Reply to thread

Message: [QUOTE="UConnJim, post: 5028986, member: 1559"] One of the first things you learn as a financial analyst is that financial statements don't tell the real story. You have to look closely at allocated expenses and in many cases restate them and reallocate them. I once worked for a business that applied a flat overhead rate to product lines which made a small product line look unprofitable so they sold the product line. Then they figured out there really was very little overhead actually used by the product line and it was actually very profitable. They changed their cost accounting after that and made a better effort to determine actual overhead costs per product line. UConn's athletic accounting has many bad assumptions although I think they have been making adjustments. Think about this. If you recruit an athlete from CT, UConn says the scholarship cost is x. If the student is from out of state, the scholarship cost is 2x (+/-). Does that really make sense? Things like student intramurals, etc fall under the athletic budget. There are many other examples I could site, but we have gone through this many times before. The biggest revenue opportunity for UConn is from football and that requires turning around performance. And, ultimately, an invite to the P4 and higher revenues will come from having respectable football. [/QUOTE]