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re: Bama Basketball Offseason Megathread
Posted on 5/8/20 at 10:54 am to SummerOfGeorge
Posted on 5/8/20 at 10:54 am to SummerOfGeorge
quote:
He basically said they needed all the money up front, and to do that they had to get the biggest revenue driver in first and that was football. Then the rest of the funds and revenues from the football changes would hopefully pay for all the basketball items, which he clearly personally badly wants to do.
Yeah but how long is it going to take for the football upgrades to generate enough revenue beyond what football currently produces to fund a basketball arena? I just can't see how upgrading some seating and the concourses at BDS is going to generate an additional $50 million a year or anything.
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Posted on 5/8/20 at 10:58 am to Robot Santa
quote:
Yeah but how long is it going to take for the football upgrades to generate enough revenue beyond what football currently produces to fund a basketball arena? I just can't see how upgrading some seating and the concourses at BDS is going to generate an additional $50 million a year or anything.
Pretty quickly considering the cost of obtaining those boxes. I'm guessing they have mapped out that those revenues will match up yearly in some capacity to the 1-3 years of construction (with additional funds from elsewhere). I can't imagine they planned on the new boxes covering the cost of Coleman, but I'm guessing they saw those as a very quick turn around in terms of revenue generated from the yearly revenues ("guaranteed" every year), which could then be used to help with Coleman. Just my guess.
However, as with most things, the uncertainty of everything right now is absolutely going to shelve that kind of stuff.
This post was edited on 5/8/20 at 11:00 am
Posted on 5/8/20 at 11:09 am to Chadaristic
What on Earth?! All 3 of those teams have been way better than us the past 5 years. How is he falling up?
Posted on 5/8/20 at 11:18 am to SummerOfGeorge
quote:
Pretty quickly considering the cost of obtaining those boxes.
Those were also sold months ago though. They've already gotten that revenue.
Posted on 5/8/20 at 11:25 am to Robot Santa
quote:
Those were also sold months ago though. They've already gotten that revenue.
Right, but they were sold because they'd be available for the 2020 season. If that part of the overall construction plan had been behind Coleman they wouldn't have been built until 2021-2023 and no revenue would have come in from them.
I think that was what he was saying. I'm not entirely sure I buy it, but it is at least a semi-decent argument other than "it's football and it gets to go first".
Posted on 5/8/20 at 12:36 pm to SummerOfGeorge
quote:
Right, but they were sold because they'd be available for the 2020 season. If that part of the overall construction plan had been behind Coleman they wouldn't have been built until 2021-2023 and no revenue would have come in from them.
I think that was what he was saying. I'm not entirely sure I buy it, but it is at least a semi-decent argument other than "it's football and it gets to go first
I understand that part of what he's saying, and I don't find it unreasonable.
All I'm saying is that it sounds to me like Byrne's position is that a) we don't have the money for Coleman yet and b) it is unlikely that we get it in the next year. But if they have already generated that really big up front revenue bump from BDS, the Founders boxes, when the hell are they going to end up with the 100-200 million they'll need for Coleman?
This post was edited on 5/8/20 at 12:37 pm
Posted on 5/8/20 at 12:41 pm to Robot Santa
quote:
All I'm saying is that it sounds to me like Byrne's position is that a) we don't have the money for Coleman yet and b) it is unlikely that we get it in the next year. But if they have already generated that really big up front revenue bump from BDS, the Founders boxes, when the hell are they going to end up with the 100-200 million they'll need for Coleman?
Yea, totally agree. And like most people, in any situation like this where there is a little bit of doubt, I amplify it 10x due to history.
Hopefully he proves us all wrong.
Posted on 5/8/20 at 12:56 pm to SummerOfGeorge
First of all, there's certainly no guarantee there will be any asses in those boxes this season. Do you think they will spend money they aren't sure they will get to keep? Secondly, I imagine they are wanting to see the new TV contract money considering all that's going on before they commit to any big spending project. Third, (and this one hurts) basketball, both men's and women's need to get to the post-season with some regularity to justify the money. A couple of trips to the Sweet 16 puts men's basketball in the black from a revenue standpoint. It's not big money, but at least it's a net positive. And it feeds upon itself. It's a simple equation: become relevant in your sport, sell tickets, jerseys, appearances, boxes, etc and all those things that generate extra dollars. Or be Troy and be a constant money loser for your AD.
