Coach K Pay Tops $4 Million

[Atlanta Duke]

Have not seen this posted yet - if so I apologize for the duplicate post

N&O has been reading Duke's filings with the IRS

Duke basketball coach Mike Krzyzewski's pay nearly tripled over four recent seasons — rising from about $1.3 million to more than $4 million...

Former coach Ted Roof, who was fired in late 2007 after four-plus seasons of losing football, was paid $500,000 a year, according to tax filings,

New coach David Cutcliffe, who was hired in December 2007, is paid three times as much as Roof.

The latest tax filing by the university lists $1.54 million of taxable income for Cutcliffe

The latest filing shows that new Duke athletics director Kevin White was paid more than $1.5 million in fiscal 2008-09. Much of it was in bonus money. White's base salary, according to the tax filing, was $410,742. Another $1.1 million was paid in incentive compensation

http://blogs.newsobserver.com/iteam/...uke-topped-41m

This is the link to the full IRS document

http://blogs.newsobserver.com/sites/...cal%20year.PDF

This is what the market sets for pay, but it certainly is different from the market in which John Wooden earned $32,000 per year

[cspan37421]

This is what the market sets for pay, but it certainly is different from the market in which John Wooden earned $32,000 per year

I previously questioned whether 32k was really bad low then (thinking about inflation, the explosion of TV money, etc.) - and was told, yes, even for then, it was embarrassingly low.

But I don't think anyone would doubt that we've made the pie higher.
http://politicalhumor.about.com/libr...hpiehigher.htm

[crdaul]

Very interesting reading in the 990 salary schedule. The name Eugene McDonald is listed with compensation of $5.5 million. More than Coach K and anyone else -- does anyone know who this person is and why he would be paid $5.5 million? Maybe he is handling the Lacrosse fallout????

[pratt '04]

Very interesting reading in the 990 salary schedule. The name Eugene McDonald is listed with compensation of $5.5 million. More than Coach K and anyone else -- does anyone know who this person is and why he would be paid $5.5 million? Maybe he is handling the Lacrosse fallout????

He used to run the Duke Management Company which manages the University's endowment. I thought he retired several years ago, though.

[billyj]

Very interesting reading in the 990 salary schedule. The name Eugene McDonald is listed with compensation of $5.5 million. More than Coach K and anyone else -- does anyone know who this person is and why he would be paid $5.5 million? Maybe he is handling the Lacrosse fallout????

http://www.dukenews.duke.edu/2000/01/mcdonald121.html

Endowment manager? Those are not out of world numbers. Harvard managers probably gets paid more.

[Atlanta Duke]

http://www.dukenews.duke.edu/2000/01/mcdonald121.html

Endowment manager? Those are not out of world numbers. Harvard managers probably gets paid more.

But he apparently retired from that position 10 years ago - nice retirement package?

[billyj]

But he apparently retired from that position 10 years ago - nice retirement package?

haha good point, perhaps. It is strange. Although by the size of duke endowment, a typical management fee would be around $13 million per year. I don't know who currently manages it. But maybe he was hired back?

[CLT Devil]

Interesting the article notes K was given this raise during our 'down years.' Being a private University I have always wondered about things such as the payout to the three (and later more) lacrosse players, but of course that will likely remain confidential for years.

It is, however, nice to know that Coach Cut's staff of assistants and trainers are some of the highest paid in all of D1 (or whatever they call it now). I don't think this was ever reported but he publicly stated it.

He and K are great ambassadors to the University and deserve to get all the money they want to keep them here and happy, IMO. I remember this past year when a reporter asked Calhoun about being the highest paid public employee in the State Of Conn and he basically told the guy to take a hike. I for one am glad we can avoid those types of situations. This is the most I have publicly heard of any compensation, but I might not have been listening.

[CrazieDUMB]

That is pretty rediculous. Granted I love Duke basketball, but for anyone that's read Beer and Circus it's almost unfathomable the extent that sports has taken over (and some say really screwed up) the collegiate landscape.

I think that Duke is largely immune to the type of stuff the book complains about, but 4 mil, wow. I mean I'm not surprised, but in the greater context you have to wonder if that's the most efficient use of academic funds.

[roywhite]

That is pretty rediculous. Granted I love Duke basketball, but for anyone that's read Beer and Circus it's almost unfathomable the extent that sports has taken over (and some say really screwed up) the collegiate landscape.

I think that Duke is largely immune to the type of stuff the book complains about, but 4 mil, wow. I mean I'm not surprised, but in the greater context you have to wonder if that's the most efficient use of academic funds.

Could we quantify Coach K's value to Duke University? He coaches, works through Fuqua Business school, does a ton of stuff involving Duke Hospital, and is a huge public relations figure for the University throughout the world. Doesn't he have a major impact on fundraising for the University and even the number of applications for admission?

He's virtually the K in D-U-K-E.

A bargain at $4million, I'd say.

[billyj]

The truth is, a good basketball program makes way more than $4 million a year.

[dchen09]

In terms of a public relations/spokesman for Duke University, Coach K is being paid alot less than people such as Lebron or Kobe. And comparing to other coaches in similar roles as Coach K, such as Calipari, Coach K never attracts negative attention to the school. I would say 4 million a year is a bargain.

[Duvall]

That is pretty rediculous. Granted I love Duke basketball, but for anyone that's read Beer and Circus it's almost unfathomable the extent that sports has taken over (and some say really screwed up) the collegiate landscape.

