Athletics department of a university, budget revision options. Gary Connolly is the ath¬

letics director of Pacific University (PU). He has been director for more than ten years. PU is a men’s football and basketball powerhouse. The women’s athletics program, however, has had less success. Last year, the women’s basketball team finally had more wins than losses.

Connolly has just had a meeting with Laura Reddy, the newly appointed president of PU. It did not go well. Reddy and Connolly discussed what she called “Draft I” of the 2008 athletics department budget. He had believed it was the final draft. Reddy expressed four grave concerns about Draft I in particular and about the PU athletics program in general:

Concern 1. The athletics department was budgeting a loss of more than $3.6 million in 2008. Given the tight fiscal position ofthe university, this was unacceptable. A budgeted loss of $1.2 million was the most she would tolerate for 2008. Draft II of the 2008 budget was due in two weeks’ time. By 2009, the athletics department had to operate with a balanced budget. She told Connolly this was nonnegotiable.

Concern 2. The low allocation ofmoney to the women’s athletics program. Frontline, a tabloid television show, recently ran a program titled “It’s a Man’s World at the Pacific University Athletics Program.” Reddy said Connolly was treating woman athletes as

“third-class citizens.”

Concern 3. The low academic performance of the men’s football athletes, many of whom had full scholarships. Reddy noted that the local TV news recently ran an interview with three football-team students, none ofwhom “exemplified the high academic credentials she wanted Pacific to showcase to the world.” She called one student “incoherent” and another “incapable ofstringing sentences together.”
Concern 4. The outrageous salary paid to Bill Madden, the football coach. Reddy noted it was twice that of the highest-paid academic on campus, a Nobel Prize winner!
Moreover, Madden received other payments from his “Football the Pacific Way” summer program for high-school students.
Exhibit 6-11 is a summary of the Draft I athletics department budget for 2008.

Instructions Form groups oftwo or more students to complete the following requirement.

Required Your group is to prepare Draft II of the athletics department’s 2008 budget. This draft will form the basis of a half-day meeting Connolly will have with key officials of the athletics department.