(02-10-2020 03:41 PM)ODUalum78 Wrote: Please elaborate
Ok. So I posted a link to the law as it was passed in an earlier post. It says that the subsidy percentage can't be above certain levels as we all know. It's how it defines subsidy percentage that is the kicker. Basically it says that it's the subsidy divided by total athletic revenues BUT you can reduce the subsidy by 3 line items that are found in the financial statements. It does not say the subsidy and the total athletic revenue. So as I mentioned earlier if you take something out of the numerator but not the denominator not only does it mathematically go against the idea percentages of a whole it will give you a much lower percentage.
ODU:
https://www.pilotonline.com/sports/colle...c0fc6.html
In this article Deputy athletic director Ken Brown (I had said Selig earlier) stated: "The good news is that we're very close to 55 percent now,". This article is from 9/12/17 so I'm going to assume he has the financial figures from the fiscal year ending 6/30/17 and use that year. Here they are:
http://www.apa.virginia.gov/reports/OldD...AA2017.pdf
It that year USA Today showed us at 62% subsidized. According to the tax law we can remove from the athletic budget the following line items: Spirit Groups, Indirect costs paid to the institution by athletics and Athletic Facility Debt Services. This last is only for projects approved before June 30, 2015. It looks like we had a bond issued for less than 1 million for some Powhatan Center improvements in 2016 but the service on that would be pretty negligible for our purposes. So those three items add up to about 7 million. If you subtract that from our subsidies of 28.7M and our total revenues of 46.2M then the subsidy % comes out to about you get 55.36% (I did some rounding). So I would say that is very close indeed but notice that I subtracted the 3 items from both the numerator and denominator.
JMU:
This is from an communication from Jeff Bourne:
http://jmusports.com/news/2016/9/1/bourn...tters.aspx
"For the fiscal year ending June 30, 2015, JMU generated over $35 million of its revenue from these student fees. The Cox Bill states that FCS programs such as JMU and William and Mary must rely on student fees for no more than 70% of its expenses. However, for purposes of these calculations, the legislation also provides for excluding certain expenses that I discussed above that JMU includes in its athletics budget – namely spirit groups, debt services (that were approved by the Commonwealth prior to June 30, 2015) and institutional service charges. After that consideration, JMU sits at 58 percent of its budget stemming from student fees, which is well below the Cox Bill requirement at the FCS level. Should the university have an invitation to an FBS conference to consider in the future, the Cox Bill requirement is 55 percent. In order to hit that mark, JMU would need to increase its athletics-generated revenue by $8.5 million by 2021-22. It is also worth noting that Virginia is one of just two states in the country that currently places this student fee limitation on its college athletics programs. Additionally, it is important to note that the new Convocation Center project was approved by the state prior to the Cox Bill and therefore is exempt from consideration."
58% ?!?!?!?? How'd he do that? USA Today stated they were at 80% subsidized that year. Let's look at their books.
http://www.apa.virginia.gov/reports/JMUNCAA15.pdf
So using the same formula as I did above exempt items 9.8M, student fees 35.3M, total revenues 44.8M. Subtract 9.8 from both the subsidy and total and divide and you get 72.86%. Now let's just subtract the 9.8 from the subsidy then divide by the full revenues and you come out to........ 56.92% (If you don't round it comes out to the 58% he stated).
So.
I'm no lawyer but reading the law I think JMU's way is technically right (but maybe not the intent). And if you go back and redo ODU's the same way you'll find we've been at under 50% for many years. If ODU administration knows this they sure aren't letting on.