upstater1
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RE: USA Today: Athletic Department Budgets for 2013 (public schools only)
(06-06-2014 09:47 AM)wavefan12 Wrote: (06-06-2014 09:31 AM)upstater1 Wrote: (06-05-2014 02:03 PM)oldtiger Wrote: (06-05-2014 01:35 PM)upstater1 Wrote: (06-05-2014 12:23 PM)wavefan12 Wrote: Where are these audits....and there are legal ways to downsize your profits. I am convinced these books are totally cooked. Not to mention what is the branding value, what is the value to the academic quality of your undergrad/grad population, what are the true scholarship and health care costs.
My take is the exact reverse of this.
They do cook their books, but they do so to hide LOSSES, not PROFITS. Many assume they are afraid to show profits because of the lawsuits, but they are much, much, much more afraid of showing losses because of what it implies for their true customers.
Take a school like Tulane. Your tuition is actually HIGHER than the actual cost per student (budget/# of students). This means customers paying the full tab are paying for more than the school can argue they are giving. If the athletic department were to show any losses, a paying customer could infer that they are directly subsidizing the losses.
And this is why schools have incentive to hide the nature of their athletics losses. They are much more afraid of losing parents than they are losing lawsuits. Parents are their bread and butter.
...and as huge of a college athletics and Memphis fan as I am, I'm not happy about the amount of taxpayer/parent/student loan cash that is required to run an athletic department today.
Just look at the student fee numbers, divide it by the number of students and then multiply it by 4-5 years and students are graduating every year owing that money simply so we can enjoy college football, basketball, and baseball. Something is inherently wrong with that in this college football and basketball fan's opinion.
(06-05-2014 02:17 PM)wavefan12 Wrote: (06-05-2014 01:35 PM)upstater1 Wrote: (06-05-2014 12:23 PM)wavefan12 Wrote: Where are these audits....and there are legal ways to downsize your profits. I am convinced these books are totally cooked. Not to mention what is the branding value, what is the value to the academic quality of your undergrad/grad population, what are the true scholarship and health care costs.
My take is the exact reverse of this.
They do cook their books, but they do so to hide LOSSES, not PROFITS. Many assume they are afraid to show profits because of the lawsuits, but they are much, much, much more afraid of showing losses because of what it implies for their true customers.
Take a school like Tulane. Your tuition is actually HIGHER than the actual cost per student (budget/# of students). This means customers paying the full tab are paying for more than the school can argue they are giving. If the athletic department were to show any losses, a paying customer could infer that they are directly subsidizing the losses.
And this is why schools have incentive to hide the nature of their athletics losses. They are much more afraid of losing parents than they are losing lawsuits. Parents are their bread and butter.
So only a few schools are reporting profits, yet they keep investing more and more, but in fact are hiding larger losses? They count the scholarship as a real expense, that alone destroys your argument.
I really don't understand what you're saying here, and I'm not trying to argue. How does counting scholarships destroy my argument? Not sure what it is you're saying.
Because if they were trying to hide losses they would count the true cost of the scholarship. When providing medical treatment they would count the true cost to the university, not a market rate.
In the end, the idea that these departments are losing millions yet invest more and more and more, is absurd. Yet it goes on with virtually every P5 and the top of the G5's with virtually no exceptions. They may cut some small time sports to comply with Title IX but the reality is any cash freed up is plowed right back in and then some.
If they counted the true cost of a scholarship (whatever you meant by that, I'm not sure) wouldn't it RAISE the losses higher?
I mean, tuition and cost-of-attendance is subsidized by a variety of things: taxpayer subsidy, endowment, research grant skim-off of 60%, etc. This means the AD's return to the university is actually BELOW the true cost-per-student at state universities (this doesn't hold true at state universities). If you calculated for the TRUE cost, the losses would actually increase. Instead, the ADs return an amount of revenue to the university that is already subsidized by the university's state tax subsidy, endowment, and research grant skim-off. Which I think is proper by the way.
I'll say it again: schools have a lot more to fear from parents than they do from lawsuits, and I can tell you from firsthand experience that almost no one who is a stakeholder (parents, employees) really understands athletic budgets.
As for revenues increasing expenses, you're going to have to find a volunteer to control expenses. UConn could have started a national trend, I suppose, by refusing to increase Kevin Ollie's salary. Now, how would such a decision impact UConn's AD's revenues for the next year?
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