Scholarships as we move to D-I

[SDSUFAN]

Re: Scholarships as we move to D-I

I follow basketball more than football but still am a big Jack football fan.  That having been said, if you look at most D-1 and D-1AA schools, the football programs are not money makers.  In most cases it seems the hope is to try to break even.   The big revenue generator is men's basketball in most schools.

Now, that having been said, there is also evidence that a successful football program (in terms of wins and losses), causes all fund-raising efforts at a university to improve.  Just getting the name out there reminds people of where they went to school and money comes in...including money for academic scholarships.  (I like to point out that athletic scholarships are academic too: they assist young people in getting an education.)

Everybody send in a check!

I might add that you dont have to sit and write a check, you can arrange for a electronic transfer with the SDSU Foundation. Contributions can be made monthly with a debit charge to your checking. You dont feel the pain nor is it a December tax strategy each year. I have been using this procedure for several years.

I would agree that sports revenue is in basketball. Prior to WW1, football was king at SDSU and that they did not get around making a basketball schedule in 1913-14, but times have changed so much. Its hard to make a current comparison.

I do hope we put more into our football program. This is one area where we need to catch up with NDSU. We have matched them in other sports, but its a big money maker for NDSU and has been for a number of years. I just would like to see more investment in recruiting, facilities etc so that we do have a program that can compete.

The CBS contract with the NCAA is not going away for several decades, so what SDSU can eventually get out of this will open a number of paths of opportunities.

With sellouts for BB, there are television opportunities so no doubt BB will be the cash cow at SDSU. Also this may explain the addition of back chair seating in both ends of the court. Allows more season tickets and more assurance of a sellout. Dont ask me about the seating as its been a unoffical discussion, but no offical announcement.

[iasomebison]

Re: Scholarships as we move to D-I

NDSU will have 140.5 scholarships in 04-05 ;D ... not bad

[Guest]

Re: Scholarships as we move to D-I

I would be a little concerned if I was an NDSU fan about what their doing with their scholarships right now. I don't mean to bring down there move or sound negative, but why did they even bother having a study done if they were practically going to ignore it? They are already near the top of what the Carr report would be a resonable athletic budget, and they haven't even finished adding football scholarships? It seems like a big gamble to me, trying to get a game against a D-IA opponet at all costs. I like SDSU's approach better, even if it is a little slower, ie. using the initial excitement about the move to fully fund an endowment for the scholarships, so that no matter what happens after this, the money will always be there to stay D-I. With NDSU, I'm sure theres plenty of money right now at the beginning of the transition when theres a lot of excitement, but what about in five years if the football team doesn't do well (not that I think it won't)? Then those donations will stop flowing in and you'll be in a pretty big pile of shi# pretty fast. Again, not trying to be negative, and please don't attack me after this, its just something to think about.

[SDSUFAN]

Re: Scholarships as we move to D-I

After reading reading yesterday's article in the Fargo Forum it appears NDSU is taking a somewhat different approach for fund raising, but their success in football has to be the driving point.  Get their sports, especially football funded as quickly as possible and get as competitive as possible and some of the other revenues will flow based on the expected results.  So in that sense it is different than SDSU putting emphasis on endowment fund raising. Another article gave a run down on Irv Inninger former BB coach who seems to be the head fund raising guy, traveling around the USA for donations.
It sounds like donations will go into the operational budget immediately, and endowments are next on the list of importance.
The approach is not necessarily wrong, but it appears to be what NDSU needs to do.

SDSU yes has a different approach and again, it may have to do with our different sucess in BB and Football.  We have been average or slightly about in Football, so expectations are maybe not as high in that area as they are at NDSU.

With BB, we are spending money on Frost this year despite what scholarship increases beg for. We want to fill Frost every home game just as NDSU wants to fill the FFB with every football game.

What we do have in common I think is that local support is still on the skeptical side, but going to places like Florida and Arizona, we got all kinds of ethusiasm amongst the alums.  How come?

Here is the line from yesterday's forum article.

http://www.in-forum.com/articles/index.cfm?id=57824

[SDSUFAN]

Re: Scholarships as we move to D-I

Thanks to the Fargo Forum, another article appears today. Many details about the different approaches between SDSU and NDSU.


NDSU progressively using scholarships in recruiting battle
By Jeff Kolpack, The Forum
Published Monday, May 17, 2004
· advertisement ·
North Dakota State is using scholarship offers to gain a competitive advantage over South Dakota State, which is also entering NCAA Division I athletics this fall.

