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NCAA is a cash cow

Posted on 7/20/19 at 6:53 pm
Posted by Mud_Till_May
Member since Aug 2014
9685 posts
Posted on 7/20/19 at 6:53 pm
NCAA earnings

1. Texas
2. Texas A&M
3. Ohio State
4. Michigan
5. Alabama
Posted by RatRodDawg
UGA & USC alum/Los Angeles, Calif
Member since Nov 2018
2494 posts
Posted on 7/20/19 at 7:08 pm to
The true measure of the financial strength of a school's athletic department isn't in the amount of revenues. It's the amount of revenue MINUS expenses.

This is where 2 SEC schools lead the nation in this: operating in the black.

Georgia has historically been one of the schools that nearly always operates in the black and by a wide margin. UGA is loaded with money in the bank over the years.

But, so is Texas A&M. Minus their expenses, their net was $65,413,805. Georgia's was $38,633,571.

Revenues for Texas were $214,830,647; however, after expenses, their net was only $7,808,324. Compare that to A&M.

No other schools on this list even came close to A&M and UGA, with A&M up there all by themselves.

Several schools are in the red, too, on this list.

All SEC schools were in the black with the exception of Missouri (-$4,961,400). Vanderbilt is a private school and, therefore, their accounting records are not privy to the public.
This post was edited on 7/20/19 at 7:11 pm
Posted by Landmass
Member since Jun 2013
18195 posts
Posted on 7/20/19 at 7:10 pm to
I'm actually surprised that Alabama is in the top 5. They don't have the national following that the others on that list do. I'm really surprised that Notre Dame is not number 5.
Posted by WilliamTaylor21
2720 Arse Whipping Avenue
Member since Dec 2013
35936 posts
Posted on 7/20/19 at 7:10 pm to
quote:

1. Texas
2. Texas A&M
Wow.
Posted by RatRodDawg
UGA & USC alum/Los Angeles, Calif
Member since Nov 2018
2494 posts
Posted on 7/20/19 at 7:13 pm to
quote:

I'm actually surprised that Alabama is in the top 5. They don't have the national following that the others on that list do. I'm really surprised that Notre Dame is not number 5.


Notre Dame's a private school (like USC and Vandy among othrs)...they aren't required to make their earnings and such public.
Posted by 3down10
Member since Sep 2014
22852 posts
Posted on 7/20/19 at 7:14 pm to
quote:

The true measure of the financial strength of a school's athletic department isn't in the amount of revenues. It's the amount of revenue MINUS expenses.

This is where 2 SEC schools lead the nation in this: operating in the black.

Georgia has historically been one of the schools that nearly always operates in the black and by a wide margin. UGA is loaded with money in the bank over the years.

But, so is Texas A&M. Minus their expenses, their net was $65,413,805. Georgia's was $38,633,571.

Revenues for Texas were $214,830,647; however, after expenses, their net was only $7,808,324. Compare that to A&M.

No other schools on this list even came close to A&M and UGA, with A&M up there all by themselves.

Several schools are in the red, too, on this list.

All SEC schools were in the black with the exception of Missouri (-$4,961,400). Vanderbilt is a private school and, therefore, their accounting records are not privy to the public


This post is stupid.
Posted by secuniversity
Member since May 2015
5690 posts
Posted on 7/20/19 at 7:19 pm to
Besides these numbers being 3 years old, your assumptions are fundamentally flawed.

First, A&M's numbers are inflated due to their stadium renovations during this time period and accounting for the fundraising.

"Profit" in an athletic dept budget is a misnomer. Besides being non-taxed entities, these aren't regular businesses. So there's really no such thing as a profit.
And why would you even want a profit in athletics? You want to spend every penny to be spent on continuously expanding and improving an ever-competitive environment. You don't want A reserve. It's not a business, there's no reason to keep one.
The difference between an ADs revenue and expenses are simply a measure of not maximizing your dollars.

A true measure of the financial prowess IS revenue.
This post was edited on 7/20/19 at 7:24 pm
Posted by secuniversity
Member since May 2015
5690 posts
Posted on 7/20/19 at 7:22 pm to
quote:

They don't have the national following that the others on that list do. 


Misinformed statement. The last 10 years Alabama is the most televised and most-watched CFB team according to tv ratings.

Alabama is consistently among the top 5 in collegiate merchandise sales.
Alabama is more of a national brand than Notre Dame and any other team in the SEC.
This post was edited on 7/20/19 at 7:25 pm
Posted by CajunTiger_225
Baton Rouge
Member since Jan 2015
9203 posts
Posted on 7/20/19 at 7:22 pm to
quote:

1. Texas 
2. Texas A&M

Both with nearly half a billion in debt
Posted by RatRodDawg
UGA & USC alum/Los Angeles, Calif
Member since Nov 2018
2494 posts
Posted on 7/20/19 at 7:23 pm to
Poor Bama...poor whiny Bama. T'ain't #1 in revenues and money so we got'sda cries 'bout it.

