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Old 10-26-2011, 04:15 PM    (permalink
bearsfan_51
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*scratches head*

Can anyone else give this a shot?

Look. When you're talking about profit margins, you're talking about how much money an athletic department has AFTER they put it into their department. So, again, let's say Louisville made 50 million last year, and spent 48 million on their program.

If I'm a commissioner, I don't care about that extra 2 million dollars, because, as you said, it doesn't go to the conference, it stays with the school.

I care about that first number. I care how much money an athletic department makes before expenses. Period. If a program makes 100 million dollars, even if they spend 105 million dollars (and most AD's spend more than they take in), that means that program is worth a lot. And I want that valuable commodity as part of my conference.

Think about the pros. Ohio State is the New York Yankees of college athletics. They spend a TON of money, but they also make a TON of money. There might be minor league teams (Louisville) that spend their money more wisely, but they still make a ton less money, so they are far less desireable products.
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Last edited by bearsfan_51 : 10-26-2011 at 04:17 PM.
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