Financial Statements
Look at the consolidated financial statements Mr the NCAA Mu. here:
I. What is the NCAA’s EBIT for 2019? (You may have to look at both the statement of revenues ant the statement of ash flows to find the relevant num Hi. Use the ‘flange in net assets” as Net Mame.
httlmlilmaaorg.s3.amaronaws.com/maa/finance/2018-19NCAAFi
2. What did NCAA pay in federal taxes in 2019?
3. How much did the NCAA pay in principal and interest payments on their bonds in 2019?
4. What is the NCAA’s leverage ratio?’
5. What is the NCAA’s interest coverage ratio?’
6. Assume that due to a novel “Eromona” virus, the NCAA will Xs. in order to M. bubble facilities for athletes in the pandemic. Immediately after the NCAA issues the bonds, what will NCAA’s 2020 debt-toequity ratio be? Make sure you acasunt Mr a, debt that the NCAA has regularly scheduled to retire before the end of fiscal year 2020.
7. If the NCAA issues the bonds a. builds the bubble facilities, their 2020 Statement of Activities will look as faws.
Revenues
Emenses
Television a. marketing Championships a. NIT tournaments Investment inmme Sales services a. others Contributions
$ 954,279,777.00 $ 14,566,001.00 $ 55,395,739.00 $ 3,134,709.00
Distribution to Division I members $ 610,911,851.00 Distribution to Division I member programs, $ Distribution to Division II members $ 53,313,095.00 Distribution to Division III members $ 35,179,996.00 Association-wide programs $ 130,1180,996.00 Management a. general $ 44,1108,119.00
Assume reclassifimtions are $0. Assume that the interest expenses (coupon rate). the bonds is on the $150 million of bonds they just issued. Assume the interest expenses on the rest of NCAA’s bon. are the same as what they paid in 2019.
Under the above assumptions, what will the NCAA’s 2020 interest coverage ratio be?
Are you worried about the NCAA’s ability to pay interest on their bonds? Why or why not?_
