Results 11 to 13 of 13
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03-16-2015, 11:15 PM #11
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03-16-2015, 11:20 PM #12
I think the point was that "profitability" can be manipulated to suit the institution's overall objectives. Like statistics, things rather easily can be manipulated. Especially when you are looking at the profit/loss of an unincorporated "division" of a larger entity. And since college basketball programs are not separate for-profit corporations, they do not need to show profits unless their institution wants them to. And sometimes the institution doesn't want them to appear profitable -- particularly since those same institutions are typically asking for donations.
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03-16-2015, 11:48 PM #13
I get all that. I got your original point. My comments were simply focused on obvious business decisions.
What I don't know is whether or not the "books" of an athletic department are typically audited. I would assume yes in certain cases, especially if bank financing is used for CAPEX, and other "vested" third parties have a direct concern about financial performance as well. At least accounting creativity would seem less available where institutions fall under financial audit requirements.
Perhaps the more successful programs throwback "management fees" to their institutions to fund some of the academic side, protecting what would have been profits by subsidizing other operating losses.Last edited by xudash; 03-16-2015 at 11:51 PM.
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