well, that’s PATHETIC! You can give away all the hotdogs and cokes you want, you stadium will still be EMPTY…

DawginLex

June 21st, 2011
9:27 am

Apollo 13 is my favorite movie.

What does that make me?????????

JM

June 21st, 2011
9:30 am

We continued to buy our tickets. But I have a buddy who had to cut back on his season tickets this year. It happened when his mfg plant was shutdown. He hopes to pick up some tickets for single games.

I understand that even some SEC schools are behind in their ticket sales this year. They just don’t want to talk about it.

d.carter

June 21st, 2011
9:35 am

Hammersticks: Your absolutely right the economy turn bad the day that Obama took office, The housing market crashed as soon as he took his hand off the bible, I mean so what is if we wasted billions on a war to find the infamous “weapons of mass destruction” who cares about that!

Lebrick

June 21st, 2011
9:36 am

Heard there was a fire at Stegeman Coliseum last night. Local firefighters were on the scene and when asked if anyone was inside, they answered, “Just like basketball season, no one was in there!”

DawginLex

June 21st, 2011
10:22 am

Firemen were Auburn grads.

They checked during the season on a day when UGA was playing on the road.

God love ‘em

Delbert D.

June 21st, 2011
10:33 am

DawginLex – “Apollo 13 is my favorite movie..what does that make me?”

A man of reason, I think.