Are they Student-Athletes or Entertainers?
For years NCAA Division I athletic programs have maintained they are all about the student-athlete. The decisions being made regarding fall football will allow the NCAA and Power 5 conferences to show us once and for all where they really lie in regards to the well being of the student-athlete.
Divisions II and III are often looked at by most observers of the NCAA as the true bastion of the student-athlete where academics and athletics are joined together in a harmonious relationship. Division II received 4.37% of the annual NCAA revenues prior to Covid-19. The NCAA Division III received 3.18%. Despite accounting for the majority of schools in the NCAA that play college football, the two divisions receive just more than 7.5% of the annual revenues while Division I receives over 90% of the revenue.
So why have so many Division I (27 to date) schools cancelled fall sports and why are so many fighting to keep them? The answer to both is simple- finances. For many smaller programs at D1, the loss of income from playing the Power 5 teams is devastating to their programs. The MAC conference, U Conn and U Mass are examples of schools with no one to play because of schedule changes among the Power 5 conferences. Schools do not have anyone to play who can give them the financial guarantees that in many cases is the differences for these smaller schools making budget or facing losses.
For the Power 5 conferences, the loss of football this fall means far more. Most athletic programs at their universities will be shut down because of a significant loss of revenue. One Big Ten athletic director told their staff last spring that if football is not played this fall, there would be no other sports competing at their school. Schools like Ohio State and Michigan are already anticipating over $25 million in budget loss even while playing to reduced crowds. Wisconsin reportedly is expecting almost $100 million in losses.
It is more than just salaries and budgets being affected by the canceling of football. It’s the local economies taking big hits. Bars and restaurants, merchandise sales and tailgating is just a few of the ways local economies are impacted. Big time college football is a $100 billion industry. The financial pressure to play is enormous and overwhelming the health concerns raised by most experts.
The decision to play this fall needs to be based on the safety and health issues facing the student-athletes, staff and coaches and the experiences the student-athlete will have as a result of competing in college athletics while pursuing a college degree. If schools and universities consider anything else they are admitting college athletics has never been about the student-athlete but rather the economic, entertainment and marketing value for the university.
Most universities know that their ability to place athletes in a bubble like the NHL and NBA is impossible. Student-athletes will be in contact with other students, staff and community members while competing. Does anyone think the student-athletes won’t get together with their friends on a Saturday night to celebrate a big game? Even our professional athletes can’t do this! Can universities insure the safety of everyone involved in college athletics in this environment? That is the ultimate question. If they can, and are willing to accept the liability this decision brings, play! If not, postpone until they can.
Athletic programs have not been financially sound
Many college athletic programs are facing tough times financially as we move through the uncharted waters of the coronavirus caused shutdowns. These shutdowns and possible impact on revenue generation has created the need for many schools to find new revenue sources and reduce expenses. Several athletic programs have been living paycheck to paycheck, relying on a variety of revenue sources to fund ever-increasing cost to operate their athletic programs.
The main sources of revenue for most NCAA college athletic programs come from the following areas: donor contribution and endowment, guaranteed revenues, institution and government support, media rights, royalties, licensing, advertising, student fees and ticket sales. The lower the division that a college or university competes in the larger the need to rely on institutional and governmental support.
Schools spend funds in the following areas: administration compensation, athletic student aid, coach compensation, facility expenses, game and travel expense, guarantees, medical expenses, recruiting expenses and others misc. expenses. Reducing expenses often manifests itself by program and staff reductions.
College athletics was struggling financially before Covid19 according to an NCAA 2018 database on expenses and revenues for all divisions. The pandemic is bringing to light the major financial issues universities face. In 2018 according to the NCAA, college athletic programs spent $18 billion on athletics. The total revenue generated by athletic programs in over 1100 NCAA universities was $10.3 billion, leaving a deficit of nearly $8 billion dollars, that had to be subsidized by the university.
Universities are facing financial realities of larger deficits and dwindling income. Some have already chosen to furlough staff, drop programs and in some cases replace full-time staff with part-time head coaches. It seems like everyday we read about another athletic program that is facing a major financial crisis. No university is immune to these issues.
In the 2018 NCAA data not one Division II or III athletic program produced more revenue than expenses. Those Division I programs participating in non-power five leagues had no schools that produced a positive revenue report. In FBS football playing schools, only 29 universities showed a revenue surplus for 2018.
College athletic programs face some major challenges moving forward! They cannot operate with ever-increasing deficits and as a result will need to right size their operations. Contact the experts at Executive Management Partners to get the help you need in determining what that right size should be.
