Q&A with Jim Sterk
On Wednesday afternoon Mizzou Director of Athletics met with a small group of local media. Here is the full transcript of that discussion.
Q: How did you find out about the incident at Mizzou Arena and what's the severity of the damage?
Sterk: "Tim Hickman, he got a call, I think and let us know that it had happened. He sent an email around to our executive staff just so we were aware. You guys probably heard it shortly after I did, I think it got out there pretty quick. Don't know why, was surprised. Really one of the strangest emails I've gotten about vandalism, I guess.
"I feel bad for the guy, I mean feel sorry for him."
Q: Was there much damage to the court?
Sterk: "No, there's some skidmarks, as far as I know. More damage to the gates and the door and the golf carts, big ones that are more expensive than your normal golf carts. I don't think there was anything else."
Q: On renting out the dorm rooms, is that something you guys had seen done elsewhere, or how did you come up with that plan?
Sterk: "Gary Ward, who oversees facilities, he has just been named interim because there was a retirement with Cathy Scroggs, he was looking at it from a different perspective and just saying, 'Geez, we've got all these dorm rooms.' Hotels are full on Homecoming and different dates and so why don't we try to do something to help with the bottom line. I think that was really good. There's probably some guys that are really looking forward to it, going back to their dorm that they stayed in and having a reunion or something, at Homecoming especially. But I thought that was really good."
Q: Have you heard any blowback from hotels or anything?
Sterk: "Have not. Most of them are pretty maxed out. I haven't heard anything negative about it."
It's been a relatively quiet 12 months, especially considering recent years. Could you give us a picture of what you've been able to do to not only quiet things down, but then raise $50 million?
Sterk: "It takes a while when you come in to a place to understand. I've been on a quest of learning, from the 114 counties in the state to how the athletics department was operating and then overall with the University and the community and the state. There's a lot of layers to that. I've really, really enjoyed it. It's gone really fast. The last ten months have just flown by. I think we have some good momentum and I'm excited about what happened this past year, I think we made progress in a lot of areas, but I think the great thing is we haven't hit any sort of ceiling. I think from a competitive standpoint with our teams to our academic side and support, we're developing that Mizzou Made program and that's in its second year and, I think, maturing and then the fundraising side, I think Brian White and Ryan Alpert and all the staff in there have done a really good job of really working it systematically. Our annual fund is up significantly and we're engaging more people and then we're engaging people on the ticket side, the same kind of thing. I expect our tickets to do the same kind of growth that you're seeing on the development side. There's some connection, but I think also we haven't reached out in a concentrated effort, I think, in the past. There were reasons, they were pretty well maxed out at certain times, but I think we'll be able to capitalize on having those, about 2000 phone calls a week that they're making and contacting people and different groups. We haven't seen it all yet because we really haven't opened up individual game sales or group sales. We're working on some but that's going to continue to grow. I think we'll be able to capitalize on our success better."
Q: Does that $50 million include all the money earmarked for the South End Zone?
Sterk: "There's rules about how you count your gifts. It's cash in hand, it's pledges, so if a pledge was made you count it in that year. I think the annual fund, that's over ten million dollars and then the rest are gifts that are pledged out, new gifts that we have and also cash in hand."
Where do you stand as far as reaching your goal of having that South End Zone project funded?
Sterk: "I think Tim Hickman feels good, with Ryan Rapp of the system office, they've been packaging and we had our CSL group look at it, that was the group with the East side of what can you bond on that revenue? They look at demand and everything comparative in the SEC to where we are here. We feel really good about our financial package as we stand. We're going to try to improve it as we go forward and we'll continue to do that as it's starting construction and moving forward, we'll continue to fundraise and sell opportunities there. I'm excited about that project because we're engaging people on a lot of different levels. There will be something for everyone, whether it's a bunker suite, touchdown area to general admission to club seating to suites and then possibly some decks up top too. They're working on that baby on a weekly basis and trying to make sure that we present the best package to the Board of Curators and we'll get it to them when they think it's appropriate and we think it's appropriate so I'm excited about that."
Q: I know you were hoping to get it approved in June. What was the sticking point there and are you thinking July now?
Sterk: I'm not sure. So it's part of the timing with the board and part of it for us bringing the project forward. Right now there's no delays. We're still in our wheelhouse, we're moving forward. So it will be some time this summer hopefully we get that done. Still thinking July, but I don't know."
Q: Are you still thinking like January to actually begin tearing down the existing area?
Sterk: "Yeah, or right after the season, something like that."
Q: What's the fundraising figure you have for the project right now?
Sterk: "We're at 49 million, maybe. We'll have to check on that."
Q: 95 to 100 million is that still the estimated price tag?
Sterk: "Yeah. Right around 95, 97. We haven't hit 100 and we want to keep it under that."
Q: I know you're separately funded and everything, but have you had any challenges with the optics or pushback in this time the University is taking such a big hit that you're building these things and paying coaches three million dollars a year?
