orangefan
Heisman
Posts: 5,218
Joined: Mar 2007
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I Root For: Syracuse
Location: New England
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RE: 2017-18 ACC Revenues at OPE site
(03-04-2019 03:06 PM)OrangeDude Wrote: (03-04-2019 02:00 PM)orangefan Wrote: (03-03-2019 12:12 AM)OrangeDude Wrote: Yes, I like data mainly because I think without data it's hard to make good decisions. But I am always suspect of data as well, which is why you will often see in my data driven posts me saying "make of it what you will".
Here's an example of such data:
Net Revenue (Total Revenue minus Total Expenses) 2017-18:
01. SU - $16,692,167
02. FSU - $10,458,575
03. UVA - $7,119,537
04. GT - $3,129,991
05. Clem - $1,685,854
06. NCST - $1,599,060
07. UNC - $1,476,266
08. UL - $1,447,195
09. VT - $461,169
Duke, Miami, Pitt, BC, and Wake all reported zero net revenue.
Like last year, SU finished towards the top. Rah! Rah! Right? Not to me. It means like last year, if the numbers are even close to accurate, SU could have spent MORE on athletics than they did - something I and other SU fans feel should be happening.
Last year when this was pointed out to our AD in terms of the 16-17 numbers he brushed it off as being some kind of fluke that was unlikely to repeat again. Yet here the numbers are again, another year (17-18) when we might have spent more and didn't. Now it could be that the AD is actually building up a "nest egg" of sorts from the surplus from 16-17 and now 17-18 to assist with the Dome renovations that will start soon. In which case, I would be fine with it. But then why not point that out?
And for those wondering, all of the above doesn't mean those institutions that show a net revenue of zero are well run ADs, in fact, the general consensus is that such institutions actually had to inflate their revenue figures so as not to show the fact that athletics actually lost $$$ in a given year.
Cheers,
Neil
My take on this is that the school is taking the profit and investing in facilities, such and the indoor practice facility for football, the television studio for the ACCN, and upgrades to the Carrier Dome and Archbold Gym. These facilities will serve the athletic program for years to come. If the school is able to maintain its revenue levels moving forward, when these investments have been paid for, the revenue will be available to fund operating expenses, like coaches salaries, etc.
The revenue level seems sustainable. Distributions from the ACC for 2016-17 were $25 million (which includes TV revenue, bowl revenue, NCAA distributions, and ACC tournament money), ticket sales for football and basketball of $30-40 million per year), contracts with Nike and IMG totaling around $10 million per year combined, plus donations, student fees and other miscellaneous sources.
I believe all of those items would/should if not listed amongst the expenses of a specific sport then be listed as expenses in the Not Related to Particular Sport Expense. However, since we are not given a detail of precisely what those total expenses represent in either the specific sport expense or in the generic catch all item we simply don't know.
Here's another way of looking at it. For the Recruiting Expenses line item (for all sports) Syracuse ranks 11th in the conference at $1,431,550. My question is why do we rank so low when we tend to be far away from a lot of recruits AND we show a profit of $10 million plus for each of the last two years?
Now, of course, money spent on recruiting doesn't necessarily mean better recruiting AND we know that Syracuse has less number of sports to recruit for than some others in the conference. Still it is rumored by some in the know that Babers wanted more $$$ for that particular item. So after seeing what the institution has reported over the past two years, and the surplus each year has made, it does at the very least beg the question, doesn't it?
Cheers,
Neil
I would definitely like a better accounting. FWIW, it is my understanding that the expense portion of the reports is operating expenses only. If so, if operating revenues were being redirected to capital expenditures, it would not be shown in this report. I'm giving the University the benefit of the doubt. However, it would certainly be nice to have some clarity on the use of the operating profit.
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