FC: Penn State Athletics Reports All-Time High Revenues and Expenses

[StamfordBridgeVikingatLeftOffensiveTackle]

You gotta spend money to....

Penn State Athletics Reports All-Time High Revenues and Expenses

Penn State athletics operated with roughly $202.2 million in revenues and $202.07 million in expenses for the most recently completed 2022-23 fiscal year,

www.statecollege.com

 

[Nitt1300]

They couldn't find a way to spend/waste that last 130K?

 

[StamfordBridgeVikingatLeftOffensiveTackle]

Not all the news is bad. Thanks to you bibulous imbibers there was an increase in concession sales.

After Beer Sales Hit Beaver Stadium, Financial Report Shows $1.78 Million Bump in Related Revenue

Penn State football reported a revenue stream of $9.6 million in program, novelty, parking and concession sales for the 2022-23 fiscal year, a bump up

www.statecollege.com

 

[Nitt1300]

Not all the news is bad. Thanks to you bibulous imbibers there was an increase in concession sales.

After Beer Sales Hit Beaver Stadium, Financial Report Shows $1.78 Million Bump in Related Revenue

Penn State football reported a revenue stream of $9.6 million in program, novelty, parking and concession sales for the 2022-23 fiscal year, a bump up

www.statecollege.com

They should open at happy hour all week, all year.

 

[PSUFTG2]

FWIW: "Beer Sales" net revenue (revenue minus expenses) was negative.

 

[Nitt1300]

FWIW: "Beer Sales" net revenue (revenue minus expenses) was negative.

fire the beertender

 

[BW Lion]

FWIW: "Beer Sales" net revenue (revenue minus expenses) was negative.

What are they including in "expenses"? I bet that detail is too granular for public consumption.

 

[StamfordBridgeVikingatLeftOffensiveTackle]

FWIW: "Beer Sales" net revenue (revenue minus expenses) was negative.

Of course it was. PSU is a non-profit.

 

[LB99]

fire the beertender

They need the guy from Bar Rescue.

 

[Charlie1978]

You gotta spend money to....

Penn State Athletics Reports All-Time High Revenues and Expenses

Penn State athletics operated with roughly $202.2 million in revenues and $202.07 million in expenses for the most recently completed 2022-23 fiscal year,

www.statecollege.com

I would like a quarter by quarter breakdown...beer sales have to be inversely related to passing yards.

 

[Nitt1300]

How can you not make money selling beer in a sea of drunken idiots?

 

[Bkmtnittany1]

They need the guy from Bar Rescue.

No way…. Sam Malone!

 

[psuro]

interesting. Now see what Ohio Steve has done in the same time frame. They are generally the leaders in revenue in college sports.

 

[LB99]

No way…. Sam Malone!

My all time favorite show. They need Norm to boost consumption.

 

[BobPSU92]

Not all the news is bad. Thanks to you bibulous imbibers there was an increase in concession sales.

After Beer Sales Hit Beaver Stadium, Financial Report Shows $1.78 Million Bump in Related Revenue

Penn State football reported a revenue stream of $9.6 million in program, novelty, parking and concession sales for the 2022-23 fiscal year, a bump up

www.statecollege.com

How were the latte sales? That must explain the record revenue.

 

[Psu00]

They couldn't find a way to spend/waste that last 130K?

Hard to believe isn’t it?

 

[Psu00]

They need the guy from Bar Rescue.

Could you see him walk into that bloated athletic department? After years of Sandy’s hiring sprees his head would explode. ‘What exactly do you do here?’

 

[Penn State Pigskin 2023]

You gotta spend money to....

Penn State Athletics Reports All-Time High Revenues and Expenses

Penn State athletics operated with roughly $202.2 million in revenues and $202.07 million in expenses for the most recently completed 2022-23 fiscal year,

www.statecollege.com

James Franklin doesn’t own the Penn State football franchise. He’s an employee

This is ********: “Football as a whole brought in nearly $110 million in revenue, up from $105.6 million in 2021-22. That figure brings Penn State football’s total reported revenue to around $850 million under James Franklin, not accounting for the most recently completed football season”

 

[PSUFTG2]

In this most recent year (2022-23 Fiscal Year), the first under Pat Kraft:

The Good:
Revenues went up $21 Million

The Bad:
Expenses went up $29.5 Million
(So last years $10 operating profit was essentially erased. Keep in mind "operating profit" is just that - and does not include all of the expenses taken on in the form of long-term debt. So, in reality we went from an overall deficit to a larger overall deficit)

The Ugly:
Athletics Department Debt nearly doubled, from $88 Million to $173 Million
And that doesn't include the approximately $200 Million of university debt approved for the various new ICA projects - or the $700 Million for Beaver Stadium

The bulk of the increased expenses?
$6.6 million increase in Coach's Salaries (those will increase significantly again in 2023-24 with the new BB Coach Hire, and the much more expensive FB coaching staff)
$8.4 Million increase in Support Staff
$5.8 Million increase in Overhead

Increased revenue from the media contracts (which also reflects the new 12 team "CFB Playoff" $$$) will kick in over the next two years. Of course, the debt for the proposed huge ICA projects (totaling around $1 Billion), will come on the books as well.

