Financial Sunshine, Part I: How the Books Are Perfectly Balanced

Bumped from fanposts. BN Eds.

This will be the first in an ongoing series. This is an outgrowth of IslandBruin2's post from a few weeks ago. I don't know how many parts there will be except that this will be a multi-part series here on BN. I will start off by thanking IslandBruin2 and WaitingforNumber12. If it were possible to do on this site, all three of us would share the byline on this series and future articles in the series may be written by either one of them.

That said, let's get to it.

It's truly amazing what a Google search can turn up.

I remember reading a report by USA Today that talked about the financial information of university athletic departments. What I remembered from that was that the University of Texas was the department that made the most for its school. Well, assuming that UT is the school with the biggest profit, it would be helpful to look at their financials, if they're available online, so we can compare them to what IslandBruin found online for UCLA.

In fact, this isn't the first time on this site that questions about how perfectly the Athletic Department's books are balanced. Odysseus posted this article last year when the USA Today article came out.

So, I did a Google search for "university of texas athletics financial statements".

The first thing that came up was a news article on the University of Tennessee Athletic website talking about how the department had a shortfall and was using revenues from their reserves.

This was interesting because Knoxville is frequently compared to UCLA in terms of being similar insitutions.

The second result was this one from the Univ. of Texas athletic website which says:

All coeducational institutions of higher education that participate in any Federal student financial aid program (federal Pell, Federal SEOG, and Federal SSIG Grants; Federal Work Study; and Federal Family Education, Federal Perkins, and William D. Ford Federal Direct Loans) and have intercollegiate athletics programs must provide information concerning their intercollegiate athletics programs under the Equity in Athletics Disclosure Act of 1994, Section 360B of Public Law 103-382.

There were quite a few of these Equity Reports listed there on that page. I'm guessing that the Equity in Athletics Disclosure act of 1994 was probably put into place as a way of enforcing Title IX.

Regardless, since all universities must file it, I found the USDOE website where these reports can be accessed.

When you go there and pull up a particular school, below the general school info, there is a menu bar that flips between different set of data, one of which is Revenue and Expenses. After looking at several different schools, I looked at line 16 of the Revenue and Expense Summary. Line 16 is labeled "Grand Total Revenues Minus Grand Total Expenses". In a regular financial report, this line would probably be termed "Net Profit".

For 2011-2012, UT-Austin showed a net profit of about $34 Million, Berkeley showed a modest profit of $887K, Oregon showed a profit of about $3.8 Million and UCLA, like a lot of other schools, showed no profit.

Every school that showed no profit also showed that revenue and expenses were equal.

So, what does this mean? This was the question IslandBruin2 was seeking an answer to.

I'm lead to believe that it means that the schools which don't show a profit are actually making up the difference somewhere. In the case of Tennessee, their report actually says that they used almost $4 Million from their department reserves to cover a shortfall.

UCLA appears to be covering their shortfalls through a combination of student fees, institutional support, and contributions. (No wonder they keep pushing the Wooden Athletic Fund!)

What other interesting information do these reports show? Well, for most schools, this reporting is handled by a senior manager of some kind. It might be a Senior Associate AD, an Assistant AD or a Director of Finance.

Now, you would think that UCLA's reporting officer would be Senior Associate AD/CFO John Jentz. And you would be WRONG! UCLA is the exception to what most reports show.

The title of UCLA's reporting official is "Executive Assistant".

Yup, Chianti Dan's Executive Assistant, whom you may have spoken with if you've called his office to complain about anything, is listed as the reporting officer on the Athletic Department's Financial Records that get filed with the US Department of Education.

I don't know about you, but that makes me go "Hmmmmmm......."

That's just scratching the surface to answer IslandBruin2's initial question. Next, we keep digging....

<em>This is a FanPost and does not necessarily reflect the views of BruinsNation's (BN) editors. It does reflect the views of this particular fan though, which is as important as the views of BN's editors.</em>

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