UD Budget

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hens05alum
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UD Budget

Post by hens05alum » Thu Sep 24, 2020 1:50 pm

UD projects a $168M budget deficit and has instituted new cost saving measures and a draw down on their endowment. Pausing all new construction/investment and just finishing up those projects that are at the finish line now. I'm sure similar things are happening everywhere, but holy toledo that $168M is a big number.

https://www.delawareonline.com/story/ne ... 516189001/
V for Villanova, V for veritable certainty of victory over Delaware.

hens4life
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Re: Live Construction Footage

Post by hens4life » Thu Sep 24, 2020 3:05 pm

hens05alum wrote:
Thu Sep 24, 2020 1:50 pm
UD projects a $168M budget deficit and has instituted new cost saving measures and a draw down on their endowment. Pausing all new construction/investment and just finishing up those projects that are at the finish line now. I'm sure similar things are happening everywhere, but holy toledo that $168M is a big number.

https://www.delawareonline.com/story/ne ... 516189001/
168M was projected - it has been revised to 250M!

I looked and there seem to be a few "excess coaches" floating around! The article also said 35%
department cuts in non-academic areas.

I'm guessing this means selected sports will be cut now!

UDJoe
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Re: Live Construction Footage

Post by UDJoe » Thu Sep 24, 2020 4:02 pm

[quote=hens4life post_id=378285 time=1600974333 user_id=25934]
[quote=hens05alum post_id=378284 time=1600969823 user_id=422]
UD projects a $168M budget deficit and has instituted new cost saving measures and a draw down on their endowment. Pausing all new construction/investment and just finishing up those projects that are at the finish line now. I'm sure similar things are happening everywhere, but holy toledo that $168M is a big number.

https://www.delawareonline.com/story/ne ... 516189001/
[/quote]

168M was projected - it has been revised to 250M!

I looked and there seem to be a few "excess coaches" floating around! The article also said 35%
department cuts in non-academic areas.

I'm guessing this means selected sports will be cut now!
[/quote]

All of the obvious and easy cuts have been made. The blood is now in the water. Next up: entire administrative and academic departments (the only way to deal with tenured positions). Lots of people will be hurt and angry, with no end to the pandemic in sight. Not good for UD, the City of Newark or the State of Delaware

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jd of de
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Re: Live Construction Footage

Post by jd of de » Thu Sep 24, 2020 4:06 pm

The swimmers, divers and golfers have to be worried, plus a lot of the newer support staffers.

chapelstwasted
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Re: Live Construction Footage

Post by chapelstwasted » Thu Sep 24, 2020 8:06 pm

hens4life wrote:
Thu Sep 24, 2020 3:05 pm
hens05alum wrote:
Thu Sep 24, 2020 1:50 pm
UD projects a $168M budget deficit and has instituted new cost saving measures and a draw down on their endowment. Pausing all new construction/investment and just finishing up those projects that are at the finish line now. I'm sure similar things are happening everywhere, but holy toledo that $168M is a big number.

https://www.delawareonline.com/story/ne ... 516189001/
168M was projected - it has been revised to 250M!

I looked and there seem to be a few "excess coaches" floating around! The article also said 35%
department cuts in non-academic areas.

I'm guessing this means selected sports will be cut now!
Unfortunately, women’s basketball is a mandatory sport & can’t be cut. It’s the biggest money pit. They can cut a couple of assistant coaches. Let’s see if they have the guts to do it. UD can only cut 2 more men’s sports. Of course, if things get really bad, they’ll just cut the football team.

I’m sure there will be a big reduction in force to get rid of the tenured positions & the UD police force.

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jd of de
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Re: Live Construction Footage

Post by jd of de » Fri Sep 25, 2020 6:48 am

To add perspective, a 35% reduction in the athletic department budget represents $15m - $18m in cuts. In other words, cutting the football program (for the morons, that’s not my suggestion) only gets you 40%-50% of the way there.

Dropping a few Olympic sports barely scratches the surface. 600+ student-athletes needs to becomes 400+ to get to a 35% cut.

I don’t see how you get there and still have 16 sports; ealier this year the NCAA has already rejected the idea of dropping the mininum sports required to be DI. Over the next year we are going to hear about some university dropping from DI to DII, some univeristy dropping from FBS to FCS and some university dropping football. Bet on it.

77HEN
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Re: Live Construction Footage

Post by 77HEN » Fri Sep 25, 2020 10:07 am

Athletics is certainly in the spotlight for savings. I'm sure there are quite a few other university efforts and offices that are quite expendable too, and the U would be better off. This could alleviate pressure on athletics which exists because it is an effective way of developing strong men and women in many ways.

dovetail
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Re: UD Budget

Post by dovetail » Fri Sep 25, 2020 11:15 am

A 250 million deficit. That's more than a lot of big name corporations drop. If the University is looking to tap the endowment there may not be a lot of wiggle room there either. Much of what is in there is purpose restricted. This is gonna be bigger than most folks think. The State of Delaware isn't in better shape to help either.

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Gannonfan
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Re: UD Budget

Post by Gannonfan » Fri Sep 25, 2020 12:35 pm

So where is the bulk of the $250M deficit coming from? Athletics, by reports over the years, have always been around net zero in terms of revenue, so not playing those sports shouldn't have caused a major issue in terms of missing revenues. So does that mean most or all of this is from the fact that students aren't in the residence halls (or are only there at 20% capacity)? I know back in the spring the University was not at their enrollment targets - where did we end up with that? $250M is a huge number - that's like 1/4 of the endowment right there.
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UDJoe
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Re: Live Construction Footage

Post by UDJoe » Fri Sep 25, 2020 12:58 pm

[quote="jd of de" post_id=378297 time=1601030880 user_id=26607]
To add perspective, a 35% reduction in the athletic department budget represents $15m - $18m in cuts. In other words, cutting the football program (for the morons, that’s not my suggestion) only gets you 40%-50% of the way there.

Dropping a few Olympic sports barely scratches the surface. 600+ student-athletes needs to becomes 400+ to get to a 35% cut.

I don’t see how you get there and still have 16 sports; ealier this year the NCAA has already rejected the idea of dropping the mininum sports required to be DI. Over the next year we are going to hear about some university dropping from DI to DII, some univeristy dropping from FBS to FCS and some university dropping football. Bet on it.
[/quote]

Don't count on the NCAA coming to the rescue here. The Power 5 will not care at all if there are fewer parties to share in the revenues. And the schools whose football programs have been swimming in red ink for years ( thankfully not UD) are going to face some harsh realities here. I don't like this scenario, but the math is just not going to change in the short term.

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hens05alum
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Re: UD Budget

Post by hens05alum » Fri Sep 25, 2020 1:35 pm

Gannonfan wrote:
Fri Sep 25, 2020 12:35 pm
So where is the bulk of the $250M deficit coming from? Athletics, by reports over the years, have always been around net zero in terms of revenue, so not playing those sports shouldn't have caused a major issue in terms of missing revenues. So does that mean most or all of this is from the fact that students aren't in the residence halls (or are only there at 20% capacity)? I know back in the spring the University was not at their enrollment targets - where did we end up with that? $250M is a huge number - that's like 1/4 of the endowment right there.
It's a great question. Do half the undergrads live on campus normally? Room and board was $13,208 in 2019. Other expenses and 'books and supplies' were another $2800, so room, board and other expenses were a shade over $16k to payers last year. Let's say that half the students live on campus and call that 8k students. Supposing they each pay the university $15k for room & board, that's only $120M in lost revenue.
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Caribbean Hen
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Re: Live Construction Footage

Post by Caribbean Hen » Fri Sep 25, 2020 1:47 pm

jd of de wrote:
Thu Sep 24, 2020 4:06 pm
The swimmers, divers and golfers have to be worried, plus a lot of the newer support staffers.

The Coast Guard is always looking for a few good swimmers, no leg shaving required.....

instead of swimming laps in a pool you can jump from a hovering aircraft from 20 feet above the Ocean and swim for a better cause... :D

or you could stay home in the basement and take online classes :oops:
recruiting recruiting recruiting...It ain't rocket science....We need better more athletic players...That simple....

posted by Joe C December 10th, 2019

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jd of de
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Re: UD Budget

Post by jd of de » Fri Sep 25, 2020 2:00 pm

How big is $250m? Shutter the athletic department and you’d only have $200m-$205m left to cut.

Youdee Blues
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Re: Live Construction Footage

Post by Youdee Blues » Fri Sep 25, 2020 2:15 pm

nm
Last edited by Youdee Blues on Fri Sep 25, 2020 3:27 pm, edited 1 time in total.

BlueHenBill
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Re: UD Budget

Post by BlueHenBill » Fri Sep 25, 2020 2:22 pm

Gannonfan wrote:
Fri Sep 25, 2020 12:35 pm
So where is the bulk of the $250M deficit coming from? Athletics, by reports over the years, have always been around net zero in terms of revenue, so not playing those sports shouldn't have caused a major issue in terms of missing revenues. So does that mean most or all of this is from the fact that students aren't in the residence halls (or are only there at 20% capacity)? I know back in the spring the University was not at their enrollment targets - where did we end up with that? $250M is a huge number - that's like 1/4 of the endowment right there.
UD Athletics deficitis have been substantial for years with the deficits made-up by UD, presumably from returns on invested UD endowment. Almost all of UD's athletic expenses (coaches, other staff, schollies, facilities, other?) continue whether or not UD plays any games, but income loss is substantial with no revenue from tickets sold, parking, concessions, other. Here are links to UD's enrollemt for Spring and Fall 2020 -

http://www1.udel.edu/registrar/ud-facts ... ta/20f.pdf

http://www1.udel.edu/registrar/ud-facts ... ta/20f.pdf

Enrollment appears to be down only slightly. Maybe there has/will be a more substantial decline in Summer (not reported for some reason) and Winterim enrollment? Room/board revenue losses must be substantial. Maybe other losses come from no UD event/conference revenue, reduced donations due to covid-19 impact on some donors, other?

UD endowment was reporedly $1.466 Billion in 2019. Has the UD endowment decreased to only $1 Billion in 2020 due to covid-19 and/or other market losses?

With the relatively small decline in enrollment for Spring & Fall 2020, I am puzzled as to the size of UD's deficits. :?

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