Faced with budget deficit, Pack could cut program
Posted by ChrisMurray at 6/25/2010 11:14 AM PDT on rgj.com
Editor's note: While the Board of Regents meeting minutes projected Nevada's deficit at roughly $1.2 million-$2 million, Wolf Pack athletic director Cary Groth said that number has been downsized to about $600,000-$700,000 after more donations have been pledged. UNR president Milton Glick estimates a $1 million deficit. The original story has been changed to reflect the varying estimates.
The Nevada athletic department is faced with a budget deficit between $600,000-$2 million and might have to cut a second program in as many years if it can't fill the hole. The gap was created by a 17 percent decrease in state-appropriated funds (roughly $1.2 million) as well as sluggish tickets sales for the men's basketball and football program.
During the latest Nevada System of Higher Education meeting, the Board of Regents discussed the Wolf Pack's options to close the gap. Among those possibilities were: dropping a sport; moving down a division; increasing booster donations by $1 million annually; adding a $14 "athletic fee" per student credit; increasing attendance through better advertising and promotion; and further staff reductions.
Dropping a division appears to have been ruled out. Dropping another sport (Nevada dropped men's and women's skiing this past season), also could be tricky. An athletic department must maintain a minimum number of men's and women's sports to stay in Division I (six for men; eight for women). The Wolf Pack is at the minimum number of men's programs, so it would have to cut one of its 10 female sports, which could jeopardize Title IX compliance. Nevada ahletic director Cary Groth said that is a last-resort option.
I caught up with Board of Regent Michael Wixom today to discuss the issue. Below is a Q&A with Wixom. I'll have a full story in the paper as soon as I can speak with a few more sources. It's also worthy to note that Nevada's WAC partner, Fresno State, is facing some financial issues as well.
Q&A with Board of Regent Michael Wixom
RGJ: What would you like to see the athletic department do to close that gap?
MW: “There are only two ways is to close a budget deficit and that’s to increase revenue or cut costs. We have looked at both of those alternatives and talked to President (Milton) Glick about how we can get more fans to attend the games. We have some great programs, some very successful programs, but the ultimate measure of success at UNR is to get more people in the stands. Unless we get more people in the stands, we won’t be able to close that budget gap. We don’t want to simply go and cut back right now. Part of the problem when you cut costs in a very cost-effective program like the one UNR runs — they run a good, tight budget, they are very careful about funds and Cary does a good job running the program — but if you cut too much, you can drive it into a bad cycle. When you cut coaches’ salaries or program support, you run the risk of making the programs less successful, which leads to less fan support and even less revenue. So, it’s a difficult situation.”
RGJ: In the latest Board of Regents meeting, there was a mention of increasing advertising and marketing: Is that something you have discussed with Nevada?
MW: “We didn’t talk about that in detail, but I know they are working on that. Some of it comes through advertising and some of it comes through making sure the experience at games is an enjoyable one so fans have a good time and want to come back. That’s ultimately the main goal and the best way to close the budget deficit.”
RGJ: It seems counterintuitive to sink more money into advertising and marketing when you have a deficit, but you also need to promote a program to increase revenue. Do you see Nevada spending more money on advertising?
MW: “We may. The problem is figuring out where we get the money because we’re pretty thin as a whole. I think what you’re doing is great. A story like this will help people understand the situation. I think we need to make sure the community in Reno, Sparks, Carson and Tahoe understand how important it is to support these programs. The best way to do that is to go and buy a ticket. UNR has a long and storied history of success and people need to support that success to sustain it. But stories like this will really help.”
RGJ: Does UNLV have the same budget gap or are they all right financially?
MW: “Everyone is having issues in terms of that due to the economic situation we are experiencing. We’re working very, very hard to get attendance up in football and basketball at both schools and we don’t have the same gap at UNLV, but we’re having the same type of underlying issues. It all starts with fan support. I know some of the fans say, ‘If you win more, we’ll come.’ Well at UNR, you have won, you have done well and attendance still isn’t at the level it needs to be. So, we need to figure out how to fix that problem and get more support for those programs.”
RGJ: Also in the Board of Regents meeting minutes, there was a mention of possibly dropping down a division: Is that an option?
MW: “No. They talked about it and that’s their job to talk about all possibilities, but I don’t think that would be a good thing to do. I don’t think it will help financially and it certainly wouldn’t make the program better to drop down a division. That’s not something I’d like to see happen. There’s no reason to drop down except for financial reasons and if it doesn’t help financially, which it doesn’t in this case, then it doesn’t make sense. But it is an option that was explored because of due diligence.”
RGJ: There also was a mention of dropping a sport like Nevada did last year with skiing: Is that something you foresee happening?
MW: “I hate to use the word foresee. We’re talking about every possibility and we have to talk about every possibility. We don’t want to cut a sport, that is kind of a last resort, but we also have to look at all of the options and that’s an option right now. Of course, the best thing to do is to grow revenue through attendance. That’s the main goal right now.”
