Posted: 7:25 am Monday, July 7th, 2014

Big ACC distribution boost for upcoming Tech budget 

By Ken Sugiura

Some details on the Georgia Tech Athletic Association budget, projected to be $73.7 million in the coming fiscal year. The GTAA board passed the budget in late June.

The budget is about a 10 percent increase over the 2014 fiscal year budget of $66.9 million, although a considerable chunk of the increase is a one-time expenditure on improvements to Russ Chandler Stadium that will be paid for out of a draw from the department’s long-term support fund.

The distribution from the ACC increased by 32 percent, from $17.9 million to $23.6 million. The distribution largely comes from ESPN, and the boost is a result of the ACC’s renegotiated contract with the network after the addition of Notre Dame, Pittsburgh and Syracuse, the grant of rights and the upcoming college football playoff. (According to the budget notes, the playoff agreement is worth $3 million in new revenue and the additions to the ACC were worth $2.5 in additional revenue.)

The distribution is expected to increase by roughly $1 million annually, except in years when the Orange Bowl hosts the national championship game. It will increase an additional $1 million in the following year.

Other figures in the budget, prepared by Tech associate athletic director and CFO Frank Hardymon:

1. Ticket sales revenue, while budgeted conservatively, is projected to drop from $11.6 million to $9.8 million. It’s the second-largest source of revenues after the ACC distribution. A projected slight drop in season ticket sales, six home games (as opposed to seven) and the even-year schedule without a home game against Georgia are primary factors.

2. The No. 3 revenue source is sponsorships, which includes Tech’s contract with rights holder IMG ($5.1 million in the coming year) and also with apparel provider Russell Athletic ($900,000). Sponsorship revenue is budgeted at $6.8 million. It’s actually down about $1.7 million from last year, but the department received a one-time $1 million bonus from IMG and then another $800,000 from IMG to pay for a scoreboard project.

If you’re wondering, that’s followed by Alexander-Tharpe Fund donations and scholarship endowments ($5.4 million), student fees ($5.2 million) and the TECH Fund ($5.1 million).

3. The Russ Chandler renovations – a gutting of the facilities underneath the stands, including new locker rooms, offices and training areas – will require a $4.5 million draw off of the long-term support fund, but no long-term debt is anticipated to be carried. The renovations are expected to provide a considerable aid towards recruiting.

4. As has typically been the case, the budget projects to break even. The 2014 fiscal year, which ended in June but still has outstanding revenues and expenses, is expected to break even.

5. The largest expense is, again, salaries, at $23.3 million, an increase of $675,000 from 2014. There was an across-the-board increase of 3.2 percent, as well as contracted raises.

6. The second largest expense is tuition and other school fees, at $10.0 million. In-state tuition will rise 9 percent while out-of-state tuition will increase by the same dollar amount.

A full in-state scholarship is worth about $24,300, while an out-of-state scholarship counts about $43,600. In the entire athletic department, there are roughly 220 full scholarships. (There are more than 220 athletes on scholarship, as scholarships in many sports can be broken up into partials.)

7. The track and swimming teams will continue to have a reduced scholarship budget, essentially the full number of scholarships permitted for their sports but at the in-state rate. Athletic director Mike Bobinski has said in the past that he wants to fully restore the scholarship amount for those teams.

8. Recruiting expenses will increase from $1.306 million to $1.365 million.

9. The $4.5 million to pay for the baseball upgrades will come out of the long-term support fund. Hardymon called the fund a “quasi-endowment” in that it is not a true endowment in that capital can be pulled out of it. The balance of the fund, which also pays down debt on McCamish Pavilion, the Brock indoor football practice building, the Zelnak Basketball Center and the Byers tennis complex, stands at about $38.1 million but will be reduced to about $35.8 million by the end of the fiscal year. However, pledges for the baseball renovations are expected to replenish the fund to $38.2 million by the end of fiscal year 2016.

