(07-07-2017 12:18 PM)CougarRed Wrote: (07-07-2017 09:25 AM)arkstfan Wrote: Based on my observation, I am pretty certain that schools are fairly uniform in adding capital expenditures with the payment mechanism being the determinant in whether it shows up in a single year or over 10 years.
AState reported the press box construction in a single year because the money all arrived up front. The indoor practice facility was built with bond debt so expense and revenue to pay are laid out over 10 years.
And yet Houston spent a $128M on a football stadium that never shower up in the USAToday figures. Neither did the $65M in donations we raised from the alumni to help pay for it.
If Arky State or Oregon is counting capex projects in their USAToday survey responses, and Houston is not, then the numbers are not apples to apples.
what is amazing is that people that claim to have a college education do not understand the difference between an expense and revenue
and even more so from a (fake) "tier "won"" school not understanding that when you raise "$65 million" for a project that does not mean the money all comes in one single year for that project
the only way an EXPENSE ever reflects in revenues is when you find the money to pay the yearly cost of that expense
so if you borrow a ton of money for a stajium that does not all show up in one year for REVENUE unless it is PAID FOR THAT YEAR
so if you pay $30 million of that project with REVENUE for that year then you will have to have found the REVENUE THAT YEAR be it donations THAT YEAR, ticket sales THAT YEAR or an institutional transfer THAT YEAR ect THAT YEAR
if you bond it out and pay it over 50 years then the cost of that will be reflected in REVENUES for 50 years or so as you find the REVENUE needed to PAY off those bonds yearly
it is like Cal they spent over $400 million and right now they are paying INTEREST ONLY for something like 20 years before the payments on the ACTUAL BORROWED MONEY AND INTEREST kick in and somewhere along the way they will need the REVENUE for paying that no matter the source
the years it comes in will reflect that REVENUE and the years it is spend will reflect that EXPENSE
you are simply being thick and pretending that dem coogs doh are doing much better than the numbers reflect because you have taken on a lot of DEBT and you want credit for that DEBT WITHOUT THE ACTUAL REVENUES coming in
you have $93+ million in DEBT and your yearly EXPENSES reflect that as do your DEBT SERVICE PAYMENTS and your donations reflect the money coming in YEARLY
if you got a large donation in a single year that would be reflected, but what you have gotten is PLEDGES for that money that will be paid out over a extended period of time and reflected in REVENUES as they are actually paid
it is no different than a capital campaign that raises $500 million, but $200 million of that is life trust that do not pay until the death of the person making the pledge
when the Butlers gave $50 million to the UT School of Music (Butler School of Music now) they did not just cut a check for $50 million so while UT reports that as part of the campaign donations they do not have that on the audited books until the annual money comes in
and in the case of the Butlers they offered to pay it off to UT in one chunk if UT would change the School of Music to a College of Music
just like stAtefan explained they had a bank and a bank owner take a long term pledge (that would have been reflected yearly as the money came in) and pay it out in one chunk and that was reflected in a single years numbers and now will no longer show up yearly because the money has been collected
we all get it dem coogs doh spent money, but what you do not get is that DEBT is NOT REVENUE and REVENUE is not promised money that has not been actually collected and it will not show up until it is collected and when you have more expenses than you have revenues you take money from academics to pay that off......and that is not ADDITIONAL REVENUES that is simply revenues reflected as an institutional transfer from academics to athletics and because you have a large amount of DEBT SPENDING there is not some hidden revenues related to that which some schools show and others do not