Alabama Football Program Nets $47M-Plus Profit Texas A&M Athletic Department Makes $57.2M In '15-16 N.C. Still In Limbo As ACC Championship Host Site Washington State Athletic Deficit Shrinking LSU Athletics Turns $12M Profit In '15-16 Sources: BC Wasn't Going To Renew Bates' Contract Kentucky Increases Price For Football Season Tickets Florida AD Stricklin Puts Twitter To Good Use Schools Increasingly Rely On Private Plane Use Boston College AD Bates Resigns To Take CSA Job
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).