Hardymon noted that money going towards the baseball project is not being taken from funds allocated for other projects like McCamish.

10. The endowment performed well in the recently ended fiscal year, growing between 10 and 11 percent over the year, creating about $700,000 more than anticipated.

11. The reserve fund, from which money can be taken in case of budget shortfalls, is at about $2.5 million. The goal for the fund is to be at least $5 million. The department had to draw on the reserve fund in the 2013 fiscal year due to a $1.8 million shortfall, largely due to expenses related to the ACC football championship game and the ensuing trip to the Sun Bowl.

The department has hopes that the 2015 football home schedule, which includes Georgia and Florida State, will create enough revenues to significantly restore the reserve fund.

75 comments
Wreckedforlife
Wreckedforlife

I am a sidewalk GT Fan. My grandfather used to escort Bobby Ross onto the football field (state officer). GT AA took real good care of him and my family. I will always support GT because of that.

Gt79
Gt79

I wonder if we could use some of that money to rent a real football coach at Tech.

Hunk
Hunk

.........and there does not appear to be any light at the end of the tunnel.

BigCrimson75
BigCrimson75

My God, what's wrong with the GTAA!?

Bama operates with roughly a 130 mil budget.........and banks about 40 mil per! :)

When you get smart, competent people calling the shots then maybe you'll reach the type of figures Battle & the Nic-Tator produce.

-----

Juvenal -- Disappointed with Ha-Zard & Co. He wasn't alone in that debacle! :(

Since the US, Belgica & Nigeria failed again.......time for root for Brasilia!!!

Too bad Neymar is No-More. The Hulkster's gonna need to step up.

Win Lose or Draw Brazil has proven again -- Nobody does it better!

Radar123
Radar123

I'm just glad my dad passed away before Gailey and Johnson gave Tech one out of 13 in the arch-rival series.

He had a twin brother who lived in Athens. Neither one graduated from the college they pulled for. So it is a good thing he passed as all that crow heaped up by a twin would have been too much.

Numerous games in this series have been winnable.

Had Johnson gone for it on 4th and five up 17-0 last year, Tech wins going away.

He has no clear philosophy when to go for it on 4th.

Fail at the 5 or closer to the goal and Uga remains bottled up with a QB playing poorly.

Turnover a possibility.

Score and it's 24-0 and they are on the run.

The FG gave them field position on the ensuing kickoff, their youngster relaxed and game over.

Johnson goes for it 4th and 12 vs Miami in their territory in 2009. Fails.

Goes for it 4th and 2 vs VT with a short field behind Tech last year. Fails and bailed out by a missed FG.

Johnson lost the 2009 game with players Tech seldom has (2 first round picks, 3rd rounder, player of the year Dwyer, not to mention Nesbitt.

The commentator said Johnson had changed into the a pro team's coordinator as he called 4 passes with 1:45 left, plenty of time for most coaches.

He gave up on his offense because he had not installed a 2 minute offense.

Only took him 7 years to get around to it.

After 20 plus years coaching and he doesn't have a 2 minute offense to run plays fast.

Had he such a system, Tech wins 30-29.

No that is not a fact but with those stars on offense, quite possible.

Fact is Richt owns him with his current "thinking".

MRBUG
MRBUG

Ken do you know if the addition of Louisville and the loss of Maryland will have a positive or negative impact in next year's budget?

Radar123
Radar123

ESPN just made all the ADs jobs easier.

And I have made Bobinski's even easier by leaving the fan base.

My new name - not shown today for some reason - is Clemson Detective.

Certainly no loss there in my leaving.

May I suggest a raise and contract extensions for both Johnson and Gregory on my way out the door?

LOL.

Birmingham__Jacket
Birmingham__Jacket

Good to see at least 1 positive thing about playing in the ACC.  Dumbest thing Tech ever did was leave the SEC, and we will never ever get back in.  A move to the Big 10 would be a significant improvement IMO.

