Saban Deal Dead or Five Alarm Fire

[orangeflow]

Ask youself-If a coach was offered 30 Big ones as an indirect bonus to sign with UT and a 7.5 to 10 Big ones a year to coach would that coach not consider that a serious offer- to take under advisement.

 

[hornonthe40]

We aren't giving a 30 million sign on bonus for head coaching job at a public institution and certainly not paying 10 million a year. That alone discredits whatever source you got that from. Saban sailed weeks ago.only Patterson knows what's going on. With insiders throwing out every name I'm pretty much convinced no on on any board knows anything

 

[Randolph Duke]

We aren't giving a 30 million sign on bonus for head coaching job at a public institution and certainly not paying 10 million a year. That alone discredits whatever source you got that from. Saban sailed weeks ago.only Patterson knows what's going on. With insiders throwing out every name I'm pretty much convinced no on on any board knows anything

The monies paid to the head football coach at UT are not subject to legislative appropriation, so the public interest in the salary of the coach is somewhat questionable. If its not a matter for the legislature, it isn't much of an issue, is it?

 

[whatthewhat]

The monies paid to the head football coach at UT are not subject to legislative appropriation, so the public interest in the salary of the coach is somewhat questionable. If its not a matter for the legislature, it isn't much of an issue, is it?

Additionally, any signing bonus is coming from BMD's passing the hat and is facilitated by people who know how to do fancy paperwork. It's not like it's money being taken from the mouths of students on scholarship.

ETA: And $10 million a year sounds unreasonable, but $8 doesn't? I mean, if Bama is paying $7.2, Texas would have to have been offering at least that in order for them to renegotiate the extension. It's not unreasonable to assume TX would be willing to pay $8, not with an NC on the brain, so... yeah. And this isn't an argument in defense of TX getting Saban, just an argument in defense of the lengths BMD's are willing to go to put their alma mater back on top.

 

[Randolph Duke]

Additionally, any signing bonus is coming from BMD's passing the hat and is facilitated by people who know how to do fancy paperwork. It's not like it's money being taken from the mouths of students on scholarship.
ETA: And $10 million a year sounds unreasonable, but $8 doesn't? I mean, if Bama is paying $7.2, Texas would have to have been offering at least that in order for them to renegotiate the extension. It's not unreasonable to assume TX would be willing to pay $8, not with an NC on the brain, so... yeah. And this isn't an argument in defense of TX getting Saban, just an argument in defense of the lengths BMD's are willing to go to put their alma mater back on top.

Texas' football revenues alone are well over $110million. They are more then twice what aggy's are and more than four times Baylor's (fyi - LSU's were $74mil). People are focused on what it will take to get the right coach to Texas. What they should focus on is what it would cost to bring in the wrong one. The scale of UT's football program dwarfs most other programs. While making the wrong hire might cost aggy three or four million dollars, at Texas, it would cost tens of millions. We were paying Mack $5.5mil. An incremental $3mil or so is nothing compared to what the cost of the wrong guy.

 

[whatthewhat]

Texas' football revenues alone are well over $110million. They are more then twice what aggy's are and more than four times Baylor's (fyi - LSU's were $74mil). People are focused on what it will take to get the right coach to Texas. What they should focus on is what it would cost to bring in the wrong one. The scale of UT's football program dwarfs most other programs. While making the wrong hire might cost aggy three or four million dollars, at Texas, it would cost tens of millions. We were paying Mack $5.5mil. An incremental $3mil or so is nothing compared to what the cost of the wrong guy.

Excellent point about the loss of revenue if they bring in somebody less than A-list. Keep in mind, too, that the LHN, if it's going to succeed, depends on a charismatic and likeable HC... a 'winner.'

 

[Randolph Duke]

Excellent point about the loss of revenue if they bring in somebody less than A-list. Keep in mind, too, that the LHN, if it's going to succeed, depends on a charismatic and likeable HC... a 'winner.'