OPENING UP YOUR BUSINESS RESPONSIBLY
As businesses and organizations seek to reopen during these trying times, they face a bumpy road when it comes to navigating a plethora of unforeseen legal challenges. The Occupational Health and Safety Act requires all employers to take reasonable measures to protect their workers from workplace injury and disease. Businesses need to be able to return safely and responsibly as they reopen their doors or welcome back employees who had previously been working remotely. It is imperative companies take whatever measures are needed to reduce the risk of Covid-19 transmission. All businesses and organizations also have to abide by the applicable laws unique to their state and local area and, without clear-cut plans, employers can place themselves and their employees in legal jeopardy.
The spread of coronavirus presents some unique challenges to employers, their employees and the clients they serve. Employers have proactive responsibility to minimize risk and maintain a safe workplace. Business owners should research what the health and safety standards are in place for your particular industry. Employers should reach out to their local health organizations for best practices and pandemic mitigation steps required or recommended by law. If someone is sick, what requirements do you or they have to share that illness with employers and other employees? Recently we have seen some social media stories about individuals who were exposed to the virus by coworkers but were not properly informed they had the illness. Does the failure to provide information like a virus illness by a colleague or possible exposure to others on staff provide significant risk to your business and how can you minimize it?
Employers who seek to reopen their business will have to put in place well-defined and clear educational programs for their employees. As a business or organization returns to a full, phased or partial reopening, communication networks must be established to make sure employees and clients receive timely information about changes in policy or concerns. It is important that employers investigate and plan for the possible impact certain uncontrollable actions may have on their staffs. How many employees cannot work if schools are shut down, childcare is lost, or public transportation disappears? Making accommodations for these employees is important and possible work from home scenarios should be an option.
Every employer must put in place procedures for their high-risk employees once they return to work and be sensitive to the needs of working parents. Some industries like restaurants and hair salons have governing boards that have set clear and well-defined guidelines, while others have been very vague about the manner a business or organization may return to work. Business leaders might be tempted to choose what is financially better for their organization than what is better for their employees. This is where conflict can arise and tensions grow between employer and employees. Who in the organization mitigates those differences and what are the solutions when employer and employees disagree to agree?
All employers and organizations should have one designated staff member who serves as the pandemic officer and, depending on the size of the organization, additional pandemic support staff with well defined areas of responsibilities. The business owner and the employees need to have someone who can quickly settle disputes raised about health and safety issues in order to return to work efficiently. You do not want a system where these situations require the employer and employee to seek legal intervention or look to a government agency to get resolutions. Every employer and employee should be asking what could be done to make the working environment safer?
So, what can you as an employer do to provide a safe and healthy environment for your employees? Establish a protocol for daily or hourly cleaning of work stations, kitchen areas, bathrooms, shared facilities and equipment, door handles etc. It is important for employers to provide disinfectant and cleaning supplies like hand sanitizer, soap and tissues. Some businesses have installed vapor barriers where face-to-face interactions occur or have working stations located in densely populated locations.
There are certain protocols we can follow that have been widely recommended. When possible, get testing for any employee who exhibits symptoms of the illness. Wash and sterilize your hands frequently with soap and warm water. Avoid shaking hands, maintain social distance, wear a mask, and use video conferencing instead of face-to-face or large group meetings when possible. Refrain from touching your nose, mouth and eyes and cover your mouth when coughing or sneezing with a tissue or elbow. Take the temperatures of employees upon their arrival at work and ask them to stay home if they are feeling sick. Reduce and avoid unnecessary travel and contacts with visitors. Most of all, stay up to date on best practices for reducing the transmission and spread of the disease. You can do this on your local and state health department websites as well as OHSA and the Center for Disease Control websites.
The most controversial measure of all of these actions employed by many organizations is whether to require employees and customers to wear a mask. If a business requires customers to wear masks, the employees need to be ready to enforce it. They place themselves in possible legal jeopardy anytime they publicize a policy without fully enforcing it. Organizations like Costco have seen a required mask policy readily accepted by the majority of their membership. But not all organizations that require mask use have had such positive customer reactions, although most consumers have stated they prefer a business that requires masks. Any policy requiring masks must be clear, concise and enforced. And the policy must be developed with customers in mind. It is important to remember the perception your customers will get from your policy as well as the reality of its implementation. At the bare minimum, follow industry standards when it comes to this issue.