Posted by Smart Post
Member since Feb 2018
3539 posts
Posted on 7/20/19 at 7:26 pm to
quote:

Revenues for Texas were $214,830,647; however, after expenses, their net was only $7,808,324. Compare that to A&M.

You're completely ignorant about these financials, so allow me to educate you.
quote:

While the report shows Texas A&M with about $147 million in operating expenses for 2017 — an apparent annual surplus of more than $65 million — it also shows the school with just under $67 million in athletics-related capital expenditures during the year.

When schools borrow money to build or refurbish athletics facilities, the NCAA currently requires them to count annual debt service payments — the amount of principal and interest they repay in a given year — as an operational expense. Cash spending on facilities is supposed to be counted, and reported, separately from annual operating expenses.

The Texas A&M athletics department’s chief financial officer, Jeff Toole, told USA TODAY Sports that when the facilities-related contributions are removed from consideration for 2017, “we are basically break-even, maybe a little less than break-even, for the year.”

USA Today
Posted by Smart Post
Member since Feb 2018
3539 posts
Posted on 7/20/19 at 7:30 pm to
quote:

1. Texas 2. Texas A&M Both with nearly half a billion in debt

Aggy is carrying more debt, not that that's a bad thing (as long as they don't go into a financial tailspin like they did about 10 years ago, which required budget cuts, a multimillion dollar loan from the academic side, and several staff layoffs).
quote:

The UT athletics department has $288.4 million in debt, with a $17.2 million payment due in 2019.

LINK
Posted by Auburn80
Backwater, TN
Member since Nov 2017
7613 posts
Posted on 7/20/19 at 7:32 pm to
quote:

A true measure of the financial prowess IS revenue.


I would never hire you as my financial guy. Net Income is way more important than revenues. I am the CFO of a nonprofit hospital and making a profit is an absolute essential. You have to pay off existing debt, and prepare for future expansion. Plus, add in the fact that most Universities don’t charge AD’s the costs of the scholarships they give. Carroway hospital in Birmingham had plenty of revenue even in their bad location. Now they no longer exist because they didn’t make a profit.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
119620 posts
Posted on 7/20/19 at 7:34 pm to
NCAA needs to be disbanded.
Posted by Smart Post
Member since Feb 2018
3539 posts
Posted on 7/20/19 at 7:34 pm to
It's not profit. Read my first post (especially the bolded portion that directly addresses the numbers from the fiscal year in the OP).
Posted by RatRodDawg
UGA & USC alum/Los Angeles, Calif
Member since Nov 2018
2494 posts
Posted on 7/20/19 at 7:38 pm to
quote:

Besides these numbers being 3 years old, your assumptions are fundamentally flawed.


Excuse me, these aren't my numbers...they came from the linked artice from the OP. Duh.

I never mentioned profit. Do you see profit on that list or the word even mentioned? I didn't think so...please use your mind and r-e-a-d using good comprehension before jumping to the quacky stuff you're saying.
This post was edited on 7/20/19 at 7:38 pm
Posted by Smart Post
Member since Feb 2018
3539 posts
Posted on 7/20/19 at 7:40 pm to
You used the terms "revenues minus expenses" and "net."

That would heavily imply profit.
Posted by Auburn80
Backwater, TN
Member since Nov 2017
7613 posts
Posted on 7/20/19 at 7:41 pm to
quote:

the NCAA currently requires them to count annual debt service payments — the amount of principal and interest they repay in a given year — as an operational expense


I have a hard time understanding how and why the NCAA came up with their own accounting rules since every University and AD is subject to rules set out by their state which are usually set by GASB.
Posted by Mud_Till_May
Member since Aug 2014
9685 posts
Posted on 7/20/19 at 7:43 pm to
quote:

I would never hire you as my financial guy. Net Income is way more important than revenues. I am the CFO of a nonprofit hospital and making a profit is an absolute essential. You have to pay off existing debt, and prepare for future expansion. Plus, add in the fact that most Universities don’t charge AD’s the costs of the scholarships they give. Carroway hospital in Birmingham had plenty of revenue even in their bad location. Now they no longer exist because they didn’t make a profit.


Net income is important but if you can break even its a way to avoid paying taxes. Most companies want to break even because instead of giving your money to uncle sam you could get a new forklift or improve your company. That being said, its much more difficult to eat up profits when you have debt. Being a cash flow company is the way to be. No debt.
This post was edited on 7/20/19 at 7:44 pm
Posted by RatRodDawg
UGA & USC alum/Los Angeles, Calif
Member since Nov 2018
2494 posts
Posted on 7/20/19 at 7:44 pm to
quote:

You're completely ignorant about these financials, so allow me to educate you.


Pardon me, but the numbers are not a total accounting of the numbers involved; only that which are listed on the report given in the link by the OP.

Expenses deducted after revenues is the most critical part of any balance sheet. What is done with the leftover after debt-repayment, debt-retirement, etc., yes, the bottom line after that gives the more accurate picture.

Nevertheless, revs minus expenses is still the most critical aspect of the balance sheet, which was the point.

Now, get back to your plowing.
This post was edited on 7/20/19 at 7:45 pm
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