Sterk: "I think we're kind of the same as the hospital's a part of the system and we both generate revenue. In some ways we're not as impacted, but we're still impacted as being part of it. So we take some cuts. I think I've shared before we're putting back into the University about 16 million dollars or more and if we have a project like the South end zone it's helping, there's some fees attached to that that can go back to the University overall that helps fund other things. I think what I've tried to do from the start, once I knew there were going to be some budget cuts is kind of share that because people don't always understand that. I think people understand a little bit better now and they want us to be successful because then they're successful."
Q: When you say you're putting 16 million back into the University what do you mean?
Sterk: "Like tuition, room and board, we pay. We're raising that money and then paying it to the University whether it's in housing or tuition or books or whatever. Then there's facility fees, police operations, utilities, all those things, we pay back."
Q: So that's standard every year, not a response to the budget cuts?
Sterk: "No, it's not a response. But it has, over time, as we've grown the revenues with the SEC, the department has weaned off of the University if you will. I think there were some fees that were subsidized more during the Big 12 days than we are now."
Q: Illinois recently cancelled their end zone project and are doing more of a MATC approach. What feedback did you get that made you go this direction?
Sterk: "We needed the MATC space anyway. Our programs are impacted. I was talking to Coach Bieser and during the season to get weight room time they're having to go at odd hours. So everything from the weight room to the medical training to all those areas, if we could create new space then it's going to free up the MATC space. That, plus we wanted to make a statement at the stadium as well. Barry really liked that idea and felt it was the best way. Their offices will be overlooking the stadium and I think from a recruiting and everything else, that will help football too. It's helping all our sports plus help football in a significant way."
Q: Did you get any feedback from donors?
Sterk: "They liked the idea of going there. Therefore, the response that we've seen."
Q: With donor relations, my understanding is a year ago there were some issues. Can you explain some of what you did to kind of smooth things over and get people back on board?
Sterk: "I've just tried to share what I thought was the vision of what we could do and that I intend to be here a long time. Maybe not the 17 years, I'll be 77. I forget who asked that at my press conference, when I joked about having an Alden tenure, I'm not in for the short term. I think people understand that and they could see that I was telling them what I believed. I do believe that. I'm going to work as long as I can and be effective for Mizzou. I believe in the land grant mission, I believe in what we're doing here and then I'm competitive as hell. I want to win. I want to win championships, but do it in the right way. My motto is win it right. That's what I want to do. As I've talked to donors, I think they feel, and alums, I think that's what they want for this place too. I think the shared vision with them. I don't know, you'd have to ask them."
Q: Did you sense a lot of discord when you came in?
Sterk: "Not a lot. I think people were more kind of shocked. Mack (Rhoades) leaving so quickly, I think after having such a long tenure with Mike (Alden) and then to have it change so quickly and the changes with the chancellor and the president, I think that all led to maybe some uncertainty, if you will. I think that I could come in and help stabilize and move forward. That's what they were hoping for and that's what I tried to do."
Q: On the field what's your view of last year. I think you finished higher than ever in the Director's Cup standings, but your two most visible sports were pretty dreadful. Do you view it as, 'Think what we can do if we get those going?'
Sterk: "I'm excited about it. We don't have any changes with our coaches in those areas, all those other sports, so I don't think they're one-hit wonders. They've been proving themselves. Then I think football and basketball are really poised to make good moves forward. I'm excited about the coming year."
Q: Do you expect this football team to compete for a division title or do you think Barry needs some time to continue to rebuild?
Sterk: "I think they're coming out to win a title. Whether they do or not, I think there's a lot of factors that will play into that, but I think they have a great group coming back. Every year, even when we'd have ten wins at Washington State, I was always, 'Okay, get to six.' And you know, that's a big number for me as far as let's get bowl eligible first and then you could have some great things happen after that. I think for us I'll be really excited when we get to six wins and I'll be really excited when we compete for a championship."
Q: People will always use the word progress, but for you what is progress for your football program?
Sterk: "I think to get to six wins is progress. I think that's at a minimum of what you would want, what our alums want. As a team, they'll be disappointed with that, but I think that's moving forward, being bowl eligible and get a great bowl, I think that's really important for us."
Q: How patient will you be with Barry now that he's in year two?
Sterk: "I think he took over the program in kind of a tough time. There was a lot going on and I think he's really stabilized it and preparing to move forward. I like what I see there and I think they're excited as a group as well."
Q: What's your understanding of what went wrong last year?
Sterk: "I know enough that I don't know. I don't know what that is. I could speculate, but I think that's a question for any of the coaches probably in the room that were coaching them last year. It's a very, very complicated deal. I do know they feel really good. I always talk to the equipment guys, the weight guys and those guys that are around the team on a daily basis. They really like the energy and they really like the leadership that's there. I can't compare it to last year because I wasn't here at that time, but I think they're feeling like they're in a good place. Not concern, but it's very tough to implement a new offensive system and then I think they implemented some defensive changes too. Those changes always take time for a kid to be able to feel like he can play naturally and react to things. I know enough about it that that takes a little time and so I'm really excited about the jump that we can take on both sides of the ball this coming year."
