Login | Member Center | Contact Us | About Us | Site Map | Archive | Alerts/Photos | Subscribe to the paper | knoxnews.com

HomeFootball

UT spreads burden to avoid deficit

Bill Myers, right, breaks down details on the proposed UT athletic department budget at Thursday's board meeting. Mike Hamilton, center, and Sylvia Davis listen.

Saul Young

Bill Myers, right, breaks down details on the proposed UT athletic department budget at Thursday's board meeting. Mike Hamilton, center, and Sylvia Davis listen.

Facing a $3 million projected budget deficit, Tennessee athletic director Mike Hamilton decided to spread the burden over four fronts rather than one.

That's why football season ticket prices went up only $19 each instead of $54 each.

That's why students will pay for tickets for the first time.

That's why faculty/staff discounts on buying tickets were reduced.

And that's why you can probably buy a beer at a concert at Thompson-Boling Arena in the not-too-distant future.

Hamilton said Thursday the athletic department weighed several options on how to come up with the revenue to offset the projected shortfall.

The simplest way would have been increasing season-ticket prices by $54.

"That would have gotten us to $3 million,'' Hamilton said, "but it would have caused a lot of headaches.

"We decided it would be better to spread it out over some other places.''

Which, in essence, meant four smaller headaches rather than one migraine.

Hamilton, who on Thursday addressed a budget hearing with faculty representatives, said the $54 increase would have made UT the third highest ticket in the SEC.

But it would have been too hard a hit on the core fan base, the ones who buy season tickets. He preferred to spread the burden.

Bill Myers, the UTAD's chief financial officer, broke it down as follows:

n A $19 season-ticket increase will generate $1.45 million.

n Students paying $90 for season tickets (or $15 per game) will generate $1.15 million.

n Reducing the faculty/staff discount from 50 percent to 20 percent will generate $500,000

n Beer sales at non-athletic events at the arena should generate $450,000.

The four sources add up to $3.55 million, which allows the budget to project a $500,000 surplus to apply to the reserve fund.

The $87.5 million budget for fiscal 2009 will be submitted for approval at the Board of Trustees meeting in June.

Actually realizing the $500,000 surplus appears to hinge on the approval of beer sales at the arena and its projected revenue of $450,000.

The Knoxville City Council, sitting as the Beer Board, must approve an application from Sodexho, UT's concessions contractor.

That vote has been postponed once due to a request by the UT Faculty Senate for more time to study the issue.

"If the Beer Board proposal does not go through,'' Hamilton said," we'll have to, A, not have a projected $500,000 surplus, or, B, we'll find either an additional revenue source or cut expenses to make sure we get where we want to go.

"And that decision will be reached at the appropriate time.''

Hamilton noted that the athletic budget contributes $1.375 million to academic scholarships that help 2,400 students on campus.

"There's nobody (else) anywhere doing that for academics,'' Hamilton said.

© 2008, Knoxville News Sentinel Co.

       59 Comments

Posted by WD40plusVol on May 1, 2008 at 10:39 p.m. (Suggest removal)

You could drop one of those non-revenue sports.

Could have let the band stay home a couple times.

Could have charged the media for their passes.

Could have charged another $10 to season ticket holders and saved the students $30.

Posted by VOLstuckINky on May 1, 2008 at 11:27 p.m. (Suggest removal)

Mike$$$$ .... they'll keep paying ... you keep charging.

stay the curse .. watch from the couch.

Posted by Silent_Fulmer on May 1, 2008 at 11:34 p.m. (Suggest removal)

you could go to a bcs bowl and make 8 million

Posted by alfrizzle097 on May 1, 2008 at 11:34 p.m. (Suggest removal)

Or not invest god knows how much in a new aquatics center, a practice facility, and renovations to TBA at the same time. When they did all those at the same time they made a decision to make these price hikes. They knew it was coming when they made those decisions....

Posted by WorkinLikeHeck on May 2, 2008 at 12:02 a.m. (Suggest removal)

I wonder if Hams budgeted in a trip to Atlanta for the SEC title game this year? My guess would be NOPEE!!!!!!!!

Posted by LadyVolsEighTimes on May 2, 2008 at 12:21 a.m. (Suggest removal)

A great deal of money could be made by UT selling Cheese, to with all the Whine about students having to make a token payment for tickets.

Or pull that $1.35 million contribution to UT Academics assistance. I'm sure 2400 Students will be hurt, but they can get a free ticket to the Football games.

