Iowa Athletics Announces Department Budget Cuts for '21 Fiscal Year
- Thread starter RobHowe
- Start date
Yeah this viral shutdown, social distancing, high infectious spread has created a huge problem with sports and other economic sectors. Many, many companies in 2008-09 and for a few more years took action with mandatory salary reductions, cut overtime, cut work staff, canceled purchases and outlays of funds for many items to right the ship. I know there were a lot of companies that used that recession/near depression situation to cut dead wood and what mgmt thought were bad actors from their employment roles (I saw it as did other people). It is a tough world at work when the economy depresses.
But on the other side of the coin so to speak many of these Ath Dept employees are making really good coin compared to the average and especially below average Jill and Joe wage earners. I do not find it that bad for a person making $150,000 to take about a 10-13% pay cut for a year when they still have a job. Good for Barta to make it progressive as salaries are higher. Good optics by the highest paid coaches and we know many of them donate a lot of money to good causes. These are good people.
Of course, problems could be worse if attendance is really down or games are cancelled. I would think games being cancelled would halt some TV money because the product was not produced. Loss of TV money would probably be worse than football attendance of 30,000.
But on the other side of the coin so to speak many of these Ath Dept employees are making really good coin compared to the average and especially below average Jill and Joe wage earners. I do not find it that bad for a person making $150,000 to take about a 10-13% pay cut for a year when they still have a job. Good for Barta to make it progressive as salaries are higher. Good optics by the highest paid coaches and we know many of them donate a lot of money to good causes. These are good people.
Of course, problems could be worse if attendance is really down or games are cancelled. I would think games being cancelled would halt some TV money because the product was not produced. Loss of TV money would probably be worse than football attendance of 30,000.
okeefe4prez
Well-Known Member
Call me skeptical, but I don't think the cuts are nearly enough. I'd have left the lower end of that scale untouched and cut everyone else down to about the next round number or by 50% if they were over $200k or more. I'm really skeptical that there will be a full football season and I suspect that between media rights and loss of attendance and donations, we are going to be staring down the barrel of a budgetary hole bigger than the one that sank the Titanic. At this juncture, to plan for anything other than a worst case scenario is absolutely foolish. You can partially true people up on some revenue formula or something if the revenue actually materializes, but no way in hell would I have taken a scalpel like that to salaries when a chainsaw is warranted. Nobody is hiring so you don't have to worry about folks getting poached.
Good thoughts. If games and other scheduled meets etc are cancelled there will be savings on travel and maybe some other ancillary expenses. I am not sure if the scholarship money comes out of the Ath Dept budget or what but football and basketball TV revenue will be the big thing to watch. Only 30,000 for a football game makes them lose a lot on parking, tickets, I am not sure about vending whether the vendors pay a flat rate to operate the food booths or what, not sure if merchandising will suffer. A lot to think about and maybe a lot of minor sports will have scholarship reductions for a year or two.
ibahawkeye
Well-Known Member
Doyle'st contract take a cut? Might have got out at the right time.
