|
|
Post by rmcalhoun on Aug 7, 2024 20:48:04 GMT -6
|
|
|
|
Post by grass on Aug 8, 2024 5:30:45 GMT -6
Finally…
|
|
|
|
Post by Lurkin McGurkin on Aug 8, 2024 6:45:15 GMT -6
How do you place a value on a business that loses money every year?
|
|
|
|
Post by JacksonStreetElite on Aug 8, 2024 8:39:05 GMT -6
I feel really stupid. Forming a company that athletic departments can hire to justify their existence is such an obvious idea. Why didn't I think of that?
|
|
|
|
Post by david75bsu on Aug 8, 2024 8:51:53 GMT -6
How do you place a value on a business that loses money every year? Losing money while the majority of funds come from student fees! Athletes on scholarship receive free tuition, room and board, books, food, trainers, equipment, medical care, first class facilities to play their chosen sport, and more! That’s a lot of money that the students, university, alumni, and friends of the university spend to allow these young people to play a game that they enjoy playing! Pay them - bullshit!!! Enough is enough! |
|
|
|
Post by 00hmh on Aug 8, 2024 9:21:25 GMT -6
How do you place a value on a business that loses money every year? Wall Street does it with one hell of a lot of stocks.
It's the difference between and income statement and a balance sheet.
My first thought is that the value of a business includes all kinds of estimated future benefits appearing on the balance sheet as good will. This invites argument about what those benefits are. That's really the question Rob asks above. The benefits are not only often intangible values, but those values are thought to accrue more to the University than to the Department.
You ask a very good question!
It defies analysis as a business , the athletic department doesn't "own" or completely control assets like equipment, buildings, or even many of its revenue streams including donations.
Even for business there is that question of how a "subsidiary " enterprise is valued, or maybe how athletics as a "product line" adds value. Loss leader?
For public entities in general accounting is quite a mystery.
Ask the question "How much is the University worth?"
It "loses" money every year balancing it's budgets with gifts. The whole University is a public non profit and looking at all it's subsidiary parts, like the Business School or any other unit runs into the same question.
|
|
|
|
Post by CardsFB1 on Aug 9, 2024 5:34:35 GMT -6
I am guessing that Toledo is one of the few MAC universities that make $ in athletics. Most are break-even or loss at best. Life of a G5 school! |
|
|
|
Post by rmcalhoun on Aug 9, 2024 9:21:00 GMT -6
I am guessing that Toledo is one of the few MAC universities that make $ in athletics. Most are break-even or loss at best. Life of a G5 school! I dont even think they make money in fact Im sure they dont. These reports add in multiple millions of perceived money and exposure |
|
|
|
Post by 00hmh on Aug 9, 2024 9:42:58 GMT -6
I am guessing that Toledo is one of the few MAC universities that make $ in athletics. Most are break-even or loss at best. Life of a G5 school! I dont even think they make money in fact Im sure they dont. These reports add in multiple millions of perceived money and exposure You are no doubt correct. That's the accounting for "good will" on some kind of balance sheet analysis that applied to a public institution, in estimating "value" of the program.
|
|
|
|
Post by rmcalhoun on Aug 9, 2024 10:19:42 GMT -6
For the dumb asses in here myself included... Toledo perceived worth for athletics in the study time frame was 81 million. Im not sure if that was based on a year or 5 or means overall or yearly etc.. Buts lets say that 40 million of that is perceived exposure from TV, Internet, print etc... That 40 million is the cost of what similar exposure would cost them if they were to go purchase it.
|
|
|
|
Post by CallingBS on Aug 9, 2024 11:14:48 GMT -6
For the dumb asses in here myself included... Toledo perceived worth for athletics in the study time frame was 81 million. Im not sure if that was based on a year or 5 or means overall or yearly etc.. Buts lets say that 40 million of that is perceived exposure from TV, Internet, print etc... That 40 million is the cost of what similar exposure would cost them if they were to go purchase it. Yeah. At the end of the day it's total bullshit and just an excuse to spend tons of cash with no return on the income statement. |
|
|
|
Post by cbcjanney on Aug 9, 2024 12:18:51 GMT -6
For the dumb asses in here myself included... Toledo perceived worth for athletics in the study time frame was 81 million. Im not sure if that was based on a year or 5 or means overall or yearly etc.. Buts lets say that 40 million of that is perceived exposure from TV, Internet, print etc... That 40 million is the cost of what similar exposure would cost them if they were to go purchase it. I gathered that the whole $81 million was perceived Advertising Revenue from media exposure. First off we at BSU wouldn't have the $81 million to spend because we couldn't charge Student Fees to subsidize "Advertising Exposure" and if somehow we did have it, we wouldn't spend it to reach the vast audience that ESPNU or CBSSports have. Viewers may not have realized Toledo has a world-class zoo or other neat amenities prior to tuning in for part of a November MACtion game, but absolute zero people west of the Mississippi River decide to visit Toledo because of a Tuesday night commercial which they well may have switched stations following a TD, before the commercial even aired. Toledo and really all of the MAC except BSU does possess the slight Marketing benefit of having a geographic identifier within the School name. Those few favorably impacted by a BSU commercial or success of a BSU team however will not corroborate BSU with Muncie Indiana. Lastly, I doubt the valuation firm accounts for the fact that many to most of the people watching Toledo and/or MACtion on a given week are either Toledo alums scattered across the US who are already familiar with the brand, or the same ones who watched them the week before and the week before that. They're not reaching that many new people via each instance. There is also a significant segment of MAC viewers who only consume the schools as betting vehicles and will watch games to root for accordingly - with no intent of ever visiting the city of Akron, applying to grad school at EMU, or moving to Mount Pleasant MI. And we of course know that since there is one winner and one loser in every contest, not all schools who field teams will have superior winning teams which sounds like a significant component to the valuation. My educated estimated valuation of the exposure benefits of Ball State football/Sports to the Ball State University and the City of Muncie are less than what we're spending to field athletic programs. |
|
|
|
Post by 00hmh on Aug 9, 2024 13:58:41 GMT -6
University athletics has never paid for itself.
The big change has been escalating expenses.
Led by costs for FB. But, all sports cost more, a big part of that is the increase in cost of scholarships which reflect lower relative support by the state.
In FB that is exacerbated by need to recruit mostly out of state players to be competitive. mm
|
|
|
|
Post by sdacardinal on Aug 9, 2024 14:27:54 GMT -6
Spiegal was voted Mr. football in Indiana and ended up in New Palestine and then to BSU. So I guess you could say that he is from out of state since New Palestine is in the Middle East. I still think he is an in state player. We have very good football players in Indiana and we have enough on the team to be competitive however the really highly rated players becpme out of state players for non Indiana schools. Heard we got another Indiana player from Eden near Baghdad----welcome home another Indiana player we are looking at is from Nineveh so if we get players from Mexico, Peru, Brazil, and Denver (all Indiana towns) are those players considered out of state or in state
|
|
|
|
Post by mattg on Aug 9, 2024 21:22:58 GMT -6
|
|
