Does Duke need a bailout?
Mar 15, 2010
CNBC's Darren Rovell rummaged through the Equity in Athletics Disclosure Act, which requires all athletic institutions to file an annual report that shows whether or not schools are complying with Title IX. The balance sheets also give the public a small window into how each athletic department is doing financially.
On the surface, it would appear Duke basketball is in need of a government bailout. The program had $13.87 million in expenses and only pulled in $11.84 million in revenue, which anyone who took basic accounting know is a loss over over $2 million.
How can this be? The Blue Devils are on TV more than "Leave It To Beaver" reruns.
According Rovell, there is a catch to these financial stats. The government does not ask for a breakdown of fund-raising from boosters or licensing royalties per program. As Rovell points out, Blue Devils basketball likely accounts for 80% of those royalties.
