Through 2024 its estimated to run a deficit of $28.5 Million to be covered by 12th Man. How are we possibly running a deficit with so much money coming in?

Also 12th Man foundation ran a $26.7 Million deficit last year, which wasn't as bad as we thought thanks to $37 Million in investment income.

Most athletic departments in the country run at a deficit. I think something in the range of 70%. Either run at at a deficit or push it on the university as institutional debt.

That's why you have cash reserves. Stadium was 1/4 full last year. State has a rainy day fund, and your county, city, and school district have funds they can tap when S hits the fan or a pandemic affects income. If they run a deficit this year, then we can start to panic.

That's also why the SEC distributed around $25 mil to each member to help cover the losses during the Covid 2019 season.

MaroonStain said:

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80sGeorge said:

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That's also why the SEC distributed around $25 mil to each member to help cover the losses during the Covid 2019 season.

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To me, the fact that the SEC league office had $350MM to throw around is astonishing and not in a good way.

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For all we know they have a line of credit secured by TV contracts and bowl earnings. Good time to make use of it if so.

MaroonStain said:

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80sGeorge said:

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That's also why the SEC distributed around $25 mil to each member to help cover the losses during the Covid 2019 season.

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To me, the fact that the SEC league office had $350MM to throw around is astonishing and not in a good way.

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Not when when we have rank amateur officiating.

Take it to the Accounting board. Real FB aficionados (the BIG BOYS) are discussing football and recruiting here.

KCup17 said:

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Most athletic departments in the country run at a deficit. I think something in the range of 70%. Either run at at a deficit or push it on the university as institutional debt.

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I think its way higher than 70%, very, very few make any money...That's why a lot of universities used Covid as an excuse to shut down some real bottom-feeder sports. At least some can now see that A&M isn't sitting on some huge mountain of money.

That's kind of why I don't think NIL is going to be the wild, wild west that is predicted. Sure you have the rich losers that want to sniff some jocks, most have a better place to put their dough, though. Nike boy and the loser over in Austin are out there, just not sure how many more are-ultimately.

I think it's also true that we are under the false assumption that a ton of former students generously give to the school when the actual percentage of those that really do, is shockingly small.

I think you are right. A study I found said something like 25 of the 129 FBS athletic departments reported a positive net generated revenue. which means that nearly 80% lose money.

Regarding NIL, I don't feel like investors willingness to throw money to an athlete is tied to profitability of the athletic department. I think it has more to do with the marketability of the athlete. If a company can make back the NIL deal plus more due to the attention the athlete brings the company then it's a good investment for them.

The claimed number doesn't appear on any of the substantiating reports unless I missed it…I see the 26.7.

In all honesty, the purpose of fundraising is to pay for things that can't be fit into the current budget. That's part of why they're discussing more upgrades: donations are easier to get to build something new. But you hope operating costs are covered by recurring revenue….

2020 deficit was expected due to COVID restrictions and limitations. It's why you build a war chest.

With our set up the Ath. Dept. will always run a deficit and the TMF fills the hole, as the donations and $ for football season tickets goes to the TMF, not the Ath. Dept. Not very many schools do it this way.

It's DJT's fault!

jagged said:

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Redneck accounting!

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Probably like Hollywood, they know how to ensure stuff like Star Wars and Avatar never actually turn a profit on paper.

Triple-T said:

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It's DJT's fault!

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No doubt. He took out the tax breaks that donors were using to get season tickets and writing it off on their taxes, if I'm not mistaken. I'd just as soon write Jerry Jones a personal check under the IRS gift allowances as I would to anything Aggie sports related.

Oh man so we are not rich as we all thought.

Convert Kyle Field into a mega-mosque.
Shut down the athletic programs, lay off the coaches and declare bankruptcy.

infinity ag said:

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Shut down the athletic programs, lay off the coaches and declare bankruptcy.

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Let's start with the programs that have not won a division title or conference championship in the last two decades.

