Licks Buyout is affordable for Iowa

[hawkeyescott]

After looking at Licks contract his buyout isn't a lump sum amount. It is spread out over 3 payments. The first $800,000 is due within 30 days from date of termination then the next is due by the end of the following fiscal year or June 30th, 2011 then the last payment due June 30th, 2012.

So figuring at 15 home games a year, Iowa would only have to increase attendance by about 2,200 a year and the buyout would pay for itself. If there are more home games then obviously attendance would only have to increase by less than 2,000.

$800,000/15 home games = $53,333 a game is the buyout

$53,333/$25 a ticket = 2,134 more people in attendance to reach this amount and Iowa wouldn't have a problem getting this many more people.

So Barta doesn't need to raise $2.4 million now he has 3 years to do it but the increase in attendance would take care of it if he would be unable to raise the whole amount.

 

[LG210]

The possibility of increased revenue from attendance definitely could mitigate the overall expense to the University should it decide to remove Lick pursuant to their contract. Of course, it is still a possibility and not a sure thing.

 

[BSpringsteen]

This is correct.

If you hire a coach who can sell out the Bg 10 season, you pay it back after one year.

 

[hawkeyescott]

The possibility of increased revenue from attendance definitely could mitigate the overall expense to the University should it decide to remove Lick pursuant to their contract. Of course, it is still a possibility and not a sure thing.

I realize it isn't a sure thing, and I'm sure Barta (I hope anyway) has put together some numbers like this as well.

Iowa sold somewhere around 8,500 season tickets last year, by bringing in a Pearl, Lavin, Drew, etc.... it isn't a stretch to say they would sell 11,000 season tickets the next 3 years off setting this buyout and actually having the basketball program be profitable again.