Jan. 12, 2012
Dear Tech Fans & Supporters,
On behalf of our student athletes, coaches and staff, I want to voice our gratitude for the tremendous support and enthusiasm that you expressed this past year for Tech athletics. In terms of academic and athletic achievement, our student athletes and coaches continue to make us proud. I hope all of you feel a great sense of pride and satisfaction in the football team's 2011 WAC Championship and participation in the San Diego County Credit Union Poinsettia Bowl. As we look ahead to 2012, I would like to take this opportunity to update you on some of the key issues, projects and challenges the athletic department faces.
Revenues vs. Expenses
After being recognized as WAC Coach of the Year, Head Coach Sonny Dykes attracted the interest of several schools looking for a new coach to lead their football programs. Our ability to retain Coach Dykes and his staff was based on making an investment in coaching salaries funded entirely from private donations. As your program continues to grow, we must generate new revenue to offset the added expense of investing in football. At the same time, State support continues to shrink, and tuition increases also add to the expense side for the athletic department.
Why invest in football?
Football success is tied to generating more outside support (ticket sales and donations) and a means to offset the reduction in State funds, increases in tuition and the investment in football. Football success also generates great publicity and marketing for the entire University and is the key driver in conference realignment.
Growing Revenues
As the athletic program endures growing pains, the challenge is to increase revenues at a greater rate than expenses are incurred and investments are made. This must be accomplished without the benefit of BCS television revenue. The key is generating more revenue from ticket sales and private donations. Increasing revenue allows the program to retain quality coaches, build better facilities and achieve competitive and academic success.
Home Football Games vs. Guarantee Games
Increasing ticket sales not only plays a significant role in generating revenue and our ability to invest in coaches and facilities, it also allows a program to achieve competitive success and build a fan base by scheduling an additional home game. In 2012, we plan to have six home games; however, this comes at a cost. Hosting an additional home game means the department sacrifices revenue that could be derived from playing a guarantee game on the road for $1 million. A home game generates roughly $200,000 in revenue. In 2012, we will have two guarantee games at Virginia and Illinois. In order to continue to schedule more home games, we need to increase our season ticket base to 10,000. This is a realistic goal when you consider Louisiana Tech has 35,000 alumni and many more supporters and fans living in close proximity.
Private Donations Increase Revenue
Another important avenue the department has to increase revenue and allow for investment is private donations through LTAC. In 2007, the athletic donor base consisted of 650 members who contributed annually. In 2011 the number of supporters to LTAC was 1,100. There is strength in numbers, and a realistic goal for the department would be 2,000 LTAC members. Funds raised from LTAC help offset scholarship expenses for all sports which increase as tuition rises due to reductions in State support.
Quest for Excellence
Significant progress has been made in the campaign to raise private funds to invest in and improve athletic facilities. Our expectation is to engage the architect and initiate the planning for the development of the construction documents for the building project. Investing and improving our facilities will enhance our ability to attract quality student athletes, achieve competitive success in all sports, generate new revenue and improve our opportunities to align our program with similar institutions with the same commitment to excellence.
Conference Realignment
On January 15th, Conference USA will meet to discuss the proposed alliance and/or merger with the Mountain West Conference. Once the exact configuration is determined, expansion will be reviewed, and LA Tech, along with several other institutions, is expected to receive consideration for membership. The opportunity to be a member of this type of configuration would significantly enhance revenue derived from television.
I am excited about the tremendous opportunities and challenges that lie ahead for your athletic program. I want you to know that I consider it an honor to serve as your athletic director and to represent the University, alumni, fans and especially our students. I promise we will do everything we can to continue to strive for excellence in all areas and represent your program with integrity. Thank you for your enthusiasm and generous support. Go Tech!
Sincerely,
Bruce Van De Velde
Director of Athletics