Q: I know attendance figured into the basketball decision last year. Football, I know it's not at those levels, but obviously it's down. Where are you at ticket sales wise and how much does that have to improve this year?
Sterk: "I think it will improve. I think we're at already 82% of our revenue goal and that's two months away from the first game. I think we're in really good shape. I'd love to be at a hundred percent right now and then moving above, but I think it will be important for us to start off right and show some progress. Barry's joked that he told Josh he needed to score ten more points a game. That could happen the way that offense is and having all those guys back and being in it a second year, when your quarterback and all the linemen and everyone knows the system a lot better, I think you'll work a lot more efficiently. I think it will be really, really exciting football. I think it will be fun to see. Everyone else is doing the same thing. They're improving and coming after you too. It will be competitive, but I think we have an opportunity to make some good progress."
Q: That goal that you're at 82% of, do you base that on a certain number of tickets per game?
Sterk: "We set a revenue goal budget wise so that's 82% of the budget. I know it's over 21,000 season tickets already."
Q: Have you adjusted that down in recent years?
Sterk: "It's the same as last year."
Q: Season tickets are over 21,000?
Sterk: "Yeah, and students are up like double already. I think they're at 2400 and last year at this time they were at 1200."
Q: With some of the challenges facing the TV industry are you worried about what the future is with those contracts?
Sterk: "We spent a lot of time during SEC meetings and ESPN folks came in. They're really smart folks. They've got it figured out. They're starting to monetize (smart phones) and the deals they have. Their model is changing, but ESPN is still making a lot of money, or Disney is, on their sports properties and their cable networks. Our contract goes to, I think 2032, or something like that with ESPN. I think we're in good stable mode. I don't think it's going to jump like it has. The SEC Network really jumped the revenue in the league and that's not gonna be a big jump like that. In the forecast there's kind of gradual increases built in but not like it did with the network."
Q: There's a report out of Alabama today with former Chancellor Loftin about the MU/KU rivalry. I know you've been asked about it. I know you've said you want it to come back. What's been the reaction from that side?
Sterk: "Nothing that you haven't seen."
Q: Have you actually had a conversation with anyone over there?
Sterk: "No, I have not."
Q: Were you surprised you got left out of the Big 12/SEC Challenge and is that something you pushed for?
Sterk: "We had that Iowa State game already so that kind of took the place of it if you will. I didn't know about how they made the selection with the challenge and it made sense. I've heard good things from CBS and those folks that we're going to have some games on, so we'll have some good TV games."
Q: Regardless of the opponent, do you have interest in football or basketball games in Kansas City and/or St. Louis?
Sterk: "I'd like to do that. I think it's important to bring it to those locations if you can, especially with both sides of the state. I've had discussions with (Illinois AD) Josh Whitman about playing Illinois in St. Louis. We haven't gotten a date in football to play, have not gotten anywhere as far as Kansas or Kansas State on football in KC."
Q: Would you look at somebody else in Kansas City other than those schools?
Sterk: "Yeah. Actually, I think the return game of Boston College, when they come here, that's scheduled to be out there in Kansas City (2024)."
Q: The NBA one and done rule comes up any time the draft happens. I know it's the NBA's rule, but do you have any thoughts on that? Do you like it?
Sterk: "I'd love to have the baseball rule where they make a decision out of high school. If they're ultra quality athlete that can demand being drafted right away or just wait three years. The three years I think is really important. They get time at the University and then with the way we have kids in summer school, they can have a degree in three years if they stay on track. That gives them a good base for the rest of their life and so I think that's better than one year."
Q: Would you have interest in getting it changed before next June?
Sterk: "Yes, you can start the bandwagon on that."
Q: Ehren Earleywine is going into his contract year this year. Do you expect an extension with him?
Sterk: "We haven't talked about it and he hasn't brought it up either. I spent a little time with him after the season, but we'll be talking as the year starts."
Q: Do you expect getting that done before the season?
Sterk: "Yeah, I intend to do something before then."
Q: Anything new on the tutor allegations?
Sterk: "No, I just hope sooner rather than later as far as that. I think they've gotten most of the information but there still may be some information they're still trying to get."
Q: Any facilities projects besides the South end zone?
Sterk: "We're currently working on the Hearnes on an air-handling system. It's like a million dollar deal. We were looking to put turf in on the baseball, that's a project we need funding for yet so we're looking to do that. We just finished the turf on the indoor (football) facility, so that's brand new turf in there."
Q: Do you have money raised for the statue of Norm Stewart?
Sterk: "We do. We're continuing and then any money that's over the expense will go to Basketball Excellence."
Q: There had been talk that the south end zone was phase one and a full length indoor facility being phase two. Do you need to get this part wrapped up before you would move on, or how far out does your long term plan go?
Sterk: "I'd like to get the hay in the barn on this one first and get it going, but we do have some estimates on what it would take over there. Unfortunately there are some granite hills and things like that. It's expensive territory."