SBD/11/Collegiate Sports

REPORT SHOWS THE BUSINESS SIDE OF COLLEGIATE ATHLETICS

          A six-month investigation by the PHILADELPHIA INQUIRER
     on the business of college sports, "including a review of
     the financial records of nearly every major school from
     Alabama to Yale, found a $3.5 billion enterprise sheltered
     from most taxes, according to Gaul & Fitzpatrick in a front-
     page feature on Sunday, who reported that college sports "is
     an enterprise in which profit margins of some powerhouse
     football and basketball programs dwarf those of Fortune 500
     companies."  In FY '99, Penn State operated the fifth-
     largest football program in the nation, "taking in $25.4
     million in revenue."  Meanwhile the program had expenses of
     $9.8M, which resulted in "a surplus of nearly" $15.6M, or a
     61% margin.  Gaul & Fitzpatrick noted that ticket sales
     generated "far and away most of the revenue" for Penn State,
     with $15.7M.  Meanwhile, TV and bowl-game income accounted
     for $5.6M, concessions brought in about $1M, while the rest
     came from corporate sponsors, advertising, licensing
     royalties and program sales.  These revenue figures "don't
     include nearly" $8.8M that boosters and alumni paid to
     obtain season tickets.  Including those donations, football
     accounted for a total of $342M, 82% of the athletic
     departments $42M in revenue.  Gaul & Fitzpatrick added that
     Penn State declined to provide a full breakdown of its
     expenses.  It also "turned down" requests from the newspaper
     for information on its corporate sponsorship agreements,
     historical budget data, and contract with Nike, "which
     company sources described as one of the most lucrative in
     the country."  Sunday's piece is the first of a five-part
     series by Gaul & Fitzpatrick (PHILADELPHIA INQUIRER, 9/10).

Return to top

Related Topics:

Colleges, Nike

Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug