Serious Question: What happens to our Athletic Department Surplus?

[the_real_MSU_is_us]

According to the CL, we spent $86M in '17, with revenue of $100M.

What happens to that $14M? Is it handed over to the academic side? Stored away for a rainy day? Spent on building projects? Genuinely trying to understand. This isn't another post about why we didn't buyout Joe or why our assistant money is so low I'm literally just trying to understand the X's and O's of what happens to it because I can't find out with a quick Google

[ShotgunDawg]

It's distributed to athletic department employees to acquire precious meats and spices *

[OLJWales]

making sure our football assistant coaches are paid the SEC going rate.****

[parabrave]

Well now you know why there are no more complaints about smelly cups.*

[Westdawg]

Well now you know why there are no more complaints about smelly cups.*

No, the cups are still there, but the concessions were hardly ever opened enough for enough fans to get the smelly cups and in turn complain. I guess Cohen solves that issue **

[Cooterpoot]

Rainy day/general funds. Which is another reason we had plenty of buyout money.

[Apoplectic]

use it as matching funds when ur solicited to make contributions to the general fund

[Cowbell]

This tells me not to spend anymore money than I do now.

[OLJWales]

I remember a while back I was reading something regarding income and expenses for major programs and from what I remember was the blue bloods put those insane amounts of revenue back into their programs so their nice things just keep getting nicer. Revenues and expenditures close to the same insinuating profit margins are not that important to them. Maybe I'm remembering wrong, dunno.

[Maroonthirteen]

LT gets a new yacht. All you Spaldings.... get your foot off The boat.


https://tenor.com/UxW9.gif

[MarcoRubio]

According to the CL, we spent $86M in '17, with revenue of $100M.

What happens to that $14M? Is it handed over to the academic side? Stored away for a rainy day? Spent on building projects? Genuinely trying to understand. This isn't another post about why we didn't buyout Joe or why our assistant money is so low I'm literally just trying to understand the X's and O's of what happens to it because I can't find out with a quick Google

Do athletic departments have endowments? If not, why not put a percentage of revenue (say10%) into one and over time have a pile of cash to help with scholarships/salaries/etc?

If our revenue remains around $100 million (10 million invested yearly) for the next 20 years, With a 5% return, the endowment would have almost $400 million by that point. Could conceivably start taking $10-15 million per year and the endowment still continue to grow without adding to it.

What do I know, I just order parts and take out the trash. I?m sure if it was that easy they?d already be doing it.

[Jack Lambert]

Did you try emailing or contacting the athletic department for the answer or was this thread just intended to give another angle to bitch about Moorhead and Cohen?

[deltadawg63]

Many of you need to remember that we have bonded likely close to 100mm in debt for the football and baseball stadium projects and it must be repaid...just like mortgage/small business loans to us...Those payments do not show up in income statements but are a major part of the cash flow of a business.

[TrapGame]

Rainy day/general funds. Which is another reason we had plenty of buyout money.

That's impossible. We were told we didn't have the money.**

[Mobile Bay]

Well last winter my Aunt and uncle went on a vacation to the Bahamas. They were in some high end resort when they met Keenum and Cohen at the bar.

Just sayin

[Pinto]

Many of you need to remember that we have bonded likely close to 100mm in debt for the football and baseball stadium projects and it must be repaid...just like mortgage/small business loans to us...Those payments do not show up in income statements but are a major part of the cash flow of a business.

True but not true. Take the new dude. It was 60-80 mill. We got over half that in donations. Also, we usually don't start a project for any sport until we have paid off the debt on a previous renovation. We may pay 5 mill tops on debt, but not 14 mill a year.

[Homedawg]

True but not true. Take the new dude. It was 60-80 mill. We got over half that in donations. Also, we usually don't start a project for any sport until we have paid off the debt on a previous renovation. We may pay 5 mill tops on debt, but not 14 mill a year.
This year we just paid off the EAST side renovation. So you're point about not starting another project wo having previous paid off is inaccurate

[TheLostDawg]

So you're saying every SEC school just about breaks even yet has projects ongoing. However we are very much in the black and are struggling to pay these bills?
So basically they are taking in a heavy load of debt but investing in themselves while we are slowly paying off our loans and being conscious of our income?

?