JD hopes that UH's Athletic Budget is balanced by 2011

About hoping to balance their Athletic Department budget by the 2011 fiscal year, JD said:
"We've got a lot of factors, a lot of dynamics are changing out there. I would say by then we should be getting (the operating deficit) close to zero. Based on everything I can see in my hazy crystal ball. I think it's very realistic for us to be in the black. It's just that we're in the depths of the economic valley right now." (HSB)

About their projected $2.6 million deficit in the 2009 FY, adding to their previous deficit of $5.4 million, JD said:
"It's definitely more challenging than what I envisioned from (a financial) standpoint." (HSB)

About how a conservative estimate of 2010 would project a deficit of about $2 million, JD said:
"It could be much better than that, and certainly hopefully not worse than that." (HSB)

About how he expects football season-ticket renewals to drop from the average rate of 90%-95% to 80%-85% this year, JD noted that they have BSU, Fresno State, Navy and Wisconsin at home this year and concluded:
"That doesn't necessarily mean we're going to make less revenue from football." (HSB)

HSB Note: "Donovan said he fielded offers from two BCS programs, including one from the Southeastern Conference, to have the Warriors play a one-time road game for a payout of around $1 million. But the competitive circumstances contributed to Donovan's decision to pass on the offers."

About how he turned down two offers (one from the SEC) for $1 million for a road game due to their preference for home-and-home series, JD said:
"I'm not ruling out completely us playing in a money game. I'm saying it just has to make sense for us." (HSB)

About how their financial situation is related to the overall economy, JD said:
"About 85 percent of what we do is from disposable income. You're going to pay your bills, and what you have left is your disposable income. You're going to save some of it, you're going to go out to eat, and you're going to use some for entertainment. It's the entertainment value that gets them to come. When disposable income shrinks, winning and losing becomes the compelling argument to go to a UH game." (HSB)

http://www.starbulletin.com/sports/sportsnews/20090702_donovan_eyes_2011_for_balancing_budget.html