ACC Goes Obama – Gives Members Stimulus

As a small business co-owner in the Triangle, I thought it wise to subscribe to the Triangle Business Journal to stay on top of market trends in the area. Truthfully, I’m not one of those folks who is mesmerized or enamored by big business, the stock market, or even political economic policy. To further admit my shortcomings on the topic, I sometimes find myself trudging through what in turn are mundane articles on the same in the TBJ only because we paid for the subscription and I am at least partly obligated to my business partner to follow through with my assurance that it was a worthy investment. Rest assured, the irony in that does not escape me. Occasionally, however, the TBJ is riddled with great and interesting stories of local business owners with new ideas and there’s even the occasional story about the finances of sport. Those sorts of things can hold my attention.

On the front page of today’s issue of the TBJ is a piece entitled: “ACC injects $12M into members to help in tough time” You can read it yourself by clicking here.

I never really thought about the fact that the Atlantic Coast Conference, much like the Federal Government with its tax paying citizen states, would have a cash reserve. Clearly, however, it does. And it must be relatively substantial. Twelve Million dollars isn’t the type of gift horse you look in the mouth, and N.C.State took what essentially was its cool million and hopefully at least said, “Thanks.” I know that many of us long time Wolfpack supporters will look at this as little more than a pittance of blood money after being repeatedly scorned and defamed by Swofford and the ACC. But before you pounce, keep in mind that this two-time payment of $505,000 was in addition to regularly scheduled payments to the member institutions comprising of television contracts and post season tournaments. These payments likely helped both State and UNC meet their revenue projections for the most recent fiscal year.

Carolina claims their revenue will exceed $61.4 million and put its program in the black for the year. Our revenue was a paltry $40 million, but that was $700k more than we prepared for!!!! That’s not including $6 million from the Wolfpack Club for scholarships which brings revenue up to a still somewhat paltry $47 million.

The bowl game helped us. But we took a bath to the tune of $300,000 for not being able to sell our allotment of ACC Basketball Tournament tickets.

The article ended with this clip:

UNC Associate Athletics Director Clint Gwaltney says season ticket sales for football are down this year. So far, UNC has sold 34,700 season tickets out of a possible 36,100.

There seems to be a number of ways this conversation could go. I am curious as to how our athletic department plans to use the surplus. I found one website with a quick Google search that sets out the average salary for a physician with three or more years of experience in the field of sports medicine to run about $450,000. I guess that’s a place to start…. maybe.

General Media

12 Responses to ACC Goes Obama – Gives Members Stimulus

  1. BJD95 07/24/2009 at 2:43 PM #

    The lost $300K is one example of concrete consequences for not having a competent basketball program. If not for the LTR concept, you would see far greater financial repercussions. That’s another angle to explore.

    A hearty welcome and “thank you” to GAWolf for joining our stable of authors.

  2. tobaccordshow 07/24/2009 at 3:06 PM #

    Excellent seguay from the previous article.

  3. YANCSSB 07/24/2009 at 4:32 PM #

    With all the hints y’all are dropping today about our medical staff, they must be resorting to some Civil War battlefield medicine on our players.

    “Torn ACL? Time to cut that leg off, son.”

    Either spill the beans or stop dancing around the matter.

  4. Dogbreath 07/24/2009 at 5:17 PM #

    I can’t imagine this criticism is directed at Charlie Rozanski, who is one of the lone assets of that athletics department.

  5. Wufpacker 07/24/2009 at 8:23 PM #

    So is this (the last two threads) hinting at a case of the “haves” and “have nots”. Are we one of the few schools that does not have a full time physician on staff with sports medicine experience?

    If so, this could explain a lot of things. While I don’t know if it would explain the seemingly disproportionately high rate of injuries our athletes seem to suffer, it could certainly affect the perceptions of folks, including recruits (as one post in the last thread seemed to state).

  6. WTNY 07/24/2009 at 9:05 PM #

    Thanks for the info, although I wouldn’t call it “going Obama” as I see the ACC “tapped its reserves” and I’m guessing the funds aren’t earmarked for dubious purposes.

    Good on the ACC for putting money aside for a rainy day.

  7. sautz 07/25/2009 at 6:48 AM #

    Sounds like we have a sports information department problem with the sports medicine department. Damn

  8. StateFans 07/25/2009 at 7:59 AM #

    I am curious to see the line items that create such a huge discrepency between what we report as revenue every year and what so many other schools report as revenue every year. Doesn’t make any sense to me.

  9. Dogbreath 07/25/2009 at 8:09 AM #

    I would think the discrepancy is in large part due to our absolutely atrocious merchandising efforts, in relation to UNC or any other ACC school. You simply won’t find a NC State hat outside of North Carolina.

  10. RickJ 07/25/2009 at 9:55 AM #

    “I am curious to see the line items that create such a huge discrepancy between what we report as revenue every year and what so many other schools report as revenue every year. Doesn’t make any sense to me.”

    The ACC evenly divides television, bowl and NCAA basketball revenues. It seems to me that the big item revenues that are left are football & basketball ticket sales. How can we be at the bottom of the ACC in this area? I don’t think licensing fees for merchandise of a school goes to the athletic department but this could be a factor. The last listing of revenues I saw had us at the bottom with about the same revenues as Wake Forest. This just doesn’t seem possible.

    I too would really like to see a line item listing of how these revenues are computed. There could be a valid reason but I have always suspected we are purposely under reporting our revenues.

  11. john of sparta 07/25/2009 at 12:08 PM #
  12. Wolf74 07/27/2009 at 7:51 AM #

    Per the Forbes 2008 article:
    The Holes rake in $26 million a year on basketball and spend about $10. $16 million in profit. We rake in $13 million and spend a little over $3 million. Making our program the 13th most valuable in the nation (as of this 2008 article). How long would this continue without LTRs? Fowl-up is probably getting credit for this even though all this was set up by Case, Sloan and V.

    This is most similar to someone building a great golf course that develops a great reputation and then sells it to a holding company that stopping putting money in it and packs the people on it but sucks up the profits without investing back in. It works for a while. Eventually it folds and you either, plow the course under and build condos or someone has to step up to the plate with a ton of money and build the course back up.

    What will happen to NCSU? Will we allow Fowler to plow it under?

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