Money and College Athletics

[PurpleWhiteBoy]

In an attempt to gain a better understanding and shed some light on how things work in college athletics, I'm starting this thread.

Here are some facts or things I believe to be facts...

The NCAA is primarily an organization that runs a college basketball tournament in March.
According to its most recent data, the NCAA generated almost $1.3 billion in revenue in the 2022-23 fiscal year.
The basketball tournament accounts for $900 million in revenue. $669 million of that was distributed to the 363 Division 1 programs.
$192 million was spent to host other championship events. Over $100 million was spent on D2 and D3 championship events, including distributions to some schools.

The NCAA has no significant direct involvement or control over college football media deals.

Most, if not all, public universities account for athletics in a standalone athletic department. Many private universities do not disclose their financials.
Sportico provides useful information on all public D1 university Athletic Departments here...

Sportico’s Intercollegiate Finance Database

Sportico is maintaining an interactive, real-time database that tracks the official balance sheets of public FBS university athletic departments.

www.sportico.com

The vast majority of athletic departments lose money. The vast majority are subsidized by the university, including fees charged to students.

Ohio State is the top revenue-generating athletic department in the country.
Here are their financials for 2023... Numbers are in $millions. They reported income of $5 million.

REVENUE	Total	Football	Basketball	EXPENSES	Total	Football	Basketball
Ticket Sales	73.4	64.3	4.8	Coach Salaries	45.2
Licenses, Rights, Ads	42.8			Support Salaries	45.5
TV revenue sharing	49.8	37.2	12.6	Facility Debt	45.3
Contributions	57.8			Maintenance & Admin	32.3
NCAA payments	5.7			Travel	14.2
Conf Bowl Games	7.7			Student Aid	23.8
Conf Other	4.7			Visitor Guarantees	10.0
Parking & Concessions	11.7			Recruiting	3.9
OSU Bowl Game	3.2			Sports Equipment	5.8
				Game Expenses	10.1
				Athlete Meals	7.6
				Athlete Medical	3.8
Total	279.5	127.4	24.2	Total	274.9	72.4	14.5

This article is interesting... It is about the state of Pac 12 athletics prior to the league's disintegration.

Business of Pac-12 Sports: Athletic departments relied heavily on help from campus last year, but is that support misplaced or money well spent?

Athletic departments at the 10 public universities in the Pac-12 experienced an $81 million shortfall last year, with only five schools reporting an operating surplus. And that’s the good news on money matters across the conference. The situation gets much worse when university support is...

sports360az.com

 

[loyolacat]

interesting thread...looks like we are spending all our $ on sports and politics... As far as I am concerned I want to see fairness in competition . I would love to see a voluntary cap on top bucks spent , but power seeks power. So those schools that have found away to outraise (not always a guarantee for V) others are not going to give it up. I mean the calculus has changed. The sport now serves and exists for the generic larger crowd....then maybe wealthy alumni. The old calculus was the sport existed for the students either as participants or spectators to add to their educational experience... I coached two sports and neither offered scholarships, but all those kids had great experiences , are still friends , all graduated... This is a cultural thing and requires a deep look...

 

[Purple Pile Driver]

interesting thread...looks like we are spending all our $ on sports and politics... As far as I am concerned I want to see fairness in competition . I would love to see a voluntary cap on top bucks spent , but power seeks power. So those schools that have found away to outraise (not always a guarantee for V) others are not going to give it up. I mean the calculus has changed. The sport now serves and exists for the generic larger crowd....then maybe wealthy alumni. The old calculus was the sport existed for the students either as participants or spectators to add to their educational experience... I coached two sports and neither offered scholarships, but all those kids had great experiences , are still friends , all graduated... This is a cultural thing and requires a deep look...

Do those two sports you coached still exist for those kids to take away those great experiences?

 

[Hungry Jack]

I was talking to a racquet sports professional this weekend. The pro tennis tour is now hosting events on campus with prize money. The events are well attended and feature good competition. Being a top college player puts you in the top 200 of the ATP.

So what's happening here is that colleges and their teams are becoming distribution arms (channels) of pro leagues. They have access to a fan base and good players, and the prize money is kosher thanks to NIL.

Whole new ballgame.

 

[PurpleWhiteBoy]

interesting thread...looks like we are spending all our $ on sports and politics... As far as I am concerned I want to see fairness in competition . I would love to see a voluntary cap on top bucks spent , but power seeks power. So those schools that have found away to outraise (not always a guarantee for V) others are not going to give it up. I mean the calculus has changed. The sport now serves and exists for the generic larger crowd....then maybe wealthy alumni. The old calculus was the sport existed for the students either as participants or spectators to add to their educational experience... I coached two sports and neither offered scholarships, but all those kids had great experiences , are still friends , all graduated... This is a cultural thing and requires a deep look...

