Pollard will implement One year Pay Reduction for Athletic Dept Coaches & Staff; NO BONUSES, too.
- Thread starter Franisdaman
- Start date
Is this supposed be in response to the coronavirus pandemic or for not beating Iowa?
Duh! There are no bonuses nor incentives met this year so the savings are negligible
Lol. Glad I wasn't the only one thinking this. To get a bonus you have to be good. Football got one I am sure.
Bowl game. That would probably get a bonus at Iowa so I'm sure it gets a big one at ISU.
Iowa State says canceling Big 12, NCAA tournaments ($5 million shortfall) Force Pay Cuts
Iowa State is implementing a number of budgetary cuts to account for a $5 million shortfall created by the cancellation of the Big 12 and NCAA tournaments due to the coronavirus pandemic, athletic director Jamie Pollard said in a letter to fans published Wednesday.
In the letter, Pollard said the athletic department will address the shortfall mostly through "temporary," one-year pay cuts for coaches and some staffers and the elimination of bonuses and incentives for all coaches.
Pollard said the salary reductions for coaches will save the school $3 million and the elimination of bonuses will save the department another $1 million.
"As we previously shared, it is critical that we take action today so we are as prepared as possible for a new normal when our society can re-engage," Pollard wrote in the letter. "The individuals and organizations who can plan and execute efficiently today are best positioned to be successful tomorrow. I am writing today to share several initiatives that we are implementing in the athletics department to best prepare for, both the known and the unknown, financial challenges that we will be facing soon."
Other Power 5 programs could follow the Cyclones with pay cuts. While the postseason cancellations are projected to hurt non-Power 5 schools more than their richer peers, Iowa State's acknowledgement suggests that the big-budget programs could struggle financially, too.
Like most Power 5 leagues, the Big 12 generates the bulk of its annual revenue from TV contracts attached to football and men's basketball. Last year, the Big 12 reportedly distributed $38.8 million per school. But the postseason men's basketball tournaments also are financially beneficial for the league.
The NCAA tournament determines payouts according to a units system that rewards conferences for its number of berths and overall success. Last week, however, the NCAA announced that it had reduced its projected payout to Division I schools from $600 million to $225 million after the cancellation of its tournament.
According to the Washington Post, the Big 12 earned $307.8 million from 1997 to 2018 based on its performance in the NCAA tournament.
Without the anticipated income from the postseason, Iowa State also announced measures to appease supporters, such as freezing ticket prices in all sports and delaying required donations by big boosters. Per Department of Education data, Iowa State spends nearly $80 million per year on its athletic programs.
"These actions will help us address the [$5 million] shortfall that we face with the cancellation of the NCAA and Big 12 men's basketball tournaments," the letter said. "We can now turn our attention to solving many other issues in the coming months. It was also important to us to provide our loyal ticket holders and donors some relief in regards to ticket prices and donations."
LINK: https://www.espn.com/mens-college-b...celing-big-12-ncaa-tournaments-force-pay-cuts
-
Myron Medcalf - ESPN Staff Writer
- April 1, 2020
Iowa State is implementing a number of budgetary cuts to account for a $5 million shortfall created by the cancellation of the Big 12 and NCAA tournaments due to the coronavirus pandemic, athletic director Jamie Pollard said in a letter to fans published Wednesday.
In the letter, Pollard said the athletic department will address the shortfall mostly through "temporary," one-year pay cuts for coaches and some staffers and the elimination of bonuses and incentives for all coaches.
Pollard said the salary reductions for coaches will save the school $3 million and the elimination of bonuses will save the department another $1 million.
"As we previously shared, it is critical that we take action today so we are as prepared as possible for a new normal when our society can re-engage," Pollard wrote in the letter. "The individuals and organizations who can plan and execute efficiently today are best positioned to be successful tomorrow. I am writing today to share several initiatives that we are implementing in the athletics department to best prepare for, both the known and the unknown, financial challenges that we will be facing soon."
Other Power 5 programs could follow the Cyclones with pay cuts. While the postseason cancellations are projected to hurt non-Power 5 schools more than their richer peers, Iowa State's acknowledgement suggests that the big-budget programs could struggle financially, too.
Like most Power 5 leagues, the Big 12 generates the bulk of its annual revenue from TV contracts attached to football and men's basketball. Last year, the Big 12 reportedly distributed $38.8 million per school. But the postseason men's basketball tournaments also are financially beneficial for the league.
The NCAA tournament determines payouts according to a units system that rewards conferences for its number of berths and overall success. Last week, however, the NCAA announced that it had reduced its projected payout to Division I schools from $600 million to $225 million after the cancellation of its tournament.
According to the Washington Post, the Big 12 earned $307.8 million from 1997 to 2018 based on its performance in the NCAA tournament.
Without the anticipated income from the postseason, Iowa State also announced measures to appease supporters, such as freezing ticket prices in all sports and delaying required donations by big boosters. Per Department of Education data, Iowa State spends nearly $80 million per year on its athletic programs.
"These actions will help us address the [$5 million] shortfall that we face with the cancellation of the NCAA and Big 12 men's basketball tournaments," the letter said. "We can now turn our attention to solving many other issues in the coming months. It was also important to us to provide our loyal ticket holders and donors some relief in regards to ticket prices and donations."
LINK: https://www.espn.com/mens-college-b...celing-big-12-ncaa-tournaments-force-pay-cuts
Last edited:
Athletic directors bracing for financial downturn of at least 20%, survey finds
Associated Press
April 2, 2020; 11:02 AM CT
Athletic directors at the nation's biggest sports powers are bracing for a potential financial crisis related to the coronavirus pandemic.
According to a survey released Thursday by LEAD1, an association of athletic directors from 130 major college football schools, 63% forecast a worst-case scenario in which their revenues decrease by at least 20% during the 2020-21 school year. Even an abbreviated football season could cause schools to lose that much.
LEAD1 and Teamworks, a company that created an app designed to help keep teams and athletic departments connected, conducted the survey of more than 100 athletic directors from FBS schools. "The State of Athletics in the Face of the Coronavirus" provides a sobering glimpse of the top concerns for the wealthiest athletic departments in the country.
The NCAA canceled winter and spring sports on March 12, separating thousands of college athletes from teammates and coaches and leaving them unable to practice and compete.
Athletic directors surveyed said their greatest concerns about their athletes over the next three months were academic progress, mental health and a lack of resources for them while off campus.
And then there are the financial concerns.
Canceling the Division I men's basketball tournament cost the NCAA $375 million it was scheduled to distribute to its member schools.
Asked for their worst-case scenario analysis, 65% of the athletic directors said revenue for the 2019-20 fiscal year would drop from 0-20%, including 35% expecting a decrease ranging from 0-10%.
Some schools are already taking steps to deal with this year's shortfalls.
Trying to make up $5 million in lost revenue from basketball tournament cancellations, Iowa State has announced a one-year, temporary pay reduction for coaches and certain staff to save more than $3 million. The school will also suspend bonuses for coaches for a year to save another $1 million.
"I've talked to many of my peers, and they want to do what we just did," Iowa State athletic director Jamie Pollard said Thursday.
Wyoming athletic director Tom Burman tweeted Wednesday that he would be reducing his salary by 10% through Dec. 31.
In the LEAD1 survey, 40% of the 95 ADs who responded said they approve or strongly approve when asked if they believe high-earners should voluntarily offer to make a personal financial sacrifice during the crisis; about 15% disapproved or strongly disapproved.
Football season is five months away, and for most FBS schools, it is by far the biggest revenue-driver. Any disruption to the football season could be devastating to college sports because that revenue funds just about every other athletic program.
"We often hear from ADs and MMR [multimedia rights] sellers that around 85% of revenue comes from football," said Matt Balvanz, senior vice president for analytics for Navigate, a sports marketing consulting firm.
He said the average Power 5 school makes around $120 million in revenue per year, "which means roughly $100 million per year from football."
"The thought that no football or losing an entire season is, that's a complete game-changer. There are so many layers." Pollard said.
For the average Power 5 team, a home game is worth $14 million, including its value from a television rights deals, which is over 10% of average total revenue, Balvanz said.
"Larger departments can likely absorb a 10% loss, but if that increases to 20% and 30% with more games lost, then that could be a major issue," he said.
Playing games without fans in the stands? Balvanz said the average Power 5 school gets some $30 million in ticket sales. If 85% of that is from football, that's a loss of $25 million.
Athletic directors surveyed by LEAD1 were asked what revenue streams they were most concerned about. Donations and ticket sales received the most votes. Balvanz said a typical Power 5 school brings in around $20 million to $30 million per year in donations, which could also take a hit in a struggling economy.
Schools in Group of 5 conferences, which don't rake in hundreds of millions yearly from their television deals, would be more vulnerable.
Fifty percent of Group of 5 athletic directors in the LEAD1 survey said lost revenue from student fees was among their biggest concerns. Student fees and campus subsidies make up, on average, 30% to 50% of revenue from Group of 5 schools, Balvanz said.
