Jodi Upton - Athletics Dept Budgets
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Jodi Upton - Athletics Dept Budgets

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The Donald W. Reynolds National Center for Business Journalism presents "Investigating the Business of College Athletics" at Indiana University Purdue University-Indianapolis. For more information, ...

The Donald W. Reynolds National Center for Business Journalism presents "Investigating the Business of College Athletics" at Indiana University Purdue University-Indianapolis. For more information, please visit http://businessjournalism.org.

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Jodi Upton - Athletics Dept Budgets Jodi Upton - Athletics Dept Budgets Presentation Transcript

  • Jodi Upton USA TODAY [email_address] Indiana University March 10, 2010
  • Is covering athletic department spending worth the trouble? Aren’t most athletic departments self-supporting? Don’t football programs pay for all the other sports?
  • Three Sources:
    • Federal government
    • Department budget
    • NCAA report
  • Federal report
    • Equity in Athletic Disclosure Act data
      • http://ope.ed.gov/athletics/
    • Revenue and expenses off in one-third of schools, some as much as $30 million
    • Few details
    • No incentive for accuracy!
    • Emergency use only!
  • Athletic Budget
    • Local
    • Confusing
    • Does not include expenses picked up by the university or alumni foundation which can include millions in capital spending.
    • Can’t be compared to other schools
  • National Collegiate Athletic Association
    • Due to the NCAA every January 15 for the previous fiscal year (usually July-June).
    • Same format and rules for all schools
    • Uses national accounting guidelines
    • NCAA will not release the report. It has to be gathered using open records laws from each school.
  • Caveats
    • Does not always include capital expenses (stadium costs, for example).
    • Schools can fudge categories
        • Alabama eliminated a student fee that generated $3.8 million for athletics in 2006-07.
        • They added it to tuition. Athletics got $4.1 million extra from the university in 2007-08.
        • Oops! Alabama double-counted $24 million in revenue in 2007-08. Reported to the NCAA?
  • Two kinds of revenue:
    • Allocated: student fees, direct and indirect university support, state support
        • Any money taken from a tax-paying group (university, students) to run the department
    • Generated: money made from athletic activities
        • Ticket sales, guarantees, contributions*, conference money, broadcast, licensing…
  • USA TODAY’s version
    • http://www.usatoday.com/sports/college/ncaa-finances.htm
    • Currently: all 99 public schools in the 120-school FBS (top football schools. More coming.
    • Not available: private schools, PA schools, Navy
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  • What it can do for you Alabama 2007-08
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  • If schools are more dependent on subsidies, are they cutting spending?
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  • How dependent is your athletic department:
  • Other stories (Lies My College Told Me)
  • “ A major in eligibility, with a minor in beating the system.” --C. Keith Harrison, associate director of the University of Central Florida’s Institute of Diversity and Ethics in Sports
  • Majoring in eligibility
  • Clustering of college athletes usatoday.com/sports/college/2008-11-18-majors-graphic_N.htm
  • How common is clustering?
    • 83% of the schools (118 of 142) had at least one team in which at least 25% of the juniors and seniors majored in the same thing.
    • More than half of the clusters are "extreme": at least 40% of athletes on a team are in the same major.
  • Unusual degrees
    • Florida Atlantic
      • 42 upperclassmen enrolled in “Week-End Management” (cq)
    • South Florida
      • 279 students enrolled in “Bulls Network.”
    • General studies/university studies
      • Nearly one in five clusters are ambiguous or vague programs
  • Favorite sports myth # 12 We don’t need to save for college – my kid’s getting a scholarship …
  • Arizona State 2007