Stitt Cleaning House?

[AZGrizFan]

Just so long as people recognize that coaches make sacrifices for their teams (as you now admit), I'm fine.

I really don't consider getting paid $300,000 a year a "sacrifice" in the usual sense. Every day that I go to work I "sacrifice" time with my kids. I guess we all "sacrifice" every day; victims of society, right? It's the part of the "victim culture" that I detest, that even the ones that profit mightily are just "victims," -- forced, mind you, against their will, to make sacrifices, forced to accept those big paychecks, those nice PERS plans, just one sacrifice after another -- we're all victims, victims, victims.

The player with a concussion? Well, maybe he was really cut because, you know, he didn't know how to work hard enough, he wasn't smart enough, he didn't have the right character? Right? Comparing a career-ending concussion and loss of scholarship with a missing a dance recital as comparable "sacrifices" is sometimes why I get cranky on these threads.

No here, you talk as if that is his SALARY today not what he might make if he really cleaned house

He does it about 20 times in this thread, then denies it to the hilt.

 

[Ursa Major]

Payton must have the day off...

:lol: :lol: :lol: :clap:

 

[AZGrizFan]

...and like a day old campfire improperly doused, the thread flickered back to life.

:lol: :lol: :lol:

I stirred the coals and everything. My bad.

Some things just won't die.

 

[AZGrizFan]

Payton must have the day off...

:lol: :lol: :lol: :clap:

Yes, that was the best post in the entire thread. :thumb:

 

[HelenaHandBasket]

I would ask if 75 was really that fukcing ignorant...but obviously he has demonstrated that he is.....

 

[AZGrizFan]

Apparently nobody ever taught 75 that the first rule when you find yourself in a hole is to stop digging. Dude is getting absolutely WORKED in this thread.

But he's like that guy at the party that's a fucking expert on EVERYTHING!

 

[Bear Axed]

Alright. I read the compensation section of Stitt's contract.

Per GAAP, there are almost $100,000 worth of incentives/bonuses that would not be accrued as a contingent liability until they were deemed likely to be paid/owed (and many would have NO WAY of being accrued as they wouldn't know until it actually happened (playoff wins, Conf champ, coach of year, NC game, NC win, APR, etc, etc);

Team Cumulative GPA: $5,000
4-year Average APR > 950: $5,000
Most Current APR shows no "0 for 2" Student Athletes: $1,000
Maintain or Increase Season Attendance: $5,000
Win Conference Coach or Co-Coach of the Year: $5,000
Defeat an FCS Playoff Qualifier (in prev 2 year): $5,000
Play an FBS team in regular season: $10,000 (would be accrued in 2017 as we play Washington)
Defeat an FBS team in regular season: $10,000
Achieve 10 or more wins: $5,000
Conference Champs or Co-Champs: $5,000
Advance Through Playoffs: $2500/Rd ($7500 total)
Advance to NC Game: $5,000
Win NC Game: $30,000

Stick that in your pipe and smoke it.

Ya.... he didn't want to talk about any of that yesterday when I asked him to come up with 80 to 90 thousand of the 120 he inferred that Stitt got paid last year in incentives.....

 

[AZGrizFan]

Alright. I read the compensation section of Stitt's contract.

Per GAAP, there are almost $100,000 worth of incentives/bonuses that would not be accrued as a contingent liability until they were deemed likely to be paid/owed (and many would have NO WAY of being accrued as they wouldn't know until it actually happened (playoff wins, Conf champ, coach of year, NC game, NC win, APR, etc, etc);

Team Cumulative GPA: $5,000
4-year Average APR > 950: $5,000
Most Current APR shows no "0 for 2" Student Athletes: $1,000
Maintain or Increase Season Attendance: $5,000
Win Conference Coach or Co-Coach of the Year: $5,000
Defeat an FCS Playoff Qualifier (in prev 2 year): $5,000
Play an FBS team in regular season: $10,000 (would be accrued in 2017 as we play Washington)
Defeat an FBS team in regular season: $10,000
Achieve 10 or more wins: $5,000
Conference Champs or Co-Champs: $5,000
Advance Through Playoffs: $2500/Rd ($7500 total)
Advance to NC Game: $5,000
Win NC Game: $30,000

Stick that in your pipe and smoke it.

Ya.... he didn't want to talk about any of that yesterday when I asked him to come up with 80 to 90 thousand of the 120 he inferred that Stitt got paid last year in incentives.....

Hell, I can see $60,000 on that list alone that he didn't earn in 2015.

 

[UMGriz75]

Alright. I read the compensation section of Stitt's contract.