The last financial report was filed on Aug 31 and it showed a $12mil increase in total revenues over the 2012 filing. If the flagship program founders and revenues stagnate, that $12 mil number is the minimum of what we stand to lose (2012-2013 was not a banner year for any of the revenue generating programs). Run those numbers for a four year period that it would reasonably take to cycle through a bad hire and we are talking a minimum of $50mil because we were too cheap to spend an incremental $2mil/yr. Someone who could bring fans to reconnect with the program and an argument could be made that the right coach could be a $100mil decision. And people want to complain about paying the right guy what he is worth on the open market.

source for revenue numbers:

http://ope.ed.gov/athletics/GetOneInstitutionData.aspx

 

[whatthewhat]

The last financial report was filed on Aug 31 and it showed a $12mil increase in total revenues over the 2012 filing. If the flagship program founders and revenues stagnate, that $12 mil number is the minimum of what we stand to lose (2012-2013 was not a banner year for any of the revenue generating programs). Run those numbers for a four year period that it would reasonably take to cycle through a bad hire and we are talking a minimum of $50mil because we were too cheap to spend an incremental $2mil/yr. Someone who could bring fans to reconnect with the program and an argument could be made that the right coach could be a $100mil decision. And people want to complain about paying the right guy what he is worth on the open market.
source for revenue numbers:

http://ope.ed.gov/athletics/GetOneInstitutionData.aspx

Killer analysis.

 

[neillmck]

I'm definitely not an insider, but here is a recap of what has been said:

1) $30M to pay-off bad real estate investments

2) O&G deals through Tillerson

3) $8 M salary, plus incentives

4) No state income tax

Folks, I don't care if you're Warren Buffett, at 62 years of age, cash talks and bs walks.

 

[TexasFirst1]

I'm definitely not an insider, but here is a recap of what has been said:1) $30M to pay-off bad real estate investments

2) O&G deals through Tillerson

3) $8 M salary, plus incentives

4) No state income tax

Folks, I don't care if you're Warren Buffett, at 62 years of age, cash talks and bs walks.

Don't confuse the arguments with financial possibilities. The intangible value of Saban's loyalty to the University Alabama is worth far more than any amount of money UT could offer him. LOL

If Saban is too dense to accept the financial package that UT and its BMDs are offering, he has crossed the threshold into dementia and is past his prime and therefore not the answer for UT. It is a zero sum game.

Just imagine what happens to UTs revenues and Saban's compensation if he actually wins one or more MNCs at Texas. This is where UT and Saban should be focused.

 

[DizzG]

Good stuff

 

[hornonthe40]

Don't confuse the arguments with financial possibilities. The intangible value of Saban's loyalty to the University Alabama is worth far more than any amount of money UT could offer him. LOL
If Saban is too dense to accept the financial package that UT and its BMDs are offering, he has crossed the threshold into dementia and is past his prime and therefore not the answer for UT. It is a zero sum game.

Just imagine what happens to UTs revenues and Saban's compensation if he actually wins one or more MNCs at Texas. This is where UT and Saban should be focused.

To dense or the rumors that he has financial problems are just that rumors and he doesn't need any outrageous offer from us. If his financial problems were so dire why did he turn down the supposed 10mill 10 yr contract with 9figure investment package Baghorn said he was getting the first time? Doesn't add up for me personally.

 

[LiveattheOasis]

We aren't giving a 30 million sign on bonus for head coaching job at a public institution and certainly not paying 10 million a year. That alone discredits whatever source you got that from. Saban sailed weeks ago.only Patterson knows what's going on. With insiders throwing out every name I'm pretty much convinced no on on any board knows anything

Know for a fact that your comment about salary from a public institution is completely baseless, have that from a member of the present administration.

 

[TexasFirst1]

To dense or the rumors that he has financial problems are just that rumors and he doesn't need any outrageous offer from us. If his financial problems were so dire why did he turn down the supposed 10mill 10 yr contract with 9figure investment package Baghorn said he was getting the first time? Doesn't add up for me personally.

It is very simple. Mack was playing difficult with leaving as he promised and Nick did not want to be seen as helping to push Mack out. So he signed a meaningless extension with UA to allow UT to deal with Mack and allow him to continue at UA until after the Sugar Bowl.

There is no certainty what if any offer is on the table with Saban or what Saban will do but it is certain that 1) UA has far less future revenue and increased income potential for Nick and 2) Tuscaloosa is a joke compared to Austin. Once again, UT is already the largest college football franchise by far and has enormous increased value, revenue and income potential if UT starts performing on the field at a level that matches its franchise and resource advantages.

 

[eyes of texas]

I'm definitely not an insider, but here is a recap of what has been said:1) $30M to pay-off bad real estate investments

2) O&G deals through Tillerson

3) $8 M salary, plus incentives

4) No state income tax

Folks, I don't care if you're Warren Buffett, at 62 years of age, cash talks and bs walks.

Excellent points all and very important perspective to have as Texas works it's way through this process.

I only pray that the "School Administration/BOR" at UT involved in this process has the wisdom to focus on these issues clearly. I'm somewhat confident the BMDs will be focused.

President Powers is the person that I worry most about. He seems to be very politically oriented