Posted on 5/8/20 at 1:06 pm to SummerOfGeorge
I mean they have already raised over $300 million of the $600 million goal. The fact that he is now talking like fundraising alone will not be enough to cover the costs for Coleman's upgrade is the big thing that worries me. Because that makes me think that a lot of that $300 million has actually been earmarked for Phase 3, which is another BDS upgrade. Because the current BDS reno costs are, reportedly, around $105 million. The costs to Coleman were estimated at $115 million. Golf and softball got $8 million. The upgrades to the Mal Moore building were in excess of $75 million then? Of course not. I guess the bulk of that $300 million may be simply pledged rather than actually received, but even if it has only been pledged there should still be a general timeline for a Coleman renovation at this point, but Byrne is now saying there isn't.
This post was edited on 5/8/20 at 1:16 pm
Posted on 5/8/20 at 1:10 pm to phil4bama
quote:
Third, (and this one hurts) basketball, both men's and women's need to get to the post-season with some regularity to justify the money. A couple of trips to the Sweet 16 puts men's basketball in the black from a revenue standpoint. It's not big money, but at least it's a net positive.
Our basketball program is already profitable.
LINK
Posted on 5/8/20 at 1:24 pm to SummerOfGeorge
When it come to Bama basketball, I’m a “I’ll believe it when I see it” type. I’ve been around too long 
Posted on 5/8/20 at 3:22 pm to Cobrasize
Well maybe Byrne is digging his heels in and telling the PTB that another reno to Coleman is throwing good money after bad and they instead need to target a new facility.
Posted on 5/8/20 at 4:06 pm to phil4bama
That would be a complete 180 from his initial position. When the plan was first announced he indicated that building a new facility with similar specifications and amenities would cost $70 million more than the planned renovation.
All I can think of to support the idea that Byrne is pushing for a new facility now is that they have determined that the cost of moving a season's worth of games off campus would actually negate the savings from renovating rather than building a brand new facility.
All I can think of to support the idea that Byrne is pushing for a new facility now is that they have determined that the cost of moving a season's worth of games off campus would actually negate the savings from renovating rather than building a brand new facility.
Posted on 5/8/20 at 5:53 pm to Robot Santa
It might be $70 million cheaper now but it’s a poor ROI. The longer you put it off, the more expensive in total cost to the program it will be in more ways than in just sheer construction costs. Coleman has outlived its usefulness.
Posted on 5/8/20 at 6:55 pm to phil4bama
I asked months back if it's smarter to wait for the economy to go in the toilet to build and never got an answer on that. I'm assuming yes.
Posted on 5/9/20 at 11:12 am to RollTide4Ever
Well borrowing money will not get any cheaper than it is today.
Posted on 5/9/20 at 12:01 pm to JoseyWalesTheOutlaw
Yeah, but I imagine construction costs would come down due to lower demand. For the record, I doubt interest rates are going up.
This post was edited on 5/9/20 at 12:26 pm
Posted on 5/9/20 at 1:46 pm to RollTide4Ever
The unconsidered consideration is that with a new arena, they will drive ticket prices still higher. Much like football. Invest in a new recliner for watching the games.
Posted on 5/9/20 at 2:35 pm to reachup
I'd gladly pay more for seats in a new arena.
Posted on 5/10/20 at 8:41 am to SummerOfGeorge
quote:
He basically said they needed all the money up front, and to do that they had to get the biggest revenue driver in first and that was football.
If Coleman was placed first on the priority list as it should have been, the donations they received would have been all the money up front they needed and much more. They would have also received much more donations more quickly if they pushed back the BDS plans to the last phase as it should have been. I like Byrne, but it’s going to be very hard to convince me that the way they planned it out was the right course of action for people wanting a Coleman renovation. What he did was to please the football-only fans, which is probably the smart thing to do when that group consists of the majority of our fan base.
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