Facilities

[vu72]

Valpo is in no danger of suffering St. Joe's fate. VU's endowment as of 2016 was $205M, roughly $30M more than Butler's endowment. In theory, VU could spend $100M to build a new arena and still have a larger endowment than Illinois State, a school five times Valpo's size.

This is short sited to say the least.  And comparing Valpo to Illinois State, a school run by the worst financed state in America is really problematic. I would doubt there are any state run schools in Illinois not VERY concerned about funding.

Now, on to the reality of private higher education.  Valpo's 206,000,000 endowment is not available to the whims of the Board.  So the idea of taking funds from this source is just not allowed let alone prudent.  Assuming a 5% return (don't look for a moment at 2008's 30% negative return) the endowment creates 10,300,000 of funds available to give grants, help support a very highly qualified group of professors and, oh yah, pay the light bill.  So Valpo says, in written form, to entice students to come to Valpo, that we give 110,000,000 in grants etc. each year.  So some of this is loans, some federal  and state grants and loans and the rest is DISCOUNTS granted on the 52,980 sticker price. If we want to attract lesser qualified students with lots of discounts it will work.  Higher level students, given the same or better price will opt for schools deemed to have better academics all the while pointing to the lower standards accepted by Valpo in the admission process as a reason to go elsewhere.  Discounting leads to deficits and deficits lead to debt which leads to failure.  It is a serious matter of financial warfare both for tuition and facilities.

Higher education is in a serious death spiral for many instituitons.  Schools with inadequate endowments WILL fail.  No doubt, several schools on the aforementioned list are is crisis mode even as we write tonight.  Google colleges who have closed their doors.  And as for Colby, lots of wealthy alumni, 708 million in endowment, a tiny student body to support and the accompanying smaller support and faculty and facilities made for a small school like a gym that seats 2600.

[wh]

Bloomberg shows Valpo's current endowment as $140M. According to a separate source, Valpo's endowment in 2010 (post '08 market crash) was $491M. Then plug in 72's reported $205M in 2016, and you have one of the most disturbing year-over-year endowment declines I have ever seen. How can this be?

Since President Trump has been in office, endowment values have skyrocketed in line with the crazy stock market boom. Not only have endowment values dramatically increased, endowment earnings are running as high as 20% per annum. With the current market, any funds manager earning less than 10% for their clients should be run out of the business.

IF these reported endowment values are accurate, the University has spent its "savings account" funds like drunken sailors. Even worse, it withdrew huge sums of money during a flat or declining market, and now the money isn't there to take advantage of the current market upturn.

Current
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=3533755

2010
http://endowments.com/valparaiso-university/

College endowments had a massive rebound thanks to Trump

https://www.google.com/amp/s/amp.businessinsider.com/college-endowments-benefit-from-trump-bump-2017-8

[crusadermoe]

$205m sounds right.    The Blomberg number must be really old.  Valpo did botch their investments in 2009, 2010 or 2011 once.   But it was over $200m and likely went past $220m if they are average. 

[bigmosmithfan1]

Those Bloomberg snapshots are rarely current for anything beyond publicly-traded companies. And even then they can run a couple of years behind.

[ml2]

I have to agree that the Bloomberg info does not look accurate. The person they list as chief financial officer has been retired since 2012.

[wh]

Let's try this (from 990's):

In Millions
2007 $203
2008 $144
2009 $144
2010 $166
2011 $166
2012 $185
2013 $213
2014 $218
2015 couldn't find
2016 not available

IRS process dates for Valpo's annual 990's are typically 18 months after year's end. Thus, 2015 would not have been processed until July 2017. I couldn't find it. 2016 won't be processed until July 2018.

[valpo95]

Bloomberg shows Valpo's current endowment as $140M. According to a separate source, Valpo's endowment in 2010 (post '08 market crash) was $491M. Then plug in 72's reported $205M in 2016, and you have one of the most disturbing year-over-year endowment declines I have ever seen. How can this be?

I think I have the answer. The Bloomberg number of $140M is seriously out of date and incorrect. 72's number of $205M is a pretty good estimate.

The separate source  estimate of $491M is NOT reporting just the endowment. It was one estimate of the total assets attributed to the university: Here, total assets include the endowment plus all of the buildings, land, books, equipment, etc. owned by Valpo. For example, the new science building cost about $40M, and that would now be considered an asset of the university. Add up the value of all the buildings and land, and it isn't hard to come up with a $300M asset base, plus a $200M endowment.

[VU2014]

The endowment obviously won't be tapped for ARC renovations nor should it be. But the endowment seems large enough especially with the recent fundraising efforts to give a cushion to allow for a separate athletics department fundraising push after entering the MVC.