Posted by ChrisMurray at 6/25/2010 11:14 AM PDT on rgj.com
Editor's note: While the Board of Regents meeting minutes projected Nevada's deficit at roughly $1.2 million-$2 million, Wolf Pack athletic director Cary Groth said that number has been downsized to about $600,000-$700,000 after more donations have been pledged. UNR president Milton Glick estimates a $1 million deficit. The original story has been changed to reflect the varying estimates.
The Nevada athletic department is faced with a budget deficit between $600,000-$2 million and might have to cut a second program in as many years if it can't fill the hole. The gap was created by a 17 percent decrease in state-appropriated funds (roughly $1.2 million) as well as sluggish tickets sales for the men's basketball and football program.
During the latest Nevada System of Higher Education meeting, the Board of Regents discussed the Wolf Pack's options to close the gap. Among those possibilities were: dropping a sport; moving down a division; increasing booster donations by $1 million annually; adding a $14 "athletic fee" per student credit; increasing attendance through better advertising and promotion; and further staff reductions.
Dropping a division appears to have been ruled out. Dropping another sport (Nevada dropped men's and women's skiing this past season), also could be tricky. An athletic department must maintain a minimum number of men's and women's sports to stay in Division I (six for men; eight for women). The Wolf Pack is at the minimum number of men's programs, so it would have to cut one of its 10 female sports, which could jeopardize Title IX compliance. Nevada ahletic director Cary Groth said that is a last-resort option.
I caught up with Board of Regent Michael Wixom today to discuss the issue. Below is a Q&A with Wixom. I'll have a full story in the paper as soon as I can speak with a few more sources. It's also worthy to note that Nevada's WAC partner, Fresno State, is facing some financial issues as well.
Q&A with Board of Regent Michael Wixom
RGJ: What would you like to see the athletic department do to close that gap?
MW: “There are only two ways is to close a budget deficit and that’s to increase revenue or cut costs. We have looked at both of those alternatives and talked to President (Milton) Glick about how we can get more fans to attend the games. We have some great programs, some very successful programs, but the ultimate measure of success at UNR is to get more people in the stands. Unless we get more people in the stands, we won’t be able to close that budget gap. We don’t want to simply go and cut back right now. Part of the problem when you cut costs in a very cost-effective program like the one UNR runs — they run a good, tight budget, they are very careful about funds and Cary does a good job running the program — but if you cut too much, you can drive it into a bad cycle. When you cut coaches’ salaries or program support, you run the risk of making the programs less successful, which leads to less fan support and even less revenue. So, it’s a difficult situation.”
RGJ: In the latest Board of Regents meeting, there was a mention of increasing advertising and marketing: Is that something you have discussed with Nevada?
MW: “We didn’t talk about that in detail, but I know they are working on that. Some of it comes through advertising and some of it comes through making sure the experience at games is an enjoyable one so fans have a good time and want to come back. That’s ultimately the main goal and the best way to close the budget deficit.”
RGJ: It seems counterintuitive to sink more money into advertising and marketing when you have a deficit, but you also need to promote a program to increase revenue. Do you see Nevada spending more money on advertising?
MW: “We may. The problem is figuring out where we get the money because we’re pretty thin as a whole. I think what you’re doing is great. A story like this will help people understand the situation. I think we need to make sure the community in Reno, Sparks, Carson and Tahoe understand how important it is to support these programs. The best way to do that is to go and buy a ticket. UNR has a long and storied history of success and people need to support that success to sustain it. But stories like this will really help.”
RGJ: Does UNLV have the same budget gap or are they all right financially?
MW: “Everyone is having issues in terms of that due to the economic situation we are experiencing. We’re working very, very hard to get attendance up in football and basketball at both schools and we don’t have the same gap at UNLV, but we’re having the same type of underlying issues. It all starts with fan support. I know some of the fans say, ‘If you win more, we’ll come.’ Well at UNR, you have won, you have done well and attendance still isn’t at the level it needs to be. So, we need to figure out how to fix that problem and get more support for those programs.”
RGJ: Also in the Board of Regents meeting minutes, there was a mention of possibly dropping down a division: Is that an option?
MW: “No. They talked about it and that’s their job to talk about all possibilities, but I don’t think that would be a good thing to do. I don’t think it will help financially and it certainly wouldn’t make the program better to drop down a division. That’s not something I’d like to see happen. There’s no reason to drop down except for financial reasons and if it doesn’t help financially, which it doesn’t in this case, then it doesn’t make sense. But it is an option that was explored because of due diligence.”
RGJ: There also was a mention of dropping a sport like Nevada did last year with skiing: Is that something you foresee happening?
MW: “I hate to use the word foresee. We’re talking about every possibility and we have to talk about every possibility. We don’t want to cut a sport, that is kind of a last resort, but we also have to look at all of the options and that’s an option right now. Of course, the best thing to do is to grow revenue through attendance. That’s the main goal right now.”
