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Budgeting Philosophy
In the three years since Simpson became athletic director at Tennessee State University, TSU Athletics has adopted a fairly conservative budgeting philosophy. Preparing an athletic department budget presents a challenge pertaining to revenue projection, in so far as revenues are affected by the success of a school's high-profile teams such as football and men's basketball, which can vary considerably from one year to the next.
If an athletic department anticipates having strong seasons in these key sports but fails to match those expectations, revenues from ticket sales and fundraising in particular may suffer greatly, leaving the program the challenge of overcoming a significant budget deficit. Conversely, if an athletic department budgets conservatively and projects revenues based on moderate success in football and men's basketball, but achieves exceptional seasons in those sports, revenues are likely to exceed projections. Simpson and TSU Athletics' philosophy is toward the latter of these two scenarios, projecting its revenues cautiously and taking the more conservative path.
Simpson also attempts to leave a surplus or contingency of approximately $50,000 built into the budget in case teams fail to live up to expectations or the department faces unforeseen expenses. Simpson would like to continue this practice despite the dramatic loss of the state legislature monies, although he realizes that doing so may be a challenge given the deep cuts that need
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