Due to the presumed much higher cost of attendance at private college Furman than at state university BGSU, $500,000 at Furman would probably not go as far as it would at BGSU.apaladin wrote: ↑Tue Jun 02, 2020 1:27 pmapaladin wrote: ↑Tue Jun 02, 2020 1:23 pmThey committed to ONLY $500k per year. That was enough to keep baseball. Not millions that you suggest unless you start adding up years.affirm wrote: ↑Tue Jun 02, 2020 7:27 amUnboggle.
When you think about it, the BGSU supporters raised /pledged /committed LOTS of $$$$$$$$$ already. Even if not $100,000,000 (the figure I suggested for Furman, BGSU supporters $$$$$$$$$ amount to several million, not 100), the money that Furman baseball supporters have raised already amounts to how much? Planned to have raised amounts to how much?
BGSU supporters did something financially already to get to this point.
Additionally, BGSU is an FBS school, so affirm guesses they have opportunities to raise more money through football to support athletics overall.
So affirm would say that possibly $500,000 needed at BGSU would translate to $800,000 needed at Furman.
$800,000 per year for baseball. $400,000 per year for each of the 2 women's sports you have to add to meet Title IX .
So $800,000 x 2 = $1,600,000 per year needed.
Add a percentage to that, maybe 10% at least, to take care of additional support services for the 3 teams, including new facilities for the women's sports, and whatever else.
So $1,760,000 per year needed.
*****And here's what is also overlooked. Affirm is talking about $1,760,000 per year coming out of an endowment to support the 3 sports in perpetuity. So maybe - maybe - you can plan to spend an average per year of 4% on the endowment returns. Therefore you need a beginning endowment amount totaling get an average of 5% per year from the endowment retirement returns. But you want to not spend the entire annual average returns because your expected returns %age may be too high. So therefore, you spend only 4% per year for the 3 sports teams. In order to do that by ENDOWMENT, which is what affirm suggested quite a ways back, you have to be able to present the admin with a restricted gift of $44,000,000 "cash". (or maybe they would let you give it as $8,800,000 per year over 5 years) That is much better than the $100,000,000 that affirm previously stated. So affirm says "you are welcome" when you thank affirm for saving you $56,000,000 today.
Maybe you can suggest a low ball figure such as only $25,000,000 to the admin to get the negotiating started. When they reject that, you can continue negotiating. Perhaps they will wear down even before you get to the $44,000,000 figure.