Shorter University of Iowa president: That TV money’s lookin’ mighty tasty there, sport.
… your next most profitable option is making it more like staying home.
GameDay Traditions, an innovative leader in the premium hospitality sector, helps their partners monetize under-utilized real estate surrounding stadiums and arenas and deliver world-class fan experiences for the most discerning premium customers. Through the company’s commitment and passion for the ultimate game day experience, it delivers partners new revenue streams and their fans a lifetime of memories.
Nice. You can’t put a price tag on memories like this: “Hey, honey, remember when we used to spend a shitload of money at the games so we’d still have a kitchen and bathroom when we went? Good times, right?”
USA Today published its annual report on athletic department finances yesterday and much of it is what you’d expect. Basically, the rich continue to get richer. So while you get the annual fretting about bubbles bursting…
NCAA president Mark Emmert says the very fact that so few athletics programs are self-sufficient demonstrates their worth in terms of building community and providing opportunity.
“A very small number of the 1,100 (NCAA members) have a positive cash flow on college sports, so those schools are making a decision that having a successful athletic program is valuable to them despite the fact they have to subsidize it with institutional money,” Emmert says. “The same thing is true for a lot of academic programs. So every school has to sit down and say, ‘What is this worth to us?’ ”
… it’s wise to remember the annual aspect of that.
Kansas State president Kirk Schulz, chair of the NCAA board of governors, believes the bubble metaphor is overwrought.
“I’ve heard that now for the last 20 years and I don’t want to be skeptical and say nothing like that could happen that would ever change the direction of intercollegiate sports,” Schulz says. But he compares it to predictions of a bubble in higher education where prospective students would one day decide that degrees for ever-higher tuition just aren’t worth it anymore.
“And guess what? We all have record numbers of people who want to come and pay these tuition rates and get these degrees from our institutions,” Schulz says. “So I’m a little skeptical about the gloom and doom of a bubble that’s going to burst and everything is going to go south.”
Even so, Schulz agrees that athletics departments cannot continue to outspend revenue indefinitely.
The SEC isn’t guilty of even that. Every athletic department in the conference that reported – i.e., except private school Vanderbilt – disclosed that it took in more money than it spent in the last fiscal year. When you consider how schools manipulate those numbers on the expense side, that’s pretty telling.
Only one team, Alabama (shockingly) reported a decline in revenue year over year. Only two schools, LSU and Mississippi, reported revenue increases of less than $10 million.
Like I said, nobody’s missing meals here.
As far as Georgia goes, let Seth Emerson lay it out.
UGA ranked 15th nationally, and eighth in the SEC, in total athletics revenue, at $116.15 million, during the 2014-15 school year.
Meanwhile, the school ranked 25th nationally, and 10th in the SEC, in expenses, at $96.56 million. Only Missouri, the Mississippi schools and presumably Vanderbilt spent less. (Vanderbilt, as the SEC’s lone private school, did not have to report its finances.)
Georgia’s spending should be increasing a lot for the 2015-16 school year. The athletics department has outlayed more financial resources for new head football coach Kirby Smart, but had already increased the previous football staff’s recruiting budget as the summer of 2015. Plus, the school is paying more than $6 million in buyouts to Mark Richt, Brian Schottenheimer and Jeremy Pruitt.
The school is also building an indoor athletic facility budgeted for $30.2 million, but athletics director Greg McGarity has said the majority of that is being fundraised through donors.
UGA’s total from subsidies is $3.212 million, an amount higher than every SEC school except Auburn, according to USA Today.
When you net the expenses reported from revenues, Georgia stands third in the conference in, for want of a better word, profitability, behind Texas A&M, with that ridiculous revenue jump and Florida. Nice subsidy, Greg!
UPDATE: About that bubble bursting thing…
Yeah, I might hold off on that doom and gloom stuff a little while longer.
So, NCAA, you just got a contract extension paying you another $8.8 billion for the March Madness broadcast rights. What are you going to do next?
Um… I don’t think “continues to benefit athletes” means what you think it means.
… is Bobby Petrino’s new contract.
I’d say that’s insane, but it’s just the way they roll these days.
Anybody think Dabo’s ready to walk away from $5 million a year because college football players are getting checks for COA stipends and EA settlement moneys (and, soon, maybe more)?
The NCAA football rules committee has postponed the use of electronic devices such as laptop computers and tablets by coaches during games for at least a year. Why? You only get one guess:
In a release, the NCAA said after receiving feedback from coaches in Divisions I, II and III, “it was decided more time was needed to develop guidelines that would allow for consistent application of the rule, help manage the costs and to provide time to see if any unintended consequences develop.” [Emphasis added.]
What’s the matter, guys, did you just miss the tablet sale at Best Buy? It’s not like you couldn’t find the money if you tried.