Northwestern is in this sorry state of affairs due to Michael Schill's actions, most notably, the national press release of publicly disparaging Pat Fitzgerald and stating that Northwestern athletics had a hazing culture. It now looks like Schill's incompetence will cost Northwestern $1+ billion, which will be a huge hit to the endowment or financed by increase debt.
Let's take a look at all the ways Schill has cost the University:
Fitz Settlement - As the Daily Herald article states, it's estimated that Fitz will recover 2-3x what his contract guaranteed because of Michael Schill's statements.
Player Lawsuits - Michael Schill invited lawsuits based on his statements that he believed there was a culture of hazing. Also as the Daily Herald article points out, Northwestern lawyers now need to argue they fired Fitz for allowing a culture of hazing, and then at the same time, argue against the players that there was no culture of hazing and/or it was mundane with no harm being done. No matter what, the players lawsuits will cost legal fees, and likely some sort of settlement.
Loretta Lynch - On campus, nobody has heard from Loretta Lynch and nobody really cares what she says on the topic of culture or hazing. The cynical view is that Michael Schill hired Lynch's firm Paul, Weiss as a way to pre-pay his salary for when they hire him after the NU BoT fires him.
Season Tickets - Northwestern has already seen the cancellation of 700 season tickets since Schill's actions, which is about 3-years worth of new sign-ups. They are afraid that there will be massive deluge after this season, since most people had already re-upped their tickets for the 2023 season when Fitz was fired and because the 'Cats will be playing elsewhere during construction.
Stadium Donations / Corporate Sponsors - The plan is still to do an ~$800 million stadium with the Ryan's good for half. However, at least three donors who had committed $100 million among them, have backed out / put their donation on hold. The development office is having non-stop conversations about how everyone hates Schill and there are very few donations. Which alumni are going to sign 10-year contracts for suites or tickets right now? On the corporate side, they don't want to be associated while there is a cloud around NU, so naming rights for the "Ford Terrace", "United Skybox", or "McDonald's Patio" are dead. This means the balance of the stadium costs will be paid for by debt (or by the endowment loaning money to the athletic department).
City of Evanston / Events - Everybody agrees that the Evanston City Council is a bunch of clowns, and they are always looking to extract as many concessions from Northwestern as possible. The problem is this: Pat Fitzgerald was extremely popular and was able to rally public support, but Michael Schill is unlikeable and there is no pressure for Evanston to make any deal. Already, NU has had to reduce the number of concerts from 12 to 6. A sold-out Ohio State game is expected to generate $2 million in game day profit. A concert might generate $1 million. So losing 6 concerts per year is losing $5+ million per year every year in operating revenue that would help pay for the stadium and the athletic department budget.
Guaranteed Coaching Contracts - You think CC or KAH didn't notice? Every single coach at Northwestern has watched how Schill fired and disparaged Fitzgerald without due process. Every single coach is now asking for more guaranteed dollars and better contract language. You can bet the same will be true for the next set of football coaches.
Overall Donations - Similar to the athletic department donations, overall donations have dropped substantially (although I don't have specific numbers).
UnderArmour - UnderArmour has dropped several universities from their sponsorship, including Cal, UCLA, BC, Cincinnati, etc. The athletic department fears that Northwestern may be next and that if we're dropped, the next deal won't be as beneficial.
Schill Termination / Replacement - Schill will be fired, so NU has to pay his severance and then hire a search firm and a new President. [Gragg will be gone regardless of who is President. Trustees do not like Gragg. Has zero support from anyone.]
P.S. WORST CASE DISASTER THINKING: Super Football Conference - Northwestern will never be kicked out of the Big Ten, but football is becoming a beast and is much different than every other university sport... The fear is that in the next round of TV contracts in ~2030, the Big Ten will drop football as a conference sport, and a new super conference for football will be formed. If it's the most marketable 32 teams, would Northwestern be invited? If it's the most marketable 64 teams, would Northwestern be invited?
