Unplug the fridge

[square634]

The other thing that you have to consider is profitability versus cash flow.

On paper, if my non profit accounting is correct, a football team takes in gross revenues and has to partially offset them with the cost of the scholarships given to its athletes to arrive at a "Net" revenues number.

On paper, the scholarships would be a "contra revenue" not technically an expense. However, its a cashless transaction, no cash actually left the business. It's a paper journal entry.

True. Also, the value used to calculate that cost is the listed tuition cost, when in reality some student athletes would have financial aid anyway. Still the scholarships are a legitimate cost in my opinion.

[Birds of B'more]

The other thing that you have to consider is profitability versus cash flow.

On paper, if my non profit accounting is correct, a football team takes in gross revenues and has to partially offset them with the cost of the scholarships given to its athletes to arrive at a "Net" revenues number.

On paper, the scholarships would be a "contra revenue" not technically an expense. However, its a cashless transaction, no cash actually left the business. It's a paper journal entry.

Here's where I think college athletics differ from your model....at least in the case of UMd. For all colleges money for scholarships is subject to Title IX, and at UMd those funds comes from a source that is completely separate from the other operational expenses for each team (i.e. coaches salaries, facilities, uniforms, travel, etc) If I'm correct, all money that goes towards scholarships comes from the Terrapin Club. Other money generated (ticket revenues, TV deals/endorsements, direct donations) pays for operational expenses for each team..and obviously almost all of that money is generated

by the football and men's basketball teams.

[OregonBird]

Here's where I think college athletics differ from your model....at least in the case of UMd. For all colleges money for scholarships is subject to Title IX' date=' and at UMd those funds comes from a source that is completely separate from the other operational expenses for each team (i.e. coaches salaries, facilities, uniforms, travel, etc) If I'm correct, all money that goes towards scholarships comes from the Terrapin Club. Other money generated (ticket revenues, TV deals/endorsements, direct donations) pays for operational expenses for each team..and obviously almost all of that money is generated

by the football and men's basketball teams.[/quote']

True. All depends on how each school's athletic program funds itself.

[Doyle Hargraves]

May need to move this thread to the Finance Forum.