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Post by Bornthrilla on Jul 9, 2024 10:56:06 GMT -5
So we had $690K in corporate revenue in 2022 and just $424K in revenue in 2023.
That is over $250K in revenue losses.
Is that the Carl Hairston effect?
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Post by westcoastaggie on Jul 9, 2024 11:02:46 GMT -5
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Post by westcoastaggie on Jul 9, 2024 11:07:25 GMT -5
So we had $690K in corporate revenue in 2022 and just $424K in revenue in 2023. That is over $250K in revenue losses. Is that the Carl Hairston effect? You can't be sure what the loss came from without looking at comparative budgetary line items from FY 22 and FY 23.
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Post by Bornthrilla on Jul 9, 2024 11:10:50 GMT -5
Pretty sure FY 21 is gonna be low since that was after the COVID shutdown.
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Post by aggie2039 on Jul 9, 2024 15:06:03 GMT -5
To be more specific, NCCU submitted an RFP to find the best company to assist with sponsorship deals. Three companies submitted their bids through the North Carolina state Purchasing system. This was a decision made by several entities and leaders on campus, not just the Lil ol’ AD. The State Purchasing Bid Process engages the Department, Finance and Administration, Legal Counsel, Chancellor and BOT (for selected bids). This goes for all major contracts/agreements to include employee contracts…. multiple conversations with the involved stakeholders before approvals are made. ADs manage a diverse population of constituents daily trying to bring harmony to all. It’s a tough job! During the first year of the Peak partnerships, reports were made at every NCCU BOT meeting sharing the progress made and revenue generated. Peak provided two full time staff members (paid for by Peak) whose sole job was to manage the sponsorship process in collaboration with the athletics staff member(s). The revenue share was 60% to NCCU, 40% to Peak ONLY on corporate sponsorships and marketing transactions, not on individual donations or other aspects of fundraising. However. I believe that revenue sharing breakdown has slightly changed to better benefit NCCU, but don’t quote me, I haven’t been there lately. Every FCS departments has deficit issues, fundraising challenges, insurance issues, and just plain “Not enough money” issues. The key is to have a plan. The athletics budget was near $15M at one point before COVID 19, and then things changed just like they did for EVERY collegiate program. Our budget was cut by $2.8M which caused shortfalls in staffing, travel, equipment, game day operations, pretty much the entire budget which included furloughs. In 2017, the “previous administration” -ie I guess “Me”, shared with the NCCU BOT what was needed to be competitive as a D1 member and even asked what it would look like transitioning back to D2. The number needed to sustain a D1 FCS program at that time for NCCU, was $17-$19M with the university assisting in supporting the budget just like 90-95% of all D1 FCS programs.
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Post by aggie2039 on Jul 9, 2024 15:12:19 GMT -5
On November 22, 2022, Dr. Perkins sent an email to Peak Sports with a list ofissues—one of which was allowing NCCU to raise money on its own. Thereafter, PeakSports visited the NCCU campus on January 11, 2023 to discuss these issues. Inattendance from Peak Sports were President, Ryan Holloway and Vice President,Wesley Abercrombie. In attendance from NCCU were Athletic Director, Dr. SkipPerkins, General Counsel, Fenita Morris-Shepard, and Assistant University LegalCounsel, Bradley Hicks.After this meeting an addendum to the contract was drafted, agreed upon, and signedon May 5, 2023. This addendum gave Dr. Perkins the ability to raise funds wherePeak Sports would receive no credit. Dr. Perkins still has the contractual right to do this now, but it is Peak Sports’ understanding that Dr. Perkins has raised nothing. Any concerns for raising additional revenue should be directed at Dr. Perkins as hehas had the ability to do so for over 14 months. In closing, there are a few issues that my client would like to make clear: •In the original contract and subsequent addendum, NCCU has always had theability to secure monies from donations including those from individuals and businesses. Peak Sports has never received any monies from anything thatNCCU has raised from donations. •NCCU has yet to sell a single sponsorship that Peak Sports received 40%revenue share on. •Peak Sports visited campus on July 6, 2022 and visited with Dr. Perkins fortwo (2) hours to review the contract and to answer any questions. The nextcorrespondence Peak Sports received in regard to the contract was in November of 2022 hbcugameday.com/2024/07/09/hbcu-ads-statements-refuted-in-letter-by-peak-sports-attorney/
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Post by aggie2039 on Jul 9, 2024 15:14:44 GMT -5
One cost to consider is manpower cost savings...how much does a FTE cost for NCCU to secure $500K? You must have a certain caliber of person to speak with corporations and negotiate. Must pay atleast $70K in salary Actually, I can kind of see the logic in what NCCU was thinking. It will take at least $100K (salary & benefits) to get just one good corporate development officer on staff. So if this deal guarantees you at least $100K in profit, the next $175k would in theory be going directly to the outside sales staff and their overhead. The school gets all of that initial $100K and the outside sales staff gets 0 and assumes all of the risks. While that next $175 in profit might sound like way too much to be giving away, if NCCU looked at the 10 year average of their annual advertising revenue and saw that they were only getting less than $200K even on a good year, they might figure they'd receive the same net profit in this deal without having to do any actual work. This is pretty much a lazy man's way for doing corporate sales. Little effort, small reward. Peak provided two full time staff members (paid for by Peak) whose sole job was to manage the sponsorship process in collaboration with the athletics staff member(s). The revenue share was 60% to NCCU, 40% to Peak ONLY on corporate sponsorships and marketing transactions, not on individual donations or other aspects of fundraising.
