They're treading water, and if push came to shove, every corn farmer and gas station attendant would empty their life savings to keep NU football afloat. But you want to know why NU is against the revenue sharing formula changing . . . it's because they're maxed out on their credit cards.
When was the last time a university went bankrupt? They don't. None of this matters. Comparing net profitability/margin % between schools really doesn't make much sense to me, albeit I don't know as much as you do about it.
Doesn't it benefit schools with huge fanbases to spend what they earn?
My guess is they have no problems with scholarship endowments and also can raise money for facility improvements at will. What would be the benefit of making an effort to turn a profit? They aren't paying dividends. I realize why at a school like KSU we need to be as far in the black at the end of the fiscal year because we scratch and fight for our income and benefit from money in the bank but UT farts more revenue in 6 months than we make in a year.
Set me straight Dax b/c I'd like to better understand it.
Actually that is an excellent point. Which is why I laugh at the powertards and a couple of people on the "other" board who say KSU shouldn't go into "debt" to improve facilities. KSU is likely headed to even higher net profitability, so floating some bonds that equate to $2.5-$3 million dollars worth of annual debt payment is no big deal. Athletic departments are non-profits, and as I tried to explain to several tards in other forums, if I were an athletic directors I wouldn't want my balance sheet showing too much net profitability. Because there are those in Washington D.C. who continually ask why the NCAA and Major D1 schools are tax exempt. There are also those in Kansas who ask why KSU and ku athletics get state money to maintain facilities, and ask how much longer ku is going to be able to use the "It's an Armory" excuse to get things like the State to pay for $2 million dollars worth of fire code upgrades for Allen Fieldhouse. When both athletic departments are millions upon millions of dollars in the black.
The reason I pointed out what was going on at NU, is because while you can say an athletic department at a public university isn't going to go bankrupt . . . at most schools and I'd hazard to say even at cultish school like Nebraska, having the athletic department flounder around financially is embarrassing, and can cause a lot of problems for administrators. I know enough to know that NU's president was all for the athletic department floating $60 plus million dollars worth of bonds. It would be embarrassing for a number of people at NU right now, if they had to pull a CU and go borrow $8 million dollars from the school itself in order to keep their head above water.