Employees perform critical roles for your business. If they become ill and unable to do that, your company will suffer. And customers are the people who will determine whether you will stay in business. That’s why short cutting safety is short-sided. Consult your legal counsel if you have questions about your obligations under the law.
BY ROGER INGLES MAY 28, 2020
CULTURE CAN NOT BE NEGLECTED
A colleague once asked a candidate during an interview for an open coaching position if the prospective candidate could describe the difference between a great team and a great program. It was a very good question! We have all seen that one team that comes out of nowhere to win or compete for a championship only for the team to quickly fall out of contention the next year. It happens in athletics and it happens in business.
Great teams often are the result of a great program but teams can still find short-term success without having a great athletic or business culture supporting them. Great programs sustain long-term success. Great teams may not! Many organizations and teams can get to the top of the mountain but it is the outstanding ones who stay there consistently. This is normally achieved through the creation of an outstanding culture and with strong leadership. Strong cultures today are unfortunately not as commonplace as we would prefer.
Culture is often described as the atmosphere, expectations and environment you operate throughout your program. It is in part your shared set of values and norms that your organization or business believes in and guides your everyday experience. Culture has to be learned and should be modeled through your leadership. An established weak culture can be very difficult to change. Can your organization change a weak culture to a strong culture that allows you the opportunity to be successful over the long haul? Yes, and those who do change their culture in a positive manner will enjoy the benefits. This is easily seen in athletic programs and tougher to judge in business. To develop a “great program,” you must decide as an organization that culture development is the one area of development your organization will never sacrifice.
Be prepared that your organizational culture may not work for everyone. It needs to be unique, genuine and hold true to the values, assumptions and principles of your organization. The experiences and personalities of staff within an organization help shape your individual culture. By focusing on providing positive experiences and interactions, it allows your organization to be more successful long-term while focusing your employee’s day-to-day efforts on a shared vision and mission.
Not everyone will readily accept your culture and values and be a great fit in your organization. Your organization will need to establish strict limits to how far you will allow individuals to stray, if at all, from your established values system. The less freedom and the more consistent you are in insisting that your culture is followed, the more likely your organization will find long term success. As you strive to develop a strong culture, understand that even though everyone usually says they want change, they don’t all welcome it to the same degree. Change is great until it affects someone personally and they have to change their own behavior. Some experienced employees cannot unlearn their old way of operation. In these cases you must make tough personnel decisions. Likewise, very good employees who embrace a strong culture will be harder to retain if your culture is weak.
The quickest way to destroy morale and culture is to hire people who do not fit your culture or allow those already on staff to resist it. Individuals who bring great resumes do not necessarily enhance the culture of your program. Those staff members who join an organization and do not fit the culture will likely help destroy it. Likewise, current employees who are not demonstrating the importance tenets of your culture will make it difficult to maintain or develop it. Often damaging it from within.
Consider your culture the blueprint for the success of your company. If it is allowed to develop in a positive manner, you will have a stable foundation. If it is not embraced, your foundation and organizational personality will crumble over time. If you want an open, positive and collaborative culture then insist on open doors, hire outgoing personalities and immediately deal with negativity in the workplace. If you want an organization that values your history and tradition, showcase your past by creative displays and innovative messaging. Institutional history is extremely valuable when trying to sell your long-term history and success.
Your organizational leadership has to be the key people who represent and model your culture daily. They are the role models who have major influence on your staff through their decisions on long term strategic planning. Leadership is usually the face of the organization to your outside constituents. Whether it is the head coach, the athletic director or the CEO, these individuals must communicate well and mentor staff across the whole organization to work well and collaboratively together.
A strong culture leads to less staff turnover and more stability. Those who choose to stay with you despite having opportunities to work elsewhere demonstrate the value of a positive culture and working environment you create. Do not be afraid to reward those in your organization that model positive behavior enhancing your culture. When a behavior is rewarded it becomes more likely to become a part of the culture. This can help bring a stronger sense of identification across the organization and a shared understanding of the values and norms you want your organization to portray. A lone individual cannot change the culture by himself or herself, it takes the entire organization.
As we transition into a more robust work from home model across the country, culture is the one thing you cannot allow to dissipate. It will be challenging to maintain and even harder to develop with all of your staff. Culture is often developed through interactions with each other. Learning how to develop those interactions in an online world will be a challenge. It is hard to be on the same page when everyone is reading from a different book. Being creative and innovative in development of organizational training and mentoring are a few of the new challenges we face.
Decide the desired professional personality relating to purpose, values and principles that you want to model. Strong culture in an organization and the leadership to make sure it is woven into the fabric of both the organization and the employees will help your organization become more profitable and stable.
We should all work on culture development and strive to develop great programs and not inconsistent teams!
By Roger Ingles May 26, 2020
American Cemetery France Photo by Roger Ingles
MEMORIAL DAY IS ABOUT LOVE, HONOR AND RESPECT
My father, James Ingles, served in the U.S. army during World War II. I remember many a night while growing up that he and our neighbor, Orrin Hardin, stood in the gravel driveway outside our home and talked about everything and anything under the sun. Mr. Hardin was part of a tank battalion assigned to the South Pacific. I usually snuck out each night and stood quietly while listening intently to every word these two veterans spoke about politics, work issues and, every once in a while, they spoke about their service. It was from these conversations about service that I developed a personal interest in United States politics and military history.
My dad was fortunate as he was stationed stateside during the war. His outfit was scheduled to depart their base in Texas for the European theater. Dad and his buddy, the last two soldiers in line to board the plane, were pulled from the line and told to fall out. It seems one of the officers needed a couple drivers for ambulance duty. Dad had been trained as a medic and he spent his duty during the war driving and attending to soldiers here in the United States. Many of his friends went to Europe only to never return.
Mr. Hardin was not quite so lucky. He shared stories of battles and military actions that always kept me mesmerized. I would hang on every word. Then one night he shared something that left me shaken. He told my dad that he was the only soldier to return from the Pacific from his original battalion. Can you imagine the guilt he must have carried and the feeling of “Why me” that had to fill his thoughts?
All of the other brave men in that battalion died on the battlefields fighting the Japanese. He survived somehow. He said he was incredibly fortunate to come back and have raised a wonderful family after that experience. What a cross to bear! He shared his guilt knowing he was the lone soldier able to come home. The tales of sacrifice and courage Mr. Hardin and my father shared with me shaped who I am today. I think about them often and the crosses they both bore. They accepted those responsibilities as young men, both under 18 years old when drafted into the military, because of the love, honor and respect they had for America.
My father-in-law, Charles Milstead, was also a soldier who fought in WWII. I only knew Charles for a few years but learned quickly he, like my father and Mr. Hardin, shared a sense of duty for service. Charles was injured while fighting with his platoon in Germany. Being a descendant of German immigrants, I can’t imagine the pain and sorrow he felt inside as he fought against his ancestral homeland.
My nephew served in the U.S. Army and the Ohio National Guard. He has done tours in Iraq, Afghanistan, Korea, Kosovo and others. I see the stress he and his men endured and the incredibly hard time they have had coming back to civilian life. I have so much respect for all these men and women who served our nation.
They all shared one thing. They loved this country and they would have done anything to protect those family and friends here at home and in their outfits. The scars for all were often invisible to us but felt by them. Today our men and women in the military face the same issues the greatest generation had.
On this day of honor, I ask that we all appreciate the sacrifices our military members have made for all of us and remember that “Some Gave All”.
By Roger Ingles May 25, 2020
EMPOWERING OTHERS TO SUCCESS – THE SCOTT TEDDER STORY
Roger Ingles and Scott Tedder discuss Scott growing up in Columbus, Ohio where he attended Whitehall high school and was an All-Ohio basketball player. Scott then attended Ohio Wesleyan where he played for Roger Ingles in baseball and for legendary head men’s basketball coach Gene Mehaffey in basketball. Scott was drafted as a junior in baseball by the Cleveland Indians and did not sign deciding to return to school. In his senior season he was named the men’s NCAA Division III National Basketball Player of the Year. Scott was later drafted by the Chicago White Sox and was a teammate of NBA superstar Michael Jordan in Birmingham where they developed a close friendship. Scott’s oldest daughter is now a Division I softball player at Texas and his youngest an athlete and high school student in Alabama.
https://www.youtube.com/watch?v=zFg6DFxbkCo
May 23, 2020
THOUGHTS ON THE FUTURE OF WORK FROM HOME
Many people have hoped that as we reopen the country we are moving back to a normal work life. But is it really going to be normal ever again? One thing that has definitely been changed is our attitude about working from home. The option to work from home was reported to be available to over 50% of employees according to Glassdoor for 2019-20. This is a major jump from 28% who reported that option in 2011. The increase in work from home options necessitated by the pandemic will change many of our lives moving forward.
