Do we publish financials like LSU?

[tbaydog]

http://www.cbssports.com/college-fo...kes-55-million-in-profit-for-2015-16/?ref=yfp

 

[engie]

Search equity in athletics data. Every public institution in the country publishes it. Our numbers have been questionable a couple of times though, last year being one of them. Numbers something like 25% below our actual athletics budget for the following year. Just didn't pass the sniff test to me.

 

[Hoover Dawg]

So what happens to that 11.8 million dollar profit? If I understand correctly, you have to zero out the books every year. So where does that go? Future project funds? General fund?

I would think there is some way to sock that money away and let it be earning interest.

 

[engie]

So what happens to that 11.8 million dollar profit? If I understand correctly, you have to zero out the books every year. So where does that go? Future project funds? General fund?

I would think there is some way to sock that money away and let it be earning interest.

Nah, just have to operate as a nonprofit overall. It doesn't mean you have to balance the books every year -- lest you be in a world of **** if it ever takes a loss -- you can have a cash reserve -- it just can not pay dividends.

We should have a really good cash reserve stockpile at this point. Think we've shown a 5-6 million profit each of the last 4 or 5 years.

We do give back to the university at this point too. Think it was a pretty significant sum last year if I am remembering correctly.

 

[patdog]

That's what a lot of people don't understand. "Non-profits" can make all the profit they want and they do all the time. They can't pay dividends, but they can damn sure pay high salaries and consulting fees, so there are ways to legally get money out of them just like any for-profit business.

 

[Hoover Dawg]

I willingly admit I don't understand, that's why I asked. Can these cash reserves earn interest?

And when I read that X school recieved XX revenue and paid XXX expenses, I am assuming all salaries are paid out of those expenses, and X school still had 11.8 mil hanging around. Engie's deal about cash reserves answered the question, but 30 million or so dollars can earn a crap ton of interest if that's allowable.

 

[patdog]

They can earn interest. Although ours is probably limited by Mississippi's laws on allowable investments by state governments, which is pretty restrictive.

 

[DesotoCountyDawg]

Yes non profits can invest the money. Not sure if a government entity can do that much.

 

[TaleofTwoDogs]

College athletic budgets are a special breed of financial accounting and voodoo. For example, Oregon reported $194M in revenue in 2013 but $95M was a donation from the Nike founder and it was earmarked for their stadium expansion and therefore not spendable against general program expenses. Any "net revenues" after athletic department expenses are generally allocated to the university's general operating fund.