BleedingGold
BleedingGold

@Radar123 

It just seems like you're rambling now.  What was the point of any of that?

gtcaryd
gtcaryd

@ThomasBrown ThomAss, thanks for your continued obsession with GT, i realize you wish your mutts had the storied history of The Institute. But who knows, maybe if yall keep at it for another 100 years or so you might get there. Shame i won't be around to congratulate you. Troll on TB.

GeorgeStein
GeorgeStein

Win Lose or Draw Brazil has proven again -- Nobody does it better!

Care to revise your opinion?  I haven't seen a beatdown like this since Alabama played Oklahoma in the Sugar Bowl.

PaulinNH
PaulinNH

@BigCrimson75 

Big Phil has the Selecao playing like Leeds United in 1972 - if it can dribble, kick it. Without Thiago Silva they are going to have a huge problem with Mueller and Schurrle but FIFA has stepped up and appointed Referinho to officiate the match.  Blatter still has his dream final of Brazil-Argentina working.

My opposite number in Germany is a big Bayern fan - I've busted him that my dream final is Germany vs Netherlands with the Orantje winning with a penalty in the 89th minute after Robben does his patented swan dive after Hummels breathes on him in the area.

Birmingham__Jacket
Birmingham__Jacket

@Radar123

No excuse not to win that game last year.  Johnson desperately needs to beat UGA if we wants to remain a head football coach at the FBS level.

BeeProud
BeeProud

@Radar123


Al "radar123" Groh... is that you?


Richt lost to Johnson with a team ranked pre season #1 in the country.  With a defense with future 9 players taken in the draft and Stafford/Moreno ....... has a record of 4-13 against SEC teams that finish 500 or better in the last four years.... the reverend has work to do....

MarineJacket
MarineJacket

It won't change anything until the ACC and ESPN, and the regional next works renegotiate the contract. I don't see that happening seeing that it was just renegotiated not to long ago. Theater could be an impact if there is an ACC network. There's been plenty of talk, but the conference wants to see how the SEC network pans out. The PAC 12 network is not doing as well as expected, the Longhorn network is having problems with programming (this is an issue with the SEC network). If the current contracts as based on having so many games on so many networks where will the games for these networks come from. In the PAC 12 they came from division 2 matchups and the SEC wanted to do the same. Who wants to pay for another channel to watch a division 2 matchup?

Go Jackets!!!

AugustaJacket
AugustaJacket

@Radar123 for someone so dead set on leaving the fan base, you sure are lingering in the doorway. 


DawgNole
DawgNole

@gtcaryd @ThomasBrown

TB posting on a Tech blog. He'd have you think he was above such. And he does get those panties in a bunch when GT trolls visit UGA blogs, now doesn't he?!

PaulinNH
PaulinNH

@GeorgeStein 

Two of the most effective players for Germany tonight played for Chelsea - BigC's favorite BPL team.

One was Schurrle - the other was David Luiz.


BleedingGold
BleedingGold

@Birmingham__Jacket

If he wins 9-10 games and still loses to UGA, I'm sure he'll be fine.  Probably not in your criteria, but in the overall picture, he would be.  You in particular continue to say that the Tech as a school does not care enough about football to be able to COMPETE  with schools like VT, Clemson, Miami, and UGA.  Yet, you throw out hypothetical ultimatums.   

Radar123
Radar123

@BeeProud @Radar123

Just why do the East stands - for one area of BDS - get redder and redder every two years? Staying in denial doesn't get anyone anywhere. But since most are determined to, I left. You can't fix problems without first admitting them. Saban critized Bama frat boys for leaving early one game but at least they showed up instead of selling their team down the river as Tech fans so often do. Any time a fan base will pay above face value, Tech fans jump at the opportunity for a refund of the season. What pathetic support. Even happens for Homecoming games if Tech is foolish enough to choose BYU for that game.