I was surprised that so many schools pay for athletics by taking significant money directly from the university.
Some people around here seem to think thats not happening at all. (Ohio State paid $10 million to opponents to show up)
Title IX complicates budgetary matters because of its requirement that women's athletics receive equal treatment financially, along with equal opportunity.
So if 60% of your athletes are male, 40% female, the scholarship money and operating expenses are allocated along those lines.

It seems that NIL (formerly known as illegal payments) is an obvious way to work around the law in favor of the men's football and (to a lesser extent) basketball programs, which provide the bulk of the athletic department's revenue.

 

[hdhntr1]

I was surprised that so many schools pay for athletics by taking significant money directly from the university.
Some people around here seem to think thats not happening at all. (Ohio State paid $10 million to opponents to show up)
Title IX complicates budgetary matters because of its requirement that women's athletics receive equal treatment financially, along with equal opportunity.
So if 60% of your athletes are male, 40% female, the scholarship money and operating expenses are allocated along those lines.

It seems that NIL (formerly known as illegal payments) is an obvious way to work around the law in favor of the men's football and (to a lesser extent) basketball programs, which provide the bulk of the athletic department's revenue.

I think the percentages between men and women athletes is based on the makeup of the student body and at a whole lot of schools the student population is more female than male so title 9 would result in more female athletic scholarships.

 

[PurpleWhiteBoy]

I think the percentages between men and women athletes is based on the makeup of the student body and at a whole lot of schools the student population is more female than male so title 9 would result in more female athletic scholarships.

I found an article that addresses some frequently asked questions...

How is Title IX applied to athletics?

Athletics programs are considered educational programs and activities. There are three basic parts of Title IX as it applies to athletics:

1. Participation: Title IX requires that women and men be provided equitable opportunities to participate in sports. Title IX does not require institutions to offer identical sports but an equal opportunity to play;
2. Scholarships: Title IX requires that female and male student-athletes receive athletics scholarship dollars proportional to their participation; and
3. Other benefits: Title IX requires the equal treatment of female and male student-athletes in the provisions of: (a) equipment and supplies; (b) scheduling of games and practice times; (c) travel and daily allowance/per diem; (d) access to tutoring; (e) coaching, (f) locker rooms, practice and competitive facilities; (g) medical and training facilities and services; (h) housing and dining facilities and services; (i) publicity and promotions; (j) support services and (k) recruitment of student-athletes.

There is another paragraph that says "participation opportunities must be proportionate to the undergrad student body composition..."

I'm interpreting that as the number of men's teams vs women's teams, but I could be wrong obviously.

https://d2f5upgbvkx8pz.cloudfront.net/sites/default/files/inline-files/Appendix%20F.%20Title%20IX%20and%20Athletics_0.pdf

 

[Purple Pile Driver]

I found an article that addresses some frequently asked questions...

How is Title IX applied to athletics?

Athletics programs are considered educational programs and activities. There are three basic parts of Title IX as it applies to athletics:

1. Participation: Title IX requires that women and men be provided equitable opportunities to participate in sports. Title IX does not require institutions to offer identical sports but an equal opportunity to play;
2. Scholarships: Title IX requires that female and male student-athletes receive athletics scholarship dollars proportional to their participation; and
3. Other benefits: Title IX requires the equal treatment of female and male student-athletes in the provisions of: (a) equipment and supplies; (b) scheduling of games and practice times; (c) travel and daily allowance/per diem; (d) access to tutoring; (e) coaching, (f) locker rooms, practice and competitive facilities; (g) medical and training facilities and services; (h) housing and dining facilities and services; (i) publicity and promotions; (j) support services and (k) recruitment of student-athletes.

There is another paragraph that says "participation opportunities must be proportionate to the undergrad student body composition..."

I'm interpreting that as the number of men's teams vs women's teams, but I could be wrong obviously.

https://d2f5upgbvkx8pz.cloudfront.net/sites/default/files/inline-files/Appendix%20F.%20Title%20IX%20and%20Athletics_0.pdf

I don’t believe its the number of teams, it’s the number of athletes.

 

[EagerFan]

Ohio State is the top revenue-generating athletic department in the country.
Here are their financials for 2023... Numbers are in $millions. They reported income of $5 million.

I am reading that OSU football generates about $55 million in reported profit? And basketball $9.7 million?

I wonder how the 'facility debt' number looks for most universities.

 

[PurpleWhiteBoy]

I am reading that OSU football generates about $55 million in reported profit? And basketball $9.7 million?

I wonder how the 'facility debt' number looks for most universities.

Thats what it looks like.
Things like "facility debt" in this case are pumped up by extra payments they made to pay the debt down early.

Difficult to assess what expenses were directly charge to football or basketball...
but the articles said those are the only two programs that generate a profit at Ohio State.

The donations jumped out at me. OSU takes in $58 million from people giving them cash. Thats more than the TV money.

 

[NJCat]

The donations jumped out at me. OSU takes in $58 million from people giving them cash. Thats more than the TV money.

They have ~600,000 living alumni. $100 per head.