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, please visit http://businessjournalism.org.

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Jodi Upton - Athletics Dept Budgets

  1. 1. Jodi Upton USA TODAY [email_address] Indiana University March 10, 2010
  2. 2. 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?
  3. 3. Three Sources: <ul><li>Federal government </li></ul><ul><li>Department budget </li></ul><ul><li>NCAA report </li></ul>
  4. 4. Federal report <ul><li>Equity in Athletic Disclosure Act data </li></ul><ul><ul><li>http://ope.ed.gov/athletics/ </li></ul></ul><ul><li>Revenue and expenses off in one-third of schools, some as much as $30 million </li></ul><ul><li>Few details </li></ul><ul><li>No incentive for accuracy! </li></ul><ul><li>Emergency use only! </li></ul>
  5. 5. Athletic Budget <ul><li>Local </li></ul><ul><li>Confusing </li></ul><ul><li>Does not include expenses picked up by the university or alumni foundation which can include millions in capital spending. </li></ul><ul><li>Can’t be compared to other schools </li></ul>
  6. 6. National Collegiate Athletic Association <ul><li>Due to the NCAA every January 15 for the previous fiscal year (usually July-June). </li></ul><ul><li>Same format and rules for all schools </li></ul><ul><li>Uses national accounting guidelines </li></ul><ul><li>NCAA will not release the report. It has to be gathered using open records laws from each school. </li></ul>
  7. 7. Caveats <ul><li>Does not always include capital expenses (stadium costs, for example). </li></ul><ul><li>Schools can fudge categories </li></ul><ul><ul><ul><li>Alabama eliminated a student fee that generated $3.8 million for athletics in 2006-07. </li></ul></ul></ul><ul><ul><ul><li>They added it to tuition. Athletics got $4.1 million extra from the university in 2007-08. </li></ul></ul></ul><ul><ul><ul><li>Oops! Alabama double-counted $24 million in revenue in 2007-08. Reported to the NCAA? </li></ul></ul></ul>
  8. 8. Two kinds of revenue: <ul><li>Allocated: student fees, direct and indirect university support, state support </li></ul><ul><ul><ul><li>Any money taken from a tax-paying group (university, students) to run the department </li></ul></ul></ul><ul><li>Generated: money made from athletic activities </li></ul><ul><ul><ul><li>Ticket sales, guarantees, contributions*, conference money, broadcast, licensing… </li></ul></ul></ul>
  9. 9. USA TODAY’s version <ul><li>http://www.usatoday.com/sports/college/ncaa-finances.htm </li></ul><ul><li>Currently: all 99 public schools in the 120-school FBS (top football schools. More coming. </li></ul><ul><li>Not available: private schools, PA schools, Navy </li></ul>
  10. 12. What it can do for you Alabama 2007-08
  11. 16. If schools are more dependent on subsidies, are they cutting spending?
  12. 18. How dependent is your athletic department:
  13. 19. Other stories (Lies My College Told Me)
  14. 20. “ 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
  15. 21. Majoring in eligibility
  16. 22. Clustering of college athletes usatoday.com/sports/college/2008-11-18-majors-graphic_N.htm
  17. 23. How common is clustering? <ul><li>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. </li></ul><ul><li>More than half of the clusters are &quot;extreme&quot;: at least 40% of athletes on a team are in the same major. </li></ul>
  18. 24. Unusual degrees <ul><li>Florida Atlantic </li></ul><ul><ul><li>42 upperclassmen enrolled in “Week-End Management” (cq) </li></ul></ul><ul><li>South Florida </li></ul><ul><ul><li>279 students enrolled in “Bulls Network.” </li></ul></ul><ul><li>General studies/university studies </li></ul><ul><ul><li>Nearly one in five clusters are ambiguous or vague programs </li></ul></ul>
  19. 25. Favorite sports myth # 12 We don’t need to save for college – my kid’s getting a scholarship …
  20. 26. Arizona State 2007

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