I think that Duke is largely immune to the type of stuff the book complains about, but 4 mil, wow.

Why would you say that Duke is largely immune? It's hard to say that the collegiate landscape at Duke hasn't been taken over by sports.

[cspan37421]

In terms of a public relations/spokesman for Duke University, Coach K is being paid alot less than people such as Lebron or Kobe.

LeBron and Kobe are getting more $$ than Coach K for doing Duke PR?

[SmartDevil]

Worth every penny...and hopefully K keeps collecting that salary (adjusted for inflation perhaps!) for coaching Duke for the next decade !

[cspan37421]

I think that Duke is largely immune to the type of stuff the book complains about, but 4 mil, wow. I mean I'm not surprised, but in the greater context you have to wonder if that's the most efficient use of academic funds.

Clearly, we should ask Coach K to deliver Wooden-esque results for $40,000 per year.

But seriously, I do get your point, and I often feel torn. I like the ideal of "college for college students," but for the most part, it seems we actually do have that. But one shouldn't be tempted to assume that we're 100% noble in that regard and everyone else is 0%. There's a continuum.

[wasn't it interesting that Butler had 2 academic All-Americans on their team, Howard & Hayward, but we didn't have any? In the old days, WE would be the ones to point to that and thump our chests. ]

One way to look at it is to think of where we would be as a Cornell or Princeton. There'd be great pride once a decade or so when we'd win ONE NCAA game. But we'd have a lot less money to fund other sports and facilities, etc.

I guess I'm fine with it unless a significant # of our athletes clearly don't belong in college or at Duke. It's one thing to have below avg scores and so forth (half of our student population is below the student pop avg, of course) but if they're 3 SDs off in the tail, that's another thing.) Tough balancing act.

[Acymetric]

That is pretty rediculous. Granted I love Duke basketball, but for anyone that's read Beer and Circus it's almost unfathomable the extent that sports has taken over (and some say really screwed up) the collegiate landscape.

I think that Duke is largely immune to the type of stuff the book complains about, but 4 mil, wow. I mean I'm not surprised, but in the greater context you have to wonder if that's the most efficient use of academic funds.

Those aren't academic funds...they're athletic funds. I'd be curious to see how much money the basketball program brings in...my guess is well more than four million bucks.

[CrazieDUMB]

Why would you say that Duke is largely immune? It's hard to say that the collegiate landscape at Duke hasn't been taken over by sports.

Well the book speaks mostly about football programs at large state universities, pointing out that contrary to popular belief (and I know this is incredible), but they actually lose money year to year. Not only that, but there are tons of studies that show that the idea that a better football team raises applications and fundraising campaigns is BS.

Duke is largely immune because K (as others have pointed out) is a great spokesman and representative. However, it is primarily still a research university, and people for the most part don't come to duke without having a strong interest in academics. While it's certainly a part of the pop culture, I would say that as far as a students' everyday affairs are concerned, class is still #1.

The book is a pretty crazy outline of how regular students are being bilked by their academic institutions that spend a disproportionate amount on sports (in order to look good) in lieu of a fair and worthy academic product. I think that Duke doesn't have that problem.

[Atlanta Duke]

Those aren't academic funds...they're athletic funds. I'd be curious to see how much money the basketball program brings in...my guess is well more than four million bucks.

With the caveat that reality presumably is different from the numbers Duke breaks out for the Education Department, this CNBC article reports that Duke "told the government that its basketball program had $13.87 million in expenses and only pulled in $11.84 million in revenue" for the 2008-2009 season. The CNBC article further states "[t]he real answer is that, while Duke's spending per player does seem to be extraordinarily high when compared to the rest of college basketball, the program in reality did not lose $2 million last year. We have good sources that say the team was fairly well into the green... The government does not ask for a breakdown, for example, of fundraising from boosters or a breakdown of licensing royalties in per program (you can bet that more than 80% of Duke athletics licensing royalties would be attributed to basketball alone)."

http://www.cnbc.com/id/35861926/Did_...Lose_2_Million

[Bluedog]

Those aren't academic funds...they're athletic funds. I'd be curious to see how much money the basketball program brings in...my guess is well more than four million bucks.

Duke basketball lost $2 million last year. Didn't you hear?

http://money.cnn.com/2010/03/18/news...fits/index.htm

Duke University, a top seed in this year's NCAA men's basketball tournament, reported the largest loss of any men's basketball program last year after years of annual profits in the $4 million to $5 million range. The school said that was due to a shift in revenue to the non-sport specific classification.

Here's some more explanation:

http://www.cnbc.com/id/35861926/Did_...Lose_2_Million

Rarely does any tournament team report that its basketball team lost money and Duke's filing certainly suggests that the team did spend more than others in expenses. Duke says it spent $394,068 per basketball player for the 2008-09 season. I couldn't find any of this year's tournament teams that spent more than $175,000 per player. It's ACC counterpart Maryland, for example, said it spent $45,000 per player. Why a Duke player costs more than eight times more, I'm still not sure.

Still unclear, but sounds like there's some strange accounting or one time expenses (e.g. Michael W. Krzyzewski Center for Athletic Excellence) that are being used. BUT, according to figures released by the university, Duke basketball lost $2M last year. I think there was a thread on here about it...

Having said all that, I think Coach K is worth every penny and then some!

Edit: bah! Atlanta Duke beat me to it, using the same article...Sorry for the duplicate posting. I should refresh my page more often...