SBD/March 7, 2012/Colleges
Baylor AD Discusses Benefits For School From Increased Spending On Athletics
Baylor Univ. for many years was "basically a doormat in the Big 12 Conference," but the school "boosted the spending on athletics" recently, going from nearly $7.5M annually back in '95 to $60M these days, according to Fox Business' Connell McShane. Baylor AD Ian McCaw yesterday said the school operates "on a break-even basis," but really the benefit to the university "is the tremendous amount of branding and media exposure that results." McCaw: "We've had tremendous coverage during the course of a successful year with a 10-win football season, a Heisman Trophy, the success of basketball and a total of 14 teams that have been nationally ranked in the Top 25 this year. We've estimated that the brand value that's accrued to Baylor University is probably somewhere between $200-500 million and it's just exposure you can't buy." McCaw said of operating on a break-even level, "There are probably only 10 or 12 programs in the country that actually turn a profit." In terms of benefits of the increased spending, he added, "We did a study a short time ago and Baylor athletics alone creates an economic impact of about $160 million a year in the local economy here in Central Texas. So, you know, we do, we do have a significant financial impact not just on campus, but throughout the community" (Fox Business, 3/6).
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THE DOCTOR IS IN: Dr Pepper and Baylor have extended their existing marketing and sponsorship agreement another two years and the deal will run through August '15. Dr Pepper will remain the official soft drink of Baylor athletics and maintain exclusive vending and pouring rights on campus, along with certain advertising provisions. Dr Pepper has been the exclusive soft drink provider to Baylor since '97 (Baylor).