Posted by kingmufasa76 on May 2, 2008 at 12:21 a.m. (Suggest removal)

vol nation will pay not matter what just the people who get hit are the ones who try and buy single game tickets

Posted by BigVolinCarolina on May 2, 2008 at 12:27 a.m. (Suggest removal)

Silent_Fulmer is right--just going to a BCS bowl will take care of this.

When your base-generating sport (football, of course) averages 4 losses per season this decade, is it any surprise that there's a revenue shortfall? No offense, but 2 recent Women's basketball championships under Summitt and 3 good seasons under Pearl won't put a dent into those needs.

2001 was the last football season that was worth the price of admission for tickets. Since then, it's been all downhill. And to think that prices are on their way up? And to expect any sustained change in the outcome of our on-field performance will last?

I ain't gonna hold my breath.

Posted by newtonrail on May 2, 2008 at 1:24 a.m. (Suggest removal)

$1,000,000. tops for going to BCS Bowl after all the extra official party, etc. Some of you forget all bowl revenue over set %, goes into SEC pot to divide at Destin this month. You actually get a little over $2 million but the expenses will knock it down to $1. I don't wish to defend Mikey MIke, but TBA, Aquatics Center, and Pratt Practice Facility are paid for with private donations or the Loge seating.

Posted by Volalumnus on May 2, 2008 at 1:51 a.m. (Suggest removal)

That's why football season ticket prices went up only $19 each instead of $54 each.
************************************
If tickets went up 54 each, I don't think anyone would have to worry about getting fired.
They would be too busy running from the mob while trying to get outta ktown.
And I think that is about a mild as you could describe it.

Posted by GreerVol22 on May 2, 2008 at 7:12 a.m. (Suggest removal)

I tell you, this economy thing will hit worse than people think. I know a lot of UT, Clemson, and USC season ticket holders that have had dual incomes cut to one, others that really shouldn't have been buying them in the first place are backing out because of gas and I know personally, I'm able to make about 4 home games a year. We will probably cut out one in leiu of a vacation weekend. Economics folks and gas is only getting worse.

Posted by BigVolinCarolina on May 2, 2008 at 7:37 a.m. (Suggest removal)

newtonrail, your point is well-taken (and not forgotten) regarding expenses and SEC distribution siphoning up a lot of the BCS funds; however, a BCS payout is significantly better for UT than Cotton, Peach, Outback or Capital One bowls.

Regardless of how some of the facility upgrades are paid for by private donations, it's what's on the football field--or not on the football field--that's hurting our bottom line. GreerVol's economy comment is also merited, as well.

Posted by volroadwarrior on May 2, 2008 at 8:32 a.m. (Suggest removal)

Negative Nellies are clucking again. Throw a little positive or negative article out and cluck---cluck---cluck. Like a bunch of chickens when someone approaches the hen house.

Posted by WD40plusVol on May 2, 2008 at 9:26 a.m. (Suggest removal)

Bad economy, rising gas prices, food prices, etc., may change the equation this year but, Business economics 101: supply and demand: if every seat is sold and there are more in street hoping to buy a ticket, your tickets are underpriced.

Posted by WorkinLikeHeck on May 2, 2008 at 9:43 a.m. (Suggest removal)

BCS bowl? What's that? I could tell you about all those Outhouse and Chik-Fil-A bowls.

Posted by jdcvols on May 2, 2008 at 9:54 a.m. (Suggest removal)

volroadwarrier, so going to a BCS bowl is a bad suggestion?? CPF can fix the problem by fielding a BCS type team, football has always ruled at UT and we will live a die by it financially. Not going to any significant bowl games is without argument hurting the revenue side as expenses go up. Negative Nellies? get in the real world, son!

Posted by TN7275 on May 2, 2008 at 9:56 a.m. (Suggest removal)

WD you hit it on the head Supply and Demand. We can b+++h about the wins and loses but it comes down to supply and demand. Try for MBL (Losing Cubs for example) and NFL tickets. Sold out win or lose it's supply and demand and will continue to go up until the balance turns to more supply than demand and it will then go the other way, I.E. University of Memphis or Vandy home football tickets or UT basketball tickets (until recently)

Posted by VolGraduate on May 2, 2008 at 9:59 a.m. (Suggest removal)

why can't the KNS understand that the students are already charged for their tickets??? this is the second payment for the same thing.

workinlikeheck still smells like cabbage

Posted by Ashley on May 2, 2008 at 10:01 a.m. (Suggest removal)

122 days till Football Time In Tennessee!!!!!

