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2022 ULAA Financials

May 29, 2022
4,652
1,777
26
I received an advance copy of the June 30, 2022 financials directly from the U of L Athletic Association. This is the audited report that all of the University operating divisions compile annually.

This year’s report is consistent with the trend lower that we’ve experienced since 2017. Net position or equity--assets minus liabilities--is down to $108 million, the lowest it’s been since 2010. Net cash on the balance sheet is less than $5 million after subtracting the $9 million borrowed to add liquidity. ($11 million of additional borrowings are available on the $20 million Republic Bank credit line.)

The chart below summarizes this information as far back as I have annual reports available. The bar data are in millions of dollars and map to the left vertical axis.

The red dashed line is the red bar % of the black bar, and it’s plotted on the right vertical axis. It’s a measure of liquidity representing available cash as a % of ULAA’s equity. After running in the 50-60% range from 2005 through 2016, it has plummeted to 4% as the department has spent most of its cash.

I’ll continue to examine the report and will add anything that has merit or significance. I don’t see anything in this report that indicates short term improvement in our financials.

FY2022-NP-Liq-Assets.jpg
 
Just opened the FY2023 first quarter statements ending 9-30-2022. More of the same erosion in our financials. I went back to check our cash position at the end of this particular quarter the last few years...

September 30, 2019: $35.0 million
2020: $16.6
2021: $13.0

2022: $3.9

Between 9/30/20 and 9/30/21, Tyra withdrew $9.0 from his line of credit. So the 2021 and 2022 numbers, you could say, are inflated by $9 million. Yes, we would have NEGATIVE $5 million in the bank without that credit line.

Net position also declined by $17 million the last 12 months through 9-30-22.

These continue to be jaw-dropping declines, $40 million in cash the last three years if you add in the credit line.
 
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Also looked at total football and basketball revenue through 9-30-22 on a YTD basis as "percent of budget realized." Here are the comparable numbers for this year (FY2023) and last (FY2022)...

2023 Football: 27%
2023 Basketball: 35%

2022 Football: 40%
2022 Basketball: 41%

Suite rentals in football are down 9% YOY with 84% of the budget realized. The same are down 19% in basketball with 44% of the budget realized. Football ticket sales are down 15% with 89% of the budget realized, and basketball tickets are down 9% with 61% of the budget realized.
 
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