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Kelly contract extension in the works


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Money talks.

In college football, winning brings in money.

Look at every university that has one good year. Donations flow in and things get built.

The Crossroads stadium upgrade took place after and because of ND’s playing in the championship game against Alabama.

I live near TCU. The university has massively upgraded every building and built more because Gary Patterson has created a winning tradition. Crazy upgrades.

Swarbrick is no fool. Kelly is no fool. They get extensions, bonuses, and raises with winning seasons.

Winning matters. The administration has created a unique blend of academic recognition and athletic prowess. ND is not in Stanford’s league regarding the mixture for sports overall, but has been separating itself from Stanford in football.

 

Kelly might not win a championship but I think he can.

Bringing in a new coach to replace a guy who has won 10, 12, and 11 games over the last three years is just nuts in my opinion. Crazy talk.

I understand the dissatisfaction of ND not winning championships. But that doesn’t mean they’re not trying.

Winning brings in money. Swarbrick and Kelly understand that.

 

Notre Dame winning a National Championship is like Warren Buffet winning a local 20 million dollar lottery.

 

It's nice for the coffers, but it will not change the projection of the university from a financial standpoint. Notre Dame's endowment fund is over 10 billion.

 

Texas A&M has a larger endowment fund and they do not have anywhere near the success recent or otherwise on the football field.

 

Football success brings a lot of good things in addition to some more financial resources, yes, just not going to be a game changer for a blue blood program.

 

I still maintain that he will leave, whether it be because an NFL team is dumb enough to hire him.... or he gets canned by an AD with balls who wants to field an intimidating team....

 

But I will say that nothing about this decision is surprising....

 

After Frankus mentioned they're moving houses to make room for coach's new house, along with a couple other inklings, I've let go of that notion that he'd get picked up by an NFL team or even spurn us for another blue blood needing a revitalization.

Edited by JTennant
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Notre Dame winning a National Championship is like Warren Buffet winning a local 20 million dollar lottery.

 

It's nice for the coffers, but it will not change the projection of the university from a financial standpoint. Notre Dame's endowment fund is over 10 billion.

 

Texas A&M has a larger endowment fund and they do not have anywhere near the success recent or otherwise on the football field.

 

Football success brings a lot of good things in addition to some more financial resources, yes, just not going to be a game changer for a blue blood program.

 

 

 

After Frankus mentioned they're moving houses to make room for coach's new house, along with a couple other inklings, I've let go of that notion that he'd get picked up by an NFL team or even spurn us for another blue blood needing a revitalization.

 

 

Serious question:

What exactly does the endowment fund fund?

Buildings? I think not. ND won’t build buildings until they have in hand 75% of the money for the building. They shouldn’t have that problem if the $13 billion fund is paying for it. They go ask big dollar donors to give those big dollars for specific projects. They didn’t have the money for the Crossroads project until after ND played Alabama in the championship game. They weren’t using any endowment money for that. Had to have cash in hand. Money flows in from donors to build buildings and provide ‘chairs’ in departments when the team is winning. Donors who give $25 million and up typically have specific uses in mind for that money. It’s not usually given as a blank check, and those big donors don’t usually give that to the endowment (although some do).

 

I really have no idea what ND’s endowment fund is actually used for. I know it has grown a ton in the last 7 years ($7 billion to now $13 billion).

I just don’t think that any of the endowment fund money is accessible to the athletics department in the way most people think. Sure, ND has a very sizable endowment. I sure wish they’d use it on keeping tuition under $60 thousand a year but they don’t. I’d love it if they’d keep football ticket prices down, but they don’t.

What is it actually used for? I think they don’t use it for anything other than making more money.

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Serious question:

What exactly does the endowment fund fund?

Buildings? I think not. ND won’t build buildings until they have in hand 75% of the money for the building. They shouldn’t have that problem if the $13 billion fund is paying for it. They go ask big dollar donors to give those big dollars for specific projects. They didn’t have the money for the Crossroads project until after ND played Alabama in the championship game. They weren’t using any endowment money for that. Had to have cash in hand. Money flows in from donors to build buildings and provide ‘chairs’ in departments when the team is winning. Donors who give $25 million and up typically have specific uses in mind for that money. It’s not usually given as a blank check, and those big donors don’t usually give that to the endowment (although some do).

 

I really have no idea what ND’s endowment fund is actually used for. I know it has grown a ton in the last 7 years ($7 billion to now $13 billion).

I just don’t think that any of the endowment fund money is accessible to the athletics department in the way most people think. Sure, ND has a very sizable endowment. I sure wish they’d use it on keeping tuition under $60 thousand a year but they don’t. I’d love it if they’d keep football ticket prices down, but they don’t.

What is it actually used for? I think they don’t use it for anything other than making more money.

 

According to the ND website, the endowment is used for:

 

31% financial aid ($164 million in 2019)

22% General Operations

17% Faculty Chairs

18% Academic Programs

3% Athletics

2% Libraries

7% Other

 

Some lines from the page:

 

"Notre Dame’s mission statement speaks of the University as a place of teaching and research, of scholarship and publication, of service and community. At the heart of this, through our work and the work of our investment partners, Notre Dame’s bold mission is advanced across all of these dimensions."

 

"Through outstanding stewardship, we seek to advance the University in its quest for excellence as the premier Catholic University in the world."

 

https://investment.nd.edu/impact/

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Just the other day there was a piece in the South Bend Tribune how ND needs to take their endowment and "save" South Bend. There is a serious lack of knowledge regarding endowments. It's not just a giant savings account that you can write a check for anything from.

 

There is a legal component that ensures it goes to the area it is supposed to be directed. The University can't take an endowment meant for the band and give it to the football team. It works much like how our government funds are allocated to certain line items.

 

When Notre Dame wins a national title, I guarantee the endowment will grow. It won't double. Success breeds success whether it be recruiting or funds. Look at the new deal ND has with Fanatics. When you're successful there is a desire to be a part of that and make more money off it.

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According to the ND website, the endowment is used for:

 

31% financial aid ($164 million in 2019)

22% General Operations

17% Faculty Chairs

18% Academic Programs

3% Athletics

2% Libraries

7% Other

 

Some lines from the page:

 

"Notre Dame’s mission statement speaks of the University as a place of teaching and research, of scholarship and publication, of service and community. At the heart of this, through our work and the work of our investment partners, Notre Dame’s bold mission is advanced across all of these dimensions."

 

"Through outstanding stewardship, we seek to advance the University in its quest for excellence as the premier Catholic University in the world."

 

https://investment.nd.edu/impact/

 

Thanks for finding that. Good information.

If 31% equates to 164 million, then that means they spent 529 million total from the fund in 2019. That's quite a bit; more than I expected.

The breakdown of the spending is interesting. 3% on athletics (about 16 million).

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Thanks for finding that. Good information.

If 31% equates to 164 million, then that means they spent 529 million total from the fund in 2019. That's quite a bit; more than I expected.

The breakdown of the spending is interesting. 3% on athletics (about 16 million).

 

The Athletic spending is probably endowed coaching positions and endowed scholarships. The funds donated for those are probably lumped into the "endowment" as restricted funds.

 

The $500 million is about 5% of $10 billion. Not sure if it applies or not but I believe non-profit foundations have to spend 5% of their funds each year to retain their status.

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