Question: Gary Gemst is the athletics director of Pacific University PU

Gary Gemst is the athletics 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. Gemst has just had a meeting with Laura Medley, the newly appointed president of PU. It did not go well. Medley and Gemst discussed what she called “Draft I” of the 2013 athletics department budget. He had believed it was the final draft. Medley 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 2013. Given the tight fiscal position of the university, this was unacceptable. A budgeted loss of $1.2 million was the most she would tolerate for 2013. Draft II of the 2013 budget was due in two weeks’ time. By 2014, the athletics department had to operate with a balanced budget. She told Gemst this was nonnegotiable.
◆ Concern 2. There was very little money allocated 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.” Medley said Gemst was treating female athletes as “third-class citizens.”
◆ Concern 3. The men’s football athletes, many of whom had full scholarships, had poor academic performance. Medley noted that the local TV news recently ran an interview with three football team students, none of whom “exemplified the high academic credentials she wanted Pacific to showcase to the world.” She called one student “incoherent” and another “incapable of stringing sentences together.”
◆ Concern 4. The salary paid to Bill Madden, the football coach, was outrageous. Medley 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.
Form groups of two or more students to complete the following requirement.
Your group should discuss the concerns noted both from quantitative and qualitative perspectives. What should be addressed in preparing Draft II of the athletics department’s 2013 budget? This draft will form the basis of a half-day meeting Gemst will have with key officials of the athletics department.
Exhibit 6-11 is a summary of the Draft I athletics department budget for 2013.

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  • CreatedJuly 31, 2015
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