ISU Athletic Budget

[drmwevr08]

It's no big deal, really... I sometimes debit a credit just to see if people are watching... Its not like misrepresenting financial stability will get you thrown in jail or anything. Hang on, the guy from Enron is on the phone...

[CLONE2THEBONE]

Has this been discussed? This is a huge amount. What kind of "accounting change" could cause this?

I thought we broke all sorts of ticket sales records...WTF?





February 07. 2008 11:19PM
ISU expenses outpaced revenues

By Scott Dochterman
The Gazette
scott.dochterman@gazettecommunications.com

Iowa State University's athletics department expenses exceeded its revenues by more than $9.4 million during the 2007 fiscal year, according to figures obtained by The Gazette through the Freedom of Information Act.
According to its annual audit report, Iowa State athletics' total expenses were about $42.1 million, and it brought in about $32.7 million.
Attempts to reach Iowa State Athletics Director Jamie Pollard on Thursday were unsuccessful.
Iowa State President Gregory Geoffroy said "an accounting change" contributed to the shortfall.
"I have absolute confidence in the way it's being managed financially and in every other way and have no concerns about that," Geoffroy said Thursday at the state Board of Regents meeting.
More than $3 million in expenses were attributed to severance pay for former coaches. Pollard, who was hired in 2005, fired men's basketball coach Wayne Morgan after the 2006 season. Football coach Dan McCarney resigned the same year.
Much of Iowa State's financial problems began with the football program, which had a shortfall of nearly $342,000. Iowa State generated about $11.1 million, including nearly $3.8 million in ticket sales. That's down overall by nearly $2.8 million generated in the 2006 fiscal year. Ticket revenue reached nearly $7 million during the 2006 fiscal year.
The athletics' department expenses rose by $8.8 million in one year. Operating expenses for facilities, maintenance and rentals rose by nearly $3 million from 2006 to the 2007 fiscal year.
The University of Iowa's athletics department reported more than $80.8 million in revenue and about $70.1 million in expenses for the 2007 fiscal year, according to figures obtained by the Freedom of Information Act.
Iowa's revenues increased by about $7.5 million from the 2006 fiscal year, and its expenses rose by nearly $11 million.
Nearly $8.7 million in added expenses came from Iowa's facilities.
Iowa spent more than $15.1 million on facilities and maintenance.
Iowa's football team generated nearly $45.4 million with $28.8 million in expenses.

[clone2011]

This was discussed a few days ago, I'm sure someone else will post the link to the thread, I can't seem to find it.

Basically Pollard paid out the severance packages to coaches just before the end of the fiscal year instead of forwarding them to the next year. Also the old administration did something weird with football season ticket sales, something about applying them to previous fiscal years, as in (for example), 2030 Season Ticket Sales would be applied to the 2029 fiscal year instead of the 2030 fiscal year. Pollard changed it to be 2030 Ticket Sales applied to the 2030 fiscal year. It was something like that...I didn't really understand the article, but I think this was right.

[Wesley]

I think it is fairly clear. We are going to have to do more with less. This means we need to get to a major bowl game. And we need to quit losing and then having to bring in more coaches. We are going to have to sell more beer, more dogs, more pork sloppies, and popcorn. No more new uniforms. Cut down on TP. Arby's will now be the food of choice at the training table. Recruiting visits will be by VTC. Get a budget going. Or else we will be like the federal govt.

[cyclonez7]

We could always get Bill Gates to become a booster.....

[CY ST8T]

The accounting of this should have no effect if Witosky actually had accounting knowledge. The fact that it was being reported one way vs. another isn't going to create income it is only going to distribute it differently. But Witosky seems to think it is a leading reason for why they are losing money. Good thing he wasn't teaching any accounting classes.

[cytech]

http://www.cyclonefanatic.com/forum/...ic-budget.html (ISU Athletic Budget)

here is the thread from when this was first posted.

The DMR said that $5.5 million of the 9.4 is due to the accounting change.
$1.5 mil was to wayne morgan
most the rest was to mcarney and the prior football staff

[Wesley]

Well, Mr J P why do you not just write a big IOU:

[cloneu]

This was discussed a few days ago, I'm sure someone else will post the link to the thread, I can't seem to find it.

Basically Pollard paid out the severance packages to coaches just before the end of the fiscal year instead of forwarding them to the next year. Also the old administration did something weird with football season ticket sales, something about applying them to previous fiscal years, as in (for example), 2030 Season Ticket Sales would be applied to the 2029 fiscal year instead of the 2030 fiscal year. Pollard changed it to be 2030 Ticket Sales applied to the 2030 fiscal year. It was something like that...I didn't really understand the article, but I think this was right.

This is how I followed it. Just correcting the practice of counting ticket revenue in the same year as the service (games) provided. In turn I it shows that the last year (fiscal year ends in June or July I think) had no football ticket sales to make up for one year where they got to count 2 seasons of ticket sales in one fiscal year.

[isuno1fan]

Give Pollard all your money if you are concerned.

[HandSanitizer]

Could you imagine if they could sell beer at these games. That would increase our revenue a little.

Seriously...I wouldn't be concerned about this. He just made some corrections from the past and paying out severance. He isn't known for being one of the best business men in the country for nothing.

[jtd9046]

[B][FONT=Arial][SIZE=2]Has this been discussed? This is a huge amount. What kind of "accounting change" could cause this?

I thought we broke all sorts of ticket sales records...WTF?

Did you read the article you posted? Pretty much explains your WTF question.

[cloneu]

Could you imagine if they could sell beer at these games. That would increase our revenue a little.

Would also need increased security for student section.

[isuno1fan]

Would also need increased security for student section.

Dupe them with near beer.

[HandSanitizer]

Would also need increased security for student section.

They would need to enforce the no going out at half time policy to really get some money also..