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Post by Bornthrilla on Jul 9, 2024 15:18:55 GMT -5
To be more specific, NCCU submitted an RFP to find the best company to assist with sponsorship deals. Three companies submitted their bids through the North Carolina state Purchasing system. This was a decision made by several entities and leaders on campus, not just the Lil ol’ AD. The State Purchasing Bid Process engages the Department, Finance and Administration, Legal Counsel, Chancellor and BOT (for selected bids). This goes for all major contracts/agreements to include employee contracts…. multiple conversations with the involved stakeholders before approvals are made. ADs manage a diverse population of constituents daily trying to bring harmony to all. It’s a tough job! During the first year of the Peak partnerships, reports were made at every NCCU BOT meeting sharing the progress made and revenue generated. Peak provided two full time staff members (paid for by Peak) whose sole job was to manage the sponsorship process in collaboration with the athletics staff member(s). The revenue share was 60% to NCCU, 40% to Peak ONLY on corporate sponsorships and marketing transactions, not on individual donations or other aspects of fundraising. However. I believe that revenue sharing breakdown has slightly changed to better benefit NCCU, but don’t quote me, I haven’t been there lately. Every FCS departments has deficit issues, fundraising challenges, insurance issues, and just plain “Not enough money” issues. The key is to have a plan. The athletics budget was near $15M at one point before COVID 19, and then things changed just like they did for EVERY collegiate program. Our budget was cut by $2.8M which caused shortfalls in staffing, travel, equipment, game day operations, pretty much the entire budget which included furloughs. In 2017, the “previous administration” -ie I guess “Me”, shared with the NCCU BOT what was needed to be competitive as a D1 member and even asked what it would look like transitioning back to D2. The number needed to sustain a D1 FCS program at that time for NCCU, was $17-$19M with the university assisting in supporting the budget just like 90-95% of all D1 FCS programs. Are you quoting someone here or speaking first person? I'm a bit confused.
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Post by aggie2039 on Jul 9, 2024 15:21:00 GMT -5
To be more specific, NCCU submitted an RFP to find the best company to assist with sponsorship deals. Three companies submitted their bids through the North Carolina state Purchasing system. This was a decision made by several entities and leaders on campus, not just the Lil ol’ AD. The State Purchasing Bid Process engages the Department, Finance and Administration, Legal Counsel, Chancellor and BOT (for selected bids). This goes for all major contracts/agreements to include employee contracts…. multiple conversations with the involved stakeholders before approvals are made. ADs manage a diverse population of constituents daily trying to bring harmony to all. It’s a tough job! During the first year of the Peak partnerships, reports were made at every NCCU BOT meeting sharing the progress made and revenue generated. Peak provided two full time staff members (paid for by Peak) whose sole job was to manage the sponsorship process in collaboration with the athletics staff member(s). The revenue share was 60% to NCCU, 40% to Peak ONLY on corporate sponsorships and marketing transactions, not on individual donations or other aspects of fundraising. However. I believe that revenue sharing breakdown has slightly changed to better benefit NCCU, but don’t quote me, I haven’t been there lately. Every FCS departments has deficit issues, fundraising challenges, insurance issues, and just plain “Not enough money” issues. The key is to have a plan. The athletics budget was near $15M at one point before COVID 19, and then things changed just like they did for EVERY collegiate program. Our budget was cut by $2.8M which caused shortfalls in staffing, travel, equipment, game day operations, pretty much the entire budget which included furloughs. In 2017, the “previous administration” -ie I guess “Me”, shared with the NCCU BOT what was needed to be competitive as a D1 member and even asked what it would look like transitioning back to D2. The number needed to sustain a D1 FCS program at that time for NCCU, was $17-$19M with the university assisting in supporting the budget just like 90-95% of all D1 FCS programs. Are you quoting someone here or speaking first person? I'm a bit confused. quoting the previous AD per her response to HBCU Gameday.
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Post by Bornthrilla on Jul 9, 2024 15:27:49 GMT -5
OK gotcha. I was like 'why is Aggie2039 personally meeting with the NCCU BOT'. lol
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Post by Bornthrilla on Jul 9, 2024 15:30:44 GMT -5
Also interesting to note that NCCU considered moving back to D2 as recent as 2017.
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Post by aggie2039 on Jul 9, 2024 15:48:02 GMT -5
OK gotcha. I was like 'why is Aggie2039 personally meeting with the NCCU BOT'. lol hahaha
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Post by aggie2039 on Jul 9, 2024 15:48:20 GMT -5
Also interesting to note that NCCU considered moving back to D2 as recent as 2017. I agree!!
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Post by The Professor on Jul 9, 2024 16:44:50 GMT -5
Also interesting to note that NCCU considered moving back to D2 as recent as 2017. Not as surprising as you would think. If they aren't raising money , then fees are funding their athletic programs. They have about 5k to 5500 undergrads. Explains why they cut baseball. Sounds like the new AD isn't doing to well over there.
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Post by Bornthrilla on Jul 9, 2024 16:57:58 GMT -5
Sounds like the new AD isn't doing to well over there. The cover-up is always worse than the crime. It's one thing to operate in the red, but it was dirty pool to try and put all the blame on the previous AD and the corporate sales partner.
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