Season Ticket Holders

[Dan]

Season ticket holder demographic + Covid + trajectory of program = perfect storm

[RoyalShock]

I've been sharing season tickets with another since 2003. Added a third partner 6 or 7 years ago as it got more expensive. For the past few seasons we've discussed whether to renew. Last year we deferred to this year. I wouldn't be surprised if we drop after this season.

[Faithful]

Our family has held season tickets since sometime in the 80's. We kept them when times were tough in the past. We'll keep 'em through the program's rebuilding years. I must say it's harder now. Expectations are so much higher.

[shox1989]

We dropped our baseball and basketball season tickets after WSU fired Gene Stephenson. We didn't go to a game in person for about 5 years after that. Since then we have been going to a few games a year. This year we haven't made it to a single basketball game, but that has been more due to COVID concerns than anything else. I remain hopeful that the team will get their act together and we will eventually make it to a few games later this season once we feel more comfortable being in big crowds indoors for long periods of time. I am looking forward to the baseball season. We are even considering buying baseball season tickets once again.

[shox7]

Season ticket holder of 4 Tix since AC was a freshman. Question, if you dropped your tickets did you receive a phone call from the ticket office asking why you weren’t renewing your tickets? Please consider e-mailing or calling the ticket office to let them know what it might take for you to consider buying tickets again. I for one feel like the ticket office needs to know.

[Ted Lasso's Neighbor]

They have financial statements for the athletic department online at https://goshockers.com/sports/2015/5...formation.aspx and they're based on audits done in June. I was looking at the report from June 2021 (https://goshockers.com/documents/202...1.pdf?id=22615) compared to June 2020 (https://goshockers.com/documents/202...0.pdf?id=13993), and it's interesting how much revenue dropped last year with all the covid stuff going on. Here are some interesting numbers:

	2020	2021
Ticket Sales	$5,374,343	$1,484,526
SASO Memberships	$6,118,568	$1,689,055
Contributions	$3,090,736	$1,808,082
Total Operating Revenue (above + other things)	$29,644,739	$20,625,853
Total Operating Expenses (see links for expenses)	$27,559,123	$29,383,967
Operating Income (Loss)	$2,085,616	($8,758,114)
Net Position at Beginning of Year	$13,243,559	$12,234,221
Net Position at End of Year	$12,234,221	$3,909,935

The last two lines are how much money the department started with for the year and how much it ended the year with. There are some other numbers not shown that are used to get the end of year amounts besides just the operating income (loss) amounts, so if you're really interested in the actual amounts, please click on the links above the table for each year.

It'll be interesting to see how things look at the end of June 2022.

[ShockerDropOut]

That is not an encouraging picture.

[Stickboy46]

They have financial statements for the athletic department online at https://goshockers.com/sports/2015/5...formation.aspx and they're based on audits done in June. I was looking at the report from June 2021 (https://goshockers.com/documents/202...1.pdf?id=22615) compared to June 2020 (https://goshockers.com/documents/202...0.pdf?id=13993), and it's interesting how much revenue dropped last year with all the covid stuff going on. Here are some interesting numbers:

	2020	2021
Ticket Sales	$5,374,343	$1,484,526
SASO Memberships	$6,118,568	$1,689,055
Contributions	$3,090,736	$1,808,082
Total Operating Revenue (above + other things)	$29,644,739	$20,625,853
Total Operating Expenses (see links for expenses)	$27,559,123	$29,383,967
Operating Income (Loss)	$2,085,616	($8,758,114)
Net Position at Beginning of Year	$13,243,559	$12,234,221
Net Position at End of Year	$12,234,221	$3,909,935

The last two lines are how much money the department started with for the year and how much it ended the year with. There are some other numbers not shown that are used to get the end of year amounts besides just the operating income (loss) amounts, so if you're really interested in the actual amounts, please click on the links above the table for each year.

It'll be interesting to see how things look at the end of June 2022.

Expenses go up .. revenue goes WAY down .. that's not a good picture.

[JMAN_KC]

I used to listen to Shocker Basketball on KEYN radio here in KC. LOVE the Shox. Can't imagine doing that again. Went to my first ever game at Intrust to see KSU get beat down. Not sure I have been more disappointed in a Shocker game, until the Memphis game.

[Ted Lasso's Neighbor]

Expenses go up .. revenue goes WAY down .. that's not a good picture.

Looking at the expenses, it seems like the main reason for the increase is a Severance Pay line in 2021 for $7,323,714, with $1,250,000 as current and $5,102,560 long-term. I imagine that's the Marshall settlement.

Looks like toward the end of the document they break things down by sports. Tickets sales for men's basketball in the 2020 one was $4,512,009, while tickets sales for men's basketball in the 2021 document was $894,609. Also, the severance pay amount above is listed under men's basketball in the 2021 document as an expense.