The fall out from Schill's incompetence is just starting and is likely to cost Northwestern $1+ billion in direct and indirect costs.
Let's hope we win some football games. #GoCats
Let's take a look at all the ways Schill has cost the University:
Fitz Settlement - As the Daily Herald article states, it's estimated that Fitz will recover 2-3x what his contract guaranteed because of Michael Schill's statements.
Player Lawsuits - Michael Schill invited lawsuits based on his statements that he believed there was a culture of hazing. Also as the Daily Herald article points out, Northwestern lawyers now need to argue they fired Fitz for allowing a culture of hazing, and then at the same time, argue against the players that there was no culture of hazing and/or it was mundane with no harm being done. No matter what, the players lawsuits will cost legal fees, and likely some sort of settlement.
Loretta Lynch - On campus, nobody has heard from Loretta Lynch and nobody really cares what she says on the topic of culture or hazing. The cynical view is that Michael Schill hired Lynch's firm Paul, Weiss as a way to pre-pay his salary for when they hire him after the NU BoT fires him.
Season Tickets - Northwestern has already seen the cancellation of 700 season tickets since Schill's actions, which is about 3-years worth of new sign-ups. They are afraid that there will be massive deluge after this season, since most people had already re-upped their tickets for the 2023 season when Fitz was fired and because the 'Cats will be playing elsewhere during construction.
Stadium Donations / Corporate Sponsors - The plan is still to do an ~$800 million stadium with the Ryan's good for half. However, at least three donors who had committed $100 million among them, have backed out / put their donation on hold. The development office is having non-stop conversations about how everyone hates Schill and there are very few donations. Which alumni are going to sign 10-year contracts for suites or tickets right now? On the corporate side, they don't want to be associated while there is a cloud around NU, so naming rights for the "Ford Terrace", "United Skybox", or "McDonald's Patio" are dead. This means the balance of the stadium costs will be paid for by debt (or by the endowment loaning money to the athletic department).
City of Evanston / Events - Everybody agrees that the Evanston City Council is a bunch of clowns, and they are always looking to extract as many concessions from Northwestern as possible. The problem is this: Pat Fitzgerald was extremely popular and was able to rally public support, but Michael Schill is unlikeable and there is no pressure for Evanston to make any deal. Already, NU has had to reduce the number of concerts from 12 to 6. A sold-out Ohio State game is expected to generate $2 million in game day profit. A concert might generate $1 million. So losing 6 concerts per year is losing $5+ million per year every year in operating revenue that would help pay for the stadium and the athletic department budget.
Guaranteed Coaching Contracts - You think CC or KAH didn't notice? Every single coach at Northwestern has watched how Schill fired and disparaged Fitzgerald without due process. Every single coach is now asking for more guaranteed dollars and better contract language. You can bet the same will be true for the next set of football coaches.
Overall Donations - Similar to the athletic department donations, overall donations have dropped substantially (although I don't have specific numbers).
UnderArmour - UnderArmour has dropped several universities from their sponsorship, including Cal, UCLA, BC, Cincinnati, etc. The athletic department fears that Northwestern may be next and that if we're dropped, the next deal won't be as beneficial.
Schill Termination / Replacement - Schill will be fired, so NU has to pay his severance and then hire a search firm and a new President. [Gragg will be gone regardless of who is President. Trustees do not like Gragg. Has zero support from anyone.]
P.S. WORST CASE DISASTER THINKING: Super Football Conference - Northwestern will never be kicked out of the Big Ten, but football is becoming a beast and is much different than every other university sport... The fear is that in the next round of TV contracts in ~2030, the Big Ten will drop football as a conference sport, and a new super conference for football will be formed. If it's the most marketable 32 teams, would Northwestern be invited? If it's the most marketable 64 teams, would Northwestern be invited?
The fall out from Schill's incompetence is just starting and is likely to cost Northwestern $1+ billion in direct and indirect costs.
Let's hope we win some football games. #GoCats
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