VA To Limit Subsidies To ADs: How Does it Affect Mason

[gmujim92]

OK crisis averted, but Wijg's main point still holds: We need to up our donor game significantly. We're not going to be able to get where we want to be as a program by relying so heavily on student fees.

I'd love to see us start a program similar to IPTAY at Clemson. We have so many students and are producing so many new grads every year, we could generate staggering revenue numbers just by increasing the percentage of small donors.

 

[wijg]

OK crisis averted, but Wijg's main point still holds: We need to up our donor game significantly. We're not going to be able to get where we want to be as a program by relying so heavily on student fees.

I'd love to see us start a program similar to IPTAY at Clemson. We have so many students and are producing so many new grads every year, we could generate staggering revenue numbers just by increasing the percentage of small donors.

Interestingly enough, they have created a perverse incentive to raise donations as well as student fees. So for every dollar the University increases its donations, they can raise student fees by about four dollars and still be good under the formula. That means our donations are now multiplied by about 4 if the school chooses to keep the same subsidy ratio.

 

[Raider_SPE]

I'd love to see us start a program similar to IPTAY at Clemson. We have so many students and are producing so many new grads every year, we could generate staggering revenue numbers just by increasing the percentage of small donors.

I stayed away from all of the Hewitt bashing in my survey comments and instead, spoke on this issue. The AD (and the school) has to figure out a way to fire up the young alums and students, so they support the teams and actually become fans.

 

[GMUgemini]

Interestingly enough, they have created a perverse incentive to raise donations as well as student fees. So for every dollar the University increases its donations, they can raise student fees by about four dollars and still be good under the formula. That means our donations are now multiplied by about 4 if the school chooses to keep the same subsidy ratio.

In practical terms, though, the formula would be something like for every dollar we want to raise student fees, we have to raise approximately an additional $9,000 in revenue (donations plus ticket sales plus sponsorships).

These are rough numbers of course, but you get the general idea, to raise student fees any significant amount, say, $25 a year, we'd have to raise something like an additional $225,000.

But generally you are right. To me, it seems this law will incentivize both raising of student fees, but also cutting of non-revenue sports in favor of football and basketball (two things I'm guessing the legislators don't want to see happen).

 

[KAOriginal]

I think we are seeing why Brad Edwards was brought in. His rep as a money guy and ties to DC...make him very valuable in the current climate of Mason needing to raise some money for athletics.

Kudos to Cabrera....if its really the case.

 

[Dawgs99]

I have no doubt that what sold Cabrera on Edwards was his ability to fundraise. Lets hope he can work some magic. I'd love to see a total gutting and rebuild of the Patriot Center ala Richmond.

 

[wijg]

Talk of the budget and patriot center reminded me of something. I am pretty sure I was told that the AD gets the revenues from the patriot center. I don't see an obvious place where that show up in the budget...

 

[Dawgs99]

Talk of the budget and patriot center reminded me of something. I am pretty sure I was told that the AD gets the revenues from the patriot center. I don't see an obvious place where that show up in the budget...

I've always wondered how much money the university makes off the Pat Center and where that money goes....it certainly doesn't go back into the building, its a dinosaur that needs major renovations.

 

[GMUgemini]

Talk of the budget and patriot center reminded me of something. I am pretty sure I was told that the AD gets the revenues from the patriot center. I don't see an obvious place where that show up in the budget...

Good question. The non-athletics revenue must go somewhere else.

 

[Pablo]

http://newsdesk.gmu.edu/2015/01/masons-patriot-center-56th-world-venue-ticket-sales/:

"George Mason University’s Patriot Center was the 56th best-selling venue for tickets in the world according to a new list by entertainment trade publication Pollstar Magazine. George Mason’s 10,000-seat arena is the highest ranking venue that is not the largest arena in its market.

The 2014 list of the “Top 200 Arena Venues” names London’s The O2 arena, with 20,000 seats, at No. 1 with 1,818,742 tickets sold for the year. The Patriot Center’s turnstiles saw 288,931 paid visitors during the same period. Those numbers do not include visitors for Mason or high school graduation ceremonies.

“I don’t see other buildings affiliated with campuses ahead of us, certainly not in the United States,” says Patriot Center general manager Barry Geisler. Geisler is employed by Monumental Sports and Entertainment, the company that manages the Patriot Center.

In fact, save for the casino-affiliated Mohegan Sun Arena in Wilkes-Barre, Pa., also with 10,000 seats and at No. 26 with 453,846 tickets sold, the Patriot Center is the smallest U.S. venue in the Top 100."

 

[Dawgs99]

Yes but where does the money go?

 

[Pablo]

Yes but where does the money go?

http://budget.gmu.edu/wp-content/uploads/15budexecsumm.pdf (page 128).

 

[Dawgs99]

Damn is there a page you can point me to? I just want to know how much money is generated from the use of the Pat Center. You would think as often as it used that number would be substantial. Maybe we pay Monumental Sports a ton to run the joint and that kills the profits?

 

[GSII]

the 56th busiest arena in the world makes us no money??? Or is the school paid a fee as a landlord, thus its in books as an expense?

 

[GMUgemini]

http://budget.gmu.edu/wp-content/uploads/15budexecsumm.pdf (page 128).

Seems really low. I wonder how much that annual fee and "small percentage" is. Given the 288,931 paid visitors, Mason make about $5.50 per ticket sold at the Patriot Center.

 

[Pablo]

Seems really low. I wonder how much that annual fee and "small percentage" is. Given the 288,931 paid visitors, Mason make about $5.50 per ticket sold at the Patriot Center.

Here's old information if you want to try to extrapolate - http://ahistoryofmason.gmu.edu/exhibits/show/prominence/contents/patriotcenteretc:

" In 1986, its 80 events grossed $2.6 million.[12] Centre Management predicted the 105 shows slated for 1990 would gross about $3.8 million.[13] While Centre Management only made an estimated $75,000 a year according to Mason officials, the management company claimed it had helped Patriot Center gross over $13.5 million in its first four years.[14] It credited this revenue to its suggestion that George Mason bring major performers like Kenny Rogers, The Beach Boys, The Muppets, and the Harlem Globetrotters, among others, to the Center, rather than reserving it solely for sports.[15]

George Mason officials indicated that Patriot Center generated about $300,000 annually toward subsidized student activities as of 1990.[16]"