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Title: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: Clockwork Orange on November 20, 2012, 09:49:03 EST Think that helps to finance a new coach a smidge?
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: SmokeyJoe on November 20, 2012, 09:56:39 EST Isn't 18 mil/3 yrs about what UT will be paying Gruden? ;)
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: PirateVOL on November 20, 2012, 09:57:19 EST Think that helps to finance a new coach a smidge? That is a bandaid for an immediate issue but really address none of the underlying issues between the UTAD and the Academic side.It does help Hart with the task at hand :thumbup: Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: Volznut on November 20, 2012, 09:58:46 EST This is HUGE. Dave Hart working.
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: ReVOLver on November 20, 2012, 10:00:39 EST Huge news fo sho
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: Clockwork Orange on November 20, 2012, 10:03:18 EST That is a bandaid for an immediate issue but really address none of the underlying issues between the UTAD and the Academic side. Maybe it's a start, or maybe just a shot in the arm. With the right coaching hire you know revenue for the AD will go up considerably, so I see this more as an investment that the administration expects to generate a nice return over the next several years. I have a feeling there was significant pressure from above and below to make something like this happen, even if it only covers the three years. Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: Clockwork Orange on November 20, 2012, 10:05:23 EST http://www.utk.edu/tntoday/2012/11/20/chancellor-jimmy-cheek-addresses-ut-athletic-department-budget-situation/ (http://www.utk.edu/tntoday/2012/11/20/chancellor-jimmy-cheek-addresses-ut-athletic-department-budget-situation/)
Quote from: Jimmy Cheek As we face a transition in our football program, I want to make it clear that we support a mission of comprehensive excellence in our athletics department. Under the leadership of Vice Chancellor and Athletics Director Dave Hart, we will do the things required to return our team to national prominence. As we begin our search for a new coach, I have assured Dave that he will have the support and resources he needs to be successful. For the next three years, the money the athletics department has contributed to the campus will be reinvested in the athletics department. Relieving athletics of this commitment will allow the department to add an average of $6 million per year to its bottom line for a total of $18 million over three years. The money was committed under different circumstances and we now need to allow athletics to use these dollars to attain financial stability and invest in the future. Most of this money has been used for scholarships and fellowships. We will continue to honor these commitments, primarily through private gifts. Let me emphasize, we will not reduce our commitment to students. I know that winning championships and competing at the highest level lifts the national profile of the University of Tennessee. As chancellor, I am committed to winning both on the field and in the classroom. Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: 101stDad on November 20, 2012, 10:11:11 EST Takes a huge amount of pressure off in terms of making the monthly buyout payments to Dooley and making some money available to bring in a heavy hitter.
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: 73Volgrad on November 20, 2012, 10:14:55 EST All the coaching buy outs must be funded in total in an escrow account and cannot be funded monthly through anticipated revenue. This is an IRS rule. SO $6M a year does not help the Dooley buy out.
Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: VoLynteer on November 20, 2012, 10:17:31 EST All the coaching buy outs must be funded in total in an escrow account and cannot be funded monthly through anticipated revenue. This is an IRS rule. SO $6M a year does not help the Dooley buy out. So...what does it help? :thumbup: Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: Volznut on November 20, 2012, 10:17:53 EST All the coaching buy outs must be funded in total in an escrow account and cannot be funded monthly through anticipated revenue. This is an IRS rule. SO $6M a year does not help the Dooley buy out. It helps land a coach Title: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: PirateVOL on November 20, 2012, 10:42:56 EST It helps land a coach Yep, that is exactly what it is intended forTitle: Re: So it sounds like Cheek is returning $18M to athletics over 3 years Post by: UTnbama on November 20, 2012, 10:58:51 EST That's the amount stipulated in the contract between the UT Foundation, the UTAD and the University. That amount was established when the contract was signed several years ago. Well before the latest discussion with Gruden.
This money will go to pay the escrow for Dooley and the lump sum buyouts for the staff, etc. The money for the new coaches will come from donors, bottle caps, baseball card collections, etc. Certanly this money clears away a giant hurdle for getting Gruden & new staff. Correct me if I'm wrong, but I think Fulmer's buyout ends this December, about the time Dooley's begins. |