Special Presentation/Announcement from Dr. Levitt

[lhsgolf19]

for the Men's Program tonight

David Jablonski
@DavidPJablonski
·
38m
It’s a day full of basketball. TBT bracket reveal at noon and then Dayton superfan Dr. Stephen Levitt’s announcement/birthday party tonight.

https://twitter.com/DavidPJablonski/...O6MVU5EUKzgWOQ

I wonder what it is... NIL? Money for a new facility? etc.

[Flyerferd]

I know they are having a bracket reveal party at the arena this afternoon I hope a few hundred people show up at least.
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[Lifelong Flyer Fan]

I’m at the arena now.😁
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[OSU Flyer]

UD desperately needs a foundation for NIL

[BeckysTXA]

Originally Posted by OSU Flyer UD desperately needs a foundation for NIL

I don’t know what option for NIL will hold up under tax codes and whatever the NCAA does or probably doesn’t do for pay for play. But schools that don’t get in the game sooner rather than later are toast. I am not a fan of the out of control NIL world. But I also don’t have my head in the sand. It not coming…it’s here. And UD is behind right now. Maybe that changes later today.

[OSU Flyer]

Originally Posted by BeckysTXA I don’t know what option for NIL will hold up under tax codes and whatever the NCAA does or probably doesn’t do for pay for play. But schools that don’t get in the game sooner rather than later are toast. I am not a fan of the out of control NIL world. But I also don’t have my head in the sand. It not coming…it’s here. And UD is behind right now. Maybe that changes later today.

reading the tea leaves it could be the difference on getting a 5th year out of Camara

[lhsgolf19]

Huge coaching endowment from Levitt

https://daytonflyers.com/news/2022/6...ing-chair.aspx

This is awesome!
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[tirebiter]

So, what does this mean? More money for AG? I'm a real dummy about understanding endowments. I know big $$ is involved, but can somebody explain in layman's terms what this does?

[frisco flyer]

Basically, this means that Coach Grant's salary will be paid out of the endowment fund. Presumably, the funds that this endowment frees up will still be allocated to the BB program budget, enabling the program to pay higher salaries to the rest of the coaching staff (which can help with retention) and for investments in other areas like player development, facilities and equipment.

[moville]

Is the doc a UD grad?

[Flyers98]

Originally Posted by frisco flyer Basically, this means that Coach Grant's salary will be paid out of the endowment fund. Presumably, the funds that this endowment frees up will still be allocated to the BB program budget, enabling the program to pay higher salaries to the rest of the coaching staff (which can help with retention) and for investments in other areas like player development, facilities and equipment.

I would add, the way endowments generally work, only the income is available for spending, the endowment principal remains intact to generate future income for future use.

[NJFlyr71]

Originally Posted by Flyers98 I would add, the way endowments generally work, only the income is available for spending, the endowment principal remains intact to generate future income for future use.

Yep! Say the endowment is $1 Mil and the funds are conservatively invested (which is generally the conditions) on a good year you receive 10% return. That's $100K not enough by itself to pay or cover the cost of a HC salary. But it helps.

DR. Obvious here, $5 mil gets you $500K but probably still not enough for coverage in full. But it really starts to help at this level.

Not sure what the base salary for AG is. I know they also get money for endorsements and bonus (?) for winning in post seasons and what ever the coach can get from any other activity.

So to cover the FULL salary the endowment would have to be substantial. And I am not aware what the dollar amount of either part of this transaction (AG salary or endowment fund) is.

But it always helps to get a new source of $$ .... we all understand that!

[Flyers98]

Originally Posted by NJFlyr71 Yep! Say the endowment is $1 Mil and the funds are conservatively invested (which is generally the conditions) on a good year you receive 10% return. That's $100K not enough by itself to pay or cover the cost of a HC salary. But it helps. DR. Obvious here, $5 mil gets you $500K but probably still not enough for coverage in full. But it really starts to help at this level. Not sure what the base salary for AG is. I know they also get money for endorsements and bonus (?) for winning in post seasons and what ever the coach can get from any other activity. So to cover the FULL salary the endowment would have to be substantial. And I am not aware what the dollar amount of either part of this transaction (AG salary or endowment fund) is. But it always helps to get a new source of $$ .... we all understand that!

Others can also contribute to the fund so it is certainly possible that at some point there is enough money to generate income sufficient to pay the whole salary (or a buy out God forbid).

[TommyGola]

Originally Posted by NJFlyr71 Yep! Say the endowment is $1 Mil and the funds are conservatively invested (which is generally the conditions) on a good year you receive 10% return. That's $100K not enough by itself to pay or cover the cost of a HC salary. But it helps. DR. Obvious here, $5 mil gets you $500K but probably still not enough for coverage in full. But it really starts to help at this level. Not sure what the base salary for AG is. I know they also get money for endorsements and bonus (?) for winning in post seasons and what ever the coach can get from any other activity. So to cover the FULL salary the endowment would have to be substantial. And I am not aware what the dollar amount of either part of this transaction (AG salary or endowment fund) is. But it always helps to get a new source of $$ .... we all understand that!

I cannot say for certain this to be true, but I believe given the coverage it is getting that the endowment is far greater than either of the numbers cited above.

[jack72]

Coach Grant's salary is estimated at $1.7 million, so the endowment is about $17 million.

[Lifelong Flyer Fan]

Originally Posted by moville Is the doc a UD grad?

No, He attended Fairview Elementary, Fairview High School and then Ohio
State.

Regarding the endowment, here s a quote from the DDN article:

"Levitt’s gift will not fund the entire salary of Grant or the head coaches who follow him, Sullivan said.

“The university has an endowment,” Sullivan said. “The board sets an endowment spending policy. So the corpus or the principle of the gift was placed in the university’s endowment that’s invested with various asset classes. Then the spin-off will help offset the salary for the men’s basketball coaching position.”

[bcross]

Originally Posted by Flyers98 I would add, the way endowments generally work, only the income is available for spending, the endowment principal remains intact to generate future income for future use.

Just to add to that, the annual withdrawals from the endowment are usually capped at a certain percentage (4-5%) of the fund assets.

[N2663R]

Originally Posted by Lifelong Flyer Fan “The university has an endowment,” Sullivan said. “The board sets an endowment spending policy. So the corpus or the principle of the gift was placed in the university’s endowment that’s invested with various asset classes. Then the spin-off will help offset the salary for the men’s basketball coaching position.”

So it would appear that UD already had an endowment setup for the basketball coaches in general. This gift may complete the funding the current level or may be substantial enough to cover some future increases. Regardless, it is a huge boost for the program. Every dollar that is received in any manner is one less dollar that the program has to generate on it's own.

[BeckysTXA]

Originally Posted by N2663R So it would appear that UD already had an endowment setup for the basketball coaches in general. This gift may complete the funding the current level or may be substantial enough to cover some future increases. Regardless, it is a huge boost for the program. Every dollar that is received in any manner is one less dollar that the program has to generate on it's own.

I tried to multi quote but it didn’t pick up….anyway, I don’t think the university has an endowment set up for basketball coaches. I think Neil’s quote says the university has an endowment already so they put this gift into the general endowment and the money is earmarked to help pay the basketball head coach. There was no need to set up a 2nd endowment or a new one with this gift. They don’t have to hire a fund management firm, etc. They already have one. And I believe when they use the term “chair” that’s a similar term to “earmark” and “underwrite” in the endowment world. So within the general endowment, there are now funds that will help pay the head coach. It should also be noted, this payout to the “chair holder” (currently Grant) it could be an annual bonus or it could be to help offset contracted salary. That question wasn’t asked Neil.