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FearlessFreep
Auburn Fan
Baja Alabama
Member since Nov 2009
10017 posts
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How many G5 and FCS schools give up CFB?
Got a text from a buddy who works at University of Northern Iowa. Says the B1G conference-only deal just wiped out a $650k payday (they were scheduled to play at Iowa on 9/5). This on top of an already projected budget shortfall of $1 million in their AD.

From the linked article:
quote:

There was a $300,000 buyout of the game, but according to the Athletic's Scott Dochterman there was a clause in the contract that allows for “Act of God and nature, strikes, war or any other unusual occurrence beyond the control of the party” to void the game without financial penalty.

UNI's total athletic budget runs in the neighborhood of $14.5 million and the football program operates annually at about a more than $2 million loss even when the university hits financial targets.
And this was at one of the more successful FCS programs (6 FCS top 5 finishes, 7 conference titles, 11 playoff appearances since 2001).

How many weaker FCS and G5 programs will be able to field teams next year without big payouts from P5 teams to close the gaps in their Athletic budgets?


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
21648 posts

re: How many G5 and FCS schools give up CFB?
quote:


How many weaker FCS and G5 programs will be able to field teams next year without big payouts from P5 teams to close the gaps in their Athletic budgets?



Very few, if any. They probably won't give up the sport forever, just this season.


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moester75
Alabama Fan
Anne Arundel County, MD
Member since Oct 2018
1544 posts

re: How many G5 and FCS schools give up CFB?
I don’t know why you’re OP has two downvotes you just gave us factual information that is very relevant. Some really smart economists need to work out how the loss of the trickle down, Ronald Reaganomics, aspect of all this will not destroy FCS sports. It might get to “hey man, us power five people have to take care of ourselves here. You FCS people take it easy good luck”.


msutiger
Louisiana Tech Fan
Shreveport
Member since Jul 2008
64833 posts
 Online 

re: How many G5 and FCS schools give up CFB?
Because he’s using an FCS school that was going into the season with a budget shortfall that was 7% of its entire athletic budget and grouping all of the G5 programs in with it. There are some very financially sound schools in even the lower G5 like C-USA and the Sun Belt. The buy games are nice but the entire budgets aren’t built on it.
This post was edited on 7/9 at 9:32 pm


FearlessFreep
Auburn Fan
Baja Alabama
Member since Nov 2009
10017 posts
 Online 

re: How many G5 and FCS schools give up CFB?
quote:

Because he’s using an FCS school that was going into the season with a budget shortfall that was 7% of its entire athletic budget and grouping all of the G5 programs in with it.
No, I asked a question: how many will give up CFB, and gave an example of an FCS school that was very successful on the field (with a recent win over a P5 program) but was struggling financially trying to keep up and might have to shut down their program.
quote:

There are some very financially sound schools in even the lower G5 like C-USA and the Sun Belt. The buy games are nice but the entire budgets aren’t built on it.
And there are also some very financially unsound schools in those categories as well. Do you think they will all weather a season with 90-100% negative cashflow?


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marchballer
Stanford Fan
The Greatest Country on Earth
Member since Aug 2008
3932 posts

re: How many G5 and FCS schools give up CFB?
For some schools, this sped up the inevitable. We've talked for years how schools athletic budgets were in the red and were hanging on to survive. This could push the P5 schools to finally break away and move towards their own divisions. Covid is only going to increase the divide between the haves and have nots.


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Mr Perfect
Lamar Fan
Member since Mar 2010
14199 posts
 Online 

re: How many G5 and FCS schools give up CFB?
they only survive through socialism op. few will acknowledge it, pure facts there. rich schools give them charity games to stay afloat


StormyMcMan
Michigan Fan
USA
Member since Oct 2016
413 posts

re: How many G5 and FCS schools give up CFB?
quote:

football program operates annually at about a more than $2 million loss even when the university hits financial targets.


Might be a good time to stop paying football coaches millions of dollars.

UNIs football coach makes almost 800k. Just his salary is around 40% of the shortfall.


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110
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msutiger
Louisiana Tech Fan
Shreveport
Member since Jul 2008
64833 posts
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re: How many G5 and FCS schools give up CFB?
quote:

they only survive through socialism op. few will acknowledge it, pure facts there. rich schools give them charity games to stay afloat


It isn't charity

Power 5 schools schedule G5 school for a variety of reasons. If it was pure charity, P5 schools would have stopped scheduling G5 schools a long time ago.

Power 5 schools make more money on home games than they are paying out to a G5 team. This comes from ticket sales, concession sales, local economy boost, advertising rights and so much more. Each school has four non-conference games per year and most P5 schools would prefer those four games to be at home to generate more revenue. So, there is a demand for Power Five school home games, but there is no supply because most of the other power five schools also want those non conference games to be at home as well for revenue reasons. Enter G5.

