Wording From Athletic Fee Legislation

[bdan2002]

Here are a couple of points to remember about the athletic fee. When I was SGA president and passed the fee, we dedicated $3 per credit hour (from student service fees to athletics) - the most recent data has UNT student with a total of about 840,000 credit hours for the fall, spring and summer. This comes to about $2.5 million the athletics department was getting from that dedicated fee.

The legislation stated that with the new fee, the $3 would go away (essentially) and there would be a new $10 fee (which is really a $7 net increase in fees). So if we use the 840,000 credit hour number again (which of course will go up with increased enrollment) - the new figure is $8.4 million.

This section of the legislation state (e) Authorizes revenue from the fee charged under this section to be used only for financing, constructing, operating, maintaining, or improving an athletic facility or for operating an intercollegiate athletics program at UNT. So technically, this new fee can be used to fund the salary of the new football coach.

Another section states (and I had this authority when I was president) - that the fee can be raised no more than 10% without a vote of the student body. So in essence the SGA could raise the fee a few percentage points every year.

Next, (j) Prohibits the fee from being charged after the fifth academic year in which the fee is first charged unless, before the end of that academic year, the university has issued bonds payable from the fee, in which event the fee is prohibited from being charged after the academic year in which all such bonds, including refunding bonds for those bonds, have been fully paid. So I would assume that UNT would issue bonds to 1) pay down the debt and 2) allow the few to be in place for a much longer amount of time - lets say 30 years.

As an example, the rec center cost about $31 million to build. The students are paying a $50 per semester fee for the rec center. It looks like the annual debt service payments are about $2.6 million. I would assume that our annual debt service payments would be a little under $5 million.

Lastly, we have to remember that the fee can only pay for 50% of the stadium and the other has to come from private donations. So in a way we would need to bring in half or $2.5 million to pay down the debt. So if we sold all of our 700 club level seats, that would bring about $1.6 million annually. Also, if all 21 suites were sold ($20,000 annual commitment for 5-6 years - not to mention the the donation required) we could see revenue upwards of $21 million per year - just from the suites alone.

I know that this is a lot - but in essence, yes I think that we just might have the money to pay a coach and his staff a nice salary.

[MCMLXXX]

Also, if all 21 suites were sold ($20,000 annual commitment for 5-6 years - not to mention the the donation required) we could see revenue upwards of $21 million per year - just from the suites alone.

How did you come up with $21 million? At $100,000 + $20,000 for 5 years I come up with 20 suites x $200,000 = $4,000,000 over 5 years.

Edited October 23, 2010 by MCMLXXX

[MeanGreenDan]

How did you come up with $21 million? At $1000,000 + $20,000 for 5 years I come up with 20 suites x $200,000 = $4,000,000 over 5 years.

I agree with this math.

[Green Mean]

If we had just gotten degrees from SMU......

[bdan2002]

my bad, you are correct.

[MeanGreenTexan]

Math is over-rated.

[Harry]

Appreciate the information bdan!'

[bdan2002]

No Problem. I love my alma mater. Although I have degrees from Florida State and The University of Wisconsin - Madison, I love UNT more than any of them!!!!

GO MEAN GREEN!!!

[All About UNT]

How did you come up with $21 million? At $1000,000 + $20,000 for 5 years I come up with 20 suites x $200,000 = $4,000,000 over 5 years.

According to my summations....you are correct