Post by 808empath on May 21, 2005 5:44:46 GMT -5
starbulletin.com/2005/05/20/news/story4.html
Friday, May 20, 2005
$1.5 million profit
by 2007 anticipated
for UH sports
UHM tuition to soar 140% in 6 years
By Cindy Luis
cluis@starbulletin.com
The unofficial color of the University of Hawaii athletic department continues to change from red to black. At least that is the optimistic update that athletic director Herman Frazier gave the Board of Regents yesterday at its monthly meeting.
The anticipated $2 million annual fee from a new TV contract, a $650,000 guarantee to play at Alabama in 2006 and $200,000 to play at UNLV in 2007 would have the department realizing a $1,546,715 profit by 2007. It's a far cry from the $2.5 million operating loss shown in the 2003 audit, a debt that had been cut to $791,290 by the 2004 audit.
The goal to turn a profit could be reached sooner should negotiations with Aloha Stadium result in a reduction or elimination of the annual $300,000 fee UH currently pays in rent for football.
"Not paying rent at the stadium would be a major swing," Frazier said.
The current rental agreement is set by state law. Frazier told the board he felt confident the rent could be reduced based on precedent: The NFL does not pay rent to use the stadium for the Pro Bowl, nor do high schools for football games.
Also not included in the current figures is money that would be realized by filling vacancies in the 2006 and 2007 football schedules with big-name opponents. Frazier also said Hawaii will play Southern California in 2010.
Frazier said he is in "serious discussions" with Florida for 2007 or '08, while games at Michigan and Penn State "remain on the radar screen."
He also sent an e-mail to his alma mater, Arizona State, on Wednesday.
The carry-over debt of $791,290 is expected to diminish further when money is received from the NCAA, Western Athletic Conference and 'Ahahui Koa Anuenue next month. There will also be revenue from the Los Angeles Lakers when the NBA team returns to the Stan Sheriff Center for its camp and at least one exhibition game this fall.
Although the TV contract has not yet been awarded, Frazier expects to announce the winning bid -- to either KHNL/KFVE, Oceanic Time Warner or some combination of the two -- within the next 10 to 14 days. The projected revenue would be $2 million, up from the $700,000 (plus pay-per-view dividends) that KHNL/KFVE paid for each of the past three years.
Frazier also said that premium-ticket sales of the loge seats for football had gone very well, with 148 out of 660 seats sold for a total of $528,000. UH is now moving forward with its plan to sell courtside seats for volleyball.
Ticket sales for football's Sept. 3 season opener with defending national champion Southern California have also gone well. USC has already purchased 7,250 tickets.
Personnel matters were not on yesterday's agenda.
Frazier, whose own contract expires in July, said the contract extension for men's basketball coach Riley Wallace had been delivered to the president's office and was awaiting final approval. He said he had not begun to work on the contract of men's volleyball coach Mike Wilton, which expires May 31.
"And I don't expect mine to be a problem," Frazier said. "I want to be here to see all of this through."
Friday, May 20, 2005
$1.5 million profit
by 2007 anticipated
for UH sports
UHM tuition to soar 140% in 6 years
By Cindy Luis
cluis@starbulletin.com
The unofficial color of the University of Hawaii athletic department continues to change from red to black. At least that is the optimistic update that athletic director Herman Frazier gave the Board of Regents yesterday at its monthly meeting.
The anticipated $2 million annual fee from a new TV contract, a $650,000 guarantee to play at Alabama in 2006 and $200,000 to play at UNLV in 2007 would have the department realizing a $1,546,715 profit by 2007. It's a far cry from the $2.5 million operating loss shown in the 2003 audit, a debt that had been cut to $791,290 by the 2004 audit.
The goal to turn a profit could be reached sooner should negotiations with Aloha Stadium result in a reduction or elimination of the annual $300,000 fee UH currently pays in rent for football.
"Not paying rent at the stadium would be a major swing," Frazier said.
The current rental agreement is set by state law. Frazier told the board he felt confident the rent could be reduced based on precedent: The NFL does not pay rent to use the stadium for the Pro Bowl, nor do high schools for football games.
Also not included in the current figures is money that would be realized by filling vacancies in the 2006 and 2007 football schedules with big-name opponents. Frazier also said Hawaii will play Southern California in 2010.
Frazier said he is in "serious discussions" with Florida for 2007 or '08, while games at Michigan and Penn State "remain on the radar screen."
He also sent an e-mail to his alma mater, Arizona State, on Wednesday.
The carry-over debt of $791,290 is expected to diminish further when money is received from the NCAA, Western Athletic Conference and 'Ahahui Koa Anuenue next month. There will also be revenue from the Los Angeles Lakers when the NBA team returns to the Stan Sheriff Center for its camp and at least one exhibition game this fall.
Although the TV contract has not yet been awarded, Frazier expects to announce the winning bid -- to either KHNL/KFVE, Oceanic Time Warner or some combination of the two -- within the next 10 to 14 days. The projected revenue would be $2 million, up from the $700,000 (plus pay-per-view dividends) that KHNL/KFVE paid for each of the past three years.
Frazier also said that premium-ticket sales of the loge seats for football had gone very well, with 148 out of 660 seats sold for a total of $528,000. UH is now moving forward with its plan to sell courtside seats for volleyball.
Ticket sales for football's Sept. 3 season opener with defending national champion Southern California have also gone well. USC has already purchased 7,250 tickets.
Personnel matters were not on yesterday's agenda.
Frazier, whose own contract expires in July, said the contract extension for men's basketball coach Riley Wallace had been delivered to the president's office and was awaiting final approval. He said he had not begun to work on the contract of men's volleyball coach Mike Wilton, which expires May 31.
"And I don't expect mine to be a problem," Frazier said. "I want to be here to see all of this through."