SU has 2nd highest profit margin in ACC

[Cheriehoop]

http://www.nunesmagician.com/2016/4...ofit-margin-in-the-acc-budget-earnings-orange

I looked and couldn't find where this was posted. If I missed it, sorry.

 

[OrlandoCuse]

Writer of the article tries to make a good point but made several mistakes in the article:

1) Writer's title said SU had second highest profit margin in the ACC. They actually had the second highest profit. They actually have the highest profit margin (profit/revenues)

2) The first table references expenses, but it looks like they're revenues.

Seems to me the writer doesn't know much about finance and business.

 

[HoustonCuse]

Is this really a good thing? Look at a different column on the ACC table he compiled and you will see SU has a great profit margin because they spend the second least amount of money of anyone in the conference on their programs. Unless I am not understanding the data, it could be saying SU isn't investing enough and instead is pocketing the cash for non athletics expenditure.

 

[SaltLakeOrange]

I wonder what they are doing with the $19M? Is that being allocated to the University general fund to cover any shortfall there?

 

[OrangeinBoston]

I wonder what they are doing with the $19M? Is that being allocated to the University general fund to cover any shortfall there?

Of course it's going to the University. After all, the point of the University is education.

 

[Alsacs]

It will go up now that we are paying for an actual HC in FB with experience and JB has always been underpaid.
Hillsman is due for a raise. Gait needs to win a NC.

I bet most schools cook their books whatever ways they want as I highly doubt Syracuse brings in more revenue than Clemson as their football boosters must do a lot of spending off the books. Same for UNC/Duke hoops.

If we are truly that profitable the Big East exit fee should be paid off and the delay in announcing the FB IPF was a joke.

 

[CusefanATL]

those are very creative numbers... this makes no sense at all.

look at the mens report. 13 mil for bball, 19 mil for football, 4.6 mil for all sports excluding football and bball...

and then 75.844 mil for all mens sports combined. that, my friends, does not add up.

womens sports:
4.4 mil for bball
9.1 mil for all women's sports excluding bball (and football)
10.3 mil for all women's sports combined

that, my friends, does not add up

edit* must be a misprint - because nunes explains that the 87 mil is the revenue - but in the graph it says expenses.

 

[CusefanATL]

Of course it's going to the University. After all, the point of the University is education.

but is the point to syphon as much money as possible out of athletics to pay for education without proper reinvestment? there is a fine line and its common sense you don't want to be on the far side of it like we clearly are. this is VERY BAD to see.

FSU and ND do it well. make a ton of money, spend a ton of money, still bring back to University.

We have to spend more to at least give ourselves the chance to make more. Dino B is a decent example of that.

 

[rrlbees]

I wonder what they are doing with the $19M? Is that being allocated to the University general fund to cover any shortfall there?

I wonder if some is covering old debt. We ran in the red for a few years.

 

[texascpa]

Writer of the article tries to make a good point but made several mistakes in the article:

1) Writer's title said SU had second highest profit margin in the ACC. They actually had the second highest profit. They actually have the highest profit margin (profit/revenues)

2) The first table references expenses, but it looks like they're revenues.

Seems to me the writer doesn't know much about finance and business.

Don't you love it when people with no finance background explain finance.

 

[Flacusian]

There you have it! We could be putting mad stacks in sacks to slip to our basketball recruits and give Kentucky a run for their money!

 

[TheCusian]

Any judgements pulled from this data must be levied back towards the previous AD/Chancellor combo. I'd imagine it will shift with Coyle running the show.

 

[HoustonCuse]

those are very creative numbers... this makes no sense at all.

look at the mens report. 13 mil for bball, 19 mil for football, 4.6 mil for all sports excluding football and bball...

and then 75.844 mil for all mens sports combined. that, my friends, does not add up.

womens sports:
4.4 mil for bball
9.1 mil for all women's sports excluding bball (and football)
10.3 mil for all women's sports combined

that, my friends, does not add up

edit* must be a misprint - because nunes explains that the 87 mil is the revenue - but in the graph it says expenses.