Kansas athletic director Jeff Long told reporters last month that his staff was already starting to project how to operate with less.
"What would a 10%, what would a 20% cut in our operations look like?" Long said. "We've just started those as part of strategic planning for the future, [we] haven't made any decisions. Most of that is determined on how far and how long this crisis lasts."
LINK: https://www.espn.com/college-sports...ancial-downturn-least-20-percent-survey-finds
Associated Press
April 2, 2020; 11:02 AM CT
Athletic directors at the nation's biggest sports powers are bracing for a potential financial crisis related to the coronavirus pandemic.
According to a survey released Thursday by LEAD1, an association of athletic directors from 130 major college football schools, 63% forecast a worst-case scenario in which their revenues decrease by at least 20% during the 2020-21 school year. Even an abbreviated football season could cause schools to lose that much.
LEAD1 and Teamworks, a company that created an app designed to help keep teams and athletic departments connected, conducted the survey of more than 100 athletic directors from FBS schools. "The State of Athletics in the Face of the Coronavirus" provides a sobering glimpse of the top concerns for the wealthiest athletic departments in the country.
The NCAA canceled winter and spring sports on March 12, separating thousands of college athletes from teammates and coaches and leaving them unable to practice and compete.
Athletic directors surveyed said their greatest concerns about their athletes over the next three months were academic progress, mental health and a lack of resources for them while off campus.
And then there are the financial concerns.
Canceling the Division I men's basketball tournament cost the NCAA $375 million it was scheduled to distribute to its member schools.
Asked for their worst-case scenario analysis, 65% of the athletic directors said revenue for the 2019-20 fiscal year would drop from 0-20%, including 35% expecting a decrease ranging from 0-10%.
Some schools are already taking steps to deal with this year's shortfalls.
Trying to make up $5 million in lost revenue from basketball tournament cancellations, Iowa State has announced a one-year, temporary pay reduction for coaches and certain staff to save more than $3 million. The school will also suspend bonuses for coaches for a year to save another $1 million.
"I've talked to many of my peers, and they want to do what we just did," Iowa State athletic director Jamie Pollard said Thursday.
Wyoming athletic director Tom Burman tweeted Wednesday that he would be reducing his salary by 10% through Dec. 31.
In the LEAD1 survey, 40% of the 95 ADs who responded said they approve or strongly approve when asked if they believe high-earners should voluntarily offer to make a personal financial sacrifice during the crisis; about 15% disapproved or strongly disapproved.
Football season is five months away, and for most FBS schools, it is by far the biggest revenue-driver. Any disruption to the football season could be devastating to college sports because that revenue funds just about every other athletic program.
"We often hear from ADs and MMR [multimedia rights] sellers that around 85% of revenue comes from football," said Matt Balvanz, senior vice president for analytics for Navigate, a sports marketing consulting firm.
He said the average Power 5 school makes around $120 million in revenue per year, "which means roughly $100 million per year from football."
"The thought that no football or losing an entire season is, that's a complete game-changer. There are so many layers." Pollard said.
For the average Power 5 team, a home game is worth $14 million, including its value from a television rights deals, which is over 10% of average total revenue, Balvanz said.
"Larger departments can likely absorb a 10% loss, but if that increases to 20% and 30% with more games lost, then that could be a major issue," he said.
Playing games without fans in the stands? Balvanz said the average Power 5 school gets some $30 million in ticket sales. If 85% of that is from football, that's a loss of $25 million.
Athletic directors surveyed by LEAD1 were asked what revenue streams they were most concerned about. Donations and ticket sales received the most votes. Balvanz said a typical Power 5 school brings in around $20 million to $30 million per year in donations, which could also take a hit in a struggling economy.
Schools in Group of 5 conferences, which don't rake in hundreds of millions yearly from their television deals, would be more vulnerable.
Fifty percent of Group of 5 athletic directors in the LEAD1 survey said lost revenue from student fees was among their biggest concerns. Student fees and campus subsidies make up, on average, 30% to 50% of revenue from Group of 5 schools, Balvanz said.
Kansas athletic director Jeff Long told reporters last month that his staff was already starting to project how to operate with less.
"What would a 10%, what would a 20% cut in our operations look like?" Long said. "We've just started those as part of strategic planning for the future, [we] haven't made any decisions. Most of that is determined on how far and how long this crisis lasts."
LINK: https://www.espn.com/college-sports...ancial-downturn-least-20-percent-survey-finds
Think what you want about Jamie Pollard, but he is a very smart individual who is making a smart business decision here. I'm sure other ADs across the country will follow suit.
LOL if that’s a ‘decision’ what was the alternative? Either you have the money or you don’t.
its still not clear if the coaches had to sign off on this before it became official
maybe there are clauses in coaches contracts where if there are drastic situations where the finances of the athletic department are hurt then the AD can make drastic year to year decisions regarding coaches pay
I agree. I can't stand Pollard but this is a great move and if the rest of the schools across the country don't follow suit we are gonna see a massive hit to all sports across the country at the college level! As wrestling is my favorite sport I fear it will be one of the sports hit hardest. Old Dominion already dropped wrestling and most schools lose money on wrestling so it would be easy to cut. It's gonna be a crazy next couple of years and many of these "poor" coaches are going to have to make short term sacrifices or risk losing their long term millions.
Kudos to Prohm for being proactive about this and only winning 12 games this season and not earning any type of bonus.
My honest guess is that Pollard talked to all of the coaches ahead of time and made sure they were all OK with this and put it out there as a lovely PR move. As someone pointed out above, if you don't have the money you don't have the money. I'm also guessing they'll get it back later if at all possible.
Unless there is some strange clause in the contract, he would be open for lawsuits for this, but whichever coach pursued that would be a massive villain.
Why do you need to tell the public that you're paying your multi-millionaire coaches their agreed to pay? You don't--you simply figure it out. Publicizing it is simply a "look at the 'good' we're doing".
Unless there is some strange clause in the contract, he would be open for lawsuits for this, but whichever coach pursued that would be a massive villain.
Why do you need to tell the public that you're paying your multi-millionaire coaches their agreed to pay? You don't--you simply figure it out. Publicizing it is simply a "look at the 'good' we're doing".
Pollard wanting attention? Why would you think that?
Easy for the bear to look like a white knight when he has no choice. He has BK’d the program but wants the flash cash. So the second things go sideways he has no choice. For those in the DM area, a reminder of years ago when everyone wanted to live in Glen Oaks and half the houses had 5 bedrooms but people could only furnish 2 of them and they were in foreclosure in 5 years. JP has been spending money he doesn’t have and blowing smoke to the blind fans. Maybe all programs have to do it at some point, but JP is not some trailblazer he has no choice. Typical.
If Ferentz gets that, then he has earned the right to.
Nice to see you are sticking your nose in his business, too.
Yep - everyone wants to poke fun at Pollard because of this until dozens of schools realize they need to do the same. He’ll deserve credit for being first.
Yes, no one out there could foresee this coming at all. Universities just started doing Zoom meetings today to talk about the current and future loss of revenue. Thank you Mr Pollard for being the first to say under my leadership my program does not have the money to absorb the first 5 million dollar hit.
How do you know he's first? He's first to announce it which should surprise nobody.
Well it would be pretty big news for any university, so if it was happening elsewhere (which it now already is) then it would be public knowledge.
The mid-major schools probably will follow suit. The top 40 schools in P5 won’t be because $5 million isn’t enough to send them to the poorhouse.
Jamie Pollard somehow has got the media in central Iowa wrapped around his finger and for the life of me I can’t understand why. He’s loaded that athletic department up with debt all while he’s utterly failed to raise money from donors and increasing ticket sales. Take away their media revenue increases and their revenue has barely budged in the last decade.
He’s kept that fanbase engaged by keeping tickets cheap. He’s also dragging the performance of the department down by doing that. This is also why Jamie stays at ISU - he couldn’t possibly con any other fanbase at a job that would be considered a step up from them.
The performance of ISU’s athletic dept only looks good when you compare it to historical measures that drastically changed when the Big 12 lost 3 historical powers AND the conference started sharing revenue equally for the first time.
Ask yourself this, why did Pollard need to announce they are broke to the world? Those measures could have been taken in their own house and they could have moved forward. What was the purpose of announcing them other than to get face time —- oh I mean ‘great leadership’
Huge lol at Iowa St fans thinking Pollard is some trailblazer when announcing they don't have money to pay people after one month.
No, most schools will not follow suit at least for several months because most of the top P5 schools do not struggle to break even year in, year out. There will be at least 30-40 top schools that don't need to reduce or suspend pay for a while.
No, most schools will not follow suit at least for several months because most of the top P5 schools do not struggle to break even year in, year out. There will be at least 30-40 top schools that don't need to reduce or suspend pay for a while.
Latest posts
-
-
-
-
Players file lawsuit against state for privacy rights violations
- Latest: WaterlooChazz
-
