Comments:

Posted on: January 11, 2017 at 18:02:52 CT

The post above simply lays out the type of analysis that would be required to show the amount of increased basketball revenue that would be required to cover an increase in the head coach's salary. It's really a very straightforward and simple analysis.

Some other factors to consider are:

While MU's SEC distribution has increased each year, it's far from certain that it will continue to increase in the future and if it does, the amount of that increase.

Even with the increase in SEC distribution, the Tiger AD ranks in the lower half of the conference in revenue generated. A major portion of the increase in A D revenue since moving to the SEC has gone to the football program. It's probably fair to anticipate that football will demand more and more funding and that the minor sports will as well. Thus all of the increase in total revenue can't be allocated to basketball to cover the additional costs of a high priced coach.

Also, it's not certain that SEC distributions will continue to increase and if it does, at what rate.

The University has advanced substantial funds to the Tiger AD since the SEC move. I.e. 14 million to cover the cash flow shortfall due to having to forfeit the last Big XII distribution and 52 million for renovation of Memorial Stadium. The Athletic Department has agreed to repay these sums. A further 20 million or so will be advanced to pay part of the cost of the South End Zone renovation. The University borrowed the 52 million and will borrow the roughly additional 20 million. It is obligated to pay the bonds issued for those funds whether the AD pays it or not.