Per GAAP, there are almost $100,000 worth of incentives/bonuses that would not be accrued as a contingent liability until they were deemed likely to be paid/owed (and many would have NO WAY of being accrued as they wouldn't know until it actually happened (playoff wins, Conf champ, coach of year, NC game, NC win, APR, etc, etc); ...
Stick that in your pipe and smoke it.

Contract performance metrics must be disclosed. The fact is, full performance under the contract adds up to $300,000 and that does NOT include the revenue streams permitted outside under the contract, which can be substantial in their own right.

If it is identified in the contract, it must be entered as a liability because it is not a "contingent" liability, it is a contractual obligation dependent on performance, just like the base salary presumes showing up for work -- you just don't know the difference. The employee may not be able to fully perform. That is an adjustment made at the end of the year. A "contingent liability" is a liability that could cost a company or organization money, but the amount of that cost is unknown. The costs here are specifically known.

It is still a $300,000 contract because that accurately describes what full performance will require the University of Montana to pay, and the numbers are known in advance because they are contractual provisions.

 

[AZGrizFan]

Alright. I read the compensation section of Stitt's contract.

Per GAAP, there are almost $100,000 worth of incentives/bonuses that would not be accrued as a contingent liability until they were deemed likely to be paid/owed (and many would have NO WAY of being accrued as they wouldn't know until it actually happened (playoff wins, Conf champ, coach of year, NC game, NC win, APR, etc, etc); ...
Stick that in your pipe and smoke it.

Contract performance metrics must be disclosed. The fact is, full performance under the contract adds up to $300,000 and that does NOT include the revenue streams permitted outside under the contract, which can be substantial in their own right.

If it is identified in the contract, it must be entered as a liability because it is not a "contingent" liability, it is a contractual obligation dependent on performance, just like the base salary presumes showing up for work -- you just don't know the difference. The employee may not be able to fully perform. That is an adjustment made at the end of the year.

It is still a $300,000 contract because that accurately describes what full performance will require the University of Montana to pay, and the numbers are known in advance because they are contractual provisions.

Sorry, but that is just simply NOT. TRUE. It must be entered and recognized as a potential liability when it can be reasonably assumed it will be earned. And not before.

So in your world, you would accrue the $50,000 for making the playoffs and winning the NC at the beginning of the year? That would be considered "managing your earnings" and potentially a material misrepresentation of the financial condition/costs of the operation. I can assure you that, if audited, the auditors wouldn't take kindly to it.

 

[grizindabox]

I would ask if 75 was really that fukcing ignorant...but obviously he has demonstrated that he is.....

nailed it....

 

[UMGriz75]

So in your world, you would accrue the $50,000 for making the playoffs and winning the NC at the beginning of the year? That would be considered "managing your earnings" and potentially a material misrepresentation of the financial condition/costs of the operation. I can assure you that, if audited, the auditors wouldn't take kindly to it.

You're struggling here. There is no "contract" that specifies UM earning $50,000 for making the playoffs that they haven't "made." You can't book revenue streams on a cash or accrual basis that haven't happened yet. You are mixing up "profit and loss statements" with the "balance sheet."

ALL obligations in a contract at the beginning of the year are prospective, but if they are defined specifically, they remain obligations that must be reported until either the employee fails to perform, or there is full performance. At the end of the year, appropriate closing entries are made. The only hell to be paid is when the closing entry shows a greater payout than the original obligation shown on the general ledger and nobody budgeted for it. Those accountants would be fired because the auditors would not take to kindly to failure to disclose contractual liabilities in full. That's the whole point of having GAAP.

Stitt's contract is properly defined by GAAP as a $300,000 contract.

 

[AZGrizFan]

So in your world, you would accrue the $50,000 for making the playoffs and winning the NC at the beginning of the year? That would be considered "managing your earnings" and potentially a material misrepresentation of the financial condition/costs of the operation. I can assure you that, if audited, the auditors wouldn't take kindly to it.

You're struggling here. There is no "contract" that specifies UM earning $50,000 for making the playoffs that they haven't "made." You can't book revenue streams on a cash or accrual basis that haven't happened yet. You are mixing up "profit and loss statements" with the "balance sheet."

ALL obligations in a contract at the beginning of the year are prospective, but if they are defined specifically, they remain obligations that must be reported until either the employee fails to perform, or there is full performance. At the end of the year, appropriate closing entries are made. The only hell to be paid is when the closing entry shows a greater payout than the original obligation shown on the general ledger and nobody budgeted for it. Those accountants would be fired because the auditors would not take to kindly to failure to disclose contractual liabilities in full. That's the whole point of having GAAP.

Stitt's contract is properly defined by GAAP as a $300,000 contract.

