Post by aggiejazz on Jul 22, 2011 13:54:52 GMT -5
Could this story be about A&T in a few years:
www.washingtonpost.com/sports/a-closer-look-into-the-finances-of-marylands-athletic-department/2011/07/20/gIQAvsHmQI_story.html
The University of Maryland athletic department has been able to balance its finances at the end of each fiscal year using a unique arrangement, utilizing fundraising revenue kept in independent foundation accounts to pay for expenses.
But the revenue in the accounts — which surged after a number of successful seasons from the revenue-producing football and basketball teams in the early 2000s — could not keep pace with the department’s expenses. When the department withdrew roughly $1 million at the end of the fiscal year that ended June 30 to help balance its most recent budget, the reserve funds were exhausted.
On Tuesday, university President Wallace D. Loh announced the formation of a commission to examine the athletic department’s financial troubles. The 17-member group was charged with making recommendations that could create long-term financial stability.
The challenge for the athletic department in solving its financial puzzle is multifaceted. One of the most significant obstacles has been the recent struggles of Maryland’s two most profitable sports: football and men’s basketball.
Revenues for both of those teams has either stagnated or declined over the past six years, according to financial documents the athletic department filed to the NCAA. Season ticket sales have declined in both sports, department officials have said.
(click on link to read the rest of the story)
www.washingtonpost.com/sports/a-closer-look-into-the-finances-of-marylands-athletic-department/2011/07/20/gIQAvsHmQI_story.html
The University of Maryland athletic department has been able to balance its finances at the end of each fiscal year using a unique arrangement, utilizing fundraising revenue kept in independent foundation accounts to pay for expenses.
But the revenue in the accounts — which surged after a number of successful seasons from the revenue-producing football and basketball teams in the early 2000s — could not keep pace with the department’s expenses. When the department withdrew roughly $1 million at the end of the fiscal year that ended June 30 to help balance its most recent budget, the reserve funds were exhausted.
On Tuesday, university President Wallace D. Loh announced the formation of a commission to examine the athletic department’s financial troubles. The 17-member group was charged with making recommendations that could create long-term financial stability.
The challenge for the athletic department in solving its financial puzzle is multifaceted. One of the most significant obstacles has been the recent struggles of Maryland’s two most profitable sports: football and men’s basketball.
Revenues for both of those teams has either stagnated or declined over the past six years, according to financial documents the athletic department filed to the NCAA. Season ticket sales have declined in both sports, department officials have said.
(click on link to read the rest of the story)
