Hawkeyes No. 21 on Forbes List
- Thread starter RobHowe
- Start date
MelroseHawkins
Well-Known Member
I always find things like this so interesting. It clearly shows how money talks. We always say Wisconsin and Mich. St are so similar to Iowa. Ironic how they are all next to each other on this revenue list.
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DDThompson
Guest
So the Forbes value ranking is approximately the same as Iowa’s win % ranking over the last several years.
Some interesting information if you dig in to the numbers. Alvarez at Wisconsin appears to be running an efficient ship as they are generating $48M in profit on $86M in revenue ... or 55.8% over the past three years. Iowa, Nebraska and MSU are all similar in revenue to Wisconsin but "only" around 50% in gross profit. Alabama at 45.5% and Clemson at 35% are well below the top 25 average. Could be due to high coaching salaries and "recruiting" expenses.
Chickenlounge
Well-Known Member
okeefe4prez
Well-Known Member
Aren't the profit numbers way understated at most of those schools? Sure Michigan and Notre Dame could easily sell their athletic scholarship seats in the school for sticker price, but I'm not sure most of those schools could. The marginal cost of providing the educational component is super low, but they deduct the full sticker price for these things. If they used an actual cost accounting, the profits for places like Iowa would blow past $60 million I'll bet.
I think your 100% correct. The tuition the athletic department pays to the University for a seat here or there in a classroom is all incremental gain for the school. Those spots don't require the school to add any profs or classroom facilities. It's like buying 2 seats on a plane that has 10 seats open 15 minutes before boarding.
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Fryowa
Administrator
Cost accounting is my profession, and if I've learned one thing since I started this career it's that you can give me any set of financials and I (or any other person who's so inclined) can calc out a margin that's as high or low as management would like. Are we paying taxes or talking to the bank?
okeefe4prez
Well-Known Member
Yeah, that's why I put the word "actual" in front of cost accounting so some shady ass accountant like you can't put a portion of Mary Sue's pension in the damned model under the guise of "well, she hired Kurt so any post employment benefit she receives is a cost to the football team."
Fryowa
Administrator
Full absorption is full absorption, homie.
JoeyLabasForPresident
Well-Known Member
Which cartel are you working for?