ADs run deficits. Every year they let the fundraising arm know what it takes to cover the loss. Fundraising arm cuts a check. Hopefully the fundraising arm makes more than the request in investment income and then adds annual donations on top.

Not hard.

To compare to another in State situation, the sips routinely need $38 million + from the Texas Exes to cover their nut. It's why they have such a hard time with facilities. Their annual spend is monstrous.

TexAg15 said:

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DallasAg 94 said:

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You have players spouting off attacking Former Students and calling them racists... you might have to lower your projected donations from them.

You have someone like Leon "Wake'em Up" O'Neal... talking about how the fans and the University was so good to him, and you will recover faster.

It is a relational world.

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If you're going to let one student athlete sway you one way or another on donating, then you really don't care that much about your school.

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But alas, it was more than one...When you're taking your shirts off, flexing and screaming at Old Ags, yep, you'll lose some dough.

SinKiller said:

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TexAg15 said:

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DallasAg 94 said:

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You have players spouting off attacking Former Students and calling them racists... you might have to lower your projected donations from them.

You have someone like Leon "Wake'em Up" O'Neal... talking about how the fans and the University was so good to him, and you will recover faster.

It is a relational world.

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If you're going to let one student athlete sway you one way or another on donating, then you really don't care that much about your school.

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But alas, it was more than one...When you're taking your shirts off, flexing and screaming at Old Ags, yep, you'll lose some dough.

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So your goal is to weaponize donations to censor student speech. Aren't you a wonderful human being. I mean maybe not so much.

WGAS? Running a deficit is the American Way.

What was the purpose of bringing this sheit up?

TexAg15 said:

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DallasAg 94 said:

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You have players spouting off attacking Former Students and calling them racists... you might have to lower your projected donations from them.

You have someone like Leon "Wake'em Up" O'Neal... talking about how the fans and the University was so good to him, and you will recover faster.

It is a relational world.

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If you're going to let one student athlete sway you one way or another on donating, then you really don't care that much about your school.

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They mostly care about the opportunity to morally grandstand/virtue signal about how much they hate that players disagree with them.

DayAg! said:

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What was the purpose of bringing this sheit up?

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He has posted details of department planning for months. I never assumed there was an agenda other than than to inform us denizens of the depths of the TexAgs machinery!!!

I just like actually seeing how and where money goes. There's no dark motive behind anything I just find this kind of stuff interesting

AggieVictor10 said:

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TexAg15 said:

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DallasAg 94 said:

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You have players spouting off attacking Former Students and calling them racists... you might have to lower your projected donations from them.

You have someone like Leon "Wake'em Up" O'Neal... talking about how the fans and the University was so good to him, and you will recover faster.

It is a relational world.

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If you're going to let one student athlete sway you one way or another on donating, then you really don't care that much about your school.

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They mostly care about the opportunity to morally grandstand/virtue signal about how much they hate that players disagree with them.

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Great.... you are free to backstop the Athletic Department to make up for other Aggies that have closed their wallets/purses because of on-campus actions.

To me, some of the commentary is running dangerously close to measuring love and support of the A&M institution with how much one opens the wallet. If we want to play that game, Tony Buzbee loves A&M 50,000,000x more than I do.

TommyBrady said:

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I just like actually seeing how and where money goes. There's no dark motive behind anything I just find this kind of stuff interesting

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Ive appreciated it and tried to interact with the info in both your posts and in other conversations in helpful ways. Thanks for the efforts and responses to queries!

I appreciate it. I'm trying to learn about Bond Markets and how all that finance stuff really works. Kyle Field redevelopment is what really got me interested 8-9 years ago.

I believe it was Lat who once said that any accountant worth their salt can make a $300m profit look like a $200m loss. For tax purposes.

And by the way, technically the university is a nonprofit, so of course they will push any and all revenue forward and back and bond it and move it around so much that they always run at or near the black.

A&M is sitting on a mountain sized pile of money and everyone knows it. Even more money than tu, OU, Harvard, MIT, or Bama.