Whether it is legitimate accounting to include financial aid to football players as revenue to the athletic department was a subject on this board about six months ago, when the Chronicle of Higher Education issued its last report. -- FORDHAM RAMS FOOTBALL FORUM

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Subject: Whether it is legitimate accounting to include financial aid to football players as revenue to the athletic department was a subject on this board about six months ago, when the Chronicle of Higher Education issued its last report.

Author:
JoltinJoe
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Date Posted: 13:58:33 12/26/04 Sun
In reply to: HR Block 's message, "4,000 fans a game at 10 bucks a ticket with no tv contract is not going to make any money. Where on earth did this writer get these figures? Most accounting would not consider donations as going towards "profits" at a not for profit insitution. Would be interesting to see the source of this data." on 13:49:01 12/26/04 Sun

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BTW, I'd guess that you could reflect a profit by not counting aid to football players as an athletic department expense, and expense that as a general cost to the university, along with all other aid given to students. Then you take your $400,000 or so in ticket sales, add in donations, and subtract costs like travel and recruiting. Using that method, your football program may show a profit. (NT) JoltinJoe 15:29:13 12/26/04 Sun

Aid Accounting FC78 23:36:53 12/26/04 Sun

Yes, I think. As stated, the story doesn't explain how a profit is realized. Also, if this cost were absorped by the athletic department, it would have Title IX implications for the department. When the Chronicle of Higher Education published its figure of $3.2 in revenue about six months ago, we discussed whether it was legitimate to include financial aid to players, and other university aid to the program, as revenue. It then backed out as an expense to the athletic department the cost of aid to students, and reflected the difference between the two as part of the profit to the program. (NT) -- JoltinJoe, 00:09:05 12/27/04 Mon
I'd add only that it doesn't make you an AFF crazy to recognize that the accountings reflecting a profit for the football program are questionable, because they don't take into account financial aid awarded to the football players as a football-related expense. That's why I noted that the Enquirer story didn't explain how this "profit" was realized. The poster above was more interested in calling people names than trying to comprehend what was being said. I support football, but I think it's misleading to tout that its a money-maker for the school. (NT) -- JoltinJoe, 07:50:54 12/27/04 Mon

The Chronicle doesn't use the sharpest pencil in the world when they publish reports like these. They take the numbers as submitted by schools or conferences but don't explain how they are arrived at. I'm not sure how scholarships can be defined as income in this case. I do know that financial contributions to the school are not considered "profits" by CASE, which publishes standards and practices for the higher ed fundraising. (NT) -- An Old Coach, 10:04:53 12/27/04 Mon