A penny saved is a penny in the reserve fund.

The SEC was the most profitable (I know, I know) conference in the country during the last fiscal year.

Conference Avg. Revenue Avg. Expenses Avg. Profit/Loss
SEC $122,517,029 $105,609,195 $16,907,834
Big Ten $108,498,429 $106,604,255 $1,894,174
Big 12 $103,336,579 $98,491,826 $4,844,753
ACC $90,416,823 $87,753,344 $2,663,479
Pac-12 $81,255,208 $82,774,493 ($1,519,285)

As Berkes notes, “(t)he SEC makes an average of about $14 million more in revenue than its closest peer and $12 million more in average profit after expenses.”

And you’ll be proud to know that Georgia is doing its share to prop up those profit numbers.  Despite being 15th in the country in revenue, the school’s athletic department managed to finish as the third most profitable enterprise in D-1, because of its 25th-highest ranking in expenses. Considering that Texas A&M’s numbers are a one-off based on its successful program for stadium improvements, that really means there was only one program that kept more money for itself:  Florida.

You can say the apple didn’t fall far from the tree, if you like, but before I start making analogies like that, it sure would be nice if McGarity was getting the same results in the Director’s Cup that his mentor is.  As it is, Florida’s getting bang for the buck and Georgia’s getting… buck.

And, again, nice to see a $3,212,769 subsidy to help prop that profit up.  Thanks, kids!

30 Comments

Filed under Georgia Football, It's Just Bidness

30 responses to “A penny saved is a penny in the reserve fund.

  1. watcher16

    I assume most of that Big 12 money is coming from Texas and their TV deal

  2. Bright Idea

    And we even lost both SEC tennis matches to Florida. I know, who cares.

  3. Dawg in Austin

    God forbid the schools return the subsidies to the students in the form of a credit for the following year when the profit exceeds the subsidy. And yes, I know that will make many schools spend more so they don’t have to give anything back.

      • Dawg in Austin

        Why not both? Sounds like the bloated coffers of higher education are doing just fine, thanks. Management of resources has always been the issue. However, it would be nice to give families a break on tuition after education costs have outpaced inflation by 6% every year on average (even with the doubling of enrollment).

        I’m happy when my school can recruit great professors and churn out productive graduates. But with the existing endowments and new TV money rolling in, I don’t see why the kids can’t get a break.

        • Russ

          As a father of a new student coming up, I agree completely. I just started looking at college costs and they are insane compared to even 10 years ago.

          • Normaltown Mike

            you must be sending your kid to W&L or Georgetown.

            If you’re worried about money, try a state supported school in your home state.

            If you live in Georgia, tuition is paid for by HOPE for all students that maintain a 3.0. If your child can’t maintain that GPA, they need to withdraw from school and work until he or she is ready for college.

            • 83dawg

              My daughter is finishing up her freshman year at the University of North Georgia. HOPE doesn’t even cover tuition, not to mention the rest.

              With HOPE, a Pell Grant, and Student loans, it still costs another 5K per semester to keep her in school. Living on-campus, with a meal plan.

              • 83dawg

                And before anyone says I am wrong, here are the numbers.

                HOPE scholarship: $2,280
                Base tuition: $2,676

                Well, yeah, it is close to covering tuition,
                But…
                here are the add-on fees that are mandatory.
                Transportation Fee: $195
                Student Technology Fee: $75
                Recreation Center Fee: $83
                Natural Science Fee: $40
                Special Institution Fee: $225 (no idea what this means)
                Health Services Fee: $70 (this one is actually worth it)
                Athletic Fee: $200 (they only have 4 teams and play in the Peach Belt)
                Activity Fee: $65
                Residence Hall Fee: $20

                So.
                Tuition + $973 mandatory fees = actual tuition cost of $3,649
                vs a HOPE scholarship of $2,280

                So Russ, I know exactly what you are talking about…

        • Normaltown Mike

          they do, it’s called the Hope Scholarship. If they can’t maintain a 3.0, you need to find a school commensurate with abilities.

          • 83dawg

            Do you have a kid in college with a HOPE scholarship?
            Do you understand it pays at least $1,000 less than tuition?

  4. DawgPhan

    No UGA students shouldnt be kicking in for the athletic department.

    Also we are closer to Utah and Colorado when it comes to spending than we are to Alabama.

    People act like the difference was the coach. Or that CKS can bang on the desk and spend a little more on recruiting that ADGM is comfortable with and that will move us closer.

    We are literally $100million or more behind all of our rivals. The IPF plays a little catch up, but it isnt enough. Think about the number of people and resources that an extra $3million/month in spending gets you. That is where we need to be.

  5. JCDAWG83

    I’d say Clemson shows you don’t have to win the money battle to do well.

    • Bulldog Joe

      Clemson’s booster club IPTAY raised over $60M last year and is on track to raise well beyond that number this year.

      Add those numbers in and Clemson is more than competitive financially.

  6. Bulldog Joe

    Georgia is still last in the conference in spending for baseball and men’s basketball by wide margins.

    It is absolutely embarrassing. These guys deserve an opportunity to be competitive.

    http://ope.ed.gov/athletics/GetOneInstitutionData.aspx

    • Chi-town Dawg

      +1 – And these are sports where metro Atlanta is absolutely loaded with talent. That’s been one of my issues for a while and both facilities are woefully outdated compared to other SEC teams. I realize baseball usually doesn’t generate a profit, but it’s very visible on the SEC network and CWS plus there’s no reason basketball shouldn’t produce a profit for us if we field a competitive team. They NCAA tourney money is significant for the teams who make it and progress to the sweet 16 or final 8.

    • PTC DAWG

      Agree, makes absolutely no sense.

  7. Scratchy

    A job in UGAA Admin, is the best of all worlds. All the money and resources in the world and no pressure to perform. The bounty is not for shareholders, customers or products, but for job security and the staff to enjoy. The GAA operates as a financial fiduciary and nothing changes.

  8. Nashville West

    The PAC 12 average numbers are slightly skewed since two of their most successful programs, USC and Stanford, are private schools who don’t publicly report numbers. The same could be said about the Big 12 where TCU and Baylor don’t report. Vandy and Northwestern not reporting probably helps the SEC and Big 10 averages while the public and private schools in the ACC roughly balance each other.

  9. Macallanlover

    “and Georgia’s getting….bucked>” FIFY Agent Mcfrugal is the Gaytor’s revenge for Agent Muchamp. How long will they be spiteful, surely his time is almost over.

    • Dog in Fla

      He’s only somewhere in the general vicinity of Year 2 of the Second Five Year Plan. Until they extend his contract for recruiting purposes. Or until the Just For Men® product supply runs out

      “Evidently McGarity’s superiors believe he’s doing a good job. In May, UGA President Jere Morehead and the athletic association’s board of directors approved a contract extension and raise for McGarity that will keep him as the Bulldogs’ AD through June of 2019.

      When he was hired five years ago, he intimated that he couldn’t see staying in the job for much more than 10 years.

      “I don’t know. I’m fortunate to have a contract through 2019,” McGarity said. “It’s definitely the plan to serve through that commitment. That’ll be 10 years. But I’m not focused on that. I’m just focused on Year 6 and all the excitement that’s being generated right now.”

      https://www.dawgnation.com/football/5-years-later-story-still-being-written-on-greg-mcgarity

  10. TnDawg

    These numbers are for the school revenue in each conference.
    How about what the conference office itself brings in and pays out?
    How’s that look? Bet the rankings are close to the same.