The most impactful change is that companies and large corporations have discovered that they get just as much productivity and reduce overhead in many cases from remote working employees. The future of work for many industries was already heading toward a more telecommuting model before the pandemic turned up the efforts. Twitter and Square are two companies that have publicly stated recently that many of their employees will have work from home options permanently. Jack Dorsey the CEO of both Twitter and Square told his employees that even if the pandemic ends and business returns to normal, most would have the option to work from home.
This seems to be a common trend among tech companies as Microsoft, Google and Facebook are all offering employees the ability to work from home for the extended future. But will this be a long-term solution for most companies? It could be.
For many employees that started careers with a company expecting to work in an office environment, they now enjoy less social interactions, poorer communication about what is happening in the different silos of the company, and a feeling of the valued employee who is in the office and privy to knowledge and communication opportunities versus the less valued worker who is working remotely from home. Managers have a much more difficult time communicating and supervising their staff.
New employees who are hired to work remotely will have a harder time with training and getting indoctrinated into the company’s culture, and they will be much harder for a company to monitor their efforts and production. Workers do not know when to start their day and most importantly when to stop their workday. Often workers are putting in longer days and face higher stress levels. They face more mental, social and family needs.
As companies start to see the cost savings in overhead from reducing physical structure, electric, heating and other costs, they will need to weigh the various impacts on employees against the revenue savings and production levels for the company. Companies in many cases when returning to an office environment will face increased cost as they provide thermal cameras, thermometers, mandatory facemasks, hand sanitizer, and vapor barriers for closely compacted and high dense office areas. Likewise, a remote work from home policy requires companies to invest in platforms and technology needed to maximize output and efficiency. Is it cheaper and more efficient to have employees work from home and reduce those costs? Google and Facebook must think so as they are already planning to limit their office capacity to less than 30%.
Not every company has the ability to have their employees work from home. Businesses, groups, and colleges and universities have made a valuable new friend with Zoom this spring. The advances in technology like Zoom and other teleconferencing companies have allowed many businesses to stay connected with clients, students and consumers in an easily used format. Teleconferencing works but is not ideal for many educational or business functions, However, not all occupations are able to work exclusively from home. Food services, transportation, skilled labor, health care and military are just a few of the industries that require in person work. The pandemic has forced many large companies to find the balance between their essential workers and those who can function in a work from home environment.
Employees often mention that working from home is tougher than they thought. It sounds great at first to be home in your shorts, shirt and tie and working remotely until the distractions start. The family life is tough to balance until mom and dad are in the house and the kids want attention. The loss of social interaction with co-workers is a problem for many employees who crave the person-to-person interactions they have grown accustomed to. For many employees the change to remote situation will be welcomed while many others will see it as a huge challenge.
The access to work from home options for many has grown substantially over the past decade. As we move forward and more companies evaluate their policies and discover the potential benefits or negatives to a permanent work from home policy, expect to see a big change in how many of us work in the future. The increase in current work from home options has made many younger employees less amenable to strict office-only options. The companies and businesses that get ahead of the curve in evaluating what model fits them best will be well served.
By Roger Ingles May 20, 2020
HIRE SUCCESSFUL SMALL COLLEGE COACHES FOR YOUR SALES POSITIONS
During the pandemic many successful coaches at the college level have been furloughed. They may not be rehired to their former positions due to budget restrictions. The future of college athletics at all levels during this time of uncertainty is very fragile at best. If I were a hiring manager in the market for a new hire in sales, I would start immediately with identifying and hiring successful small college coaches who are sitting at home determining what their future holds.
Why would I hire small college coaches? These individuals are among some of the most driven, highly skilled, competitive, optimistic and energetic people I have known. They are usually not paid enormous salaries and do what they do for the love of the sport. They operate with tight budgets, slim resources and are often intrinsically motivated, thus not requiring a lot of supervision. Small college coaches have spent their life competing against others. They sold young student-athletes and their families on investing large amounts of resources and energy to have the opportunity to get an education and to play college athletics. They understand return on investment as well as anyone.
The attrition rate in recruiting for most division III college coaches is normally less than 1 in 4 of the prospects who actually apply to their school. Like great salespeople, successful coaches learn to handle rejection and over come failure. They work daily selling their student-athletes to commit to working hard in the classroom and in their sport. They recruit their returning players each year if they are successful much like good salespeople have to recruit their clients annually to continue with their company. The successful coaches often work 12-14 hour days. They have a work ethic established that affords them to go the extra mile.
Division III coaches in general are a jack-of-all-trades. They don’t have elaborate staffs that allow them to specialize in just one area. I once had a very successful division I baseball coach tell that he wanted to hire a division III coach as an assistant. This was during the time the NCAA was reducing the number of full-time coaches that division I programs could have. The coach said that he had a lot of people on his staff that could teach a lot about a little, (a base running coach, a hitting coach, an outfield coach etc.) but what he needed now is a couple guys who can teach a lot to many. The Division III guys get it. They have to because they have been during it for years without large staffs. They have to learn the whole game. In your business you want people who learn the whole business and can share it in a manner that your customers can appreciate.
Successful coaches bring a commitment to success. They are goal driven and don’t operate with a 9 to 5 mentality. They know that to be successful in the pursuit of their goals they have to be dedicated, focused, disciplined and have adaptability for changing markets and trends. They are not afraid to tackle a challenge or unable to overcome adversity. Anyone can win once in a while, but the truly great coaches are those who do it consistently. The same is true in sales.
Coaches who have been successful know that teamwork must happen for a group to find success. They have been competing their whole lives. Every sport, individual or team, has a coach and a support system built in. These coaches are used to working together with diverse groups including student-athletes, parents, alumni, and administrators while dealing with all kinds of issues and distractions. They are used to overcoming challenges and successful coaches refuse to back down from a challenge.
The small college coaches who have long-term success have great interpersonal skills. A former student-athlete of mine, Brent Weaver, once commented that he didn’t know if any of the 13 assistant coaches I had hired that summer could coach, but they sure seemed like awesome people. In coaching hires I always looked for the personality types that could connect with a variety of people and backgrounds. In sales and coaching, communication and connection are keys to turning prospects into commitments.
Successful athletic coaches have the ability to celebrate small victories. They understand that Rome wasn’t built in a day. It takes planning, recruiting, cultivation of relationships and a strong work ethic to achieve their goals. The role of a coach transforms quickly into the sales role as long as the coach has a consistent history of success and a drive to be the best. There are a lot of those types of individuals in the job market right now who may not easily pass through the applicant tracking systems but would make great employees for the right company.
By Roger Ingles May 17, 2020
COLLEGE AND UNIVERSITY JOB LOSSES
Many colleges and universities have made some significant cuts to their work force already this spring. COVID-19 is making a dramatic impact on the faculty and staffs at many universities and they are struggling to find their right size for right now. Over the next few months, colleges and universities must decide who they are, what they are and how can they financially make those realities happen?
After hundreds of colleges closed early and in many cases finished the spring semester online, dozens of major universities have approved a furlough policy and made deep reaching cuts to staff for the summer and into next fall. Ohio University, the University of Wisconsin system, the University of Oregon, West Virginia University and the University of Louisville are a few of the major universities who have adjusted staffing. In addition, many smaller colleges have announced unpaid furloughs for hundreds of staff deemed unessential at this time. Some furloughs will be felt mainly on the college campus but many like Ohio University’s cuts in Athens, Ohio will be felt deeply by the surrounding community and the local economy.
At many small colleges the assistant coaches who have been furloughed are actually looking at a pay increase. Many small college staff had annual salaries increased in January of 2020 when the US Department of Labor increased the minimum weekly pay for employees who are exempt from overtime from $455 per week to $684 per week or $35,568 annually. Several of the employees who have been furloughed this spring continue to receive medical benefits from the university while on leave.
In Ohio a furloughed employees can draw $480 per week or $647 a week with dependents. With the extra $600 per week the federal government has contributed, a furloughed employee could draw $1247 per week or $62,844 per year. This represents an increase in salary while being on furlough of over $27,000 per year for a lot of coaches and staff. Several universities are currently looking at a staged reopening which will allow them to bring back staff and coaches over a longer schedule and not return them all at once.
The furloughing of so many jobs demonstrates the tremendous financial pressures being placed on colleges and universities throughout America. The University of Arizona announced a massive furlough starting May 11, 2020 and extending until at least June 30th, 2020. As many universities face these same tight financial times, many have followed Arizona’s model. They have furloughed employees based on the amount of salary they earn. The bigger the salary received by an employee, the longer the furlough. They also have enacted across the board percentage cuts that are in many cases based on salary. Arizona gave those making $199,999 or less a 17% cut and those making over that amount a 20% cut.
West Virginia athletic director Shane Lyons announced a 10% reduction to his salary along with several other higher paid staff and coaches for the next fiscal year. This is part of an effort to soften the blow of an anticipated multi-million dollar shortfall at Wet Virginia. Many administrators are taking the lead in sharing the burden of the financial hardships this virus has inflicted.
