Anything from the print Q&A or Part One of the blog continuation rev you up - or raise your eyebrows? If not, here's the next section.
What is the ultimate financial goal for the athletic department? Long-term? The financial goal for the department long term would be to get to the point where we are eventually financially self-sufficient as a department. You well know this from being around that, at Rutgers, athletics is subsidized by the university. (To be self-sufficient) I’ve told people this: it’s not going to happen next year, it’s not going to happen three years from now.
Well, do you have a timeline for self-sufficiency? No, I don’t have a timeline.
Okay, then what's realistic? I don’t know yet. But there will be a timeline eventually. I don’t know what it is yet. But the only way it can happen is, it starts by reducing the university’s commitment on an annual basis, not just to reduce it, but by way of driving more revenue through athletics.
I'm guessing you already have some ideas on how to drive new revenue... There’s a lot of ways you can do that. Naturally there’ll be more revenue flowing through athletics this year with the expansion of the stadium. With the sale of more club seats, there’s more revenue flying through the athletic department. But we’re going to look at creative ways to drive more revenue, including looking at all the facilities that we have and looking at what if we bring outside events in and look at them almost as opportunities, whether we rent them out or allow outside companies to use them, where it makes sense and it doesn’t conflict in any way with what athletics has set its mind to do.
And yet, there are only six FBS athletic departments that have had positive net revenue in each of the last five years. Only 19 made money last year. Why do you think Rutgers one day can join that group? I think because of where we are. I think our location has a lot to do with it. Being in the shadow of New York City, from the perspective of the number of media outlets we can take advantage of, to Madison Avenue and to the fact that we live in the wealthiest state in the country. That to me - I think our athletic development people have done a great job, but we all know quietly we haven’t really tapped in the way we can and I think that will start to net itself out. Even people who didn’t go here that live in this state claim this place as their own – there are so many people out there like that. I think athletics, I think the reason that we can eventually do that here is there are a lot more ways to drive revenue through athletics than just TV, ticket sales and development. You’ve probably read about some of them. We’ve talked about a lot of them, including our facilities, we’ve talked about concerts in our football stadium, we’ve talked about a lot of different initiatives that we think athletics can drive to our facilities.
What has the feedback been thus far to essentially renting out your stadium? There’s no resistance. In fact, it’s been purely encouraging from everybody I’ve spoken to about it. I don’t think it’s an original idea. I’m sure it’s been discussed before, they’ve had events in the football stadium before. I think we need to come out with a consistent plan about what we can do, about things we can run through the stadium when there’s not much going on. There’s a great opportunity for us to create some new revenue for athletics.
Your budget last year was $56.2 million. What is it this year? The budget’s sitting over at Old Queens right now. We submitted a budget. I can’t really speak to too many details of it until we get some feedback. What we’ve done is, we’ve presented a variety of versions of the budget and you know I think, as you’ve been reading about, there’s a lot of unknown out there right now about labor, where the union conversation’s going to net out, what the state funding will be and how that will trickle down and affect everybody in the university.
Are you preparing for athletics to be affected? I think everybody’s going to be affected. I don’t think anybody can be immune from what’s going on in the economy right now.
So with the university laying off employees and cutting courses, what cost-saving measures are you considering in athletics? We’re considering a lot of different things. The one thing I’ve tried really hard to examine and understand is sort of every process that takes place in the department: are we being completely effective and completely efficient in everything that we’re doing? To be honest with you, I know what’s been talked about for two years and all the reporting that’s been done, but I don’t see irresponsible spending going on anywhere in athletics. Everything has been done the right way, everything is very easily explained. I think going forward what we need to do is – this isn’t as much a cost conversation as it is a revenue conversation. People will constantly focus on costs. The whole world right now in business is just cut, cut, cut. And to me, I think, especially coming in here new, you can always look at different ways to do things that may end up saving money over time, may not, but can be more effective at driving revenue. To me it’s just as much a revenue conversation as it is cost-cutting. Because like I said, there’s things we can do with our facilities to drive new revenue, there’s sponsorship and media where I think we can do a much better job and there’s stadium naming rights which I think continues to sit out there. That’s an opportunity we have yet to take advantage of. Given the climate’s a little different, but it’s still an opportunity that I think we can take advantage of that I think will again help drive more revenue into athletics which allows us to turn around and over time reduce the university’s commitment to athletics.
What about naming rights? Is that being tabled for a little while because of the economic climate? No. We’re actively seeking. We’re sort of making rounds. TJ Nelligan and his guys have done a lot of the work obviously. The climate changing certainly makes it a lot more difficult. We’re making rounds and getting face time with a lot of different people it maybe makes sense to talk to on a level of sponsorship in general, not just specifically naming rights. But the answer is I’m being as active on that front as I can. I’m getting out there as much as I can because I think the one thing we still need to be doing is, we need to take a breath and look at our stadium and evaluate what the opportunity is and evaluate the inventory and evaluate all the things that a naming rights deal brings to the table potentially. So that when we do start to talk to somebody specific that has a specific interest, we can talk intelligently about numbers and exposure.
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