And what happens when the AD has a negative cash flow
Posted on: December 4, 2018 at 17:06:49 CT
ScottsdaleTiger MU
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The revenue generated by the Tiger AD goes into the University's general funds. It's expenses are paid from those funds. If the revenue doesn't cover the expenses, the University covers the negative cash flow with funds from other sources.
Case in point, in 2012/13, the Tiger AD had 16.5 million negative cash flow due to having to forfeit the last Big XII conference distribution. The University covered it with funds from non AD soruces and supposedly the Tiger AD agreed that it would make up that 16.5 million over time.
In 2016-17, the Tiger AD ran about a 4-5 million dollar negative cash flow. Again, the University covered it by using non AD funds.
Supposedly, the Tiger AD will generate a positive cash flow or flows in the future that will make up for the amounts covered by the University from other funds.