A surprising number of people on campus believe in Myth #1 (I remember having U-M professors who grumbled about it, and didn't believe it when told otherwise), while you can find plenty of posters on this very site who believe in Myth #2.
Dave Brandon debunks top myths about Michigan's athletic department
a 5-10million surplus *is* making money hand over fist, isn't it?
Not on revenue of 140 million dollars.
That's a 5% profit margin, roughly. A lot of industries would absolutely kill for that. 5% isn't wildly amazing, but then, companies like airlines and grocery stores make about 1.5%.
True, but our operating expenses are probably rising faster than most companies', and of course we also have a huge long-term debt to pay off.
What I really want to know is does Brady Hoke really poop gold or is that just a myth?
You're thinking of Tywin Lannister
I was really hoping the bonus myth would be DB casting doubt on David Terrell's claim to having the Bomb-Ass D...
You can call it a myth all you want, but this F-Lion says that don't make it so.
"The required expenses and the commensurate capital costs associated with running these athletic departments is such that there's no profit."
Required by who? The required expenses are whatever the AD wants them to be . . . multi-million $ coaches salaries, indoor rowing centers, landscaped walkways to the parking lots . . .
The requirements are artificial and expand to take up whatever money comes in. If Bill Gates were to decide that his salary requirements are all of the money Microsoft brings in, then Microsoft is not going to show a profit either.
Sure, but it's not as if high quality facilities and high quality coaches are inexpensive entities. I get your point, but it's not as if you don't have to put more money in to get more money out.
The business model is only broken if new rowing facilities are critical to the survival of the business. In this case, football and basketball do make great money, probably as good or better than most equivalent pro teams, but they spend a huge chunk of it on crew facilities and other capital intensive projects that will never generate revenue.
I once asked Brandon about his thoughts on why the Adidas contract was necessary and he spouted the same answer he gave to AnnArbor.com. Reality is that he runs for-profit football and basketball teams that donate their profits to a non-profit Athletic Department. There really should be two sets of income and cash flow statements for the department, one based on a for-profit business and the other as a traditional non-profit. Then we could see how the college athletics model really works.
"Myth 4: The athletic department is detached from the university community "
Huh. For a bunch of fall-down easy "Myths" to debunk, this one seems weridly dubious. I can make a pretty good argument that the athletic department really is detached from the university community, and getting more detached all the time.
- The athletes have their own study center; the Ross Center. They love it by all accounts, and most say they use it. It is closed to general student populations, right?
- Many of the athletes have their own dining facilities.
- The athletic campus has never been more isolated from Central Campus, and it is getting more isolated as more sports are relocated to new facilities further and further to the south.
- The basketball team(s) now have their own separate home(s) in the Davidson Center.
- The golf team and the soccer team are now way down South Main Street (further south than Ann Arbor Pioneer) in their own facilities.
- Tennis, wrestling, gymnastics and track are or will be all wholly located in the new far-south athletic campus.
- The Ferry Field track is closing. Paving paradise and putting up a parking lot. (A much-needed lot, to be sure.) It was effectively the 'village green' or town square for athletically-minded general population students. The only public-activity place in that part of campus apart from the I.M. Building.
Plus wasn't it Taylor Lewan who was like, I have no idea what there is to do around here besides hang out with other athletes?