It may be that the difference is things like merchandise sales and similar where it cannot be easily parsed as to what team or sport to apply it to so it is in a different category.

 

[Townie72]

Don't you love it when people with no finance background explain finance.

The Revenue number is pretty easy to get to.

But as you know, the key to this is understanding the $67.4 M of Expense.

200 scholarships at $40K each is $8 Million.

How much of the $60 remaining "expense" is allocations of fixed expense?

Let me control the allocations of fixed expense and I can produce whatever profit number you want (within certain limits) by shifting expenses from one are4a to another.

 

[OrlandoCuse]

One other thing, showing profit and profit margins on non-profit institutions is a pretty dumb exercise. Depending on how the schools' accounting policies are set up, some may purposely show increased expenses in the form of capital expenditures, depreciation, etc.

 

[Cheriehoop]

I've always wondered what percentage and how many $ of pledges/donations are reneged on? I have been the fortunate recipient at SU and other charity auctions of losing bids to only be called later asking if I still wanted the item at my lower bid. People reneged on their auction bid and sometimes I wasn't even the 2nd highest bidder. Wonder how frequently it might occur with even larger pledges on straight out donations (vs auctions). Sorry, just my mind rambling on...

 

[rrlbees]

I've always wondered what percentage and how many $ of pledges/donations are reneged on? I have been the fortunate recipient at SU and other charity auctions of losing bids to only be called later asking if I still wanted the item at my lower bid. People reneged on their auction bid and sometimes I wasn't even the 2nd highest bidder. Wonder how frequently it might occur with even larger pledges on straight out donations (vs auctions). Sorry, just my mind rambling on...

I donated $1m to SU but then changed my mind.

 

[Cheriehoop]

I donated $1m to SU but then changed my mind.

Well they called me and asked if I could donate my fortune instead. They asked for your address too, wonder why?

 

[skurey]

Looks like we can afford a top tier coach if Hop doesn't work out

 

[CusefanATL]

It may be that the difference is things like merchandise sales and similar where it cannot be easily parsed as to what team or sport to apply it to so it is in a different category.

na, they misprinted expenses/revenue - at least what was on Nunes. didnt click on the actual link.

 

[jgeorge322]

This article is definitely inaccurate as others said. I just pulled up an old nunes article stating cuse made $25.9m in bball revenue in 11-12 season. This article says $13.3m in revenue for 14-15. I doubt theres that great of a swing. I also doubt syracuse bball only makes $13.3m in revenue. That seems way too low.

 

[pfister1]

I've always wondered what percentage and how many $ of pledges/donations are reneged on? I have been the fortunate recipient at SU and other charity auctions of losing bids to only be called later asking if I still wanted the item at my lower bid. People reneged on their auction bid and sometimes I wasn't even the 2nd highest bidder. Wonder how frequently it might occur with even larger pledges on straight out donations (vs auctions). Sorry, just my mind rambling on...

Well we saw an article earlier in the week that was posted here about Emmert reneging on half of his pledge of $100k to the University of Washington. http://www.cbssports.com/collegebas...ark-emmert-has-reneged-on-scholarship-promise

 

[Dave85]

I donated $1m to SU but then changed my mind.

It's the thought that counts.

 

[shandeezy7]

I've always wondered what percentage and how many $ of pledges/donations are reneged on? I have been the fortunate recipient at SU and other charity auctions of losing bids to only be called later asking if I still wanted the item at my lower bid. People reneged on their auction bid and sometimes I wasn't even the 2nd highest bidder. Wonder how frequently it might occur with even larger pledges on straight out donations (vs auctions). Sorry, just my mind rambling on...

We write-off a lot of smaller pledges (phonathon, annual fund, etc.) every year.It's more rare to write off multi-year major gift pledges, but it certainly does happen. Here's an excerpt from a 2010 article in the Chronicle of Philanthropy on the subject:

"According to their financial statements, many institutions expect that between 2 percent and 5 percent of all pledges will not be collected. That includes small pledges as well as large ones, which go uncollected less frequently but tend to cause colleges the most pain."

https://philanthropy.com/article/As-Pledges-Fall-Short/159735