Posted by Brama on May 2, 2008 at 10:01 a.m. (Suggest removal)

I'm tired of seeing these coaches get these big raises for 8-4 0r 9-3 seasons or a sweet 16 appearance.

Posted by BADGES0413 on May 2, 2008 at 10:18 a.m. (Suggest removal)

We are charging BAMA and Florida fans an extra $20 for their tickets this year for a cool $400,000 extra. Why not go ahead and charge them an extra $50, it would create an additional $1,000,000 per year. You know most of them will pay it. My cyphering is base on 10,000 tickets sold to each team.

Posted by TN7275 on May 2, 2008 at 10:44 a.m. (Suggest removal)

Volgrad, the Football program gets no student activity money on the other programs including mens basketball and sorry about those 8-4 and 9-3 seasons, Brama, but a lot of people would love them. I don't, but that record over a career would make you one of the winningest coaches in football history so I guess in the big picture it's pretty good and better than most but we at UT want nothing but perfection and expect to have it on a no cost to us budget. Oh well I guess we would be unhappy if they hung us with a new rope.

Posted by VolGraduate on May 2, 2008 at 12:36 p.m. (Suggest removal)

TN7275:

I'm not sure where you get your information but the student activity fee includes tickets to sporting events. Look it up on the school website or call the bursar's office.

Posted by General_Fritter on May 2, 2008 at 12:36 p.m. (Suggest removal)

Badge - Brilliant!

Posted by WD40plusVol on May 2, 2008 at 12:41 p.m. (Suggest removal)

Badges, your math is a little off. $400,000 divided by $20 equals 20,000 tickets sold, not 10,000. I'm willing to go out on a limb and guess that there are not 20,000 visitor tickets available. If I'm missing something, please explain. Thanks.

Posted by stkdog on May 2, 2008 at 12:44 p.m. (Suggest removal)

option #1 go to a bcs game every year

option #2 make the womens program break even or turn a profit. if you support the mens program, you are supporting the womens by proxy.

we are close to pricing the football program out of reach for many. a couple of losing seasons, things could get bad in a hurry.

Posted by TN7275 on May 2, 2008 at 1:30 p.m. (Suggest removal)

Volgrad - The football program gets no activty fees according to the UTAD. Other sports do. I asked that specific question to the UTAD and that was their response. That's all I can go by. Before I ask I would have agreed with you. But all being said. I have no problem with the students paying a little more. I worked my way through school 40+ years ago and even paying my on bills on the old time minimum wage had money for beer and a good time. So if they want to go pay up. UT total cost is very reasonable even for an out of stater as I was and also my daughter in the 90's

Posted by bigfan502 on May 2, 2008 at 1:41 p.m. (Suggest removal)

The big worry is that we are in the midst of an Ongoing inflation that will reach unpredictable proportions by this fall. Our entire economy is based on transportation...and the huge gas increases and added costs that go with that will make out-of-town fans think twice before making the trip to Neyland stadium. I think the bulk of our fans are from Nashville, Chattanooga, and the Tri State area...if a certain percentage of these fans stay home..we will see many empty seats in the stadium that we have not seen in a long time.

Posted by tnbanker_govols on May 2, 2008 at 2:15 p.m. (Suggest removal)

We could ask Bruce Pearl for the money!!!

Posted by tnbanker_govols on May 2, 2008 at 2:16 p.m. (Suggest removal)

Hey, on second thought, I'm smelling another donation from Phil Fulmer!!!

Posted by 99gator on May 2, 2008 at 2:32 p.m. (Suggest removal)

1. doesn't tenn have a group of fat cats that they could hit up for cash.

forgive me, i don't know how this stuff works at tenn....but, at florida they come up with all kinds of gimmick type stuff to raise cash as well as hitting up the big time boosters.

i can give examples of stuff done at florida, but i really can't believe that THE state university of tennessee is having money problems in an athletic department as successful as tenn.

2. i have seen a name mentioned in several posts......making fun of him......who is dupree?

Posted by MOOREVOLS on May 2, 2008 at 2:41 p.m. (Suggest removal)

You're right TN7275. The football program gets nothing out of the activity fee. The students could get tickets to any athletic event, including football, by paying the fee, but the football program didn't benefit from the fee. All the money from the activity fee is split up and given to non-revenue sports, for the most part.

Posted by BADGES0413 on May 2, 2008 at 2:49 p.m. (Suggest removal)

WD40, numbers were based on 10,000 for Bama and 10,000 for Florida per year for a total of 20,000 yearly tickets. I think we give each opposing school a chance at 10,000 tickets. Next year we could charge Georgia, Auburn and South Carloina $100 per ticket beause they travel well.