Overall, NDSU is increasing its sports budget by $1.7 million compared to a $1.2 jump by SDSU.

An analysis by The Forum of the upcoming sports budgets at the two universities finds NDSU taking a much more aggressive approach to recruiting student-athletes by offering them paid scholarships.

The difference is most glaring in football, where both schools will join the Great West Football Conference. Last year, both were at the Division II maximum of 36. This fall, NDSU will fund 18½ new football scholarships, compared with two additional football scholarships at SDSU.

Funding is about the only area where NDSU and SDSU differ in their Division I move.
 

Both are on the same reclassification time line, both approached the Big Sky Conference about affiliation and both hired the same consulting firm to assist in determining its Division I feasibility.

But SDSU is adding 9½ scholarships in women's sports and 4½ in men's sports for next year. NDSU, meanwhile, is adding almost 50.

"I'm comfortable with what the administration is allowing us to plan to do," said SDSU head football coach John Stiegelmeier. "We have a plan on when we're going to bump up the scholarships."

SDSU athletic director Fred Oien said SDSU will reach 60 football scholarships by the time the school is eligible for Division I-AA post season in 2008.

NDSU is on a quicker pace – it wants to reach the Division I-AA maximum of 63 by 2005. By NCAA rules, the Bison need to average 60 scholarships over a three-year period before they are eligible to schedule a Division I-A opponent.

The motivation is financial in nature: Division I-A teams pay big guarantees.

NDSU's 2004-05 total budget is projected at $7.7 million, up from $6 million this year. SDSU will move from $4.3 million.

Money aside, fewer scholarships could translate into a competitive disadvantage for SDSU. Last year, the Jackrabbits rebounded for a 2-4 start to finish 7-4. NDSU finished 8-3 and was on the doorstep of the Division II playoffs.

In the offseason, however, NDSU is doling more scholarship dollars for 54½ football scholarships, compared with 38 at SDSU.

"But South Dakota State is a program where everybody is taking steps together and that is what we're going to do," Stiegelmeier said.

Oien said SDSU's first priority is to balance its Title IX issues. It will add women's equestrian in fall 2005, a sport that has an average team size of 60 members, according to school officials.

NCAA schools are mandated to meet one of three Title IX requirements: proportionality (a mandate that requires scholarship numbers to be in accordance to the ratio of male and female students), interest and abilities to provide equal opportunities in athletics or a history of continually adding women's sports.

NDSU signed off with the Office of Civil Rights on meeting interest and abilities, said women's athletic director Lynn Dorn.

SDSU appears to be taking the proportionality route. It is slated to have 76½ scholarships for both men and women by 2007.

"We understand we have to move football as quickly as we can," Oien said. "At the same time, it was very clear that we have to be careful. It would be simple if it was a one-dimensional problem."

Although short of NDSU's budget, SDSU is still higher than many Division I-AA football schools. If the Jackrabbits were admitted into the Big Sky Conference today, they would still be ahead of Eastern Washington and Weber State, which is located in Utah. Three other Big Sky schools are at $7 million.

SDSU is well ahead of a former NCC member who made the Division I jump last year. Northern Colorado spent its first year in D-I at $4.1 million, a figure that is expected to increase to $4.5 million.

"Obviously, we need to boost our funding in order to be competitive at a higher level," said Ken McConnellogue, who oversees UNC's athletic department as the vice president of university advancement.

Dollars do not necessarily translate into success or failure on the field. UNC went 9-2 last year in its first Division I-AA season, although six of the opponents were Division II teams.

Three of the Bears' victories came against I-AA competition and the two losses were close games to I-AA foes Idaho State and Florida Atlantic.

"Fans don't care how many scholarships you have," Oien said. "Fans don't have a scoreboard on scholarships. They look at performance. It's what you do on the field and Northern Colorado is a classic example."

Readers can reach Forum reporter

Jeff Kolpack at (701) 241-5546

 
Forum Communications Company
©2004  Forum Communications Co. Fargo, ND 58102 —

[NDSU_grad]

Re: Scholarships as we move to D-I

This is a graphic that appeared in today's forum about our instituions projected scholarships for next year.

[img width=240 height=400]http://www.in-forum.com/pdfs/0517scholarships.jpg[/img]

[bisonguy]

Re: Scholarships as we move to D-I

Just an observation, but maybe the graphic provided above also is a clue to why SDSU is taking a more cautious approach to ramping up scholarships. SDSU sponsors four more sports (not including Equestrian) that probably aren't producing revenue.

