Will Others Follow Iowa State And Trim Coaching Salaries?

The ball dropped at Iowa State and now it is rolling. What other pins will it knock over?

The Cyclones, one of the more modest athletic departments financially among Power 5 schools, announced cuts to coaching salaries because of the financial damage done by the coronavirus.

Now, when are the really monied programs like Clemson, Alabama, Michigan, and Texas A&M, among others, going to pass the hat?

Contractually, Clemson football coach Dabo Swinney ($9.3 million per year), Alabama coach Nick Saban ($8.8), Michigan coach Jim Harbaugh ($7.5) and Texas A&M coach Jimbo Fisher ($7.5) are not at-will employees. They have rock solid contracts and they get much of their salary from private donations. They don’t have to agree to give back some of their contracted money if their athletic departments have to tighten their belt.

Nobody’s salary has out-paced inflation—or raised more public scrutiny—than a big-time football coach.

“From an existential perspective, my answer would be yes, they do have a duty to lead the way and make additional sacrifices,” said Richard Southall, the director of the College Sport Research Institute at the University of South Carolina. “They should be much more able to endure a significant salary reduction…but I would be hard pressed to set a price tag on how much they should give back.”

If the school asks, high-profile coaches should take a haircut.

“Coaches are not at will employees but no coach is going to challenge a school’s decision to implement an across the board, proportionate, pay cut under these circumstances,” Rick Karcher, associate professor in the sports management program at Eastern Michigan, wrote in an email. Karcher is a member of state of Michigan bar and expert on college sports.

It could be schools like Clemson and Alabama may have reserves enough to pay for the scholarships of any spring athletes who want to return, as per the NCAA declaration. The Tigers and Tide also may be able to cover the loss of $4-$6 million from the NCAA Men’s Basketball Tournament being cancelled.

Andy Schwarz, a sports economist with OSKR, said schools can mitigate the impact of having spring athletes return to campus for an extra season lost to the coronavirus, if they have capacity in classrooms and dorms. The space is empty and if the student who is an athlete gets their room and class for free (hence, their typical 50 percent scholarship), they can pay the university the other half of their cost (food, fees, etc.).

“If a school has space, full scholarships cost almost nothing and partial scholarships generate positive cash flow/profit,” Schwarz wrote in an email.

The National Student Clearinghouse Research Center said enrollment in higher ed has fallen 11 percent since 2012. There is capacity out there for spring sports athletes to return.

But what if revenues for the 2020 season fall significantly because fans don’t want to crowd back into the football stadium? No amount of accounting magic can make up for that. Dr. Anthony Fauci, the nation’s infectious disease expert, said the virus could reappear in the fall. That will be unsettling to fans, if there is no vaccine. And who will pay for tickets with the economy in tatters?

Karcher said it will be up to the coaches, men’s basketball and football, who make anywhere from $5 million to $9 million annually, to decide if they want to forego a greater share of their salary than the across the board reduction in an athletic department.

It could be they donate part of their outside income to the cause, like radio show income, Southall said.

“What I think will probably happen is that high-profile (i.e., highly-compensated) coaches will likely make donations to specific charities, with perhaps corporate partners (e.g., country-club, media partner, etc.) matching the coach’s donation,” Southall said in an email. “It may also be that some coaches publicly give back a percentage of their outside department compensation.”

Many high-profile coaches already make significant contributions to charity. They could make more local charitable donations, but nothing will resonate with the public than giving back salary.

“One thing I know about almost everyone in college sport administration,” Southall said, “they are smart people who will make decisions based upon many factors. They are strategic thinkers/managers.”



Source

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Voters Wait In Long Lines, Wear Masks To Cast...

People wait in line to vote in a Democratic...

What Right Does A Judge Have To Decide What...

Amazon's distribution center in Saran, central France (Photo by...

Trump Calls Pennsylvania House Speaker For Help Overturning Election...

Topline President Trump called the speaker of Pennsylvania’s House of Representatives twice in the...

Goldman names new head of digital assets in bet...

Goldman Sachs is renewing its push into Wall Street's digital future.The firm made Mathew...