09-30-2009, 10:09 AM
Audit for the year ended 2/29/09 is up on the Louisiana Legislative Auditor's website PDF link
Auditor's opinion states there is still a concern about the I-Bowl Foundation's ability to continue operations. Does it mean an end to the I-Bowl? No. It means trouble for the Foundation running the bowl game.
On to the numbers....
1. Ticket revenue DECREASED approximately $150k from the prior year. Seriously, it went DOWN from the prior year ticket revenue.
2. The Foundation lost approximately $85,000 for the year ended 2/29/09, which is better than the $450,000 lost the prior year. Still not good when you had a "home" team playing in the game. However, part of that decrease in the loss from the prior year can be attributed to #4 below.
3. The Foundation has a note payable with Capital One for the new scoreboad at their stadium. Payments are due each year in the amount of $150k. For the year ended 2/29/09, the Foundation DID NOT pay their $150k!! They were able to extend the length of the note since they were not able to pay it this fiscal year.
4. The Foundation is trying to cut costs in order to become more profitable. While total expenses did decrease approximately $600k for the year, $550k of that decrease was due to LTU and NIU being the schools in the game, therefore the Foundation did not have to pay as much to those schools if say the SEC and Big 12 were able to fill their spots. So basically, they have not reduced any of their expenses. Had the Big 12 or SEC conferences, or both, had enough teams, you could have been looking at approximately $700k in losses for the Foundation this year.
The Foundation has now filed suit against former title sponsor PetroSun for non-payment of their sponsorship fees. No idea how that will turn out in court.
Doesn't look good for the I-Bowl Foundation. Once you start not being able to make your payments on your loans, you're screwed.
Auditor's opinion states there is still a concern about the I-Bowl Foundation's ability to continue operations. Does it mean an end to the I-Bowl? No. It means trouble for the Foundation running the bowl game.
On to the numbers....
1. Ticket revenue DECREASED approximately $150k from the prior year. Seriously, it went DOWN from the prior year ticket revenue.
2. The Foundation lost approximately $85,000 for the year ended 2/29/09, which is better than the $450,000 lost the prior year. Still not good when you had a "home" team playing in the game. However, part of that decrease in the loss from the prior year can be attributed to #4 below.
3. The Foundation has a note payable with Capital One for the new scoreboad at their stadium. Payments are due each year in the amount of $150k. For the year ended 2/29/09, the Foundation DID NOT pay their $150k!! They were able to extend the length of the note since they were not able to pay it this fiscal year.
4. The Foundation is trying to cut costs in order to become more profitable. While total expenses did decrease approximately $600k for the year, $550k of that decrease was due to LTU and NIU being the schools in the game, therefore the Foundation did not have to pay as much to those schools if say the SEC and Big 12 were able to fill their spots. So basically, they have not reduced any of their expenses. Had the Big 12 or SEC conferences, or both, had enough teams, you could have been looking at approximately $700k in losses for the Foundation this year.
The Foundation has now filed suit against former title sponsor PetroSun for non-payment of their sponsorship fees. No idea how that will turn out in court.
Doesn't look good for the I-Bowl Foundation. Once you start not being able to make your payments on your loans, you're screwed.