Are we really broke?

[Kaiser Soze]

I'm looking for input from someone who understands the ath dept's financial situation (Dax i'm guessing??).  Per a post earlier this morning, it appears from the fiscal 2009 financial statements that the athletic dept operated at a 2.8 million loss with the possibilitiy of having to pay scary smart an additional 3 million.  Basketball and football revenues should be up slightly in fiscal 2010 but I can't image we'll be in a better situation than fisal 2009 (particularly if we lose the prince lawsuit).

So...is our ath dept in a better financial position than the public financial statements show?  If so, what are we all missing?

Here's the fiscal 2009 statements.  Page 6 is the goods.

https://www.nmnathletics.com//pdf4/659198.pdf?ATCLID=204836139&SPSID=3053&SPID=211&DB_OEM_ID=400

Per the earlier post, Dax appears to have the insider knowledge....hoping you can enlighten us, Dax (sincerely).  Sorry if this has already been explained elswhere...

[sonofdaxjones]

They had to report a loss due to a drop in the value of the athletic department endowment holdings.

In terms of operational revenues, they were over $1 million in the black.

[Ghost of Stan Parrish]

Interesting numbers.

Sure, there was a $3 million loss in the athletic endowment.

BUT also, Krause blew through $1.5 million of cash on hand for God knows what.  (This was apparently the surplus that Weiser accrued that Krause spent.)  Plus another $1 million down from operational cash held by the KSU Comptroller.  And, $4.5 million less in deferred revenues -- I guess they're expecting ticket income to go down?  In sum, the total pie shrunk from $52 million to $41 million under Krause.      Also, no money potentially due to Prince is accounted for.

Meanwhile, salaries went up by $1.7 million.

Bottom line -- I'm no accountant -- but with revenues of $47.4 million and costs of $50.2 million, I'd say we're broke.  (Or at least on the edge, if you discount the $3 million loss of endowment.)

[DeezMeister]

Accounting for idiots:

If you have $15 Million in cash on your balance sheet you're not broke.

If you have a net equity position of $8M + you're not broke.

If your largest liability is "deffered revenue", you're not broke
Deferred Revenue
Deferred Revenue represents tickets sold for athletic events in a subsequent fiscal year. Revenue
is recognized in the year in which the athletic event is held.

[Ghost of Stan Parrish]

Right, not "broke," but we're running a small annual deficit at present.

We're not in the hole, just on the knife's edge.  While there's about $1.3 million in cash on the balance sheet (leaving out debt servicing and the Controller's operating account), I don't know what you're going to be able to do with that.  I wouldn't want to go spending that money, given the fact our expenses exceed our revenues at the moment.

Higher ticket revenue could turn this situation around very quickly, though.

[yoga-like_abana]

Nice SN.

[mcmwcat]

Right, not "broke," but we're running a small annual deficit at present.

We're not in the hole, just on the knife's edge.  While there's about $1.3 million in cash on the balance sheet (leaving out debt servicing and the Controller's operating account), I don't know what you're going to be able to do with that.

give OB and Deb bigger raises?

[catzacker]

Right, not "broke," but we're running a small annual deficit at present.

We're not in the hole, just on the knife's edge.  While there's about $1.3 million in cash on the balance sheet (leaving out debt servicing and the Controller's operating account), I don't know what you're going to be able to do with that.

give OB and Deb bigger raises?

don't forget Brad Hill.  Deb and Brad are responsible for programs that are part of the numbers in the ( ) at the bottom line.  spend money to lose money, I always say.

[Kaiser Soze]

Right, not "broke," but we're running a small annual deficit at present.

We're not in the hole, just on the knife's edge.  While there's about $1.3 million in cash on the balance sheet (leaving out debt servicing and the Controller's operating account), I don't know what you're going to be able to do with that.  I wouldn't want to go spending that money, given the fact our expenses exceed our revenues at the moment.

Higher ticket revenue could turn this situation around very quickly, though.

Thank you Ghost...this is helpful.  I'm not an accountant (just play one on the internet) but I'm reading the statements the same way.  Looks like we're operating at a small loss without additional funds to pay Frank (still doesn't explain the Snyds, Deb and Hill raises though...).  Also agree that the year of year change in net worth is  ... 

Currie strikes me as a weasel (I've had limited interactions with him but enough to know I don't trust him) so I'm trying to determine if he's full of balogne on this topic before increasing our donation to the ath dept.  Thanks again.

[Fracker]

What blows me away is the $125K we paid for crappy officiating?  I wonder how much KU pays?

[W|LDCAT]

I can say that K-State was still paying Snyder for his last 2 years during the Prince years. He was basically working for free for K-State during his last 2 years because K-State was running low on cash.

And this was way before the Prince contract debacle and the Krause AD days.

I can't and won't say any more than this.

[mcmwcat]

I can say that K-State was still paying Snyder for his last 2 years during the Prince years. He was basically working for free for K-State during his last 2 years because K-State was running low on cash.

And this was way before the Prince contract debacle and the Krause AD days.

I can't and won't say any more than this.

he wasn't working for free if we paid him 2 years later.

[Kaiser Soze]

Higher ticket revenue could turn this situation around very quickly, though.

Another thing that might help is using the current excitement around the men's bball team and the anxiety over Frank's contract to generate donations.  I have a close acquaintance who is an A.D’s National Leadership Circle – Bronze level donor (10k + per year) and they haven't heard one word (absolutely nothing) from the ath dept over the past few months soliciting donations for either Frank's contract or the practice facilities.  If you were John Currie in this situation (large level or excitement + anxiety), wouldn't you use it to call your top donors and solicit more money???  

[sys]

if i'm reading all of this correctly, and i think that i may be, the kstate budget problems could basically be solved by patterson having an unfortunate accident?

 

[Kaiser Soze]

if i'm reading all of this correctly, and i think that i may be, the kstate budget problems could basically be solved by patterson having an unfortunate accident?

 

You would have to eliminate the entire women's bball program but...you're on the right track!  Keep up the good work and thanks in advance.

[deputy dawg]

ku dorm whores who specialize in the use of turkey basters are to blame.  What's a junk-rubber to do if it's there, has a pulse, and breathing?

[ArchE_Cat]

ku dorm whores who specialize in the use of turkey basters are to blame.  What's a junk-rubber to do if it's there, has a pulse, and breathing?

what 

[OregonSmock]

They had to report a loss due to a drop in the value of the athletic department endowment holdings.

In terms of operational revenues, they were over $1 million in the black.

Translation:  K-State is broke.