Quiz #3 Chapter 7: Team Case Central University of Illinois has a newly appointe
ID: 2553318 • Letter: Q
Question
Quiz #3
Chapter 7: Team Case
Central University of Illinois has a newly appointed president, Catherine Husker. This has been a challenging budget year due to the difficulties of getting a state budget passed in the State Legislature. It appears from all reports that the budget that may get passed will be only 90% of last year’s state appropriations for the University. This means the University will have to cut their own operating budget for next year because of the State’s expected reduction in appropriations to higher education.
Husker just had a meeting with the athletic director of the university, Gareth Connor, to discuss the budget for the athletic department. Central University has been a men’s football and basketball powerhouse for the last several decades. However, the women’s athletic program has had less success. Last year, though, the women’s basketball team was one of the team’s selected to participate in the NCAA Women’s Basketball Competition through an “at-large bid” due to their outstanding season.
Connor and Husker discussed the 2018 Athletic Department budget, which Connor believed was the final draft. The meeting did not go well. In fact, it went terribly. Husker discussed four grave concerns she had about the Athletic Department budget and requested Connor to review and revise the budget in light of her concerns below. Draft II of the budget is due in two weeks time.
Concern 1: The Athletic Department is budgeting a loss of over $3 million. Given the tight fiscal position of the university, this outcome is unacceptable to Husker. A budgeted loss of $1 million is the most she will tolerate for 2018. By 2019 the Athletic Department has to operate with a balanced budget. She tells Connor this is nonnegotiable.
Concern 2: The low allocation of money to the women’s athletic program. Fox Valley News, a tabloid television show, recently ran a program titled “It’s a Man’s World at Central University Athletics’ Program.” Husker said Connor is treating woman athletes as “third-class citizens.”
Concern 3: The low academic performance of the men’s football athletes, many of whom have full scholarships. She notes that the local TV news recently ran an interview with three football-team students, only one of which “exemplified the high academic credentials she wants Central to showcase to the world.” As for the other two students, she calls one student “incoherent” and another “incapable of stringing sentences together.”
Concern 4: The outrageous salary paid to “Bull” Mason, the football coach. She notes it is twice that of the highest paid academic person on campus, a Nobel Prize winner. Moreover, Mason receives other payments from his “Football the Central Way” summer program for high school students.
Below is Draft I of the Athletic Department budget:
Central University 2017 Athletic Department Budget ($ millions)
Revenues:
Men’s athletic programs $10.350
Women’s athletic programs 0.780
Other (endowment income, gifts) 3.400 $14.530
Costs:
Men’s athletic programs $11.040
Women’s athletic programs 2.800
Other (non-assigned to programs)* 3.700 17.540
Operating Income $( 3.010)
*Other non-assigned programs include rugby, soccer and volleyball
Men’s Athletic Programs:
Football Basketball Swimming Other Total
Revenues $8.600 $1.500 $0.100 $0.150 $10.350
Costs 7.400 2.700 0.300 0.640 11.040
Full Scholarships 37 21 6 4 68
Women’s Athletic Programs:
Basketball Swimming Other Total
Revenues $0.600 $0.080 $0.100 $ 0.780
Costs 1.800 0.200 0.800 2.800
Full Scholarships 11 4 2 17
REQUIRED:
Connor will be holding a half-day meeting with key officials of the Athletic Department (of which your team are some of these key officials) to discuss the university president’s concerns. In order for your team of officials to be prepared to discuss the concerns of the president at this meeting, please answer the following questions prior to the meeting.
Questions:
Are there any ways that the Athletic Department can decrease costs? Are there any potential pitfalls or problems with any of these suggestions? (Worth 6 pts.)
What are some of the gender issues that Husker raised and how would you attempt to address them? (Worth 4 pts.)
Explanation / Answer
Are there any ways that the Athletic Department can decrease costs? Are there any potential pitfalls or problems with any of these suggestions?
The possible pitflall is revolt from coach and student as well as talent drain situation where talented athelits and coaches dont get associated
What are some of the gender issues that Husker raised and how would you attempt to address them?
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