The doorbell rings, and Skip Bertman stands on the stoop of a former LSU baseball player’s home.The athlete doesn’t need an explanation for Bertman’s presence.”If I go see an old player, he usually knows why I’m coming there,” the former athletic director said with a chuckle. “You know what I mean.”Bertman means money.And though the U.S. economy is flailing its arms in the midst of a yearlong recession, Bertman hasn’t stop asking for it.Bertman’s position as athletic director emeritus is designed to channel his fundraising strengths into the Forever LSU campaign and the Tiger Athletic Foundation’s project funds.In times like these, every dollar helps. Some may be skeptical of the Athletic Department’s financial needs since the LSU athletic brand is nationally known for its lucrative earnings. A Washington Post report of 2007 athletic department revenues ranked LSU as the nation’s No. 11 highest revenue earner, totaling $76.5 million.Athletic Director Joe Alleva said he is aware his department is in a healthier state than many national competitors. But the question remains: For how long can one sit comfortably without feeling the pinch from national economic woes?That time could be running out.RECESSION PROOF?A Sports Illustrated article in October suggested “college football may prove to be recession proof” in the midst of national financial chaos.Football is certainly LSU’s cash cow. The athletic department earned a 67 percent profit margin — $31.7 million — in 2007 off the sport.But the premise that football powerhouse athletic programs may be immune from the recession is an incorrect assumption, according to prominent sports economist Andrew Zimbalist.”The notion that there is true insulation here is far-fetched,” Zimbalist, an economics professor at Smith College, said. “The real financial collapse started in late September, when most of the financial commitments that support college football had already been made. No one had to take more money out of its pockets.”Zimbalist said most commitments such as season ticket purchases, advertising contracts and big booster donations had already been locked in when the crisis began.”We went through a season where there was insulation from the economic downturn,” he said.Zimbalist predicts boosters will significantly “pull back” because of the major losses they may face. He said sponsorship levels and luxury seat purchases will probably decrease while negotiation of media contracts may “take a hit.”Athletic construction projects are dependent on the bond market, which Zimbalist said could be much more difficult to navigate.”All of these things are crimping the resources of college football,” he said.INCREASING OVERSIGHTIt’s difficult for Alleva to predict how much of a hit his department will take. He said he is preparing for the worst by cutting corners in hopes of not harming competitive efforts.One area of cutbacks could be the Tigers’ travel funds, which amount for about 6 percent of the athletic department’s $75 million budget.The LSU women’s basketball team was allotted nearly $213,000 for seven charter flights this season, including a $45,000 flight to Hartford, Conn. The men’s basketball team’s original charter budget of about $187,000 for seven flights escalated after a canceled commercial flight to Utah. Poor weather forced the men to charter a flight costing about $45,000.Mark Ewing, senior associate athletic director of business, estimates a commercial flight to Connecticut or Utah would have cost about $12,000 to $15,000.But Ewing said flying charter has its perks, including minimal academic disruptions because of faster transit and seamless travel.The men’s flight to Utah and the women’s flight to Connecticut cost a significant chunk of change, but it’s merely a fraction of what the football team will shell out to fly to Washington for the 2009 season opener.”It’s going to cost a ton,” Ewing said. “Probably around $250,000 to $300,000.”Even though there might not be much money to squeeze out of the travel budget, Alleva wants to take a closer look.”I’ve already put in place that all charter flights have to be approved by me,” he said. “Probably pretty soon, we’re going to have to put in place that all flights in general will be approved by me.”The economy could also affect the department’s willingness to schedule long distance, out-of-conference opponents.”You may not play Utah [in basketball] anymore,” Alleva said. “You may say, ‘That’s too far away.’ You may say, ‘We’re only going to play [non-SEC] teams that are within a bus ride.'”The basketball teams typically bus to SEC opponents within a six-hour radius but only if the game is scheduled on the weekend to avoid class conflicts. Busing a team costs just $3,000 to $4,000.COMPETITIVE ADVANTAGEEwing projects the international recruiting budget, which totaled about $24,500 for the past fiscal year, could take a hit as well.The sports most likely affected will be track and field, swimming and diving, tennis and golf.Swimming and diving coach Adam Schmitt has athletes on his roster from Germany, Estonia and Denmark. Schmitt said many of his international athletes have committed to LSU “sight-unseen,” made possible given the great strides in technological recruiting efforts.But if Schmitt needs to bring an athlete for a campus visit, he said it’s not uncommon for several competing schools to pool their resources while going after the same recruit. An athlete may book a flight from Germany and visit three or four Southeastern Conference universities while in the country. The schools then split the international flight cost.”Every once in a while we might go to a World Cup to recruit,” Schmitt said. “But you’re made aware that you need to be discerning about where you’re spending your money.”Alleva may also be forced to cut his payroll depending on how the University budget cuts trickle down to the athletic department.Since assuming his position last summer, he’s already cut three positions: an assistant to the athletic director, an accounting position and an administrative assistant.”There’s a lot of other people in this department besides coaches, and the preponderance of the people in this department are not going to get a raise this year,” he said.Some open staff positions are frozen and some filled positions could be in jeopardy while coaching salaries continue to escalate. The trend is not one Alleva appreciates, but he understands the driving force for competitiveness.”Paying coaches competitive salaries doesn’t ensure, but it does help to win,” he said. “The worst thing you want to do is lose, because then you still see the money go down. If you start losing, the stadium isn’t filled up. You don’t sell concessions.”TOO EARLY TO TELLLSU football season ticket renewals are open until the end of March, which makes financial projections difficult to currently come by.Alleva can only speculate that the recession will take some toll.”I can’t answer your question if we’ve seen it yet. I think we will,” he said. “People only have so much disposable income. If you have to choose between buying tickets and paying the rent, I think people will pay the rent.”Alleva may not be able to gauge the fans’ anticipated actions, but he can do his best to shield the department from a hard hit.”You have to use this time for planning and building relationships with potential donors,” he said. “You don’t use this time to ask for money. It’s not the right time to ask for money.”It may not be the time to ask for money for new projects, but LSU already has plenty in motion. The current estimates for ongoing projects are $36 million for Alex Box Stadium, $12 million for Tiger Park, $14 million for the indoor basketball practice facilities and $2 million for the gift center.Alleva would like to add even more to the plate, citing the need for better track, gymnastics and swimming facilities.But he knows now is not the time to pile on the expenses.”We want to hold on now,” Alleva said. “We want to maintain. When things start getting better, we’ll start looking to make improvements.”A SENSITIVE BUSINESSAlleva isn’t the only prominent LSU official with his eyes on the March 31 football season ticket renewal deadline.Major General Ron Richard, CEO of the Tiger Athletic Foundation, has the date marked on his calendar as well.”We don’t know what a time like this means to LSU athletics because we’re not in a downturn yet,” Richard said. “Why did I say ‘yet?’ Because we will not know what effect this economic crisis has had on LSU athletics until the renewal period is over for football.”About a month after that renewal deadline, Richard and a slew of prominent LSU coaches and officials will embark on the yearly Tiger Tour agenda designed to bring in donations and pledges for TAF, the LSU Foundation and the LSU Alumni Association.”Regardless of the current situation, we’re always sensitive when we’re asking people to donate to a sport,” Richard said. “It’s not an insensitive business. For those that believe it’s an insensitive business, they’re showing their naïveté about what it’s like to go ask a man or a woman for a dollar or a million dollars.”RINGING DOORBELLSWhether it’s a million dollars or just one, Bertman has a way to sell his proposal.He effortlessly breaks down a $1,000 donation per year into a $83.33 per month total. Then he divides the total and claims a donor could help scholarship athletes by sacrificing a few restaurant meals or cups of coffee.Bertman uses this handy sales pitch during house visits or breakfast conversations — evidence that some math skills and imagination prove helpful during tough economic times.”I do want to say that this is the toughest time I’ve ever had for fundraising,” he said.Some of that fundraising time is spent combating the financial fear that may consume potential donors.”I tell them that if they happen to miss one month’s payment, it’s not like someone is going to take their house away,” Bertman said.But even if Bertman has gotten his share of “No, thank you” answers, he doesn’t plan to stop ringing doorbells.”All we can do is ask,” he said. “They won’t be able to say that they weren’t asked.”—-Contact Amy Brittain at [email protected]
Athletics’ travel, international recruiting budgets may see cuts
January 28, 2009