[Farm93]

Should corporate parties and wedding receptions count?
They do at a lot of ADs when they rent out their stadium.

Lots of universities rent out their athletic facilities to youth leagues in the summer. Should those count? Not really directly related to intercollegiate athletics.

The AD has assets that generate income (endowment, golf course, summer rentals of Stanford Stadium).  It uses the money obtained by those assets to support Stanford Athletics.  Clearly a golf course is not a football stadium, but at other schools a lot of football stadium revenues are not associated with intercollegiate athletics.  Michigan just lumps them all as other.


You got to know a lot of that $40 million in other would look even more quirky.  And Michigan has $15 million in debt payments, so a lot of those quirky others are probably a net burden.


http://www.mlive.com/news/ann-arbor/inde...s_uni.html

As UCB AD struggles to justify their stadium debt they often note they will be able to use the mew stadium suites for corporate events, receptions, etc.  Should UCB AD really count those revenues?  Not exactly classic Pac-10/12 football ticket gate.

That's kind of the deal with financials.  No two institutions financials will be the same.  Thankfully the Founders of the university always appreciated the value of the land.  Lots of schools probably would have sold that land a long time ago.  If the University and/or the AD did sell that land it would create inflow of proceeds that would then add significantly to the endowment.  So if it helps, think of the golf course as a financial asset, a REIT if you will, with the land use fees serving as the dividend. 


Its a revenue generating asset owned and operated by Stanford University with the intent of using a large portion of that revenue to support the Stanford AD.  In dry years that golf course balanced the AD's budget and saved lots of AD jobs that were directly supporting intercollegiate athletics.


In the end, it is not that large of a percentage anymore.  Stanford without the golf course is still #2 in Pac-12 revenue, thanks in large part to revenue from other financial assets.

[Farm93]

Should corporate parties and wedding receptions count?
They do at a lot of ADs when they rent out their stadium.

Lots of universities rent out their athletic facilities to youth leagues in the summer. Should those count? Not really directly related to intercollegiate athletics.

The AD has assets that generate income (endowment, golf course, summer rentals of Stanford Stadium).  It uses the money obtained by those assets to support Stanford Athletics.  Clearly a golf course is not a football stadium, but at other schools a lot of football stadium revenues are not associated with intercollegiate athletics.  Michigan just lumps them all as other.


You got to know a lot of that $40 million in other would look even more quirky.  And Michigan has $15 million in debt payments, so a lot of those quirky others are probably a net burden.


http://www.mlive.com/news/ann-arbor/inde...s_uni.html

As UCB AD struggles to justify their stadium debt they often note they will be able to use the mew stadium suites for corporate events, receptions, etc.  Should UCB AD really count those revenues?  Not exactly classic Pac-10/12 football ticket gate.

That's kind of the deal with financials.  No two institutions financials will be the same.  Thankfully the Founders of the university always appreciated the value of the land.  Lots of schools probably would have sold that land a long time ago.  If the University and/or the AD did sell that land it would create inflow of proceeds that would then add significantly to the endowment.  So if it helps, think of the golf course as a financial asset, a REIT if you will, with the land use fees serving as the dividend. 


Its a revenue generating asset owned and operated by Stanford University with the intent of using a large portion of that revenue to support the Stanford AD.  In dry years that golf course balanced the AD's budget and saved lots of AD jobs that were directly supporting intercollegiate athletics.


In the end, it is not that large of a percentage anymore.  Stanford without the golf course is still #2 in Pac-12 revenue, thanks in large part to revenue from other financial assets.