[Stickboy46]

Looking at the expenses, it seems like the main reason for the increase is a Severance Pay line in 2021 for $7,323,714, with $1,250,000 as current and $5,102,560 long-term. I imagine that's the Marshall settlement.

Looks like toward the end of the document they break things down by sports. Tickets sales for men's basketball in the 2020 one was $4,512,009, while tickets sales for men's basketball in the 2021 document was $894,609. Also, the severance pay amount above is listed under men's basketball in the 2021 document as an expense.

That's likely the main chunk of the expenses .. but I'm guessing COVID as a whole has added expenses (testing and such)

[RoyalShock]

A negative $11 million dollar revenue swing would be crippling to most athletic departments at schools with a similar profile to WSU. If ADDB is to blame for the state of men's basketball (and I'm not saying he isn't part of the whole picture), he should be lauded for having the department in a position to absorb that kind of loss and still be in a positive net position.

[1972Shocker]

They have financial statements for the athletic department online at https://goshockers.com/sports/2015/5...formation.aspx and they're based on audits done in June. I was looking at the report from June 2021 (https://goshockers.com/documents/202...1.pdf?id=22615) compared to June 2020 (https://goshockers.com/documents/202...0.pdf?id=13993), and it's interesting how much revenue dropped last year with all the covid stuff going on. Here are some interesting numbers:

	2020	2021
Ticket Sales	$5,374,343	$1,484,526
SASO Memberships	$6,118,568	$1,689,055
Contributions	$3,090,736	$1,808,082
Total Operating Revenue (above + other things)	$29,644,739	$20,625,853
Total Operating Expenses (see links for expenses)	$27,559,123	$29,383,967
Operating Income (Loss)	$2,085,616	($8,758,114)
Net Position at Beginning of Year	$13,243,559	$12,234,221
Net Position at End of Year	$12,234,221	$3,909,935

The last two lines are how much money the department started with for the year and how much it ended the year with. There are some other numbers not shown that are used to get the end of year amounts besides just the operating income (loss) amounts, so if you're really interested in the actual amounts, please click on the links above the table for each year.

It'll be interesting to see how things look at the end of June 2022.

Thanks for that info. The picture that paints is extremely concerning. This not a good situation.

The net position is essentially the departments net worth or the amount of its assets (at book value except the investments that are carried at market value) less it liabilities. Note that the investments are mutual fund holdings that could easily converted to cash. However, the net worth does include $1,626,033 in illiquid depreciable capital assets, mostly furniture and equipment.

The ICAA had total severance pay liabilities of $6,352,560 at June 30, 2020 of which $1,250,000 was payable in the following 12 months. The largest expense item for the fiscal year ended June 30, 2021 was $7,323,714 which indicates the have recorded and expensed all of Gregg Marshall's settlement in the 2021 fiscal year. This one item accounts for nearly 90% in the decline net worth from June 2020 to June 2021 and 85% of the 2021 net operating loss. The good news is this is not a recurring item. The bad news is the ICAA has very little flexibility to maneuver and very little cushion to absorb additional shocks (no pun intended).

Backing out the book value of the capital equipment and the restricted funds the ICAA only had unrestricted net assets of $1,598,146. Don't think we are buying out Isaac Brown's contract any time soon. Backing out the 2021 severance pay the ICAA had a net operating loss of $1,434,430 for the 2021 fiscal year.

The ICAA is skating on pretty thin ice at this point. May need to start a Go Fund Me page.

[RoyalShock]

It'll be interesting to see how things look at the end of June 2022.

My guess is that expenses won't change much due to the massive amount of Covid testing. If the revenue streams (tickets, SASO, contributions) will at least recover back to 80% of 2020, that should still keep the dept's year-end net on the positive side, but just barely.

[1972Shocker]

My guess is that expenses won't change much due to the massive amount of Covid testing. If the revenue streams (tickets, SASO, contributions) will at least recover back to 80% of 2020, that should still keep the dept's year-end net on the positive side, but just barely.

If you back out the one-time severance pay charge the operating expenses for 2021 were actually around $21.8 million or $5.8 million dollars lower than FY 2020. $2 million of that was coaches salaries and benefits, travel expenses were down about $400k (Covid cancellations?), marketing and promotion was down $800k, guarantees, whatever that is, was down $600k; game expense were down $150k, recruiting expenses were down $225K (a 70% reduction), other program expenses down $350k, management and administrative expenses down $500k, and fund raising expense were done $120k account for 90% of that $5.8 million. So clearly that had to go into cost-cutting mode in FY 2021. That offset about 2/3rds of the $9 million revenue decline.

The reduction in recruiting budgets is especially painful to see in black and white.