re: Sunk cost and Matt McMahon….

So bayou 85 your saying that if LSU hired a coach who wasn't just a walking cardboard cutout like the present loser. The new coach say Will Wade actually has a pulse and actually meets with businesses and donors and raises funds and gets fans to actually attend games which Wade did. The profit goes from 2 million under Mcloser to 9 million like Bama LSuU couldn't use the additional 5 to 7 million a year to more than cover Mclosers buyout?

Please tell me your not advising anyone how to handle money!

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It’s s big business; however, there is no impetus to make a profit.

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But you still want to be as self sustaining as possible.

For universities such as LSU, that is done by maximizing the programs that turn a profit (football/mbb) to subsidize the programs in the red (every other program).

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What’s the current buyout? What’s the source of funding for that buyout?

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Like 7m spread over a number of yrs, can either have someone write a check or it can come from smaller donations/operating cash. I don’t know where yall have gotten the idea a singular entity is there to stroke a check.

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When we changed coaches after Jones we simultaneously had a huge operating cost drop as well as huge ticket sales increase. These people have no idea what they’re talking about.

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Where are you getting this? I thought it was surprising, so I looked at the financial statements over a 6 year period.

Operating costs associated with men’s basketball:
FY2015: $5,678,283
FY2016: $5,891,536
FY2017: $6,078,781 (Jones’ last year)
FY2018: $7,674,523 (Wade’s first year)
FY2019: $8,399,671
FY2020: $8,081,675

Revenue* associated with men’s basketball:
FY2015: $1,754,441
FY2016: $2,162,644
FY2017: $1,586,579 (Jones’ last year)
FY2018: $1,807,046 (Wade’s first year)
FY2019: $1,826,918
FY2020: $2,049,551

*Does not include conference distributions (i.e. TV revenue). That said, the team’s actual performance has very little impact on the conference distributions anyway considering how the SEC splits up media revenue.

So from Jones’ last year to Wade’s first year, MBB operating costs increased by $1.6 million and MBB revenue (excluding SEC distributions) increased by $220k.

If we look at the average of Jones’ last 3 years and Wade’s first 3 years, operating costs increased by ~$2.17 million while revenue increased by ~$60k.

If I look at the annual NCAA financial reports it’s even more stark.. Jones’ last year brought in $8,135,734 in revenue with $6,516,370 in operating costs ($1,619,364 net revenue over expenditures) while Wade’s first year brought in $8,911,799 in revenue with $8,618,878 in costs ($292,921 net revenue over expenditures). Those numbers include conference distributions/media rights.

The point is.. either way: A) the operating costs increased most certainly did not have a “huge drop” and B) the added revenue didn’t come close to offsetting the added cost. And Jones’ buyout was way smaller than McMahon’s. I’m not saying LSU should keep them, but I think some of y’all might be out on a limb with the financial justification. Even in the year Wade went to the Sweet 16, MBB’s “profit” was over a million dollars less than Jones’ last year.

Covers everything? Buyout is 8 million and WW won’t come cheap, as well. They’re in a pickle.

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7m

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Thanks for responding. Verge already has to pay Kelly 54 Million for not coaching. Finding another 7M on top of that for coaches to not coach could be the challenge. Chances are if he had that funding secured something would have happened or the people writing the checks want to see the replacement options first.

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TJG210

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if you don't understand it why don't you write the check?