[SDSUFAN]

Re: Scholarships as we move to D-I

Jeff Kolpeck said it today in his article that NDSU was after the big D1A guarentee's with Iowa State and Minn which will bring in some big dollars.  Thats one of big reason's that the scholarship totals differ in year 1. Dont forget the transition period is 5 years so the fact that NDSU has more at the end of year does not mean that SDSU will stay at that level for ever. If you have 5 years to build the extra scholarships, then why not use that whole period?  What is wrong with that?  I dont think its going to be that big of a deal as far as being competitive in football or other sports.

One other thing, there is mention of certain NDSU alums willing to sit down a check for 10,000 for a scholarship. Can NDSU count on this contribution every year? Would it not be better to endow this money rather spend it in year 1? What guarentees do you have that the money will come in the same fashion in year 2, 3, 4 etc?

[jackmd]

Re: Scholarships as we move to D-I

One other thing, there is mention of certain NDSU alums willing to sit down a check for 10,000 for a scholarship.  Can NDSU count on this contribution every year?  Would it not be better to endow this money rather spend it in year 1?  What guarentees do you have that the money will come in the same fashion in year 2, 3, 4 etc?

NDSU is hoping that early success at the DIAA level will lead to cash flow and continued contributions. SDSU is taking a different approach in establishing an endowment. Seems like the appropriate path for both programs. Only time will tell.

[NDSU_grad]

Re: Scholarships as we move to D-I

Jeff Kolpeck said it today in his article that NDSU was after the big D1A guarentee's with Iowa State and Minn which will bring in some big dollars.  Thats one of big reason's that the scholarship totals differ in year 1. Dont forget the transition period is 5 years so the fact that NDSU has more at the end of year does not mean that SDSU will stay at that level for ever. If you have 5 years to build the extra scholarships, then why not use that whole period?  What is wrong with that?  I dont think its going to be that big of a deal as far as being competitive in football or other sports.

One other thing, there is mention of certain NDSU alums willing to sit down a check for 10,000 for a scholarship.  Can NDSU count on this contribution every year?  Would it not be better to endow this money rather spend it in year 1?  What guarentees do you have that the money will come in the same fashion in year 2, 3, 4 etc?

I really wasn't taking one side or the other. I cannot argue with any of the points you made regarding endowments. I think, as jackmd pointed out, that the goal is to win right away, theoretically leading to continued donations and increases in gate revenue. SDSU's stance seems to be more conservative, building an endowment to support the athletic department budget through the transition. It was also pointed out by someone on another board that the pressure to win in football is probably greater at NDSU than at SDSU, and you'll notice that is the sport where there is the greatest discrepancy in scholarship numbers. Either way, I think both schools have solid plans in place and both should succeed.

[SDSUFAN]

Re: Scholarships as we move to D-I

I really wasn't taking one side or the other.  I cannot argue with any of the points you made regarding endowments.  I think, as jackmd pointed out, that the goal is to win right away, theoretically leading to continued donations and increases in gate revenue.  SDSU's stance seems to be more conservative, building an endowment to support the athletic department budget through the transition.  It was also pointed out by someone on another board that the pressure to win in football is probably greater at NDSU than at SDSU, and you'll notice that is the sport where there is the greatest discrepancy in scholarship numbers.  Either way, I think both schools have solid plans in place and both should succeed.

No disagreement here and I have long admired the NDSU football program. The veer option was fun to watch. Your enthusiastic crowds have been a point of envy too. How each university does their fund raising is going to be different. I am sure the AD Taylor and staff have went over their plans time and time again.

The more people who are enthused and support with their pocket books, the better the program will be.

Yes SDSU is being very conservative, but endowing the entire range of scholarships was a goal of President Robert Wagner, who proceed Peggy Miller so that has been part of SDSU for a while and before going to D1AA.

I happen to attend a foundation meeting where Pres Wagner made this known that it was his his goal to endow all the scholarships, but that was prior to the Visions Campaign where certain campus building funds were badly needed and athletic faciliteis as part of the campaign kind of got push to the back burner.

There was maybe to many low key efforts going to really get the job done. Sid Bostic current efforts has really been the most visual campaign to date and we hope it will continue to be so.

I think too with not having a local business community the size of F-M to count on year after, year, you almost have to think endowment for long term assurance that the scholarship money will be there.

