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

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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> </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> </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
  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