Friday, October 29, 2010

DU Athletic Department Losing $7 Million Annually

(above) Mike Chambers of the Denver Post has an in-depth article about the finances over at the DU Athletic Department
"Gwozdecky made $221,898 in base salary in the 2008-09 school year, $391,128 when bonuses were included. Scott's base was $300,000, and he earned a total of $412,289 with bonuses."
- Denver Post article
From: Denver Post
by Mike Chambers

Despite having one of the country's premier hockey programs, the University of Denver athletic department is operating on an annual budget deficit of more than $7 million. The massive shortfall is the result of the school's pledge to remain in NCAA Division I in all sports, as well as its effort to upgrade its struggling men's basketball program.

According to documents obtained by The Denver Post, the DU athletic program lost more than $22 million during a three-year period ending June 30, 2007, the deficits growing from $7.1 million to $7.8 million in the third year. DU is a private school and would not make its recent budgets available [read rest of article].

12 comments:

dggoddard said...

Some potential solutions.

Fire Coombe.

Lower Tuition.

Bring Back Boone.

Increase Alumni fundraising.

Start aggressively selling merchandise.

Give Gwozdecky lifetime contract.

Cut "non-performing" departments, staff at university.

msbdu said...

You left out one, make DG Director of Alumni relations

dggoddard said...

That would be "Director of Alumni Relations Sponsored by Bud Light"

Anonymous said...

A detail that I find paRTicularly interesting: Killer Miller,who is directly responsable for our outstanding recruiting team is paid much less than his counterpart assistant basketball coach.Just a small gem but I think it speaks volumes about where peg Doppes head is.

Goon said...

Or you could get Coors to sponser the Unversities athletic department. :)

dggoddard said...

DU does have a $500 Million fundraising campaign underway.

http://www.bizjournals.com/denver/news/2010/10/28/university-of-denver-sets-goal-of-half.html?surround=etf&ana=e_article

puck swami said...

Some Readers need some perspective....

1) 95-99% of D-I colleges "lose money" on sports. So do college symphonies and theatre depts who also sell tickets. That's okay, becuase they add value for everyone on campus. DU is doing just fine. If D-I colleges had to 'make' money, we'd only have basketball and football. Hockey at DU makes a couple of million, but it could never pay for all the other sports. DU can't go back to DII unless everything goes back to DU II, and they need a minimum number of sports to stay D-I.

2) "Losing" seven million on sports is tiny fraction of DU's $800+ million budget.

3) College hockey is a small sport on the national scene and it's coaches make less than D-I hoops coaches do.

4) One NCAA tounrey appearance in men's hoops is worth more to the school in revenue and exposure than winning the NCAA hockey tourney.

5) If we paid coaches by pure performance, the skiiing coach would be the highest paid coach at the school.

dggoddard said...

Lots of schools "lose" $7-10 Million but all have money losing football programs. DU doesn't have the expense of football, so these numbers jump out at you.

Anonymous said...

The "word on the street" is that there are 2 higher up's in DU's Athletic Dept that want DU to become a "basketball college". They don't care at all about the hockey program or what the students/alum want.

Am I crazy for wondering why the basketball coach receives more pay that Gwoz? Wouldn't be surprised if this is the last year for Coach G here at DU with all the changes...more $ for basketball, more salaries to those in basketball, and changes with the teams playing in WCHA.

Anonymous said...

FYI too..... how many people show up currently to basketball games versus hockey games? They're paying coaches total salaries of $600,000 for basketball when 45 people show up to a game?

Anonymous said...

Just because basketball on average has a much higher profile doesn't mean that DU has to follow the trend with salary- I would understand Swami's argument if the attendance and revenue numbers were swapped.

Anonymous said...

we are gouing into our third generation of trsdition for our hockey program. Grandfathers can be seen with their grandkids at the games. Swamis financial analysis completly misses the poiont. you can't put a price on our tradition versus ZERO tradition and fan interest in basketball. In two years we will lose Gwaz because og Doppes infatuation with SEC basketball . Then you will see the star prospects like Catle, Zucker.et all going elseware. What a disaster. n