Wednesday, November 18, 2009
Analysis: Monies available; UVa has funds to buy out Al Groh

Jason O. Watson | US Presswire
It would cost Virginia more than $4 million to pay head football coach Al Groh for the remaining two years on his contract.
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When Virginia decided to build a new $128 million basketball arena, construction started before all the funding was secured. When the Cavaliers decided to release two men's basketball coaches before the end of their contracts, buyout checks were written. When it comes time to decide on the future of nine-year football coach Al Groh, money will not be an object.
It would cost Virginia more than $4 million to pay Groh for the two years that remain on the contract, but it might be costlier to keep him. Annual giving is nearly $3 million below goal, season-ticket sales dropped by more than 4,000 this year and attendance is down by more than 7,500 (or 14.1 percent).
Think attendance doesn't matter?
"It's an indicator as to how the fan base is responding to the product," said UVa director of athletics Craig Littlepage said. "Attendance is a by-product of how the program is perceived.
"When you're looking at ticket sales and your ability to raise money, et cetera, these are challenging circumstances."
Groh's contract specifies that Virginia has until Nov. 30 to decide whether to exercise a rollover clause. Littlepage did not activate the rollover clause following a 5-7 season in 2008.
That left Groh with three seasons on his contract, and if he did not get an extra year in 2008, it's inconceivable that he would get an extra year with the Cavaliers currently standing 3-7.
Only one other ACC program, Maryland, has fewer victories than Virginia. The Terps also have a ninth-year head coach who shares Groh's NFL background, Ralph Friedgen, but there has been widespread speculation that Maryland can't afford his buyout.
Littlepage has gone this long without addressing the Groh situation, so what's another 12 days? But he is no stranger to the process, having terminated the contract of four-year men's basketball coach Dave Leitao in March.
Leitao received a $2.1 million settlement. His predecessor, Pete Gillen, received a $2 million buyout in 2005.
There are two misconceptions about the buyouts:
One is that UVa is paying three men's basketball coaches, which is not the case. Gillen received a lump sum.
The other is that other areas of Virginia's athletic operations will suffer because of all the coaches being paid not to work.
"Absolutely not," Littlepage said. "I think I've made a statement about not putting your total program in jeopardy. In any situation like this, it would not come into play in terms of our normal operating budget.
"This is something that's done independent of the routine operation. For unbudgeted, unanticipated expenditures, whether they be facilities or personnel, you have different things that could come into play.
"That's everything from reserves to endowments to private philanthropy."
Private philanthropy? Ah, the well-heeled alumnus (or alumna) stroking a seven-figure check.
"I think it's safe to say that you would have philanthropic commitments in place to help handle these sorts of situations," Littlepage said.
"I think the 'X' factor for any institution is the current climate of what's going on. Few schools are bulletproof in terms of anticipating shortfalls."
Littlepage recommends a Nov. 8 piece in the Chronicle of Higher Education, in which writer Libby Sander reports on Stanford's call for $8 million in athletic budget cuts. Stanford has won the Learfield Director's Cup, symbolic of national all-sports supremacy, for 15 straight years.
"If it can happen to Stanford, it can happen to anybody," Cardinal athletic director Bob Bowlsby was quoted.
But, then came word this week that Stanford could announce a lucrative contract extension for football coach Jim Harbaugh at any moment. Back-to-back blowouts of then-No. 8 Oregon and then-No. 11 Southern Cal apparently brought the private philanthropists out of the woodwork.
Virginia made $1.6 million in budget cuts this year and, as a university, has decided not to undertake any building projects until they are fully funded. That includes a field house for the track-and-field programs, which captured a men's outdoor ACC championship last spring.
"In any given year, we budget conservatively," Littlepage said. "We did so this year, and we did so last year, when we faced some of the same sort of dynamics in terms of ticket sales."
Virgnia's goal for 2009 fundraising is $16.8 million. The Cavaliers only recently went over the $13.8 million mark and this is a time of year when donations usually slow down.
There is anecdotal evidence of donors saying they will withhold their contributions as long as Groh is UVa's football coach, but that could be a convenient cop-out, giving a static economy. It would be interesting to see if a coaching change would cause a spike in giving.
Littlepage, an economics graduate of the Wharton School at Pennsylvania, speculates that potential contributors could be waiting to assess their tax status.
"We are hoping for an up-tick at year's end," Littlepage said.
Resolution of the coaching situation should come quickly. If Littlepage declines to exercise the rollover clause, Groh might resign on the spot. If Groh doesn't resign, Littlepage would have the option to fire him. Presumably, some sort of settlement will be reached beforehand.
The subject of Groh's future was broached on a teleconference this week and he didn't bite.
"All I talk about is what's good for the players," he said.
At least from a financial standpoint, Virginia will make good by him.




