CU Athletics recently announced plans to spend $143 million to update its facilities. In an email sent under Rick George’s name, this expenditure was explained in the following way:
“Our Sustainable Excellence Initiative (SEI), which includes a $143 million wide-ranging facilities improvement plan, was approved unanimously by the Board of Regents on December 4. This is the vital component to our strategic plan, one that reaches out past the year 2025, which will be finalized by the end of January. We have determined what our vision and mission are:
“To be nationally recognized as a premier athletics department, by providing a world-class and holistic student-athlete experience, operating in a fiscally responsible manner, while consistently competing for and winning championships.”
The comprehensive student-athlete experience includes enhancing our academic, health and wellness, and personal development programs, in concert with raising the level of competitive excellence for all teams to compete for and win championships on the conference and national levels. Developing and renovating facilities is the key factor in achieving the above objectives.
We are working diligently to make this a reality, not a pipe dream. We intend to start construction this Spring with a completion date in time for the start of the 2015-16 academic and athletic year; yes, an aggressive remake of our athletic department in what basically is a 16-month window.”
CU Athletics submitted their proposal directly to the Board of Regents instead of initially having it approved by the campus planning committee. Technically this is not a problem, but George’s actions may not sit well with some members of a community that does not fully support the Buffs.
It is presumed that George’s rush for approval is driven by clauses in Coach McIntyre’s contract that require CU to initiate plans for facility improvements by the end of the year and to complete those upgrades by a certain date. Said differently, the cost of hiring coach Mac contractually extends well beyond his monthly wages and incentives.
CU is faced with a self-induced conundrum. They are in an athletic arms race they cannot afford to be in. The expenditure of $143 million is necessary for them to continue to participate. On a comparative basis, many of their facilities are subpar. Unfortunately, spending $143 million is a band-aid that will not provide the program with a long-term competitive advantage. At best, it will temporarily reduce the gap between the Buffs and the top schools.
This issue could be addressed by re-focusing the purpose of athletics at CU. That won’t happen.
Like most universities, CU has chosen to expand their athletic empire. Good arguments can be made for de-emphasis or expansion; however, most college presidents endorse the rationale for having a strong presence in athletics.
What does $143 million mean to other organizations?
- The website of Johnson and Wales University indicated that JWU increased student aid to $143 million for 2012-13.
- The Bleacher Report stated that Alabama reported $143 million in athletic revenue during 2012-2013. This is an increase of about $20 million from the prior year when they were ranked 4th in the country for revenue. Alabama listed a surplus of $21.1 million. (Note: By comparison, a November 6th article in the Daily Camera stated that CU Athletics is more than $21 million in debt to the university and facing a shortfall of $5.6 million to budget this fiscal year).
- In December, the sale of Frontier Airlines to Indigo Partners was finalized for $145 million.
- Senior Housing News reported that American Realty Capital has agreed to purchase a nine-property portfolio of assisted living communities and development land for a total of $143 million. The eight communities and one development parcel are all based in the southeast and include 453 assisted living units and 187 memory care units.
- In late September the Alabama State Port Authority approved a $143.8 million budget Tuesday for the upcoming fiscal year.
- In the Q2 2013 Digital Startup Report published by Builtinchicago.com it was announced that 37 startups raised $146 million dollars in the second quarter of 2013.
- In August, the New York Times announced the opening of North Atlanta High School, the most expensive high school ever built in Georgia. The 11-story high school, with a 900 car parking garage cost $147 million.
- In November of 2013, a Francis Bacon painting sold for $142 million.
- The Illinois extension office released data indicating that in 2008 the major pumpkin producing states (Illinois, Ohio, Pennsylvania, and California) produced 1.1 billion pounds of pumpkins values at $141 million.
- In April 2012, President Obama ended a six-month funding freeze to Palestine. He released $147 million to pay for infrastructure, education, humanitarian aid and health projects.
What does $143 million mean to you? Is CU’s decision to spend $143 million a necessary and responsible expenditure? How would you respond to CU’s athletic arms conundrum if you were the Buff’s AD?