Endowment for Football Coach

[adsnorri]

I read an article today that is posted below and I was wondering how this works.

A gift to endow the head coach position. What are the logistics for that money?

Notre Dame gets $35 million gift from alumnus - South Bend Tribune: Education

 

[wizards8507]

I read an article today that is posted below and I was wondering how this works.

A gift to endow the head coach position. What are the logistics for that money?

Notre Dame gets $35 million gift from alumnus - South Bend Tribune: Education

$10M of that is for the head football coach. Assuming the endowment is set up to exist in perpetuity, Notre Dame will invest the money and any returns generated are for the sole purpose of paying the head football coach. Assuming a 10% annual return, the gift basically funds $1M of the HFC's salary forever and always.

 

[Rack Em]

$1M of that is for the head football coach. Assuming the endowment is set up to exist in perpetuity, Notre Dame will invest the money and any returns generated are for the sole purpose of paying the head football coach. Assuming a 10% annual return, the gift basically funds $100K of the HFC's salary forever and always.

$10 million there boss. So a 10% return yields $1 million annually.

 

[adsnorri]

$10M of that is for the head football coach. Assuming the endowment is set up to exist in perpetuity, Notre Dame will invest the money and any returns generated are for the sole purpose of paying the head football coach. Assuming a 10% annual return, the gift basically funds $1M of the HFC's salary forever and always.

Thanks! I didn't know how the $10 was going to be used. Wasn't sure if it had a timeline(not perpetuity) or was only for Brian Kelly, etc.

 

[woolybug25]

Dick Corbett is my spirit animal...

I just connected why Irishog is always telling me how much he loves Dick. He must be talking about Dick Corbett. I get that now!

I really had the wrong idea... phew...

 

[Kak7304]

Thanks! I didn't know how the $10 was going to be used. Wasn't sure if it had a timeline(not perpetuity) or was only for Brian Kelly, etc.

Some probably still goes to Weis.

 

[Rack Em]

I just connected why Irishog is always telling me how much he loves Dick. He must be talking about Dick Corbett. I get that now!

I really had the wrong idea... phew...

No, I think it's Dick's dick that he likes. The ol' double D.

 

[dales5050]

Does this mean that if people kept on donating to this fund and it eventually grew to say $60,000,000 could that mean that the base coaches salary would be $6M just off the endowment?

I have never given like this but it's my understanding that you can set rules as to how the money is used. Right? Unless ND declined the gift or talked the donor out of it, they have to follow the wishes of the donor?

 

[MNIrishman]

I wish we titled the endowment the same way Stanford did, "The Corbett Family Director of Football." It just sounds more prestigious that way.

Also Harvard just received a donation that was more than 10x this size. Screw those guys.

 

[wizards8507]

I wish we titled the endowment the same way Stanford did, "The Corbett Family Director of Football." It just sounds more prestigious that way.

Also Harvard just received a donation that was more than 10x this size. Screw those guys.

ND has the #10 endowment in the country, but nobody is anywhere close to Harvard. They have $33B and the closest is Yale at $21B.

 

[MNIrishman]

ND has the #10 endowment in the country, but nobody is anywhere close to Harvard. They have $33M and the closest is Yale at $21M.

I'm not sure I agree with those numbers.

 

[jimmymac]

ND has the #10 endowment in the country, but nobody is anywhere close to Harvard. They have $33M and the closest is Yale at $21M.

Billion not mil. I think Texas is bigger than Yales too.

 

[Irish#1]

Billion not mil. I think Texas is bigger than Yales too.

Everything's bigger in Texas. I know that because they keep telling us.

 

[MNIrishman]

Billion not mil. I think Texas is bigger than Yales too.

Giant state school systems ought to be irrelevant in the ranking. It should be endowment/student or something normalized like that. Texas has a $25.4B endorsement but 216k students sharing it, so it works out to like $100k/student. ND has closer to $900k/student. Yale has about $2m/student. Of course, I think we have the best performing endowment in the US. All hail the great and powerful Malpass.

 

[Cali_domer]

Billion not mil. I think Texas is bigger than Yales too.

But isn't that a system wide endowment?

 

[wizards8507]

Ignoring the large state-wide systems and considering each university on its own:

1. Harvard - $33B
2. Yale - $21B
3. Princeton - $19B
4. Stanford - $19B
5. MIT - $11B
6. Michigan - $8B
7. Columbia - $8B
8. Texas A&M - $8B
9. Penn - $8B
10. Notre Dame - $7B

You can see some clear tiers. Harvard. Then Yale/Princeton/Stanford. Then everyone else. It helps to have a medical school.

 

[IrishLax]

I thought we were north of 10 billion now.

 

[MNIrishman]

I thought we were north of 10 billion now.

We are. Those numbers are out of date.

 

[wizards8507]

We are. Those numbers are out of date.

That's correct. The rankings I shared are based on the most recent completed fiscal year for all universities in the ranking, which at the time of the article that I referenced, was FY13.

10 Universities With the Largest Financial Endowments - US News

 

[Whiskeyjack]

$10M of that is for the head football coach. Assuming the endowment is set up to exist in perpetuity, Notre Dame will invest the money and any returns generated are for the sole purpose of paying the head football coach. Assuming a 10% annual return, the gift basically funds $1M of the HFC's salary forever and always.

B-b-but CBK only makes $1.2m/ year! USA Today said so!

 

[dad4aa]

$10M of that is for the head football coach. Assuming the endowment is set up to exist in perpetuity, Notre Dame will invest the money and any returns generated are for the sole purpose of paying the head football coach. Assuming a 10% annual return, the gift basically funds $1M of the HFC's salary forever and always.

I am guessing it'll be more around the $500,000 figure. Most endowment funds paid out 3-5% depending on whether or not they have a COI adjustment built in. I do not know of any endowment fund that pays out 10% annually. Either way it is a great gift to the program.

 

[Ndaccountant]

My endowment is 10 inches......strong enough to do push ups.

 

[Whiskeyjack]

I am guessing it'll be more around the $500,000 figure. Most endowment funds paid out 3-5% depending on whether or not they have a COI adjustment built in. I do not know of any endowment fund that pays out 10% annually. Either way it is a great gift to the program.

Most endowment funds aren't managed by the Great and Powerful Malpass.

 

[wizards8507]

They should open the endowment portfolio to alumni IRAs.

 

[MNIrishman]

Most endowment funds aren't managed by the Great and Powerful Malpass.

Word. Our endowment spun off like 20% this last year.

 

[woolybug25]

Most endowment funds aren't managed by the Great and Powerful Malpass.

I met Malpass once through a bank dealing. Weird cat... But an incredibly brilliant man.

 

[MNIrishman]

I met Malpass once through a bank dealing. Weird cat... But an incredibly brilliant man.

Wait, is he a cat, a man, or something like this:

 

[Irish#1]

My endowment is 10 inches......strong enough to do push ups.

In your dreams!

 

[Irish#1]

I'll donate $50B v-bucks to the endowment.

 

[Whiskeyjack]

They should open the endowment portfolio to alumni IRAs.

I'd be all over that. Makes a lot of sense for ND, too. Enrich your alumni, and watch the testamentary gifts pour in.