Eh, sane businesses wouldn't have D&A be 15% of revenue

Eh, sane businesses wouldn't have D&A be 15% of revenue
by NavyJoe (2023-03-24 16:39:32)
Edited on 2023-03-24 16:44:17

In reply to: 85000 x 85 != $5 million posted by airborneirish

We aren't in the oil and gas industry. ND, and other schools, spend profligately because they aren't supposed to be turning a profit. That $30M equates to what, almost ~$1B of capital expenditures? There's also debt service on top of the depreciation, which further degrades profitability.

The number of athletic departments which have revenue equate to expenses is absurd.

And spend that way because they know they dont need to pay

the players.

Yes, obviously

In fact, they spend a ton on facilities to entice players because they aren't paying them. They also don't need a dozen analysts on staff but, again, there's a lot of money to spend.

The Big-10 is about to distribute $100M annually to each of its member schools. That is going to be $50-60M of incremental revenue at almost 100% profitability to those schools. SEC is in the same, enviable boat.

The Big-12 just signed a deal that will increase its TV revenue by an average of 75%.