It's only Year 1, but if we expected these things to come under some control post-Barbour, we have thus far been wrong.
I am generally a cynic (and difficult to "disappoint") - but even I have to admit to being disappointed.

 

[Blair10]

In this most recent year (2022-23 Fiscal Year), the first under Pat Kraft:

The Good:
Revenues went up $21 Million

The Bad:
Expenses went up $29.5 Million
(So last years $10 operating profit was essentially erased. Keep in mind "operating profit" is just that - and does not include all of the expenses taken on in the form of long-term debt. So, in reality we went from an overall deficit to a larger overall deficit)

The Ugly:
Athletics Department Debt nearly doubled, from $88 Million to $173 Million
And that doesn't include the approximately $200 Million of university debt approved for the various new ICA projects - or the $700 Million for Beaver Stadium

The bulk of the increased expenses?
$6.6 million increase in Coach's Salaries (those will increase significantly again in 2023-24 with the new BB Coach Hire, and the much more expensive FB coaching staff)
$8.4 Million increase in Support Staff
$5.8 Million increase in Overhead

Increased revenue from the media contracts (which also reflects the new 12 team "CFB Playoff" $$$) will kick in over the next two years. Of course, the debt for the proposed huge ICA projects (totaling around $1 Billion), will come on the books as well.

If we expected these things to come under some control post-Barbour, we have thus far been wrong.
I am generally a cynic (and difficult to "disappoint") - but even I have to admit to being disappointed.

You may want to be more disappointed in the underwhelming results from the Football team.

Losses to every ranked opponent played and signature wins against 2nd tier teams like Delaware, Northwestern, and Indiana.

 

[StamfordBridgeVikingatLeftOffensiveTackle]

In this most recent year (2022-23 Fiscal Year), the first under Pat Kraft:

The Good:
Revenues went up $21 Million

The Bad:
Expenses went up $29.5 Million
(So last years $10 operating profit was essentially erased. Keep in mind "operating profit" is just that - and does not include all of the expenses taken on in the form of long-term debt. So, in reality we went from an overall deficit to a larger overall deficit)

The Ugly:
Athletics Department Debt nearly doubled, from $88 Million to $173 Million
And that doesn't include the approximately $200 Million of university debt approved for the various new ICA projects - or the $700 Million for Beaver Stadium

The bulk of the increased expenses?
$6.6 million increase in Coach's Salaries (those will increase significantly again in 2023-24 with the new BB Coach Hire, and the much more expensive FB coaching staff)
$8.4 Million increase in Support Staff
$5.8 Million increase in Overhead

Increased revenue from the media contracts (which also reflects the new 12 team "CFB Playoff" $$$) will kick in over the next two years. Of course, the debt for the proposed huge ICA projects (totaling around $1 Billion), will come on the books as well.

If we expected these things to come under some control post-Barbour, we have thus far been wrong.
I am generally a cynic (and difficult to "disappoint") - but even I have to admit to being disappointed.

Going down a slippery slope.

 

[BobPSU92]

In this most recent year (2022-23 Fiscal Year), the first under Pat Kraft:

The Good:
Revenues went up $21 Million

The Bad:
Expenses went up $29.5 Million
(So last years $10 operating profit was essentially erased. Keep in mind "operating profit" is just that - and does not include all of the expenses taken on in the form of long-term debt. So, in reality we went from an overall deficit to a larger overall deficit)

The Ugly:
Athletics Department Debt nearly doubled, from $88 Million to $173 Million
And that doesn't include the approximately $200 Million of university debt approved for the various new ICA projects - or the $700 Million for Beaver Stadium

The bulk of the increased expenses?
$6.6 million increase in Coach's Salaries (those will increase significantly again in 2023-24 with the new BB Coach Hire, and the much more expensive FB coaching staff)
$8.4 Million increase in Support Staff
$5.8 Million increase in Overhead

Increased revenue from the media contracts (which also reflects the new 12 team "CFB Playoff" $$$) will kick in over the next two years. Of course, the debt for the proposed huge ICA projects (totaling around $1 Billion), will come on the books as well.

If we expected these things to come under some control post-Barbour, we have thus far been wrong.
I am generally a cynic (and difficult to "disappoint") - but even I have to admit to being disappointed.

Clearly Kraft recognizes the tough act he has to follow in Sandy and is committed to creating his own legacy.

 

[ChandlerPearce]

Clearly Kraft recognizes the tough act he has to follow in Sandy and is committed to creating his own legacy.