It's frustrating that this admin doesn't really care that much (Yes of course they care but not enough to invest in). They give the Athletics Department the minimum resources  to just maintain the status quo and its up the Athletics Department and Coaching Staffs to make the strides. We're lucky that we have good people in place that get the most out of the resources they have been given. President Allen Harre was a frugal man himself but at least he made the right hires in bringing in Mark LaBarbera. Homer Drew came to Valpo when President Harre first started back in 1988. Allen Harre left a lasting legacy on Valpo athletics. Once President Heckler took the torch back in 2008 he's sort of has just done enough to maintain the status quo.

What significant achievement or progress can we credit to President Heckler in terms of Athletics in his time as President?
-The track was built but the donation had nothing to do with President Heckler pushing for it.
-The Football team is very clearly making positive strides the last few years but that is more due to the AD making the right hire and the football alumni stepping up and helping the program.
-Homer built up the program well before President Heckler took over and the Drew's have always been asking for upgrades to the ARC.
-The Coach Lottich hiring was more the ADs call.

Maybe I'm being too harsh but I'm not impressed with his commitment to athletics.

[VULB#62]

The endowment obviously won't be tapped for ARC renovations nor should it be. But the endowment seems large enough especially with the recent fundraising efforts to give a cushion to allow for a separate athletics department fundraising push after entering the MVC.

Here again we seem to almost always talking be about one thing -- the ARC, because it means a lot to many on this board.  But that brings us back to my original premise:  in the absense of good planning, ad hoc decisions (like, what to do about the ARC today) that depend on which way the wind is blowing are made. 

I purposely left out of the quote of the previous post any criticism of the president and the administration, but I will go on record with one thought on this subject: 

     The greatest, immediate contribution President Heckler can make to the future of Valpo athletics is to commission, by the close of the 2017-18 academic year,  a comprehensive, professionally performed, long-term Athletic Department Facilities Master Plan that requires completion and public release by December 1, 2018.

For too long our athletic department has been forced to operate in a reactionary mode with no long term goals in plain sight.  In spite of this, much has been done to make Valpo a player among mid-major universities.  Athletically, through the efforts of our dedicated staff, many of whom have joined us during the Heckler era, Valpo has risen to be the preeminent 'Lutheran' university in college athletics. The Valpo brand is national in its recognition more than ever.  For this reason, I believe that MLB and the coaches and staff deserve better, and the first step is to provide a commitment to structured goals and the plans to achieve them.

I might add that what I am suggesting is totally different from the Athletic Department Strategic Plan that has been previously published.  While that document addresses facilities to some extent, it does so more along the lines of stewardship of existing facilities.

[wh]

The endowment obviously won't be tapped for ARC renovations nor should it be. But the endowment seems large enough especially with the recent fundraising efforts to give a cushion to allow for a separate athletics department fundraising push after entering the MVC.

Here again we seem to almost always talking be about one thing -- the ARC, because it means a lot to many on this board.  But that brings us back to my original premise:  in the absense of good planning, ad hoc decisions (like, what to do about the ARC today) that depend on which way the wind is blowing are made. 

I purposely left out of the quote of the previous post any criticism of the president and the administration, but I will go on record with one thought on this subject: 

     The greatest, immediate contribution President Heckler can make to the future of Valpo athletics is to commission, by the close of the 2017-18 academic year,  a comprehensive, professionally performed, long-term Athletic Department Facilities Master Plan that requires completion and public release by December 1, 2018.

For too long our athletic department has been forced to operate in a reactionary mode with no long term goals in plain sight.  In spite of this, much has been done to make Valpo a player among mid-major universities.  Athletically, through the efforts of our dedicated staff, many of whom have joined us during the Heckler era, Valpo has risen to be the preeminent 'Lutheran' university in college athletics. The Valpo brand is national in its recognition more than ever.  For this reason, I believe that MLB and the coaches and staff deserve better, and the first step is to provide a commitment to structured goals and the plans to achieve them.

I might add that what I am suggesting is totally different from the Athletic Department Strategic Plan that has been previously published.  While that document addresses facilities to some extent, it does so more along the lines of stewardship of existing facilities.

These are the right words. That said, here's what a "professionally" developed plan IS NOT. It's NOT doing it on the cheap by borrowing the services of an in-house instructor from Marketing or Communications with basic facilitator training to bring over a set of flip charts and markers and slow walk an "exploratory" committee through a stereotypical, 7-step problem solving model.  A bridge to nowhere and garbage in and garbage out best describe these kinds of efforts.

True facility planning is a high level skill that comes with a hefty price tag. It is anything but a commodity service that can be duplicated by amateurs who don't know what they don't know.

[covufan]

Homer Drew came to Valpo when President Harre first started back in 1988.

My memory and guess is that Homer Drew was hired in the spring of 1988, under AD Steinbrecher and President Schnabel.  Although, since Harre was incoming President, he may have been included in the Drew hiring process.  I believe Harre took over on 1 July 1988.