At many universities there has been a salary cut on average of 10% taken by administrators and higher paid athletic coaches. Some university administrations are looking into an early retirement buyout option for experienced faculty and staff to save money long term. The short-term action will most likely need to achieve buyout through a draw on the university’s endowment.
Ohio Governor Mike DeWine announced last week a $110 million cut to higher education. The largest hits were to The Ohio State University who was asked to cut $14, 291,919 and to the University of Cincinnati, who earlier this spring dropped men’s soccer, was cut $8,170,209. Every state supported university and college was cut across the board 3.80%. These cuts are in effect until June 30th, and then the budget will be revised with the new budget cycle with further cuts possible and most likely probable.
Most universities are busy preparing possible re-opening plans for fall before budget decisions will be finalized. A number of schools are looking at least five scenarios that could occur based on the increase or decrease of the virus this summer. The first option many might consider is to open fully for in person classes and/or online courses during the previously approved scheduled academic calendar date.
The second option is to open fully for in person classes but do it later in the fall, and most likely after October 1st. They will need to select a date that allows the university to meet all higher education accreditation and attendance guidelines. A third option would be to open after October 1st and host both online courses and in person classes. This could be necessary if universities face shortages in facilities and staffing. A fourth option is to open after October 1st but with only online options. The fifth option is not to open this fall at all but instead make plans to return to full operation in January.
Every plan has drawbacks and possible ramifications to the safety, health and welfare of the student, staff and faculty. Each plan will have a major impact on the economic health of the university. It is imperative that universities make decisions based on sound financial choices and not on the tugs to their heart. Staffing decisions made now will impact how readily most universities will be ready to return to operations this fall.
By Roger Ingles May 12, 2020
SMALL COLLEGE ATHLETICS IN THE TIME OF CUTS
College administrators across America are facing significant loss of revenue from federal, state and tuition financial streams. Ohio’s Governor Mike DeWine just announced $100 million in funding cuts for the state’s universities for the remainder of this fiscal year and additional reductions are expected in next year’s budget. Universities across the country will most likely see lower enrollment and retention numbers this fall as they face tough choices in developing balanced budgets.
In person attendance at athletic events this fall is still being debated. Schools like my alma mater The Ohio State University could face significant revenue shortfalls from the loss of ticket, parking and concession income. Where will college athletics fall in the crushing budget decision-making choices for this upcoming year? What ultimate impact will Covid-19 have on intercollegiate sports?
I believe most universities will come out over the next few weeks with an announcement that they INTEND or HOPE to open for in person operations this fall. Some like Otterbein University already have. These schools need to make that announcement and those that do are very smart! They are not only still trying to recruit next year’s freshman class, but their returning students as well. Students do not want to pay for a full course meal only to find out the main course is missing when they get to campus. So as colleges and universities make plans to hopefully open for in person classes next fall, they are making very difficult budget choices across the board right now.
Chief financial officers at all schools will be working overtime this summer as they try to project a revised budget for 2020-21. I believe that in NCAA Division III these challenges will need to be met in a variety of ways. The reductions in purchase of new apparel, facility upgrades, per diem allowances, reduction of part-time staff, reducing or eliminating non-competitive travel and professional development for athletic staff are clear choices. The reduction of staff, revision of scheduling priorities and reduction of non-traditional seasons are three higher impact strategies you might see schools embrace to balance the budget or reduce budget deficits.
Most universities are staffed at significantly higher levels than they were in 1984 when I started coaching at the small college level as a head baseball coach and assistant football coach. The increased demand placed on coaches on recruiting and growth of non-traditional seasons over the past two decades made the two or even three sport coaches obsolete. Coaches became specialized in their sport and as a result the demands they placed on individual student-athletes quickly increased. Athletes became specialized and the multi-sport athlete has become rare.
The financial struggles we face now at the college level will change today’s coaching model. Coaches will need to coach two or more sports. Head coaches may become assistant coaches in other sports. Some assistant coaching and administrative positions will be reduced or eliminated. The growth in the number of athletic administrators who do not coach will be change. Fewer coaches require less administration and the AD/Coach model will most likely return in the short term. It is not the best model but is more cost effective for most universities.
Schedules will be evaluated by universities and conferences and in many cases modified to fit financial resources. I believe you will witness a much more regional approach to scheduling and championships. Many smaller schools that played major universities in exhibition or early regular season games for a “payday” will see those exhibitions and games reduced if not eliminated completely. This is already happening in basketball. Administrations will be forced to look at reducing schedules, rosters and travel costs. Athletic administrators need to start preparing models for this immediately.