I just wonder....Sandy had around 100(TIC) Asst ADs....CJF is well on his way to 100 football employees....with such a huge department, is there any focus group discussions on how to beat ranked teams? We keep hearing that PSU must get with the times and expand for success....okay so when do results equal expansion? This isn't meant as a b***h post as i do support CJF....just wondering if there is some Peter Principle amongst all the employees?...trying to understand our results against teams i feel we are equal to or better than.

 

[IBeBlockin]

Going down a slippery slope.

I don’t see how this is sustainable, especially with the belief that revenue sharing with athletes is coming down the pike in the near future.

Barry, what are your thoughts about Craft - is he a guy that would say no to Franklin regarding continued spending on football or is he just more of a rah rah type guy?

Also, any thoughts on the relationship between Schuyler and Franklin and if Schyler’s role on the BOT will be impacted by his leaving Hilton?

 

[PSUFTG2]

I don’t see how this is sustainable, especially with the belief that revenue sharing with athletes is coming down the pike in the near future.

Barry, what are your thoughts about Craft - is he a guy that would say no to Franklin regarding continued spending on football or is he just more of a rah rah type guy?

Also, any thoughts on the relationship between Schuyler and Franklin and if Schyler’s role on the BOT will be impacted by his leaving Hilton?

I think it is OK for me to share with you that I like Pat Kraft - I think he is an engaging person.
As the AD, his first year has been troubling - particularly from the fiscal side of things. Thats just black-and-white results on the financial statements. You, or anyone, can check my reports from Board meetings on my website. I have been very clear with some of the troubling actions I have seen vav ICA - no secrets there. (On-Field and In-The-Classroom results have also been troubling - but one would expect those downward trends, established under Barbour, might take longer to correct)

It is a tough job, in many ways, and I hope that he gets his legs under him and we see better in the future. He is easy to root for. But when I put on my "duty as a trustee" hat, I am disconcerted with ICA - just as much as I was when Barbour was in charge. When you pay a person as much or more than you do the president of an $8 billion University, to run a $200 Million enterprise, I think it is fair that expectations should be very high.

PSU BOT leadership approved of the CJF contract (and all of the many revisions over the years).
PSU ICA and BOT leadership approved of the flood of spending for everything CJF has asked for (and those asks have been HUGE - protestations from the underinformed notwithstanding).
I won't comment on personal relationships of others, that wouldn't be my place, but I think actions to date make it clear that whatever CJF wants from ICA and Board leadership, he gets.



-

 

[GrimReaper]

I just wonder....Sandy had around 100(TIC) Asst ADs....CJF is well on his way to 100 football employees....with such a huge department, is there any focus group discussions on how to beat ranked teams? We keep hearing that PSU must get with the times and expand for success....okay so when do results equal expansion? This isn't meant as a b***h post as i do support CJF....just wondering if there is some Peter Principle amongst all the employees?...trying to understand our results against teams i feel we are equal to or better than.

Here is something to ponder: for FY 2022, PSU's football recruiting budget put it at 12th (just below Rutgres, but ahead of tOSU). It's an apples-oranges comparison, but the 2023 number would place it at five. Will be interesting to see how it stacks up after other schools release their numbers (PSU is about 3-4 weeks earlier than it usually is).

 

[IBeBlockin]

Thank you Barry for the feedback.

 

[Hugh Laurie]

They couldn't find a way to spend/waste that last 130K?

Used as the first installment to the $700M bond sinking fund for the stadium upgrades. They have a ways to go.

 

[NittPicker]

They need the guy from Bar Rescue.

It's hilarious when he acts all pissed off and starts his drill sergeant routine.

 

[BobPSU92]

 

[PSUSignore]

FWIW: "Beer Sales" net revenue (revenue minus expenses) was negative.

I'd like to see the details behind that statement. Sounds like some weird accounting or inclusion of nonrepeatable expenses to get the stadium ready for beer sales, like buying coolers, etc. It would be pretty difficult to not turn a profit on $15 beers.

 

[PSUFTG2]

I'd like to see the details behind that statement. Sounds like some weird accounting or inclusion of nonrepeatable expenses to get the stadium ready for beer sales, like buying coolers, etc. It would be pretty difficult to not turn a profit on $15 beers.

It does indeed include costs which - hopefully - will be more or less "one time" costs (or at least only occasional costs).
Things like POS kiosks and what have you.

But there are also significant operating costs that may not be readily apparent. In addition to the product costs, there are training and supervision costs involved for engaging in beer sales, as one example. There are also costs which are harder to define - example being cannibalism..... ie if you sell a beer, does that mean you don't sell a soft drink to that fan (point being the net profit in the beer is offset, to some degree, by not getting the net profit on the soft drink). What about additional costs - either direct or indirect - vav law enforcement/behavior issues of more intoxicated fans in stadium? Who knows? Hard to even try to define.
Anyway, I am sure folks get that picture - and it is, in fairness, hard to come up with precise figures. I EXPECT that there will soon be some net-net profit from beer sales - but not yet.