An interesting question - If you were the decision maker for Indiana, where might you invest ~2.5M (suggested amounts to apply to CKW and his asst. coaches for extension/contract) and anticipate the ROI upside that is possible with the football program? I believe Indiana could realize 2x to 5x annual return in just a few years from a 2.5M annual incremental investment in football now. It's a calculated risk, but I'm not sure where they could place 2.5M annually now and yield that type of return.
Where else could they invest and what supports your opinion?
The football program under performs in terms of revenue potential by quite a bit - and yet it still made 8.6M in profit last year which helps fund other areas of the University every year. A consistent winning team = Increasing ticket sales at 10k a game x $50 per x 7 games = 3.5M a year. Attracting more/better tier of sponsorships for football = unknown annually but let's use a conservative 500k factoring all tie ins associated with the program on or off game days. We cannot project increase alumni donations accurately, but there seems to be a correlation between Big Ten schools that excel in football and the level of alumni athletic department contributions they receive. Wisconsin, Michigan, Iowa, Michigan State and Ohio State are the top 5 ranging from 28M to 38M in athletic contributions annually from alumni. Nebraska seems to be an odd outlier to me here, but otherwise, all other teams are not know for sustained football success and the drop off from the 28M to the next tier is dramatic. It's a supposition, but I suggest football success = increased alumni donations to athletic programs. Indiana is down the list at 16.7M (see link below). There is ample room to increase revenue here and the schools with strong football programs are bringing in 60-100% more than Indiana every year. Let's say it's a modest 3M in increased donations as a result of sustained success in football. For the sake of discussion, and I acknowledge this speculation, let's project a 7M increase in revenue annually realized from a sustained winning football program. That's money to be applied to all areas of the University - academic, student life, faculty resources, infrastructure needs, etc.I'm personally happy to know the Athletic program is paying ~ 50% of the new 53M International Studies Building. I think that's fine. I just want to see further investment into the athletic program future as well.
The forecast/speculation above does not consider probable increase in university revenues related to local broadcast rights or possible increases in student enrollment or interest as a result of sustained positive exposure nationally. The increased media exposure that also follows sustained football success is not considered here.
http://www.chicagofootball.com/2015...artments-rank-in-spending-profit-pay/a2quusm/
So the question is: Where else could Indiana invest 2.5M annually to receive similar or larger returns and what supports your opinion?
I again state this is a calculated risk, but one worth acting upon unless there are better alternatives with stronger return potential. But what are those?
edit: added this: "and yet it still made 8.6M in profit last year which helps fund other areas of the University every year"
Where else could they invest and what supports your opinion?
The football program under performs in terms of revenue potential by quite a bit - and yet it still made 8.6M in profit last year which helps fund other areas of the University every year. A consistent winning team = Increasing ticket sales at 10k a game x $50 per x 7 games = 3.5M a year. Attracting more/better tier of sponsorships for football = unknown annually but let's use a conservative 500k factoring all tie ins associated with the program on or off game days. We cannot project increase alumni donations accurately, but there seems to be a correlation between Big Ten schools that excel in football and the level of alumni athletic department contributions they receive. Wisconsin, Michigan, Iowa, Michigan State and Ohio State are the top 5 ranging from 28M to 38M in athletic contributions annually from alumni. Nebraska seems to be an odd outlier to me here, but otherwise, all other teams are not know for sustained football success and the drop off from the 28M to the next tier is dramatic. It's a supposition, but I suggest football success = increased alumni donations to athletic programs. Indiana is down the list at 16.7M (see link below). There is ample room to increase revenue here and the schools with strong football programs are bringing in 60-100% more than Indiana every year. Let's say it's a modest 3M in increased donations as a result of sustained success in football. For the sake of discussion, and I acknowledge this speculation, let's project a 7M increase in revenue annually realized from a sustained winning football program. That's money to be applied to all areas of the University - academic, student life, faculty resources, infrastructure needs, etc.I'm personally happy to know the Athletic program is paying ~ 50% of the new 53M International Studies Building. I think that's fine. I just want to see further investment into the athletic program future as well.
The forecast/speculation above does not consider probable increase in university revenues related to local broadcast rights or possible increases in student enrollment or interest as a result of sustained positive exposure nationally. The increased media exposure that also follows sustained football success is not considered here.
http://www.chicagofootball.com/2015...artments-rank-in-spending-profit-pay/a2quusm/
So the question is: Where else could Indiana invest 2.5M annually to receive similar or larger returns and what supports your opinion?
I again state this is a calculated risk, but one worth acting upon unless there are better alternatives with stronger return potential. But what are those?
edit: added this: "and yet it still made 8.6M in profit last year which helps fund other areas of the University every year"
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