They lose money, don’t they?

March 16, 2008

Writings on a sports message board: these “sports…each bring in IN EXCESS of $10 million a year to the school, AFTER funding ALL of RU’s other sports with their revenue.”  The poster refers to men’s basketball and football and, obviously, sees them as cash cows that are helping to prop up a faltering university.

 If only it were so.

Football alone loses over $3 million yearly and, frankly, there is no end in sight for the losses.  The wild hope is that with an expanded stadium — a stadium that sells out — then football will be cashflow positive.

Something close had better come true, assuming the university presses forward with its reckless and irresponsible plan to spend over $100 million on a stadium expansion (of which $70 million will come via bonds that need to be repaid).  Best guesses are that servicing the bonds will necessitate selling 85 percent of the stadium for every game going forward.

Will those ticket sales materialize?

Can Dick McCormick walk across the Raritan?

Why hasn’t the Rutgers Board of Governors declared this expansion plan DOA because, clearly, it makes no sense whatsover?

We are waiting for answers.

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