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Our Athletic Department is in Debt

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FullyERicht

Thunderdome
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Feb 5, 2013
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I think it's fair to say we are one of the most poorly run athletic departments in the country as a whole.

For reference, see the thread on Manny's call out article. It includes the balance sheet showing how much our sports cost to run versus how much they make and the breakdown between the different sports, and by gender. If you aren't into reading financial data, the breakdown shows a few key things:

#1: Miami football, after everything is said and done in terms of costs of running the team (and that includes all the scholarships and recruiting budgets etc etc), generates a surplus (aka profit) of $5.5 million . The basketball team's profit is around $2.5 million. After the cost of all the other mens sports which don't generate profit, as a whole, men's sports generates a surplus of $5 million and change.

#2: Women's sports generate no profit. After everything is said and done, women's sports as a whole generated the university negative $7 million.

#3: This means that when figuring out the total amount of profit our athletics department generates, you add mens (+5mil) to womens (-7mil). This means Miami is operating at a 2 million dollar loss. As a result, Miami has to use donation monies just to break even .

Dapper also alludes to the fact that Miami spends 27 million on its football budget, which is second in conference behind FSU at 33.

Anyone who has ever taken a basic finance course can tell you that operating at a loss is not just crippling; it's a sign of horrendous leadership. There is a tremendous amount of inefficiency in how things are run here. I know you can't just eliminate womens sports, but downsizing the entire AD while improving your money making sports with the profits would lead to overall growth in the end. It's simple economic fact.
 
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I think all but about 3 college programs run at a deficit when you include all of their sports.

It's not uncommon.

But more importantly ... I think the deficit is actually a "book value" loss, not a real loss.

As Jay Bilas argues, they don't actually pay the scholarship values they attribute to each athlete. So, it's not a real expense.
 
Lmao. You know how many athletic departments are "profitable" in the country?

Thanks for your finance lesson. I don't think you know what debt means in a business sense. All these schools are covering athletic losses with institutional subsidies.
 
not a single AD in the country will report an actual profit (tax reasons). So I would take a lot of these financial statements with a grain of salt. A lot of games are played.
 
MIATL said:
I think all but about 3 college programs run at a deficit when you include all of their sports.

It's not uncommon.

But more importantly ... I think the deficit is actually a "book value" loss, not a real loss.

As Jay Bilas argues, they don't actually pay the scholarship values they attribute to each athlete. So, it's not a real expense.
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It's irrelevant if it's a "book value" loss. Miami doesn't have shareholders or a CEO. It's not a for profit business. "Book value", as well as the perceived value of the degree, are the only things of value a University has. And that book value loss kills us bc it's taking money that SHOULD be spent expanding facilities and hiring better staff, which would increase the book value, which is the entire purpose of the University leadership.
 
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What you fail to realize is that the athletic department has to pay the university the FULL tuition for each scholarship athlete so in reality the football team pays the university 85 x $40k = $3.4M.

This means that the right hand is paying the left hand and when the right hand is short the left hand covers the difference.

THERE IS NO REAL DEFICIT as 90% of the students get some form of aid and the school rarely gets paid FULL tuition from any student.
 
ssvir said:
What you fail to realize is that the athletic department has to pay the university the FULL tuition for each scholarship athlete so in reality the football team pays the university 85 x $40k = $3.4M.

This means that the right hand is paying the left hand and when the right hand is short the left hand covers the difference.

THERE IS NO REAL DEFICIT as 90% of the students get some form of aid and the school rarely gets paid FULL tuition anyway.
Click to expand...


this is one of those games.
 
ssvir said:
What you fail to realize is that the athletic department has to pay the university the FULL tuition for each scholarship athlete so in reality the football team pays the university 85 x $40k = $3.4M.

This means that the right hand is paying the left hand and when the right hand is short the left hand covers the difference.
Click to expand...

This is correct.
 
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GoldenShowers said:
I think it's fair to say we are one of the most poorly run athletic departments in the country as a whole.

For reference, see the thread on Manny's call out article. It includes balance sheet showing how much our sports cost to run versus how much they make and the breakdown between the different sports, and by gender. If you aren't into reading financial data, the breakdown shows a few key things:

#1: Miami football, after everything is said and done in terms of costs of running the team (and that includes all the scholarships and recruiting budgets etc etc), generates a surplus (aka profit) of $5.5 million . The basketball team's profit is around $2.5 million. After the cost of all the other mens sports which don't generate profit, as a whole, men's sports generates a surplus of $5 million and change.

#2: Women's sports generate no profit. After everything is said and done, women's sports as a whole generated the university negative $7 million.

#3: This means that when figuring out the total amount of profit our athletics department generates, you add mens (+5mil) to womens (-7mil). This means Miami is operating at a 2 million dollar loss. As a result, Miami has to use donation monies just to break even .

Dapper also alludes to the fact that Miami spends 27 million on its football budget, which is second in conference behind FSU at 33.

Anyone who has ever taken a basic finance course can tell you that operating at a loss is not just crippling; it's a sign of horrendous leadership. There is a tremendous amount of inefficiency in how things are run here. I know you can't just eliminate womens sports, but downsizing the entire AD while improving your money making sports with the profits would lead to overall growth in the end. It's simple economic fact.
Click to expand...

Well then your reallying going to loose your bowel because the football program is going to have hire about 10 additional admin/recruiting/coaching positions to keep pace with the new Power 5 autonomy rules. An don't look now Miami will also have to pay the maximum player stipend as well both because of location and staying competitive with every school that recruits south florida.

So the answer is generating more money for the AD by winning on the field an getting into big money bowl games. Why do you think UM finally agreed to play LSU in Texas for labor day, originally staff wanted noooooo part of that but money talks and bullcrap walks.

Go canes
 
Go look a USA Today report on NCAA Division 1 public school athletic department revenues/expenditures and look at the Top 50. Obviously, some of the schools like Texas pull huge revenue numbers and can control their expenses because they are gigantic state institutions. However, state athletic departments are subsidized. The NCAA defines a subsidy as "The sum of students fees, direct and indirect institutional support and state money. The NCAA and others consider such funds "allocated" or everything not generated by the department's athletics functions." If Miami runs a deficit it subsidizes it through other means.
 
Miami isn't really running a deficit. Just like UF isn't really not getting any profit off their athletic dept (i.e. the UAA reports essentially that it breaks even every year)

None of these institutions can technically profit because of their tax situations..so games are played, like paying full value for scholarships to the School from the AD.
 
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It doesn't matter if the deficit is "real" or not.

What is real is that despite the football program generating enough money to buy quality coaches/staff, that money is used for a bevy of money drains. I don't want my money from game tix and tv viewership and merch and donations going towards the goddam women's volleyball team while my football dies, simply bc they can't appropriately balance a budget.
 
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