It isn't some "treat" for Southern Miss to get their arse whipped by Alabama. Southern Miss would be better off paying Alabama State to come to Hattiesburg. Southern Miss spends no money on travel expenses, gets a win added to the schedule and makes money off of the revenue generated by a home contest. Alabama has to make the trip worth it for Southern Miss and thus we have arrived at the "buy game."

This also doesn't even take into consideration schools using G5 and FCS schools as warm up games or an opportunity to avoid an emotionally and physically draining battle against a non-conference team in the middle of a conference schedule.

Calling these games "charity" shows a complete lack of understanding of the business side of college football.


FearlessFreep
Auburn Fan
Baja Alabama
Member since Nov 2009
10017 posts
 Online 

re: How many G5 and FCS schools give up CFB?
quote:

Power 5 schools make more money on home games than they are paying out to a G5 team. This comes from ticket sales, concession sales, local economy boost, advertising rights and so much more. Each school has four non-conference games per year and most P5 schools would prefer those four games to be at home to generate more revenue. So, there is a demand for Power Five school home games, but there is no supply because most of the other power five schools also want those non conference games to be at home as well for revenue reasons. Enter G5.

It isn't some "treat" for Southern Miss to get their arse whipped by Alabama. Southern Miss would be better off paying Alabama State to come to Hattiesburg. Southern Miss spends no money on travel expenses, gets a win added to the schedule and makes money off of the revenue generated by a home contest. Alabama has to make the trip worth it for Southern Miss and thus we have arrived at the "buy game."
This is all true, of course, but now imagine getting near zero revenue from the bolded section.

CFB, if it does indeed happen in 2020, will be a huge money loser even for P5 programs. A lot of the expense in putting on a football game is sunk cost. Play them in an empty stadium in front of TV cameras and you're encountering a huge financial loss. Even with 'socially distanced' crowds in the stands you will see per-game expenses > revenues. Now multiply those losses by however many home games on the schedule, and schools might decide
it would be better financially to negotiate to reduce and/or defer salaries of the staff on contract (and jettison those who aren't) and cancel the season altogether.

And before you say 'muh TV revenue', think about what the networks will do next spring when it comes to paying the conferences: "Well, we based payouts on actual advertising revenues and viewership, but since you cancelled March Madness and baseball and reduced/cancelled football, we won't be paying you for programming you chose not to provide".

The whole thing was unsustainable in the long run already and would have blown up eventually. COVID just provided the Mt St Helens moment a few years ahead of schedule.


Baers Foot
LA-Lafayette Fan
Louisiana Ragin' Cajuns
Member since Dec 2011
2312 posts

re: How many G5 and FCS schools give up CFB?
I know G5 AD offices would be reluctant to do something like this, as it may hurt attendance in the long run. But I'd pay season ticket costs to be able to stream every home game via Ragin Cajun Athletic Network. I'm sure others would pay that as well. Could make up some of the money they lose out on payday games.

Not sure how that works with television contracts and whatnot, but I know some schools have something similar built into their athletic website. I notice it during baseball season where you can pay $5 to watch a game.


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Quidam65
Q Continuum
Member since Jun 2010
16847 posts

re: How many G5 and FCS schools give up CFB?
Not too many.

And personally I'm not sure that's a bad idea. At some schools students pay mandatory "student fees", part of which goes to support athletics. Why should a student pay for an event the student has no intention of seeing?


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molsusports
Ohio State Fan
Member since Jul 2004
30987 posts

re: How many G5 and FCS schools give up CFB?
It would make sense if many schools (which have been losing money on athletics) used 2020 as the excuse to downsize the biggest programs.

Some of the most vocal alumni who love their football will scream but unless they want to make up shortfalls of millions of dollars at some point the money just isn't there. Supporting the high prestige sports like football obviously creates obligations to support an equal number of female athletes- so balancing a football budget really means balancing the budget for football, women's sports, facilities, cheerleaders, a school band, support staff, and coaches.

At some point that doesn't make sense. Especially in a time when student tuition and debt continue to skyrocket.


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chalmetteowl
LSU Fan
Member since Jan 2008
31662 posts

re: How many G5 and FCS schools give up CFB?
quote:

"Well, we based payouts on actual advertising revenues and viewership, but since you cancelled March Madness and baseball and reduced/cancelled football, we won't be paying you for programming you chose not to provide".
that’s very arguable. There’s a difference between March madness not happening by the NCAA’s will and it not happening because it retroactively fell under governmental shutdown orders (the Act of God)


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moester75
Alabama Fan
Anne Arundel County, MD
Member since Oct 2018
1544 posts

re: How many G5 and FCS schools give up CFB?
Mr Perfect but your explanation is not “socialism” it is “Reaganomics” I’m not trying to say I’m some economist but I’m fed up with the socialism red herring and I would have voted for the Bern. This country doesn’t abide socialism and reactionary activity. The people that make things happen don’t abide it. Yea the DNC will allow that silly AOC lady to do silly shite but it ends there. It’s impossible to not get political on other boards besides only the Poli Board and reply to topics before I get reprimanded by some poster.


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