[NDSU_grad]

Re: Scholarships as we move to D-I

No disagreement here and I have long admired the NDSU football program. The veer option was fun to watch. Your enthusiastic crowds have been a point of envy too.  How each university does their fund raising is going to be different.  I am sure the AD Taylor and staff have went over their plans time and time again.

The more people who are enthused and support with their pocket books, the better the program will be.

Yes SDSU is being very conservative, but endowing the entire range of scholarships was a goal of President Robert Wagner, who proceed Peggy Miller so that has been part of SDSU for a while and before going to D1AA.

I happen to attend a foundation meeting where Pres Wagner made this known that it was his his goal to endow all the scholarships, but that was prior to the Visions Campaign where certain campus building funds were badly needed and athletic faciliteis as part of the campaign kind of got push to the back burner.

There was maybe to many low key efforts going to really get the job done.  Sid Bostic current efforts has really been the most visual campaign to date and we hope it will continue to be so.

I think too with not having a local business community the size of F-M to count on year after, year, you almost have to think endowment for long term assurance that the scholarship money will be there.

All good points. I have a question. For all this talk about endowments, does a university (or any other foundation) have a single manager of endowment funds that they can invest as they choose? Or is it done by a committee? Are endowment funds generally managed to provide a steady yearly income (e.g. investments in bonds, money markets, etc.) or managed for long-term growth with more aggressive investing (e.g. mutual funds, stocks, etc.)?
Hmm, I guess I had more than just one question.

[SDSUFAN]

Re: Scholarships as we move to D-I

NDSU GRAD:


Yes the SDSU Foundation that accounts for all endowments athletic and academic has an investment committee, that is made up of individuals that are within the state that have investment and banking backgrounds and are willing to serve on this committee.  As I understand it the monies are pooled and invested in a prudent manner.  When the Dow takes a tumble this affects the earnings of the foundation and the committee apparently makes adjustments in timely fashions.  They allocate the earnings to endowments at the end of each year roughly at 5 percent of the existing prinicpal in the endowment.
So if you have an endowment of $10,000 the earnings for a given year would $500.00. As best I can tell no one person is making big decisions in terms of investment.  There might possibly be some one who might be termed a money manager, but I sure he  works within a framework set up by the committee.

As part of the Jackrabbit Club you can set up a perpetual scholarship in your own name or one honoring someone or as a memorial.  The smallest amount endowed is $10,000. You can start what as known as acorn endowment which requires as little as 500 bucks and the foundations would like to see a minimum contribution of 500 per year until it reaches 10,000.

Some have set up scholarship funds for deceased family members.  One of the 1963 championship BB team members Denny Busch was accidently killed in a electrical construction project in 1965. Denny's family set up an endowment that pays a small scholarship amount annually.

With D2 where football scholarships can be split amongst players these small endowments have worked real good.  With less spliting at the D1AA level, I am not sure how this will work.

I started an endowment about 12 years ago and each year, a scholarship committee picks the student athleted to receive the scholarship award. and I usually get a very nice letter from the receiptent. The awards have been in the 500 to 1200 range each year.

The Jackrabbit Club is part of the HPER and works very closely with the foundation.  The HPER has developement people similar to Irv Inniger at NDSU, but  they are staff people and probably dont have the visibility that Irv has as a former head BB coach.

I hope this answers your question(s).

[bisonguy]

Re: Scholarships as we move to D-I

Looks like NDSU could learn a thing or two about endowments from SDSU. The acorn endowment idea is interesting. At NDSU, it seems like $10,000 contributions are the minimum. Some people can't afford to drop down that kind of money in one shot, but can over a longer timeframe. It seems that NDSU and SDSU are taking the best approach for their situation.

[SDSUFAN]

Re: Scholarships as we move to D-I

One of the big lessons learned from the Staduim for State campaign in the 1950's that yeilded one half of the current Coughlin-Alumni facility was that you never turn down a small contribution. In the Staduim for State campaign, they went for long term pledges and big contributions. The amounts would seem small by current date indices, but it was real money back then. I would venture that we have alums who have went to the grave with a bad taste in their mouth about the Staduim for State campaign. Those who were around and care about SDSU, have not forgotten this event which has probably given birth to acorn concept. I dont know for sure, but I tend to believe it is the case.

If you look at the orginal architurure drawing of Coughlin, we would have an excellent facility for D1AA.
The problem was that the Staduim for State committee had no experience in fund raising and SDSU had never approached the alumni for donations. Years ago, they asked for nickles and dimes to get a Pipe Organ in the Administration building, but never any other projects. They were able to count on the legislature for buildings etc, but that has all changed.