[VU2014]

http://www.valpofanzone.com/forum/index.php?topic=2984.0

The Loyola admin continues to make improvements to gentile arena. Must be nice having a President and Board willing to make an investment in their facilities...

VU Fans: President Heckler, could we make an effort to fundraise for ARC Renovations?

President Heckler: No.

VU Fans: Ok, well are you willing to make any significant improvements to the basketball arena?

President Heckler: Absolutely! We just hung new up new MVC banners!

VU Fans: Great... 

[vu72]

http://www.valpofanzone.com/forum/index.php?action=post;topic=2984.0;last_msg=89677

The Loyola admin continues to make improvements to gentile arena. Must be nice having a President and Board willing to make an investment in their facilities...

VU Fans: President Heckler, could we make an effort to fundraise for ARC Renovations?

President Heckler: No.

VU Fans: Ok, well are you willing to make any significant improvements to the basketball arena?

President Heckler: Absolutely! We just hung new up new MVC banners!

VU Fans: Great... 

Total BS, 2014.  Have you ever even met President Heckler?  Uninformed pot shots from a far do nothing.  None of us know what is transpiring behind the scenes.  I do know that they are working on a donor to potentially start phase one of the Rec Center.  This would begin the process necessary to allow for ARC renovations. 

As for Loyola, their impressive facility apparently does little to attract fans.  Winning does and it probably will help them that they appear to have a competitive team this year. Last year's average attendance:1831.

[VUGrad1314]

Screw it. Why don't we as fans just go out and do what we can to get the ball rolling. It may be true that none of us have millions of dollars but why don't we try our own fundraising efforts and then just give the money to VU for the express purpose of upgrading the athletic facilities. If the University sees significant grassroots support from the fanbase for upgraded facilities that is backed up by real dollars we might just get them to loosen the purse strings a bit and help us out because they see which way the wind is blowing and what the alumni want. It seems like both fans and administration are waiting for some sort of Deus ex machina to show up and fix all the problems but no one's willing to get off their behinds and do something meaningful.

[VUGrad1314]

I agree with 72 Facilities alone won't accomplish what a good program can We have the program and that's a big part of it right now but a good program with good facilities can go so much further It can launch VU into the strata we all know it can occupy as a premier mid major program in multiple sports We're close in soccer both men's and women's We're getting there in baseball and softball and volleyball We're SO CLOSE in men's basketball and there's great potential in our women's team as well Tennis has taken major strides and swimming appears to be getting off the mat as well There are solid proposals in place for swimming and baseball/softball We just need a little more money behind these projects and I think we'll see the changes we need to see Maybe all we need is a little time and with the MVC up for grabs we just might have the time we need

[VULB#62]

Screw it. Why don't we as fans just go out and do what we can to get the ball rolling. It may be true that none of us have millions of dollars but why don't we try our own fundraising efforts and then just give the money to VU for the express purpose of upgrading the athletic facilities. If the University sees significant grassroots support from the fanbase for upgraded facilities that is backed up by real dollars we might just get them to loosen the purse strings a bit and help us out because they see which way the wind is blowing and what the alumni want. It seems like both fans and administration are waiting for some sort of Deus ex machina to show up and fix all the problems but no one's willing to get off their behinds and do something meaningful.

I'll be willing to collect the donations     .  But, seriously,  what you're saying makes some sense, however,  there needs to be a legal structure for any such fund.  Therefore, it probably comes back to Valpo Development to create such a fund.  And that is not a bad idea.  Just hang an ARC renovation fund out there, describe what the money collected would be used for (part of the Valpo Athletic Facility Master Plan, no doubt), let people know it exists, then sit back and collect whatever comes in.  It doesn't need to even be a campaign -- just a targeted spot for concerned fans and alumni to send their specified donations.  Then, if 1314 is right, as the fund grows, the administartion will get a reasonable reading on alumni backing for such an initiative.  Though low key, it could turn into something.

[VUGrad1314]

I'd drop a donation in there anytime I passed the spot and was able

[VUGrad1314]

Just imagine the impact we could have if  everyone dropped in a couple bucks or more if they're feeling generous each time they came in to watch an event At a dollar a fan we could raise like $50,000 just on last year's attendance numbers alone for just men's basketball Add in women's basketball and volleyball events (maybe put another near Brown Field for soccer and football fans to donate and near the baseball and softball fields and we're talking hundreds of thousands of dollars per year for this purpose at just a dollar per fan If people gave 5 10 20 or more even just some of the time I don't think it's unreasonable that we could push $1million per year throughout all events  on top of normal fundraising drives and channels Get a wealthy donor to match these donations and watch the cash multiply This would also give Valpo more incentive to schedule better nonconference home games to get more people in and sell more tickets/season ticket packages Everybody wins The fans get the power to do something meaningful without having to commit to a giant donation the administration gets the satisfaction of having done something meaningful for the future of the program without busting their own budget We get better games as fans Attendance goes up Recruiting goes up The team's profile goes up Budgets increase Facilities are upgraded Cycle continues and Valpo becomes the power we know it can

[VU2014]

vu72, I have met President Heckler. He's a very charming and good guy. There has been a lack of communication on any potential renovation and we've heard rumblings that any attempt of fundraising off the big Conference switch got axed up the food chain.

