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Message: [QUOTE="JohnFSilver, post: 2988396, member: 1618"] Guys, we all know expenses outpace revenue if we are doing football only. UConn runs a big operating deficit in football if memory serves me correctly. Of course, if this was a business, then there would be cuts in expenses to align with revenue and more of a demand to grow revenue and projections. This is why the AD job is a big one and very important and should not just be looked at as a coach hirer. This is about managing an $80 million budget. Look at the sales multiple - 1.4x revenue. That isn't some incredible multiple UConn would get if it was up for sale. It shows, at best, tepid growth projections if the team was acquired in a sale. Texas is getting nearly 7x its revenue. Generating FCF is not what UConn is charged with. There is so much fat to cut out of UConn's budget that if they needed to run it leaner, they could. The subsidy is not sustainable and it will go down in coming years. But that subsidy does not only cover the UConn FB deficit, it covers the deficit for almost every other sport the university offers. Maybe men's and women's basketball are run with an operating surplus, but they wouldn't be protected if the subsidy was eliminated. Cuts would happen there too. The thought that the entire $33 million subsidy goes to the football program is false. The subsidy is for the entire athletic department. Money is fungible. The subsidy was budgeted to keep UConn's spending levels where they are across all sports. Perhaps it was done to maintain P5 levels of spending. Eliminate the subsidy, and we would see major cuts across the board in all athletic teams. Might be a good thing to look into, how much revenue does UConn Football directly bring into the coffers. We know the expenses because those are line items on the budget, but how do you report on revenue? Someone buys a UConn Hat, is that football or basketball? Outside of ticket revenue, very hard for me to see how to separate revenue for things that crossover. For the purpose of the study, the guy included all revenue minus university subsidy. If this was Bobby Axelrod (come on, I know you guys love Billions), we might get more of a deep dive on the finances and of course some chicanery. But this is all just a novelty and if you want to say BS, I can't argue with that. It is BS. It is for fun. It is for discussion. That's why I liked it as a newsletter piece. And if you want to help a for-profit business generate FCF, go to UConndaily.com and signup for the newsletter. You guys are the best. Good stuff here. [/QUOTE]

Verification: First name of men's bb coach