UM doesn't earn $50,000 for winning the NC. Stitt does. It's an obligation in Stitt's contract that UM is liable for. And UM doesn't accrue that $50,000 expense until there's a reasonable probability that they will have to PAY that liability. See, that's how accruals work. They would accrue it at a point in the year when there was reasonable probability of payment at year-end. That way there's not a "greater payout than the original obligation" because that obligation is adjusted throughout the year as bonus incentives are deemed likely to be reached. But not before. Doing otherwise is considered "managing earnings" and that IS frowned upon.

It's really not that complicated, 75. Might want to stay out of the deep end on this one....you're out of your league--you've proven that beyond a shadow of a doubt.

 

[goatcreekgriz]

A football discussion should be about gaps, not GAAP. If the Griz make it to Frisco during the term of Stitt's contract, UM gets a good deal and Stitt earns every dime.

 

[AZGrizFan]

A football discussion should be about gaps, not GAAP. If the Griz make it to Frisco during the term of Stitt's contract, UM gets a good deal and Stitt earns every dime.

On this we (well, at least I) can agree...although the I think we got a good deal anyway....assuming his sacrifices are big enough. :lol:

 

[UMGriz75]

UM doesn't earn $50,000 for winning the NC. Stitt does. It's an obligation in Stitt's contract that UM is liable for. And UM doesn't accrue that $50,000 expense until there's a reasonable probability that they will have to PAY that liability. See, that's how accruals work. They would accrue it at a point in the year when there was reasonable probability of payment at year-end. That way there's not a "greater payout than the original obligation" because that obligation is adjusted throughout the year as bonus incentives are deemed likely to be reached. But not before. Doing otherwise is considered "managing earnings" and that IS frowned upon.

It's really not that complicated, 75. Might want to stay out of the deep end on this one....you're out of your league--you've proven that beyond a shadow of a doubt.

Jayzuz, UM does not accrue income in tandem with "accruing" obligations in lock step with the employee's performance. Otherwise you don't enter anything at the beginning of the year, after all, he hasn't even shown up for work yet, right?

If he does win the NC, and all of a sudden in December, there's a $50,000 hole in your budget, the only reason there is a $50,000 hole in your budget is because the contract obligation was not properly recorded in the first place. The entire reason for GAAP is to avoid unexpected surprises that, in fact, should not be unexpected. If you contracted with an employee to meet performance metrics, they had better be disclosed as to the ultimate contractual liability that the contract requires.

You're not managing "earnings" you're trying to justify managing contractual liabilities so that no one looking at the financial statements knows the true extent of the contractual liabilities in advance of them actually happening, even though they are clearly set out in advance in a written contract. That's just wrong. It's ridiculous. That's certainly not accrual accounting, that's cash basis accounting, and you can't use that for organizations like this.

Under your theory, none of Stitt's base pay needs to be accounted for as a "liability" until each check is written -- the "liability" hasn't "accrued" yet, right? Basically, you argue that there is no beginning entry for "coach contract liability" on the balance sheet, because nothing has "accrued yet." Pardon my French, but that's nuts. That tells nobody anything, and defeats the entire purpose of "accounting" and budgeting.

That's just not the case, and that's not how its done. Believe me, I've done this. With coach contracts very similar to this.

 

[AZGrizFan]

Who said anything bout UM accruing income?

You might want to take a reading comprehension course. Start there, then get back to us. I'm done trying to educate you on this.

But hey, thanks for helping me get this to 17 pages. Somebody, about 5 pages back, said there was no WAY this was getting there. They didn't have any faith in you, 75. I did.

 

[AZGrizFan]

Payton must have the day off...

By the way, S&W, I realized why PL hasn't killed this thread: Once recruiting season is done, he goes on about a 60 day hiatus...meaning we'd have to have ANOTHER mod step up and put a bullet in this thread....I don't think Mr. Titleist has the balls...

 

[grizindabox]

Who said anything bout UM accruing income?

You might want to take a reading comprehension course. Start there, then get back to us. I'm done trying to educate you on this.

But hey, thanks for helping me get this to 17 pages. Somebody, about 5 pages back, said there was no WAY this was getting there. They didn't have any faith in you, 75. I did.

I applaud your stamina....

 

[UMGriz75]

Who said anything bout UM accruing income?

Well, not me. Perhaps you need the reading comprehension course. Perhaps an accounting course would help. Certainly, income can be accrued, based on a contract to receive income over time. What's that got to do with trying to argue that contract liabilities should not be disclosed until they actually "accrue?" That's not accrual accounting, you are claiming a cash basis system -- only when you actually pay out. That's a great way to be surprised every time the employee meets a contract metric. Oh oops, this month we actually owe more than we said we would owe.

That's a hell of a way to do "accrual" accounting.

I think you tried to bluff your way through this, and failed.