‘Utilities (costs) are through the roof’

As prices at the pumps exceeded $4 a gallon in the Richmond area this summer for regular gasoline, many families decided to take “staycations” and not travel.

According to Senior Associate Athletic Director Jeff Cupps, VCU Athletics took a different approach because of low-cost airlines that have entered the Richmond market. Also, Virginia’s travel reimbursement plan per mile for taking charter buses has gone up.

The department continues to schedule as many road games as when gas was a better bargain.

“The costs of flights now are probably cheaper than they were five years ago, when fuel costs were cheaper,” Cupps said.

AirTran and JetBlue Airways – alternatives to higher-priced airlines – have maintained affordable airfare and offer direct flights to cities frequented by VCU teams, such as Atlanta, Boston and New York.

Other energy costs though, have no alternatives.

“Now, fuel costs that really are hurting us big time are energy costs,” Cupps said.

“It used to cost, maybe four or five years ago, about $1,000 a day to open the doors in (the Siegel Center). Turn on the lights, heat it, cool it, whatever,” Cupps said. “And I would guess now that’s jumped by around 30 percent . and that’s huge.”

The increased cost to operate the Siegel Center could result in $100,000 a year more than what it was several years ago. That doesn’t include the lights at SportsBackers Stadium or the bubble over Thalhimer Tennis Center.

The athletic department is budgeted for about $13.2 million from July 1, 2008 to June 30, 2009. Another $4-5 million is earmarked for operations management. Operations management includes the energy costs to keep the lights on and heat and cool indoor facilities, as well as security and event staff.

The Ohio State University, which has the highest operating cost of any school in the country, spent more than $109 million on athletics in 2006-2007, according to the U.S. Department of Education’s Equity in Athletics Web site, because of high profile and revenue.

The site states VCU Athletics’ total expenses for 2006-07 – the last report listed – was $13,250,942.

Programs such as Ohio State, Penn State University and the University of Texas have the luxury to avoid steep travel expenses by buying out their opponent’s return game.

“Typically, game guarantees are maybe $35,000 to $50,000 that you have to pay the visitor to come play you if you’re not going to go back the next year and play them,” Cupps said.

VCU doesn’t generate that kind of money, Cupps says, because those schools can ensure up to 100,000 fans in the stadium every Saturday for football and 20,000 for basketball.

As a result, VCU favors scheduling return games against opponents – despite travel headaches. For instance, the field hockey team hosted Fairfield in 2007 and traveled to Connecticut to play the return game in August. VCU would have to buy out Fairfield in order to avoid traveling for the return game.

VCU’s teams frequently charter buses as a means of transportation to road games. Virginia offers compensation to athletics programs for using their own vehicle to travel.

“The state has mileage reimbursement whenever you use your own vehicle, and that’s really jumped up too,” Cupps said.
“It used to be about 32 cents per mile (that you were reimbursed), but now it’s more like 50 cents.

Cupps said reimbursement is a good way for the department to offset travel expenses. Expenses of hosting a game, such as paying $400 a match for volleyball officials, cannot be offset the same way.

“I’m not sure you save money by not traveling,” Cupps said, but “utilities are through the roof.”