ksummerlin wrote: ↑Tue May 19, 2020 11:52 am
This isn't just about sports, the whole academic community at Furman was cut. FU has lost $100 million in endowment money in 3 months due to the financial downturn. They had to refund $4 million in room and board fees and incur unexpected costs to shift to online classroom instruction for the remainder of the year. The president took a 20% pay reduction, vice-presidents a 10% pay reduction. Football and basketball head coaches took a 10% temporary pay cut. 10 week summer furloughs will begin soon. In addition, estimates are that there will be a 15% decrease in enrollment next year.
As a Furman alumni, I hate this news. I spent countless afternoons across the street from my dorm watching games at the stadium. I don't have to like it, but I understand it and how hard it must have been to come to this decision.
I also think that this is not the last news of its kind that we will hear. Other schools have started cutting programs as well (see Akron, Old Dominion, etc). This will impact private institutions much harder than it will public institutions. I wouldn't be surprised to see some private institutions shutter for good.
God bless these players and coaches -- they must be devastated.
Furman hasn't "lost" endowment money in a meaningful sense, except to the extent they've had to liquidate assets to refund room & board, etc. Obviously it would be an issue if the financial markets take an extremely long time to recover, but otherwise it's a red herring for the most part.
I don't doubt the authenticity of the University's financial concerns though, which I suspect relate primarily to longer-term demographic and higher-educational trends. They don't want to emphasize that because using covid-19 as cover is a good way to deflect criticism.
I actually don't mind that PR strategy, but it was a mistake for Furman to completely gloss over the fact that they are cutting sports that have brought in recent or fairly recent donor investments. I would imagine they are reaching out to individuals to smooth over what they can, but the honest thing would be to acknowledge the University was responsible for poor planning and poor use of donor funds.
JD's comments about investing in football and basketball are completely absent from the actual press release and FAQ (which in fact seems to explicitly contradict that claim). I don't see how they will be able to raise money for capital projects in the near-to-medium term. I can't imagine why they would downplay investments in football and basketball . . . likely because they aren't coming anytime soon.