Posted by BADGES0413 on May 2, 2008 at 2:56 p.m. (Suggest removal)

The city did something similar back in the mid 80's when Thompson Boling was being built. They raised the hotel tax I think by 10% to help raise some of the funds for the arena. In other words, charge the out of town folks for some of the toys we use.

Posted by WD40plusVol on May 2, 2008 at 3:08 p.m. (Suggest removal)

Gotcha Badge.

What you are remembering from the 80's was the "entertainment" tax. Was applied to hotels, concerts, etc. Ironic thing about it was the coliseum was being taxed to fund construction of a rival venue.

99gator, a mythical beast of a recruit that loves high ranking military fritters (hint).

Posted by pdhuff on May 2, 2008 at 3:40 p.m. (Suggest removal)

We could make up the difference by simply changing Neyland Stadium to K Kreme outdoor arena.

Some wouldn't like it.

K Kreme would pay the 3 mil annually, I suspect.

Just a thought....

Posted by OwensboroVol on May 2, 2008 at 4:24 p.m. (Suggest removal)

Charging the Students is the most pitiful act I've ever seen. You could have raised the money just by asking the fat cats for another donation, but you would rather saddle the Students with another fee so they can be part of the University. You should be ashamed and this is not coming from a Student but a 60+ alumni.

Posted by GreerVol22 on May 2, 2008 at 5:02 p.m. (Suggest removal)

pdhuff, most sensible thing I've heard. We could have a Neyland parking lot and a shields-watkins alumni gym.

but the renovations to take the stadium from an oval to donut circle would cost more too. So how 'bout lets TVA sponsor it, divert the TN river a bit and use it as a cooling tank for some "rad" energy production in the off season?

Posted by spam247buster on May 2, 2008 at 5:13 p.m. (Suggest removal)

I thought Dupree was a guy who robbed a jewelry store.

Posted by invisiblekid on May 2, 2008 at 6 p.m. (Suggest removal)

99gator,

1) Neyland Stadium is in the process of getting a facelift and overhaul that is estimated to cost around 107 milllion when things are all said and done. They got about 22 million from the fat cats to cover phase I of the project. Of course, much of that went torward the creation of 414 club seats complete with an indoor hospitality area replete with a buffet, numerous flat screen tv's, and a nice view of the lake so I've heard. Given that this project is going to take a number of years to wrap up, we Vol fans may as well get used to it now in reading these stories and ponying up more money each year.

2)As far as Dupree goes, well they call him the breeze but he keeps on blowing down the road.

Posted by pdhuff on May 2, 2008 at 6:03 p.m. (Suggest removal)

Greer22, like the "donut circle" idea. I considered a Palph's fritter look but the undulating surface with apples poking thru would have some fans higher than others in the same row.

They could make up the deficit by leasing Kreme stadium to Knox county on game day which would allow brewski's to be sold, ala Miami in the old Orange bowl. $4.00 a pop and the roar from a TD vs the Gators could be heard in Ringgold, Ga.

Just some forward thinking for Mikey H's consideration.....

Posted by invisiblekid on May 2, 2008 at 7:32 p.m. (Suggest removal)

I just had another idea, maybe they could fire Kesling and set up a lottery for a lucky fan to get the chance to do play-by-play each week. I'm thinking 10 bucks per ticket for football, 5 bucks for basketball.

Posted by 99gator on May 2, 2008 at 7:33 p.m. (Suggest removal)

invisiblekid.

dig the lynryd skynyrd reference.

florida expanded its stadium in 1991 and 2002. i don't remember any budget problems in those situations. they don't get money from the state either.

florida does a lot of cash whoring. they sell naming rights to the names of the facilities and actual street names on campus. they bought the floor from the national title in basketball in 2006 and used it as a new gym floor (a new floor was needed anyway). they bought up the one in 2007 (after the second title), and chopped it into little pieces and sold the floor to raise money to boosters and alumni.

they laid bricks near the stadium (walkway) and people bought bricks and had their names put on them. i assume that the per seat booster contribution for tickets at florida is higher across the board.....football and basketball.

but, there are so many cheesy things that can be done to raise money. get peyton manning merchandise and auction it off. or have other friends of the program go out and raise money.

i could go on and on....but, i really am surprised that this is a problem and they have made the problem so public.