Agreed Loyola has had nice facilities the last few years since the renovation and their attendance has been unimpressive but look at their recent recruiting classes. Nice facilities don't equal success but I'd imagine they certainly don't hurt (unless you're Omaha, who was fiscally reckless with their new arena). Imagine if Loyola had Valpo's history and the same amount recent success. I'd imagine their attendance would be much higher.

Any successful fundraising effort needs the support and commitment from the very top.

[VUGrad1314]

I'm interested to hear what fundraising initiatives were proposed in light of the conference switch what they would have entailed and why they didn't work. Because if President Heckler is really quashing earnest attempts to move valuable projects forward then I have to say that such actions do not appear to coincide with good stewardship of the University. Like it or not in this day and age how marketable a university is has a great deal to do with how successful it's athletic teams are. Athletics drives marketing and branding in a major way. As much as we all want to extoll the academic credentials of VU  and the merits of a VU education are undeniable, to focus solely on that and deny that students care how good the sports scene is here is to fail to see the whole picture. A man of the vision President Heckler seems to possess cannot possibly overlook this truth.

[VULB#62]

Just wanted to point out that the new video capability set Valpo back a cool $600,000.

[FieldGoodie05]

I'm interested to hear what fundraising initiatives were proposed in light of the conference switch what they would have entailed and why they didn't work. Because if President Heckler is really quashing earnest attempts to move valuable projects forward then I have to say that such actions do not appear to coincide with good stewardship of the University. Like it or not in this day and age how marketable a university is has a great deal to do with how successful it's athletic teams are. Athletics drives marketing and branding in a major way. As much as we all want to extoll the academic credentials of VU  and the merits of a VU education are undeniable, to focus solely on that and deny that students care how good the sports scene is here is to fail to see the whole picture. A man of the vision President Heckler seems to possess cannot possibly overlook this truth.

IT MAKES NO SENSE TO DO ANY MAJOR ARC UPGRADES BEFORE OPENING A STUDENT REC CENTER.

Why do we keep focusing on facilities.  I'm flabbergasted at how short sighted we get on this subject.  The real focus should be on dedicating the ARC to b-ball by setting up the student Rec-center.

Just one mans opinion...but I've heard others that are far more wired into VU campus say the same thing.

Didn't ML say as much on record?

[VULB#62]

IT MAKES NO SENSE TO DO ANY MAJOR ARC UPGRADES BEFORE OPENING A STUDENT REC CENTER.

I strongly disgree.  There are a number of things that would upgrade the ARC without having to build a Field House first. 

- State of the Art audio.
- Replacing bowl benches with chairbacks like the north side
- Adding beachers to the east backline
- Finding ways to add better concession stands. 
- Developing closer parking (think about it.  Athletics at Valpo is all about basketball)

None of those require a new Field House. And even if they are an interim solution, it is better than waiting another decade for the improvements

Having said the above, I congratulate the university for investing in the new video syatem.

[bbtds]

Since President Trump has been in office, endowment values have skyrocketed in line

You have got to realize that our beloved President has very little to do with this. He can take all the credit for it but presidents in general have very little influence over the strength of the economy. Pleeeeease!

[wh]

Since President Trump has been in office, endowment values have skyrocketed in line

You have got to realize that our beloved President has very little to do with this. He can take all the credit for it but presidents in general have very little influence over the strength of the economy. Pleeeeease!

Maybe you can explain that to the 27 economic experts who 1 year ago predicted a market crash if Trump became President:

All the Experts Who Told Us Stocks Would Crash if Trump Won

http://www.breitbart.com/big-government/2017/11/08/all-the-experts-who-told-us-stocks-would-crash-if-trump-won/

I also assume from your lesson on economics that you are not among the millions of adherents of liberal dogma that blamed then-President George Bush for the crash of 2007 and 2008, and continued to blame for 8 straight years of economic decline under Obama. And, of course, lefties would never blame Trump had the market tanked over the past 12 months instead of boomed, right? lol

This reminds me of listening to my nephew (H.S. teacher and big time teacher's union supporter) talk about their school system administration and school board. Everything they do is stupid and incompetent, and they're out to screw the teachers at every turn. I love my nephew dearly (fellow VU season ticket holder, by the way), but fair and balanced he ain't.