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[TrueGCFan]

There's a general feeling out there that all of the SEC's so-called big boys are swimming in cash.

Then you stop and read Michael Smith's telling piece in SportsBusiness Journal on the financial woes of Tennessee's athletic department, and it's obvious that everybody in the SEC isn't just printing money.

According to Smith's story, Tennessee's athletic department is more than $200 million in debt, which is the most in the SEC. Moreover, Tennessee has reserves of just $1.95 million, which is the least in the SEC.

How did the Vols become mired in such dire financial straits?

Dave Hart, Tennessee's athletic director, pretty well sums it up with this quote: "We've got to get football healthy."

Tennessee has suffered through four losing seasons in the last five years, and home attendance has steadily declined. The average this past season for the Vols at Neyland Stadium was 89,965 -- the lowest since 1979.

Pricey buyouts also haven't helped. Tennessee fired Derek Dooley following this past season and owes him $5 million. That's after paying Phillip Fulmer a $6 million buyout (over 48 months) when he was forced out following the 2008 season.

According to Smith's piece, Tennessee’s reserves have been depleted by $21 million in transfers back to the university over the last three years and $11.4 million in buyouts to fired coaches in football, basketball and baseball, as well as administrators. Former Tennessee athletic director Mike Hamilton walked away in 2011 with a $1.335 million buyout.

That $11.4 million figure doesn't count the $5 million owed to Dooley, nor an additional $2 million to his assistants. That means $7 million will have to be found in this year’s budget.

Most of the athletic department's dept came from a series of expansions and upgrades to Neyland Stadium, which included a reduction in overall capacity and an increase in premium seating. Those renovations cost more than $130 million.

Hart is committed to building reserves into the $50 million range. He said most SEC schools are hovering between $50 million and $100 million.

Ultimately, much of the Vols' financial future will be dictated by how well they do on the football field.

"That's our economic engine. When that program is successful, everybody wins," Hart said.

[TrueGCFan]

"According to Smith's story, Tennessee's athletic department is more than $200 million in debt, which is the most in the SEC. Moreover, Tennessee has reserves of just $1.95 million"

This should be the scariest part of everything for UT.  

Edited by TrueGCFan, 30 January 2013 - 08:10 AM.

[JoeGator]

Good thing they hired an amazing coach who will undoubtedly get them on the right track.

[TrueGCFan]

JoeGator, on 30 January 2013 - 08:38 AM, said:

Good thing they hired an amazing coach who will undoubtedly get them on the right track.

I was thinking the same sarcastic thing.  But when you are that much in debt you don't have the money to go after a true top notch coach or to pay assistances what it will take to get to the top in the SEC.  

It is a brutal cycle.  UT needs to hope they have a great deal with their new coach.

Edited by TrueGCFan, 30 January 2013 - 08:55 AM.

[The Dude]

the amount of debt alone is not the scary statistic

its the amount of debt coupled with the amount of their cash reserves that is scary for them.

[Gidnik]

well theyve already cut football funding. whats the issue?

[aTm 82]

Look West at Vandy and take notes.

[TrueGCFan]

Gidnik, on 30 January 2013 - 08:52 AM, said:

well theyve already cut football funding. whats the issue?

If thier solution to this is to fix football, then have a reduction in football spending isn't ideal.  Even more so when you are in the arms race that is the SEC.

[Gidnik]

TrueGCFan, on 30 January 2013 - 09:20 AM, said:

If thier solution to this is to fix football, then have a reduction in football spending isn't ideal.  Even more so when you are in the arms race that is the SEC.

i should have put the trollface in

[TheRealBrave]

That debt would go away very, very fast if Jones can win some games and get some of UT"s very wealthy boosters and alumni spending money on the program again.

[GatorUnvrsty]

Old news; we were talking about this in August and September of last year.

This is why I speculated that UT might have some trouble attracting a top coach when they were talking about firing Dooley and going after Gruden... no money.

http://www.sectalk.c...#entry825270856

http://www.utsports..../082712aab.html

http://espn.go.com/c...million-deficit

http://m.govolsxtra....say-complaints/

[A10Rebel]

RebelFan4Life, on 30 January 2013 - 09:00 AM, said:

Yikes. I would hate to be in this situation right now

we're still paying the last shitbag's salary.

[GatorUnvrsty]

TheRealBrave, on 30 January 2013 - 09:33 AM, said:

That debt would go away very, very fast if Jones can win some games and get some of UT"s very wealthy boosters and alumni spending money on the program again.

Don't know about that; it wasn't wiped out overnight, and it wasn't built up before that overnight either.

Consider this; it's taken years and years for Bama to build up its reserve fund to $80 million, and just as long for UF to build theirs to over $75 million.

As UT 2 primary rivals, you have to think UT's fund was once comparable to Bama and UF's; and years of mismanagement has now brought it down below $2 million... you don't make up $70 or $80 million deficits overnight.

Winning would obviously go a long way toward stopping the bleeding and allow them to start funding their reserve again; but even in the best scenario it'd take at least a decade (probably much longer) to build that fund back up to a respectable level... on par with their rivals.

[TheTeetFingler]

UT boys better anchor down and get to donating.

Edited by TheTeetFingler, 30 January 2013 - 01:59 PM.

[TheRealBrave]

GatorUnvrsty, on 30 January 2013 - 01:56 PM, said:

Don't know about that; it wasn't wiped out overnight, and it wasn't built up before that overnight either.

Consider this; it's taken years and years for Bama to build up its reserve fund to $80 million, and just as long for UF to build theirs to over $75 million.

As UT 2 primary rivals, you have to think UT's fund was once comparable to Bama and UF's; and years of mismanagement has now brought it down below $2 million... you don't make up $70 or $80 million deficits overnight.

Winning would obviously go a long way toward stopping the bleeding and allow them to start funding their reserve again; but even in the best scenario it'd take at least a decade (probably much longer) to build that fund back up to a respectable level... on par with their rivals.

I disagree, all it takes is one very generous donation from an extremely wealthy alum which I'm sure UT has.