Forbes: Duke Basketball Value Falls--Expenses Rise to Highest in College Basketball
http://www.forbes.com/2009/03/16/mos...inal-four.html
Duke basketball expenses rose 88% to 15 million dollars, which is 5.7 million dollars higher than any team in college basketball.
Interesting article includes the top valued schools and their gross and operating incomes.
Do we need an MBA handling expenses?:D
Best--Blueprofessor:)
This might be wortha separate thread but..
the numbers raise the question.. With the amount of money they generate for leagues, schools and coaches, shouldn't college players, especially those that don't end up playing professionally be entitled to some form of pension?
i know the argument is that they get a free education, but i would make two points: the schedule for a div 1 athlete (20 hrs per week is the official time commitment, but i am guessing actual time spent is much higher) means that the education they get is not akin to that of a normal student. even if it were equivalent, the value they create for these programs and via the sneaker contracts that pay the coaches seems to far outweigh what they receive in most cases.
i am thinking about a player like McClure who has provided a great benefit to Duke and the league but who is never going to see the huge sums that others will.. shouldn't he get something for the value he has helped create?
if we are generating 15mm a year, we could tak 2% and set aside for a fund to aid former players who are looking for graduate educations etc. could help distinguish us in recruiting as well (esp in a world where Memphis is flying its team on private Fedex jets.. is that true?), though i haven't analyzed the ethics of it at all
thoughts?
Operating Income= Total Revenues Less Operating Expenses
Quote:
Originally Posted by
94duke
Would this be due to the new practice facility that was recently completed?
Usually, a new structure ,which the business occupies(like a practice facility or office), is capitalized (placed as an asset on the balance sheet) and then depreciated annually over its life expectancy.
So, only a small percentage of the facility's cost would be subtracted annually as depreciation from revenue as an operating expense.Normally.
Best --Blueprof:)
Forbes speaks of basketball revenue and basketball expenses
Quote:
Originally Posted by
jjasper0729
it's more likely the number jumped because of football expenditures with the new coaching staff/regime
See: http://www.forbes.com/2009/03/16/mos...inal-four.html
The profit is extremely small compared to other top programs discussed.
Best--Blueprof:)
As you requested, here are a few thoughts . . .
Quote:
Originally Posted by
dgoore97
i am thinking about a player like McClure who has provided a great benefit to Duke and the league but who is never going to see the huge sums that others will.. shouldn't he get something for the value he has helped create?
I am a huge Dave McClure fan and deeply appreciate his significance to recent Duke teams (including 2008 - 2009); I sincerely respect his work ethic, talents and selflessness. I would suggest, however, that five years of free Duke education is something of real value, a highly credible foundation for the remainder of his life (both personally and professionally). As we are all aware, MANY truly outstanding high school seniors – with gifts every bit as valuable and rare as Dave’s – would give a lot just to be admitted to Duke, not to mention a “free ride'" throughout undergraduate school.
Quote:
Originally Posted by
dgoore97
if we are generating 15mm a year, we could take 2% and set aside for a fund to aid former players who are looking for graduate educations etc.
I am not sure this would comply with NCAA regulations; after all, these are “student athletes” (in all sports and in every university/college), not “semi-professionals." Even if your plan were to meets NCAA strictures, how would you deal with the equally hard-working and beneficial athletes from the non-revenue sports or from Divisions II and III? Would you created a two-tier varsity athletic program at Duke (and presumably at other institutions), one with enhanced benefits for football and basketball, with a separate and less advantageous paradigm for the vast majority of student athletes? Further, would your proposal comply with Title Nine statutes for female student athletes?
In sum, I understand the motives behind your suggestion, but I am not sure it is legal, practical or wise.
While Duke grads rake in the dough...
Quote:
Originally Posted by
hurleyfor3
Duke grads,yes :D ,but not the basketball team.
Duke basketball had an operating income of $6.6 million.
Louisville led with 16.6 million ,followed by UNC at 16.4 million.
Some others: Indiana--16.1 million; Arizona, 12 million;Kansas,12.9 million; Illinois,12.8 million; and, Maryland,10.8 million.
"Operating expenses are comprised primarily of coaches' compensation,travel expenses,and gameday costs."
Duke's operating expenses were up 88% from the prior year and are $5.7 million higher than any team in college basketball, thereby leading to a precipitous drop in operating income.
Best--Blueprof:)
No,operating income, as used in the article, means operating profit...
Quote:
Originally Posted by
Mal
I don't see why an increase in expenses would lead to a drop in income. I assume "operating income" here is simply revenue. Net out the increased expenses from that and, of course, your bottom line profit would drop, not the gross inflow of money.
...so, an increase in operating expense ( of which Duke experienced an 88% increase to a figure $5.7 million higher than any other team in college basketball),most definitely decreases operating income or operating profit.
Revenue refers to gross income,not operating income.
Best--Blueprof:)