The fact that most universities are admission driven, athletics will still need to bring in large numbers to help pay the bills. It is going to be up to the athletic administrators and coaches to creatively determine how they can operate successfully with fewer coaches, less administrative support, play reduced schedules and still bring in the admissions numbers necessary to pay the bills.
Non-traditional seasons have long been a major source of heated discussion in Division III at the national level. By reducing or even eliminating non-traditional seasons, administrators will reduce the need for members of the coaching staff to specialize and instead require coaches to be able to coach multiple sports. There is no need for multiple one-sport coaches, if non-traditional practices are not conducted. Elimination of the non-traditional season will reduce costs and provide much needed relief for support staff. That light at the end of the tunnel might very well be this oncoming freight train.
None of these choices are good for college athletics or the student-athletes. However reductions and consolidation of resources and revenues will allow universities to keep more sport programs operational and more student-athletes involved. It will be justifiably difficult for a President or Board of Trustees to say we are keeping our athletic staff fully intact but making cuts to faculty and staff across campus. The prudent move for current athletic administrators is to have a plan in place for what you will do if faced with a 30% reduction in revenues and staffing in your department. For university administrators this is the right time to have professionals help you determine the correct model for your university moving forward. That is of course based on the belief we actually have an athletic season in 2020-21.
Stay safe!
By Roger Ingles May 6, 2020
SMALL COLLEGES FACE CHALLENGES IN 2020
May 1st is a big day for most liberal arts colleges. This year many college administrations watched the deposit deadline come and go with tremendous trepidation. The unprecedented Coronavirus pandemic is forcing many small colleges to rethink the way they conduct business moving forward or face closing their doors.
Creative and strong leadership is needed now more than ever. Finances are being stretched. Enrollment and budget modeling are way off at many schools. Small universities are facing challenges filling their incoming classes and keeping the undergraduate students they already have. Challenges and concerns are everywhere.
Schools that traditionally attract higher need students will have to give more aid to support families already struggling just to survive. With unemployment numbers near 20% incoming freshmen will have fewer job opportunities this summer to make up financial short falls. Parents will be strapped with even greater financial need. Current students will choose between attending their current college if it is located hours from their home or attending class closer to home at more affordable options like the local community college.
To minimize the impact of lower enrollment, colleges must be willing to think outside the box to find solutions. Planning for lower enrollment numbers, less revenue resources and uncertainty regarding programming, many universities will be downsizing staff and program offerings to counter lower enrollment numbers. As support staff and faculty are eliminated, tough programming decisions will have to be made. Who stays and who goes? Tough decisions will need to be made.
Schools need to think creatively about the creation of new or enhanced revenue streams and sources. This is the time to invest in quality advancement staff and fund-raisers. Annual fund goals should take priority over any other project or campaign. Universities must have people in place who can connect with their alumni and community partners and not be afraid to step up and ask for support. Stewardship is still important but the ability to convert connections into dollars immediately is vital. Administrators need to work with staff or bring in support for training and management in this critically important area.
It is the time for colleges and universities to rebrand themselves and determine who they are and not who they want to be. Determine their strengths and play to them. Try to find creative and new programming to make your institution relevant moving forward. This pandemic has brought the need for America to be more prepared and better trained in many areas. How can your university adapt to fill those needs? What can you offer today’s students that will make a difference moving forward?
Without increased federal, state and local support, many small schools will slowly disappear. They are small businesses who are vital to the cultural, educational and entertainment of their locality. Many small schools are often the largest employer in their area. One in ten liberal arts institutions was already expected to fail over the next five years. It might be 2.5-3.0 out of ten now because of the pandemic. Support now to make sure your local school is not one of them.
The NCAA and NAIA need to take leadership roles and think in untraditional ways this summer. Can we switch athletic seasons for this year? Allow the sports to play this fall that have the most social distancing. Play contact sports like football next spring. Athletics has a huge impact on enrollment at most liberal arts institutions. Find a creative way to make them work or potentially lose a lot of students.
This will be a tough year moving forward for not only colleges and universities but all of us, but if the Academy can take the lessons many small businesses have taught us, they can survive. Adapt and find a niche market. Streamline but improve services. Creatively find ways to find solutions to the challenges and issues going forward. Support each other!
By Roger Ingles May 1, 2020
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