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SBD/July 10, 2012/Colleges
Study Shows Increase In College Athletics Spending Despite Poor Economy
Published July 10, 2012
WHERE THE MONEY COMES FROM: Kerkhoff noted ticket sales “are the lifeblood of an athletic department.” A national survey by USA Today found that in ‘08, sales primarily of football and men’s basketball tickets accounted for 25% "of a typical BCS athletic department budget.” Contributions from private donors made up 22% and 18% "was from conference income, which includes revenue from the BCS, NCAA Tournament and television contracts negotiated by the conferences.” Figures from MU, KSU and KU from ‘07-11 “differed slightly.” At KSU and KU, “contributions slightly outpaced ticket sales.” KSU's breakdown consisted of 28% contributions, 25% ticket sales and 19% conference revenue. The school counted “a record amount of donations," $26.5M, to its '10-11 budget, "money that helped pay" for $93M in improvements that included a new basketball practice facility and a press box at Bill Snyder Family Stadium. Meanwhile, KU figures were 26% ticket sales, 31% contributions and 15% conference revenue. In each of the last five years, KU generated “more ticket sales income from men’s basketball than football, although the gap has closed recently.” MU’s consisted of 32% from ticket sales, 23% from contributions and 18% conference income. MU football produced “more than" $24M in revenue from '09-11 and "after the sport’s expenses were subtracted added about" $10M annually (K.C. STAR, 7/7).
FOOTBALL IS KING: In Alabama, Paul Gattis wrote the state “may rank among the least prosperous states nationally,” but when it “comes to Auburn's Jordan-Hare Stadium or Alabama's Bryant-Denny Stadium, the state has its own little Wall Street.” Alabama Rep. Mike Hubbard said, "Everything surrounding football, there's no telling how much of an economic impact it has, but I know it is substantial.” Studies have found that football at both the Univ. of Alabama and Auburn Univ. “impact the state's economy to the tune of about" $170M each annually. Auburn economics professor Keivan Deravi said that the $170M impact “stemmed from a study" done in '08. Since then, the schools have won the past three national football championships (AL.com, 7/9).