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Crunching that App State budget

we're totes gonna be rich!Way back in 2011 when App State conducted a feasibility study to make like the Jeffersons, it was established the move was going to be expensive, but profitable.

It’s all there beginning with page 48. The best guess was expected revenue of $21.36 million against expenses of $20.43 million.

Translation … profit of just under $1 million.

suh-WEET! … *If* it happens.

Last week the App State athletic director gave an update on those numbers, now that the big move is nigh (T-minus 11 hours, 20 minutes!). He discussed expected expenses for FBS Year 1, which are right at $20.6 million, give or take.

Cobb said salaries* and benefits would increase $400,000 to $450,000 next fiscal year, scholarship costs would increase $600,000 and operating costs would rise $1 million. The most significant increase in operating costs, he noted, is in the line item for travel, which will increase about $800,000.

The department’s budget was about $16 million in fiscal year 2012-13.

Also noted, more than half the budget is coming from student fees; $10.8 million. But that’s no biggie since, according to Cobb, “many institutions in the Sun Belt and the SoCon, student fees represent 70 to 85 percent of total revenue.”

We liked this part –

The department spends the most on the ASU football program at $5,192,703, and the program also serves as a significant source of revenue, with nearly $2 million in projected ticket sales, $1.2 million in game guarantees from Michigan and Southern Mississippi and additional revenues from Yosef Club contributions, concessions, licensing and sponsorship fees and other sources.

“Obviously, for us football is a major revenue stream. It makes the whole engine run for us,” Cobb said.

Yet nearly $2 million plus $1.2 million plus (according to FBS report) $250,000 in concessions plus $900,000 in licensing/sponsorships equals, uh, less than $5,192,703. Quite the, uh, engine?

We kid of course, cause athletic numbers are quite dodgy. For example, according to a database of NCAA finances compiled by USA Today, App State recently had the 118th highest athletic budget in Division I.

The department had $19.78 million in revenue and $21.4 million in expenses for a deficit(!) of roughly $1.62 million.

/makes “vroom vroom” noises

We snark only because one of the main driving points of the big move was all the magic money which would instantly appear, all without burdening the student population.

Together we rise.

* time for some people to get paid! And we ain’t talkin’ coaches! (wink, wink)

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