Is the trade off "fair"/equivalent? (Money side of College Football)

Here's where I see a point being overlooked. You talk about the $ received from the coaches, but don't acknowledge where the majority of that money comes from. Surmise it comes from the players on scholly, but that isn't the total situation.

From the last report on the expenses and revenues from Alabama...

Outside contributions to the revenue (as in average Joe's like you and me giving back to the University) accounted for 32.5% of the total revenue for the Athletic Dept.

Still, I wonder why so many think that the current players are the ones who "enable" such dollar figures to be made. They, well most, go to the games as a fan of the University. That fanaticism comes from years and years of people.

I don't quite follow what you would find interesting about the effect on the University if the football revenue wasn't there. In Alabama's case, it would have an effect, but, to think it would be a monetary effect isn't the case. The Ath. Dept. is self-sustaining.

In cases like UAH, UAB, etc., the differences in revenue vs expenses are passed onto the tax-payers in the state.

One effect if you subtract football is in the amount of $ the University would make in tuition. In the last fical report published the football program alone contributed close to 1.9 million in tuition aid. That's a lot of people going to school in an individual year.

I'm curious. Are you one that would consider the taxation of Ath. Dept's a good idea?

 

i know next to nothing about business, but i know that salaries have nothing to do with "profit". by your definition, i dont think there is such a thing as a non-profit organization.

 

Ever hear of the Red Cross? :wink: :thumb:

 

I may be wrong here. For some reason I thought the Red Cross was a 501C.

 

Beats the heck out of me but here's a link: :thumb:

http://www.redcross.org/article/0,1072,0_312_5824,00.html

 

Terry, I did a quick check cause I'd never heard of a 501C, but you were correct. It's actually both: non-profit and 501C. :thumb:

http://en.wikipedia.org/wiki/501c3

 

Thanks Tiga,

I didn't mean to hijack the thread.

 

Terry,

What (specifically) is the revenue from the football games used for? Does it sit in a bank account somewhere not being used in the everyday operations of the university? I do not have a financial statement of the university sitting in front of me but I would take a guess that the revenue generated from the games being played by the kids on Saturdays allows the university to purchase and do things that without the football revenue it couldn't do or would take years longer to do.

A lot of people that donate or give back to the university do so because they are football freaks (like myself). I do not keep up with nor do I care about Alabama gymnastics, softball, debate team, or the under water shoe shining team. My grandfather was an alum of Miss St. He was a wealthy cattleman that back in his "hay day" of making money would donate contributions to the university that covered my current salary for three years. He did it because he loved Miss St football. If the football program wasn't there his money wouldn't be there. If the kids and their talent aren't on the field, the game isn't being played and those football freaks (like me) aren't spending their money on anything affiliated with the Unversity. I guess that might make me a "fair weather" fan.

And to answer your last question no I don't think the AD should be taxed. We tax enough "things" already.

 

You're right. You don't. Salary is a major component in profit. It isn't in the calulation of Gross Profit or Contribution Margin but is a major component of Operating Income. Which leads to the bottom line profit or more commonly called net income.