KeepOnSmilingWetWillie
KeepOnSmilingWetWillie

Lot of folks throw rocks at ESPN but they sure help pay the bills for our schools.

Birmingham__Jacket
Birmingham__Jacket

@Radar123 @Birmingham__Jacket

Tech to Big 10 could happen depending on what happens to ACC.  Despite Swafford's efforts there is still talk of Miami, VT, FSU and even UNC leaving the conference.  No football schools want to play in the crappy ACC.

AugustaJacket
AugustaJacket

@Birmingham__Jacket @Radar123 can you show one credible source at says those schools are still.talking?  The grant of rights pretty.much ended conference realignment by ACC schools. But don't let facts get in your way. 


If no football.schools want to.play in the ACC then why did they sign their tv rights away for the next decade +?

GeorgeStein
GeorgeStein

Hate to burst your bubble, but the article states quite clearly that the AA is projected to break even. If you want a new coach, you're probably going to have to find a new source of funds.

BleedingGold
BleedingGold

@Birmingham__Jacket 

And then everyone will be behind him until he starts winning 7 games a year and then you'll have your same cast defending him and the same cast saying he sucks.  Hope you realize that the first couple of seasons will most likely be a little rocky, so be prepared to be battling UVA for sixth place

inoto20
inoto20

@GeorgeStein Not after this year and his contract is about to end. But keep wanting a coach who got blown out at home to middle tenn state and has lost 14/15 to 

uga, clem vt and miami

You know, the only decent teams on the schedule. Such remarkable progress.

SupersizeThatOrder-mutt
SupersizeThatOrder-mutt

@juvenal @SupersizeThatOrder-mutt @Radar123 

Thanks.  I honestly don't remember that one, but it was probably protestant.  Lots of catholic churches on Flores Island though, since it was originally a Portuguese colony.  Java was Dutch, and so the Dutch Reforemed Church was there.  Bali was overwhelmingly Hindu.

AugustaJacket
AugustaJacket

@Birmingham__Jacket @AugustaJacket @Radar123 people spouting off in the comments does not constitute actual dis mission by the universities.


The GoR would cost a university all the tv money it makes if it leaves. The sec isn't about to bring in a school that doesn't bring any revenue with it.


"Pathetic" ACC payouts are roughly $500k less per school than the mighty sec. Also, ACC is currently in possession of the MNC in football. 


Willful ignorance doesn't suit you. 

GeorgeStein
GeorgeStein

Your comment reflects a fundamental misunderstanding of what the GoR is.

Also, the ACC distributions are roughly equal to what the SEC distributed.

GeorgeStein
GeorgeStein

$5MM is not insignificant (to me, at least). Perhaps if you're that liquid, you can go ahead and pony up.

GeorgeStein
GeorgeStein

Didn't catch it. Sorry for the duplicate post.

Yellerbug
Yellerbug

@SupersizeThatOrder-mutt @juvenal @Radar123  Well it sorta does.  We all need to start praying for our team already!  It never hurts to have the Almighty supporting the white and gold--which are divine colors by the way---not like that red and black junk worn by the enemy--both in the sports and spiritual realms! :)

Safe travels Super!

juvenal
juvenal

@SupersizeThatOrder-mutt @juvenal @Radar123 Malaysia & Indonesia both allow more diversity than most countries of their predominant religion.still, long term, about like Tech & dwags co-existing(there, got it back on topic)....don't see a lot of spare $ to change any coaches, so wish folks would not keep beating that topic to death unless they win the lotto....

Radar123
Radar123

@Yellerbug @SupersizeThatOrder-mutt @juvenal @Radar123

I should be getting paid by the AJC. I've started two lines of argument without hardly trying. Course there is always a group ready to argue with BJ, not to mention my own numerous detractors. Super the difference between my boycott and the average grad's boycott is I never sold my tickets and they do whenever any one will pay a high price. And so BDS gets redder every two years. Pathetic. There are the real defectives u should get on.