Financials

Due to increased revenue distribution from the Atlantic Coast Conference and growth in football ticket revenue versus prior year, the GTAA recorded positive net income in fiscal year 2011-12.  This marked the second time in the last three years that the Athletic Association has earned positive net income.  This financial management performance, combined with investment earnings gained on funds managed by the Georgia Tech Foundation, has allowed the balance in the Athletic Fund Balance account to grow from $4.29 million at the beginning of FY 10, to a current balance of $4.9 million.  This total is in the range of the optimal fund balance targeted by the Athletic Association's Board of Trustees' Finance Committee.

The AT Fund endowment base experienced a loss in investment value in FY 12.  As a result, after annual draws were made to support scholarship expenses and provide startup funding for the Sports, Technology and Society program, the balance in the AT Fund endowment base dropped from $92.6 million at the beginning of FY 12, to $90.1 million at fiscal year-end.

Last year, the GTAA issued bonds that are financing the construction of the McCamish Pavilion and the John & Mary Brock Football Practice Facility. This past February, the GTAA issued bonds that refinanced existing debt resulting from Bobby Dodd Stadium re-construction and provided funding for construction of the Byers Tennis Center.

 

These bond issuances allowed the Athletic Association to benefit from manageable construction costs and low interest rates existing in the capital markets.  The funding model associated with these bond issuances combines resources from our operational funds and an annual draw from our Facility Quasi Endowment to service the annual debt generated by these bonds.  The balance in this Facility Quasi Endowment account is currently $29.3 million (See Table B) and is projected to receive an additional $13 million in pledged donations over the next five years.  

Georgia Tech Athletic Association

INCOME STATEMENT
FY 2008-09
FY 2009-10
FY 2010-11
- Cash Basis
ACTUALS
ACTUALS
PROJECTED YEAR END
   
REVENUES
ACC Distribution $12,261,000 $11,773,000 $16,581,000
Ticket Sales 12,977,000 10,450,000 13,787,000
Guarantees Received 350,000 601,000 100,000
TECH Fund 4,726,000 4,553,000 3,917,000
Club Seats and Suites 3,668,000 3,570,000 3,074,000
Sponsorships 5,399,000 5,741,000 6,000,000
Student Fees 4,643,000 4,787,000 4,938,000
Alex. Tharpe and Endowment Draws 6,050,000 7,083,000 6,265,000
Institutional Support 1,459,000 1,667,000 2,028,000
Other 3,876,000 4,303,000 3,384,000
TOTAL  REVENUES $55,409,000 $54,528,000 $60,074,000
EXPENSES
Personnel $19,067,000 $20,305,000 $21,542,000
Scholarships 7,670,000 7,286,000 8,679,000
Travel & Post Season 4,273,000 3,640,000 4,350,000
Recruiting 1,042,000 1,493,000 1,407,000
Event & Other Services 2,422,000 2,489,000 3,401,000
General and Administrative 6,240,000 5,555,000 7,548,000
Guarantees 925,000 901,000 1,048,000
Physical Plant 1,698,000 2,168,000 2,419,000
Utilities 1,500,000 1,355,000 1,035,000
Uniforms and Equipment 649,000 567,000 753,000
Capital Repairs 445,000 161,000 265,000
Debt Service 8,286,000 8,518,000 6,515,000
Sales Taxes 1,051,000 801,000 990,000
     
TOTAL  EXPENSES $55,268,000 $55,239,000 $59,952,000
     
NET INCOME $141,000 ($711,000) $122,000
       
TABLE A:  GTAA Fund Balance      
Beginning Balance
$4,293,000
$4,877,000
$4,876,000
Projected investment growth (loss)
$443,000
$710,000
($96,000)
Addition of GTAA FY12 Net Income
$141,000
($711,000)
$122,000
Ending Balance
$4,877,000
$4,876,000
$4,902,000
       
TABLE B:  Facility Quasi-Endowment Accts      
Beginning Balance    
$25,132,000
Projected investment growth (loss)    
($91,000)
Additions to accounts in FY 12    
$4,678,000
Draw to fund FY 12 debt service    
($400,000)
Ending Balance    
$29,319,000