A key issue Donovan must resolve quickly is a new TV contract, which is linked to resolving his biggest challenge – balancing a budget that is believed to be between $4 million to $6 million in the red.
Revenues from UH's appearance in the Sugar Bowl will cut into that deficit, reducing it by an estimated $2.5 million.
That's where the TV contract comes in. The likelihood of UH returning to a BCS bowl game isn't likely to happen anytime soon. But the TV deal will continue to generate revenue over the life of the contract.
UH is negotiating with K5, which has carried UH sports since 1984. K5 carries about 120 UH sporting events annually, and produces 19 of those for pay-per-view. Oceanic Time Warner, which operates OC-16, has indicated interest in bidding for the TV rights.
Hawaii earned more than $2.5 million for telecasts of 2007 games, including a big increase in pay-per-view revenue.
The school collected $794,000 as its share of pay-per-view compared to $400,000 for 2006. That's despite late-season games versus Boise State and Washington being carried on ESPN and not the pay-per-view distributor.
Adding local TV rights of about $1.7 million, UH's total TV take was $2.5 million.
But how much value is there in pay-per-view when ESPN can cherry-pick the best games? Four are planned for this season, with a possibility of up to seven.
UH also is negotiating radio rights with ESPN 1420, which paid $1 million over three years.
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