Good lord man, do you always get this emotional when someone says they disagree with you?
First, my pointing out that I am a CPA has nothing to do with thinking I am important or that people should be impressed. I was responding to you calling me ignorant about UT’s finances. I was attempting to point out that I did have a pretty good grasp of finance and would be back shortly with some numbers and so here I am. As an aside, does that chip on your shoulder get heavy? Jeez!
Background information:
UT like most educational institutions and other non-profits has fiscal years that run 7-1-xx to 6-30-xx.
Holly was fired March 2019, Kelly hired April 2019. Both FY 2019
Butch Jones fired Nov 2017. Fulmer takes over as AD Dec 2017. Both FY 2018.
Historically UT’s athletic department has done pretty well. Usually break even or a little surplus. It looks like the athletic department has used surpluses to pay for capital improvements, build up a reserve fund and sometimes even send a little money to academics.
Financial Results:
FY 2018 deficit of 6.5m
FY 2019 surplus .79m
2018 was particularly bad because the university had to book 13.8m in buyouts. Currie 2.2m and the rest for Butch and assistants. It is important to realize, however, that the Butch buyout although booked in total in FY 18 will be paid out yearly through 2021. So not all of that deficit was cash out in FY 2018 but it is about a 3m a year cash bogey Phil has got to cover.
I could not find a balance sheet so I’m not sure what cash was looking like but I do know that in FY 2018 the athletic reserve fund went from 17.1m to 9.5m. Dropping by almost half. Phil was obviously funding something from past surpluses, probably capital improvements and buy outs. Regardless if I am the AD finance person this makes me uneasy.
Additionally from FY 2018 to FY 2019:
Ticket sales revenue flat
Contributions down 2.8m (doesn’t look like big booster stepped up to cover buyouts)
Media rev up 1.4m
Conf share rev up .7m
Royalties rev down .6 mil
Bowl rev unchanged at 0 (ouch)
Salaries expense up 3.4m Pruitt and staff?
So all of these changes net to a 4.8m negative p&l change for 2019. And, Phil knows he’s still got to cover Butch et. al. for approx 3 million and he/Currie drained 8 million out of the athletic reserve fund last year and he still has a lot of improvements scheduled for Neyland. You will recall, however Phil put a pause on those plans until further review.
So yes, I think the numbers speak to Phil maybe not feeling like putting out a huge salary for the new Women’s basketball coach (Holly also had a buyout around 1m) even though he is a big LV supporter.