UH Money Color is Now RED

4,205 Views | 17 Replies | Last: 1 yr ago by Killing Floor
Aliceinbubbleland
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I cannot help but think we face something similar with NIL.

Per Chronicle

For a University of Houston athletic department already feeling the financial squeeze, it could get even tighter.
With UH still two years from a full share of Big 12 revenue, its expenses continue to rise, and now comes the real possibility for close to $25 million annually added to the books as part of a revenue sharing plan for players.
The cost of doing business at the top tier of college athletics is not cheap.

Our biggest challenge right now, honestly, is money," UH athletic director Chris Pezman said at the Big 12 meetings in Scottsdale, Ariz., in early May. "We're trying to catch up to a lot of other schools that have had greater resources for decades. I would tell you right now we've got a pretty big hole to fill.

And it's only going to get tougher.

The NCAA Division I Board of Directors voted Tuesday to move forward on a proposed $2.77 billion settlement of the House vs. NCAA case, a class-action lawsuit that seeks back pay for college athletes denied NIL compensation dating to 2016.

This comes at a time UH is already feeling the pinch as one of the most subsidized athletic departments in the nation (71% of 2023 revenue came from direct institutional support and student fees) and paying a $14.8 million buyout owed to former football coach Dana Holgorsen. Holgorsen, who was fired in November with four years left on his contract, is owed $300,000 in monthly payments through 2027.
Daveisabovereproach
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I wonder if this revenue sharing plan is just for football and basketball, or doesn't include the non-revenue generating sports
Aberzombie1892
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Aliceinbubbleland said:

I cannot help but think we face something similar with NIL.

Per Chronicle

For a University of Houston athletic department already feeling the financial squeeze, it could get even tighter.
With UH still two years from a full share of Big 12 revenue, its expenses continue to rise, and now comes the real possibility for close to $25 million annually added to the books as part of a revenue sharing plan for players.
The cost of doing business at the top tier of college athletics is not cheap.

Our biggest challenge right now, honestly, is money," UH athletic director Chris Pezman said at the Big 12 meetings in Scottsdale, Ariz., in early May. "We're trying to catch up to a lot of other schools that have had greater resources for decades. I would tell you right now we've got a pretty big hole to fill.

And it's only going to get tougher.

The NCAA Division I Board of Directors voted Tuesday to move forward on a proposed $2.77 billion settlement of the House vs. NCAA case, a class-action lawsuit that seeks back pay for college athletes denied NIL compensation dating to 2016.

This comes at a time UH is already feeling the pinch as one of the most subsidized athletic departments in the nation (71% of 2023 revenue came from direct institutional support and student fees) and paying a $14.8 million buyout owed to former football coach Dana Holgorsen. Holgorsen, who was fired in November with four years left on his contract, is owed $300,000 in monthly payments through 2027.

This immediately reminds me of why the legacy 8 Big 12 teams are taking a pay cut this year and next year from the conference - the 4 non-PAC12 members payouts for 2 seasons. If the revenue sharing concept is ultimately authorized and the Big 12 collectively implements it, it will be interesting to see how the Big 12 balances that additional compensation against all of the other competing priorities, especially in light of the P2 vs. the rest annual revenue disparity.
BellCountyBear
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I need to find a local middle school football team to root for. Because this sucks.
ilikebu
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I think the Cougars would be very successful by competing as an independent.
There's a sort of magic to their location.
johnnychimpo
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If UH is feeling the squeeze you definitely know UCF is. UCF was still relatively new to FBS when it moved into the Big 12. UH at least had a couple of decades in the SWC as a warmup. UCF had just moved into the lowly MAC 20 years ago just after not even having a football program altogether.

Whenever Tillman and Paul Wall stop writing big checks to keep the UH athletic department above water any number of other G5s in retrospect are going to begin to look like equal or better alternatives than having UH join the Big 12 though. I think given 5 years to acclimate to the speed and size of Big 12: Tulane, Memphis or Texas State would have been just as acceptable adds or better than UH in terms of on the field play.
osogreen
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I hope the ACC doesn't ask SMU to chip in with the House settlement.

That would be adding insult to injury since they are getting no revenue for several years.
johnnychimpo
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Pony Express is already wasting 200 million dollars on useless stadium aesthetics that adds little to no additional seating given that a half a dozen Sun Belt teams have had better football attendance I guess that doesn't really matter.
saabing bear
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Daveisabovereproach said:

I wonder if this revenue sharing plan is just for football and basketball, or doesn't include the non-revenue generating sports
Horses gotta eat too.
Aliceinbubbleland
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ilikebu said:

I think the Cougars would be very successful by competing as an independent.
There's a sort of magic to their location.
UH competed as an independent for years before they got into the SWC. They use to be a cake walk for SEC teams until Warren McVey arrived and suddenly they were a top 5 nationally. They didn't finish there but at one time were ranked #2.
OsoCoreyell
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saabing bear said:

Daveisabovereproach said:

I wonder if this revenue sharing plan is just for football and basketball, or doesn't include the non-revenue generating sports
Horses gotta eat too.
I caught that, Hollywood Shuffle.
Killing Floor
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It's a little bonkers that a school the size of UH in a city that size has struggled to find an identity and struggles to develop alumni into boosters.

I'm not saying I want them to dominate. I'm just saying I don't understand how they are in that position.
This is a marketing issue.
hodedofome
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I need to find something that pays me $300k/mo to leave.
ilikebu
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Many world class swimmers, divers, and track and field athletes are graduates.
They trained on campus, for the most part.
Aberzombie1892
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Killing Floor said:

It's a little bonkers that a school the size of UH in a city that size has struggled to find an identity and struggles to develop alumni into boosters.

I'm not saying I want them to dominate. I'm just saying I don't understand how they are in that position.
This is a marketing issue.


They were probably fine until they were excluded from the Big 12 right when media partners were gearing up, and that exclusion likely has had lasting effects on them as a program - viewership, resources, alumni engagement etc. In addition, the only other major variable was Texas A&M subsequently leaving the Big 12 and forging its own identity in the SEC given Texas A&M's proximity to Houston.

Granted, Houston did have a series of successful coaches despite being in a G5, however, they cast their lot with a generally mediocre Holgorsen at the worst possible time.
Mitch Blood Green
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Killing Floor said:

It's a little bonkers that a school the size of UH in a city that size has struggled to find an identity and struggles to develop alumni into boosters.

I'm not saying I want them to dominate. I'm just saying I don't understand how they are in that position.
This is a marketing issue.


It's a commuter school. (Not a criticism) but they create good middle class alumni.

This game needs whales. The whales are sending their money to Austin or College Station or Cambridge.
Dia del DougO
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We were far better off when college football programs just cheated to win and mostly got away with it...except for SMU.

At least it was still possible to a few teams to build a winning program the right way and take pride in doing it. Now it's just about money and buying players.
"The only true currency in this bankrupt world is what you share with someone else when you're uncool."
Killing Floor
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Yeah, that makes sense to me.
I think UH is like UCF. If they have some success over the next few years that base may be invigorated. I think it's overall better for the conference if they do.
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