Posted by pdhuff on May 2, 2008 at 8:47 p.m. (Suggest removal)

99gator, I suspect the hidden reason for overage is the food budget. Just a hunch, but one look at Chavis.......

Posted by mcbrim1998 on May 2, 2008 at 9:32 p.m. (Suggest removal)

99gator,

I take issue with your "cash whoring" comment. It is called creative marketing and I have no problem with it. I would rather raise funds the way Florida does, than the way the Vols do by increasing ticket prices year on year.

I do believe UF should charge Vols fans $70 next year for their tickets instead of the standard $35. I refuse to pay the Vols $70 price, so I will watch from my Florida digs. Remember, we only pay $40 for Fl/ga in Jacksonville, and the venue is so much better than Neyland.

Go Gators
BSBA '77

Posted by pdhuff on May 3, 2008 at 4:22 a.m. (Suggest removal)

mcbrim1998 -good point but we have Fulmer.

So there.

Posted by LadyVolsEighTimes on May 3, 2008 at 7:27 a.m. (Suggest removal)

I hear that all Students will also receive a one pound block of Sharp, Big Orange, Chedder Cheese with each Season ticket purchased.

Give them a little Cheese with all that Whine!

Posted by geojeff on May 3, 2008 at 3:12 p.m. (Suggest removal)

First time season ticket holder. Just bought 4 lower level. UT tix are some of the most affordable tickets in sports. To put things in perspective, I pay the same amount for 2 lower level Titans tix. I cant beleive everybody is complaining. They are football tix....not a gallon of milk or a gallon of gas....its entertainment.

Posted by pdhuff on May 3, 2008 at 9:34 p.m. (Suggest removal)

Wonder if they ever considered spending less than just charging more?

Posted by Madkels on May 3, 2008 at 10:33 p.m. (Suggest removal)

BCS Bowl payout = approx $15 million per team

Outback Bowl payout = $3 million per team

difference = $12 million! Problem solved!! (I learned this in Ayers Hall)!!!!

Posted by drakosben1 on May 4, 2008 at 2:05 a.m. (Suggest removal)

Be thankful that you live in a country where money is used for good things, and where bad things are abhored by most. Be happy that you are well fed and happy by most standards. Strenghen that which is strong. Kick the trouble makers out of your midsts and give to those less fortunate. Vote for less taxes and for small businesses to prosper. Do not resent fat cat people and those who have more than you. Remember they pay more taxes than you. Have a great day, support your team, and team up on others who do not!!

Posted by hiresanders on May 4, 2008 at 2:21 p.m. (Suggest removal)

We are in a recession. Until the fans stop buying the mediocre product and stays home and watches on the tube, the increases in prices will continue to be passed onto Joe Public.

Posted by invisiblekid on May 4, 2008 at 3:19 p.m. (Suggest removal)

99gator, thanks for the props on the Skynyrd reference and points taken on the other cash-raising issues, pretty common occurences across sports. I am not sure why the Vols haven't looked into some of those other avenues to raise cash. Pure speculation here, but I think there may be some good-ol'-boys networking when it comes to marketing and they have gotten themselves into some less lucrative contracts as a result.

pdhuff, regarding the 9:34 post, are you kidding? Do you not understand how a bureaucracy works?

Posted by pdhuff on May 4, 2008 at 7:47 p.m. (Suggest removal)

Ikid, notice I said considered, not enacted.

It is an enity feeding itself. Takes a lot of gas for those Suburbans and Tahoes.

Still like my idea to make Neyland into K Kreme Outdoor Arena for 3 mil per annum.

Posted by General_Fritter on May 5, 2008 at 3:10 p.m. (Suggest removal)

mcbrim1998 - don't be jealous because you don't have Fulmer. Fulmer goes with football like a fritter goes with an ice cold beer.

Posted by General_Fritter on May 5, 2008 at 3:11 p.m. (Suggest removal)

At 6 AM in the morning.

Posted by pdhuff on May 6, 2008 at 5:44 a.m. (Suggest removal)

Gen F- you know how to paint a word picture. Sitting on a pontoon boat on a foggy Cumberland at 4:23 AM. with an iced Bud and an overlooked fritter (under the pretzels). Nirvana.

IT don't get any better than that.

Well, maybe watching Phil's finger-changin' sideline axel...........

Posted by General_Fritter on May 8, 2008 at 4:32 a.m. (Suggest removal)

pd - made me spill my beer and drop my fritter I laughed so hard.

Post a comment
(Requires free registration.)

Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.

Username:

Password:
(Forgotten your password?)

Your Turn: