hugh m. franks, b.s. a thesis in economicsmedia.nj.com/new_jersey_opinion/other/football...

ECONOMIC COST OF FOOTBALL AT MIDLAND

HIGH SCHOOL

by

HUGH M. FRANKS, B.S.

A THESIS

IN

ECONOMICS

Submitted to the Graduate Faculty of Texas Tech University in

Partial Fulfillment of the Requirements for

the Degree of

MASTER OF ARTS

Approved

December, 1996

I I I I I I I I I I I I I IU I'*-' I' f \ L ' " v

© 1996, Hugh Franks

ACKNOWLEDGMENTS

With admiration and respect, I would like to compliment Dr.

Lewis Hill for his gracious and gentle manner and for the

understanding of the philosophy of economics I gained from his

teachings. I would also like to thank Dr. Klaus Becker for an

exposure to the rigor of the discipline of economics, an ordeal not

always pleasant but which was, in the long run, definitely worth the

cost. Dr. Robert McComb made me feel as If I were In the correct

field, for which I am grateful, as, at the time, I needed the

confirmation. I also extend appreciation to Dr. Ronald Gilbert for his

concern and patience with my questions. Dr. Thomas Stelnmeier's

good humor, pleasant disposition, and advice was important,

especially toward the end of my studies.

The following persons provided Ideas, Information, and

interpretation related to this paper. To them I extend my sincere

appreciation and gratitude: Dr. Joseph BaressI, Roy Blair, Robert

Brown, Martin Bucy, J. D. Davis, Horace Doyle, Rick Dunlavy, Russell

Dunlavy, Pat Erwin, Linda Goddard, Dan Hanks, Ann Heintz, Carl

(Kelly) Jacobson, Melba Longoria, Wayne Merritt, Cody Meyers,

i I

James Paschal, Ronnie Reeger, Lawrence Reeves, William (Hondo)

Schneider, Frances Smith, Lisa Sutton, Casey Turner, Susan Webb,

and, last but definitely not least, Tim Whalen, without whose

support and cooperation this paper would not have been possible.

Jane Carrens, Dennis Stratton, and Burr Williams provided

encouragement, criticism, witticism. Ideas, and editorial

suggestions. Their friendship and support represent an integral part

of this work and was accepted with deepest appreciation.

Without any exaggeration, I contend that David Fly was the

single most influential person with regard to my ability and

willingness to complete this study; it could have been done without

his support, but I doubt it would have been.

I would not have reached this point were it not for the efforts

of my mother and father who, by example rather than through force,

instilled In me a love of learning. Most importantly, however, I owe

a debt of gratitude to my daughters, Codie and Carley, and to my

wife, Robin; without their patience, support, and love, I would not

have been able to complete this study.

11

TABLE OF CONTENTS

ACKNOWLEDGMENTS i i

LIST OF TABLES vii

CHAPTER

1. INTRODUCTION 1

1.1 Introductory Comments 1

1.2 Cost Matrix 2

1.3 Overview of the Organization 3

2. RESEARCH, METHODOLOGIES, AND ASSUMPTIONS 6

2.1 Literature Review 6

2.2 Methodologies 6

2.3 Assumptions 7

3. COST ASSIGNMENTS 8

3.1 Category I Costs 8

3.1.1 Salaries 8

3.1.2 Football Equipment and Supplies 10

3.1.3 Transportation and Meals 11

3.1.4 Scouting 11

3.1.5 Game Expenses 12

Iv

3.1.6 Coaching Schools and Clinics 13

3.1.7 Accident Insurance for Football Athletes 14

3.1.8 Football Booster Organization Explicit Expenditures 15

3.2 Category II Costs 16

3.2.1 Athletic Salaries 17

3.2.2 Stadium Maintenance, Supplies,

Repairs, and Utilities 24

3.2.3 Band Expenditures 26

3.2.4 Dance Team Expenditures 30

3.2.5 Cheerleader Expenditures 34

3.2.6 Pep Rally Costs 37

3.3 Category III Costs 39

3.3.1 Implicit Student Resources 40

3.3.2 Implicit Community Resources 45

3.3.3 Real Estate Resources 50 4. COST SUMMARIES 54

4.1 Introductory Comments 54



V


4.5 A Cost Summary 56

5. OBSERVATIONS AND CONCLUSIONS 58

5.1 Observations Related to Costs 58

5.2 Observations Related to Benefits 59

5.3 Conclusion 61

SOURCES 62

VI

LIST OF TABLES

3.1 Stipends and Additional-day Payments for Selected Coaches, Prorated for Football 9

3.2 Expenditures for New Football Equipment, Maintenance and Repair of Existing Equipment, and Supplies 10

3.3 Travel and Meal Expenses 11

3.4 Scouting Expenses 12

3.5 Game Expenses 13

3.6 Coaching School Expenses 14

3.7 Accident Insurance Premium, Prorated for Football 15

3.8 Explicit Expenditures of Football Booster Organization 16

3.9 Payments to Coaches and Trainers, Prorated for Football 19

3.10 Salaries of the Office of the Athletic Director, Prorated for Football 21

3.11 Athletic Facility Custodial and Maintenance Salaries, Prorated for Football 24

3.12 Memorial Stadium Expenses 25

3.13 Band Directors' Salaries, Prorated for Football . . . . 26

3.14 Band Budget, Prorated for Football 27 vli

3.15 Band Uniforms, Depreciated and Prorated for Football 28

3.16 Band Travel Related to Football 29

3.17 Explicit Expenditures by Band Booster Organization, Prorated for Football 30

3.18 Dance Team Sponsor's Salary, Prorated for Football 31

3.19 Dance Team Budget and Travel, Prorated for Football 32

3.20 Explicit Expenditures by Dance Team Booster Organization, Prorated for Football 33

3.21 Cheerleader Sponsor's Salary, Prorated for Football 35

3.22 Cheerleader Budget and Travel, Prorated for Football 36

3.23 Explicit Expenditures by Cheerleader Booster Organization, Prorated for Football 37

3.24 Custodial and Supervisory Pep Rally Costs 39

3.25 Implicit Value of Time, Members of the Football Team 41

3.26 Implicit Value of Time, Members of the Band, Prorated for Football 42

3.27 Implicit Value of Time, Cheerleaders, Prorated for Football 44

V I I

3.28 Implicit Value of Time, Dance Team, Prorated for Football 45

3.29 Implicit Value of Time, Football Booster Organization 46

3.30 Implicit Value of Time, Band Booster Organization, Prorated for Football 48

3.31 Implicit Value of Time, Dance Team Booster Organization, Prorated for Football 49

3.32 Implicit Value of Time, Cheerleader Booster Organization, Prorated for Football 50

3.33 Implicit Annual Cost of Memorial Stadium Real

Estate 53




4.4 Overall Cost of the Midland High Football Program 57

IX

CHAPTER 1

INTRODUCTION

1.1 Introductorv Comments

A consistent adage in West Texas, as In many other parts of

the state, Is that a high school football program not only pays for

Itself but generates enough revenue to support other athletic

programs, for both males and females, of the school. It is this

assertion that prompted interest In this study. As is the case with

most public institutions, the methods of accounting for various

costs within a school system are quite different than those used by

a private, profit-motivated entity. In addition, as with all social

goods, the benefits of the activities of public schools are quite

difficult to monetize, thus creating problems in the application of

any standard economic evaluation along the lines of a cost-benefit

analysis; more regarding this concern will be provided toward the

conclusion of this study. With that in mind, the focus of this study

is to assess the total economic cost of the football program at a

single public high school for a one-year period. The school In

question is Midland High School (MHS) in Midland, Texas; the time

period Is the 1995-1996 school year.

1.2 Cost Matrix

For the purpose of organization and analysis, this study will

assign costs Into one of three major categories; these categories

are enumerated and described below.

1. Category I: directly assigned explicit costs; these

costs would include all direct monetary expenditures

by Midland Independent School District (MISD) and the

community directly to the MHS football program.

2. Category II: explicit costs related to the football

program at MHS but attributed by MISD or the

community to some program other than football.

3. Category III: Implicit costs; these costs

represent the estimated monetary value of the

alternative use of school and community resources

absorbed by the MHS football program; these

would represent opportunity costs.

After costs are assigned to a specific category, an itemization

and summation of the resultant findings will be presented. It is

important to note that within the course of this work, certain

assumptions, major and minor, must be made. When discretion,

opinion, or interpretation is required, every effort will be made to

adopt a conservative position; this Is to say that when a question

arises regarding a Category II or Category III cost, the decision will

be made with the idea of assigning to football the least reasonable

cost in each situation.

1.3 Overview of the Organization

In order to better understand the organization under

consideration, some basic information about Midland High School and

its football program should be considered. The main campus

consists of grades ten, eleven, and twelve with a separate campus

for the ninth grade. For the purpose of this study, only the football

program in the upper grades will be considered. Total enrollment in

these three grades during the time frame in question averaged

2130.^ The student body Is ethnically and socloeconomlcally

diverse, with 55.5% of the student body classified as White, 9.6%

African-American, 34.2% Hispanic, and 0.7% other.' With regard to

the socioeconomic makeup of the students, approximately 32% come

from families considered economically disadvantaged, as measured

by the number of students qualifying for the free- or reduced-lunch

program administered by the state of Texas.^ The dropout rate was

5.4%, down from 6.7% the previous year."*

Midland High School maintains an extensive selection of

extracurricular activities. As with most large high schools,

students may participate in band, orchestra, choir, debate, speech,

drama, academic decathlon, various vocational programs and

activities, University Interscholastic League competitions,

cheerleading, and dance team. The athletic programs for both males

^Accountability Data Tables, Base Indicators, Texas Education Agency, 1996, for Midland High School, Campus Number 165901003, 6 June 1996. This Information Is the most recent available at the time of this study but is based on 1994-1995 data.

'Ibid.

^Ibid.

Mbld.

and females include the following: tennis, swimming, diving, golf,

soccer, basketball, cross country, and track. In addition, there are

sports offered which, at least on a de facto basis, are available only

for single-sex participation. These are softball and volleyball for

female student-athletes and, for male student-athletes, baseball

and football.

The 1995-1996 football program at MHS officially began on 6

August 1995 with approximately 115 student participants; by the

end of the season, only ninety remained.^ Technically, there were

three football teams at MHS during this time, a sophomore team, a

junior varsity team, and a varsity team. For the purpose of this

work, all of these teams are aggregated and an average of 103

student-athletes in the football program will be used.

^ Tim Whalen, Athletic Director, Midland Independent School District, interview with author, Midland, Texas, 15 July 1996.

CHAPTER 2

RESEARCH, METHODOLOGIES,

AND ASSUMPTIONS

2.1 Literature Review

There appears to be no previous work directly related to the

topic of this research. Similar studies have been done within the

realm of college athletic programs, but apparently none focusing on

high school football. One published work somewhat related to this

study is H. G. Bissinger's Friday Night Lights, a narrative of the

football program at Permian High school in Odessa, Texas.^ While an

interesting and apparently accurate presentation, it provides only an

oblique glimpse of the economics of high school football.

2.2 Methodologies

The majority of the data presented herein was gathered

through personal interviews and communications with school

officials, teachers, coaches, sponsors, students, and community

^ H. G. Bissinger, Friday Night Lights (Reading, MA: Addison-Wesley Publishing, Inc., 1990).

6

members. Some of these sources maintained complete and detailed

records; some did not. Much of the Information is based on the

opinions and estimations of those interviewed. As these individuals

often represent the only source of the Information required, their

opinions are accepted as valid.

Records of the Midland Independent School District also served

as a source for this research, especially data related to salaries and

other and explicit costs. These records are considered public

Information but often are not available in a formally organized

manner. Consequently, personal input from officials and employees

of the school district was necessary for access to and

interpretation of appropriate data.

2.3 Assumptions

In a study of this nature, a number of assumptions are

necessary to organize the data Into a perspective compatible with

economic analysis. Rather than attempt to list and explain all such

assumptions at this point, each will be addressed the first time

such a decision is made.

7

CHAPTER 3

COST ASSIGNMENTS

3.1 Category I Costs

This category consists of costs directly attributed to the MHS

football program by the school district and community. At this

point, the school district's accounting methods are compatible with

the methodology of this study, therefore, the sum of the costs in

this category should represent what is assumed by the community to

be the cost of football at MHS. It Is this cost which, when compared

to revenues generated by the football program, should be used to

test the validity of the assertion that football is self-sufficient or

even financially profitable. Towards the end of this work, a

comparison of this nature will be made. As necessary, brief

explanations of the methods used in determining specific costs and

justifications of those inclusions will be provided.

3.1.1 Salaries

Only explicit salary stipends for football coaching are included

in this category, as other salary costs are assigned by the school

8

district to other accounts and will thus be dealt with below as

Category II costs. Further, formal planning and initial football

practice begins well prior to the start of the standard school year,

necessitating a contract extension for football coaches. These

additional days, approximately fifteen, are paid through a system

whereby the base salary is prorated on a daily basis. Finally,

several coaches have assignments in addition to football; in such

cases, only the portion directly attributable to football is Included.

Table 3.1 summarizes this data and incorporates these assumptions

and accounting methods.

Table 3.1 Stipends and Additional-day Payments for Selected Coaches, Prorated for Football.

Coach

A B C D E F G H

Totals

Football stipend

$ 4,300.00 4,300.00 4,300.00 3,075.00 4,300.00 3,075.00 3,075.00 3.075.00

$29,500.00

Additional-day payments

$ 2,963.10 3,276.90 1,760.70 2,241.75 2,106.00 2,500.05 2,782.80 2,286.90

$19,918.20

Total football-related payments

$ 7,263.10 7,576.90 6,160.70 5,316.75 6,406.00 5,575.05 5,857.80 5,361.90

$49,518.20 Source: Payroll Department, Midland Independent School District, Dr. Joseph

Baressi, Payroll Administrator, July, 1996.

3.1.2 Football Equipment and Supplies

The purchase, maintenance, and repair of equipment, as well as

miscellaneous supplies for the football program will be summarized

herein. An Important assumption regarding capital expenditures

subject to depreciation is first encountered here. The school

district does not maintain depreciation schedules for athletic

equipment. New equipment is simply purchased and then replaced as

It becomes worn or outdated. Each year, approximately the same

amount of new equipment is added, thus, it is assumed that each

year, some amount of equipment is consumed and that this amount is

also relatively constant from year to year. Consequently, no attempt

is made to impose depreciation schedules on any capital purchase of

athletic equipment. These expenditures are summarized in Table 3.2.

Table 3.2 Expenditures for New Football Equipment, Maintenance and Repair of Existing Equipment, and Supplies.

Expenditure type

New equipment Repair of existing equipment Miscellaneous supplies Total

Cost

$30,193.56 3,998.50 3,613.10

$37,805.16 Source: Account Check List, Budget Code 6399, Office of the Athletic

Director, Midland Independent School District, Midland, Texas, July, 1996.

10

3.1.3 Transportation and Meals

During the 1995-1996 football season, the costs summarized

in Table 3.3 were incurred by the football program related to

transportation to and from games, meals after those games, spring

training travel costs, and miscellaneous transportation costs on the

part of the football coaching staff.

Table 3.3 Travel and Meal Expenses.

Expenditure type

Transportation Meals Total

Cost

$ 8.594.93 5,255.27

$13,850.20 Source: Account Check List, Budget Code 6414, Office of the Athletic Director,

Midland Independent School District, Midland, Texas, July, 1996.

3.1.4 Scouting

The football program at MHS, as with most high schools,

maintains an extensive scouting system in order to provide reports

on future opponents. This responsibility is primarily assumed by

coaches from the freshman and junior high schools in the district,

although the monetary value of their time will not be a part of this

study. A typical scouting team would consist of three coaches who

travel to a selected location to watch and record performance of an

n

upcoming opponent.^ Table 3.4 summarizes the transportation and

meal costs for this activity.

Table 3.4 Scouting Expenses.

Expenditure type

Transportation Meals and expenses Total

Cost

$1,097.98 971.93

$2,069.91 Source: Account Check List, Budget Code 6414, Office of the Athletic Director,

Midland Independent School District, Midland, Texas, July, 1996.

3.1.5 Game Expenses

At each football game played at Midland Memorial Stadium, the

school designated as the home team incurs certain expenses related

to the officiating, security, and supervision necessary to effectively

and safely conduct the game. These expenditures for Midland High's

1995-1996 season are itemized in Table 3.5. There is a $750.00

cost for an armored car to collect game receipts at the conclusion of

all football games; another $750.00 expense is for an ambulance and

paramedics to be assigned to each football game at Memorial

^ Roy Blair, Assistant Football Coach, Midland High School, interview with author, Midland, Texas, 4 September 1996.

12

Stadium.^ As MHS was the home team in only half of these games

(with the other local school, Robert E. Lee High, representing the

remaining games) only half of each of these expenses will be applied

to the cost of the MHS football program.

Table 3.5 Game Expenses.

Expenditure type

Game officials Game workers Armored car service Ambulance Total

Cost

$ 3,818.77 7,101.97

375.00 375.00

$11,670.74 Source: Account Check List, Budget Codes 6219 and 6299, Office of the

Athletic Director, Midland Independent School District, Midland, Texas, July, 1996.

3.1.6 Coaching Schools and Clinics

The MHS football coaching staff, along with coaches of other

sports, attended a coaching school in Ft. Worth during the summer

of 1995. The portion of these expenses assigned by the school

district to MHS football are summarized in Table 3.6.

^ Tim Whalen, Athletic Director, Midland Independent School District, interview with author. Midland, Texas, 15 July 1996.

13

Table 3.6 Coaching School Expenses.

Expenditure type

Transportation Meals, lodging, etc. Total

Cost

$ 175.76 1,652.45

$1,828.21 Source: Account Check List, Budget Code 6411, Office of the Athletic

Director, Midland Independent School District, Midland, Texas, July, 1996.

3.1.7 Accident Insurance for Football Athletes

The school district provides accident insurance coverage for

all of Its student-athletes; the premium for the 1995-1996 school

year was $33,100.00.^ As this policy Is not specific to football, the

fraction associated with MHS football Is calculated by simply

determining the percentage of participants in MHS football relative

to the total number of participants in all district athletic programs,

approximately 3,500.^° This calculation is reflected in Table 3.7.

However, injuries related to football, and thus claims against the

insurance, are much more common, and often more severe, than those

^ Budget for the Fiscal Year 1995-1996, Midland Independent School District, p. 175.

°̂ Ann Heintz, Secretary to the Athletic Director, Midland Independent School District, telephone Interview with author, 13 September 1996.

14

related to other sports. Consequently, it could be argued that a

greater portion of the Insurance premium Is absorbed by the football

program than is indicated by the simple calculation used herein.̂ ^

Table 3.7 Accident Insurance Premium Expenses, Prorated for Football.

Accident insurance

premium paid by the school

district

$33,100.00

Number of participants

in MHS football program

103


in MISD athletic

programs

3500

MHS football participants as a percentage of

all district athletes

2.94

Accident insurance premium

absorbed by MHS football

program

$ 973.14 Source: Budget for the Fiscal Year 1995-1996, Midland Independent School

District, Midland Texas, p. 175.

3.1.8 Football Booster Organization Explicit Expenditures

The MHS football booster organization engaged in several

activities which generated funds used to supplement the school's

football budget. Table 3.8 itemizes the net expenditures by the

booster organization on behalf of the MHS football program.

^̂ Tim Whalen, Athletic Director, Midland Independent School District, telephone interview with author. Midland, Texas, 4 September 1996.

15

Table 3.8 Explicit Expenditures of Football Booster Organization,

Expenditure type

Athletic equipment Uniforms Advertising Scholarships Telephone directories Computer hardware Copier maintenance Club expenses* Total

Cost

$ 8,856.96 2,856.82 1,573.00 1.500.00

200.00 2.403.00

350.00 7,021.69

$24,761.47 *Expenses for decorations, meals, banquets, etc.

Source: Rick Dunlavy, Treasurer, MHS Football Booster Organization, personal records and interview with author, Midland, Texas, 24 September 1996.

3.2 Category II Costs

In this category are accumulated the explicit costs

experienced by the school district and community which are at least

partially in support of the football program at Midland High but

which are not technically and formally acknowledged as such. These

costs are recorded In a myriad of other accounts, most of which are,

at first glance, unrelated to football. Such costs include

expenditures for the activities of the school band, dance team, and

cheerleaders; other costs of this nature are associated with

salaries, facilities maintenance, utilities, and administration. It

will be demonstrated that, in a proper economic measurement of the

16

economic costs of football at MHS, a portion of these costs should be

considered a part of the football program.

3.2.1 Athletic Salaripg

While the explicit football-related salaries accruing to

football coaches are accounted as a Category I expense above, there

are other salaries which should be at least partially assigned to the

football program. This section attempts to Identify such salaries

and determine the percentage of which represents a football-related

expense on the part of the school district.

3.2.1.1 Coaches and Athletic Trainers. The head football

coach is technically the athletic director for the campus and, as

such, has certain responsibilities outside of football. Consequently,

only a percentage of salary and travel expenses commensurate with

the percentage of time spent on football at MHS compared to total

work time will be explicitly assigned to football. During the 1995-

1996 football season, the head football coach/campus athletic

director had a base salary of $58,420.64 and a travel allowance of

$5,004.00 for total payments of $63,424.64. The full-time trainer

assigned to MHS had a base salary of $30,500.00 and an athletic

17

supplement of $4,300.00 for a total base salary of $34,800.00. The

part-time trainer had a base salary of $30,100.00, a travel

allowance of $900.00, and an athletic supplement of $4,500.00 for a

total compensation package of $35,500.00, of which one-half is

assigned to the MHS athletic programs. For the purposes of this

study, It Is assumed that 50% of the time of the head football

coach/campus athletic director is related to football.̂ ^ The

percentage of the trainers' time related to football, and thus the

percentage of their salaries herein assigned to football, is found by

dividing the number of participants in the campus football program

by the total number of athletes in all sports at MHS. This greatly

understates the amount of time allocated to football, as football

requires more of the trainers' time on a per person basis than do

other sports.̂ ^ Further, a part of the base salaries of the assistant

football coaches must be allocated to football. For at least a part of

the school year, football represents a specific class assignment,

'̂ Ronnie Reeger, Head Football Coach and Athletic Director, Midland High School, 1995 Football Season, interview with author. Midland, Texas, 7 August 1996.

^̂ William (Hondo) Schneider, Trainer, Midland High School, interview with author. Midland, Texas, 22 August 1996.

18

thus a portion of the base salary represents a cost of the football

program. Each teacher at MHS, with few exceptions, Is required to

teach five classes each of the two semesters. Thus, ten semester

teaching units will be assumed to constitute a full teaching load and

the percentage of these assignments related to football will be used

to prorate base salaries of the assistant football coaches to the

football program. These calculations are shown in Table 3.9 below.

Table 3.9 Payments to Coaches and Trainers, Prorated for Football.

Employee

Head coach Trainer (ful l-t ime) Trainer (part-t ime) Coach A Coach B Coach C Coach D Coach E Coach F CoachG Coach H Totals

Base payments

$ 63,424.64

34,800.00

17,750.00 36.150.00 39,978.00 35,214.00 27,350.00 25,700.00 30.500.00 33.950.00 27,900.00

$372,716.64

Percentage of time

related to football

50

35

35 30 30 40 10 30 20 10 10 - -

Additional-day stipend

- -

$ 2,500.05

1.233.60 *

*

•

*

*

_ _ *

_ _ *

•*•

$ 3,733.65

Total cost related to football

$ 31,712.32

14,680.05

7.446.10 10.845.00 11,993.40 14,085.60

2,735.00 7,710.00 6,100.00 3,395.00 2,790.00

$113,492.47 *The additional-day stipends for these coaches are included in Table 3.1 above.

Source: Payroll Department, Midland Independent School District, Dr. Joseph Baressi, Payroll Administrator, July, 1996.

19

3.2.1.2 Office of the Athletic Dirertnr. As the title implies,

this office is responsible for overseeing almost all aspects of all

athletic programs within the school district. This is in addition to

the activities of the campus-specific athletic directors at each of

the two high schools as well as each school's coaching staff. Much

of the efforts of the athletic director are related to scheduling

events, hiring coaches, public relations, and overseeing budgets. It

Is estimated that approximately 25% of the athletic director's time

and efforts are related to football.̂ "̂ While some of this time is

related the junior high and freshman school football organizations,

as these programs are organized to support the efforts their

respective high schools, the full 25% of the athletic director's time

will be assigned to high school football, with half to each of the two

high schools. The same will be done with the time of the two part-

time assistant athletic directors. In addition, there is the matter of

the staff of the athletic director's office. It is estimated that 33%

of the time and efforts of these personnel are related to football,

"̂̂ Tim Whalen, Athletic Director, Midland Independent School District, telephone interview with author, 13 September 1996.

20

with the extra time a function of football ticket sales, clerical

works, and accounting.̂ ^ Table 3.10 summarizes these costs.

Table 3.10 Salaries of the Office of the Athletic Director, Prorated for Football.

Employee

Athletic director Assistant athletic directors Secretary Part-t ime secretary Totals

Total salary

$ 62.434.52

20,118.48 20.579.04

9,876.96 $113,009.00

Travel allowance

$ 2,000.00

- -

$ 2,000.00

Percentage of time

related to football

25

25 33

33 - -

One-half of total cost related to

football

$ 8,054.32

2,514.81 3,395.54

1.629.70 $15,594.37

Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, Midland, Texas, p. 175.

3.2.1.3 Athletic Facilitv Custodial and Maintenance. The

method of accounting for expenses related to MHS football with

regard to the Midland Memorial Stadium complex (where all football

games are played and all football practice takes place) presents

special problems. The stadium also includes a track for practices

^̂ Ann Heintz, Secretary to the Athletic Director, Midland Independent School District, telephone interviews with author, 9 and 13 September 1996.

21

and competitions and for use by the general public on a daily basis.

The football practice field adjacent to the stadium Is also used for

baseball practice and occasional baseball games. Finally, various

community activities often use the facility. Thus, assigning a

percentage of the stadium complex's total cost of care and

maintenance to a specific football program is difficult. Therefore,

for the purpose of this study, it will be assumed that, were it not

for football, Memorial Stadium would not exist. There would be

some facility for track and baseball, but not that which exists at

present. With this assumption, the entire cost for care and

maintenance of the complex will be assigned to football, with half

assigned to the MHS program and the remainder to the Robert E. Lee

High School football program. This same assumption is used in

Section 3.3.3 regarding the facility's real estate value.

There are two full-time employees assigned to the care and

maintenance of Midland Memorial Stadium and the MHS field house

and weight-room facility. One of these cares for the field house,

used exclusively by MHS student-athletes and coaches. The other is

responsible for maintenance of the grounds; as the portion of the

grounds used exclusively by MHS accounts for approximately 4 acres

22

of the entire 16.3 acre complex, 62.5% of the costs of maintaining

the grounds will be assigned to MHS football with the remaining

37.5% assigned to the Robert E. Lee High School football program.^^

In addition to these permanently-assigned employees, there is a

group of three district employees who Inspect the bleachers and

other public areas of the stadium each week, making whatever minor

repairs are required. This inspection and subsequent repairs

requires approximately twelve person hours per week for each of the

ten weeks compromising a regular football season. The average

salary of these employees is $11.50 per hour.̂ ^ One-half of this cost

will be assigned to the MHS football program. Table 3.11

incorporates these assumptions Into an itemization and summation

of the appropriate data.

^̂ From the 16.3 total acres, 4 acres are subtracted, leaving 12.3 acres used equally by both high schools. One-half of the cost associated with these 12.3 acres is assigned to MHS football as is all of the cost associated with the 4 acres exclusively by MHS.

^̂ Lawrence Reeves, Supervisor of Maintenance, Midland Independent School District, interview with author, Midland, Texas, 24 July 1996.

23

Table 3.11 Athletic Facility Custodial and Maintenance Salaries, Prorated for Football.

Employees Total salary

Percentage assigned to MHS football

program

Total cost related to MHS football

program

Stadium grounds-keeper $21,736.00 62.5 $13,585.00 Field house custodian 21,715.20 100 21.715.20 Weekly safety inspectors 1.380.00 50 690.00 Totals $44.831.20 80.3 $35.990.20

Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, Midland, Texas, pp. 175-176.

3.2.2 Stadium Maintenance. Supplies. Repairs, and Utilities

For a facility as large as Memorial Stadium, several expenses

related to upkeep are to be expected. The grass areas themselves

absorb a great deal of effort;̂ ^ further, the cost of water, sewer,

and electricity must be accounted for within this study. As

justified in Section 3.2.1.3 above, the total cost of such efforts

will be assigned to football, split appropriately between the MHS

and Robert E. Lee High School football programs. As MHS football

uses the practice field and field house facility on an almost daily

basis and Robert E. Lee High School uses the stadium only during

^̂ Dan Hanks, Supervisor of Grounds, Midland Independent School District, interview with author, 25 July 1996.

24

football games, 62.5% of the cost of water, 50% of the electric cost

during the season and 100% of the cost outside the football season,

and 100% of the natural gas cost should be assigned to the MHS

program. Table 3.12 presents these costs.

Table 3.12 Memorial Stadium Expenses.

Expenditure type

Fertilizer, herbicides, and equipment maintenance Practice field repairs Seat and walkway replacement Public address system maintenance Handicapped seating installation* Water and sewer Electricity during football season** Electricity outside of football season# Natural gas## Totals

Total cost

$ 5,637.50 450.00

5,800.00

500.00

10,000.00 32.511.60

2,974.34 5,383.15

2.912.16 $66,168.75

Percentage assigned to MHS football

program

50 100

50

50

50 62.5

50 100

100 - -

Total cost related to MHS football

program

$ 2.818.75 450.00

2,900.00

250.00

• 5,000.00 20,319.75

1,487.75 5,383.15

2,912.16 $41,521.56

*This represents a capital expenditure which should be depreciated, but MISD does not establish such schedules. Further, as a similar amount is spent each year on additions of some type, the inclusion of this entire cost as a current-year expense seems justified. **Cost of electricity for September, October, and November, 1995. #Cost of electricity for August and December, 1995, and January through July, 1996. ##Cost of natural gas for August, 1995, through July, 1996.

Sources: Budget for the Fiscal Year 1995-1996, Midland Independent School District. Midland, Texas, pp. 175-176, and Martin Bucy, Energy Manager, Midland Independent School District, utility bills, 1995-1996

25

3.2.3 Band Expenditures

The MHS band plays an integral role in the overall football

program of the high school. Most notable are the performances

during half-time at all football games but there is also participation

in pep rallies and homecoming activities.

3.2.3.1 Salaries. Between the planning, rehearsals, travel, and

performances. It is estimated that 70% of the band directors' time

is tied to football-related tasks.̂ ^ Table 3.13 summarizes band

directors' salaries related to football.

Table 3.13 Band Directors' Salaries, Prorated for Football.

Employee

Band director Assistant band director Totals

Base salary

$33,375.00

23,500.00 $56,875.00

Band stipend and extra-day stipend

$ 9,937.50

5,350.00 $15,287.50

Total salary

$43,312.50

28,850.00 $72,162.50

Percentage

related to football

70

70 70

Salary related to football

$30,318.75

20,195.00 $50,513.75


^̂ Cody Meyers, Band Director, Midland High School, Interview with author. Midland, Texas, 4 September 1996.

26

3.2.3.2 Equipment. The band at MHS had an explicit budget of

$17,753.00 for the 1995-1996 school year. Major budget categories

are listed in Table 3.14 and appropriate allocations made to the

football program. It is assumed that approximately 58% of these

expenditures are related to football.̂ ° Naturally, some of the

expenditures represent purchase of durable capital equipment and,

when available, the depreciation term is incorporated into the

calculations.

Table 3.14 Band Budget, Prorated for Football.

Expense type

Instruments Instrument repair Teaching* supplies Totals

Expense amount

$ 9,130.00

3,623.00

5,000.00 $17,753.00

Expected useful

l ife

10 years

- -

- -

Annual cost

913.00

3,623.00

5.000.00 $9,536.00

Percentage related to football

57.7

57.7

57.7 57.7

Expenditures related to football

$ 526.80

2,090.47

2,885.00 $5,502.27

*Pat Erwin, School Secretary, Office of the Principal, Midland High School, interview with author, Midland, Texas, 23 July 1996.

Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, p. 9.

20 Ibid.

27

3.2.3.3 Uniforms. In addition to salaries and expenses related

to football, a portion of the cost of band uniforms must be allocated

to football. Of the 52 hours the uniforms were worn by the band

during 1995-1996, 40 hours, or about 77%, represented some use

related to football.̂ ^ Purchased In December, 1994, at a total cost

of $59,147.90,^^ these uniforms, unlike most capital expenditures of

MISD, are subject to an unofficial depreciation schedule, with

current uniforms estimated to have a life of ten years. Table 3.15

presents a prorated allocation of this cost to the football program.

Table 3.15 Band Uniforms, Depreciated and Prorated for Football.

Cost of uniforms

$59,147.90

Expected useful life

10 years

Annual cost

$ 5,914.79


77

Annual cost related to football

$ 4,554.39 Source: Cody Meyers, Band Director, Midland High School, personal records.

3.2.3.4 Travel. Travel on the part of the MHS band to the

football games also represents an expense not normally assessed as

21 Ibid.

" Susan Webb, Communications Specialist, Midland Independent School District, letter to author, 27 August 1996,

28

a part of the football program. Even when football games are played

in Midland, an expense Is incurred In transporting the band from the

MHS campus to Memorial Stadium. These expenses are summarized

in Table 3.16 and the entire amount assigned to the football program.

Table 3.16 Band Travel Related to Football.

Date

8 September 1995 15 September 1995 22 September 1995 29 September 1995 6 October 1995 13 October 1995 20 October 1995 27 October 1995 3 November 1995 10 November 1995 Total

Opponent

Frenship High Bel Air High Pecos High Robert E. Lee High Abilene Cooper High Odessa Permian High Dallas Jesuit High Odessa High Abilene High San Angelo High

- -

Site of game

Frenship, Texas Memorial Stadium Pecos, Texas Memorial Stadium Memorial Stadium Odessa, Texas Memorial Stadium Memorial Stadium Abilene, Texas Memorial Stadium

- -

Travel expense

$1,224.88 246.80 980.88 282.50 264.80 447.96 246.80 264.80

1,561.60 264.80

$5,785.82 Source: Carl A. (Kelly) Jacobson, Assistant Principal, Midland High School,

Travel Expense Records, 1995-1996.

3.2.3.5 Band Booster Organization. The booster organization

supporting the MHS band provides monetary benefits to the band,

some entirely tied to football while other contributions provide

spillover benefits to non-football areas, such as the band

newsletter. These expenditures are presented in Table 3.17.

29

Table 3.17 Explicit Expenditures by Band Booster Organization, Prorated for Football.

Expenditure type

Food Refreshments Drill design Music arrangement Stadium rental* Misc. spirit items Newsletter Percussion carts Bass drums** Bleacher covers Gasoline Marching squares Postage Spirit awards Uniform cleaning Equipment repair Truck rental Misc. unassiqned Totals

Expenditure amount

$ 1,648.50 457.65 900.00 440.00 400.00 432.00 201.54 187.57 960.00 270.00 235.74

47.82 32.00 74.29

1,032.55 3,000.00

380.03 393.59

$11,093.28

Percent related to football

100 90 50 50 25

100 50 77 77 100 100 50 50

100 75 77 90 50

76.5

Expenditure related to football

$ 1,648.50 411.89 450.00 220.00 100.00 432.00 100.77 144.43 739.20 270.00 235.74

23.41 16.00 74.29

774.41 2,310.00

342.03 196.79

$8,489.46 *Rental of Ratliff Stadium, Odessa, Texas, for marching contest practice. ** The actual cost of the bass drums was $4,800.00; the life expectancy is five years. Therefore 20% of the cost, or $960.00, is assigned to the year under consideration.

Source: Cody Meyers, Band Director, Midland High School, personal records.

3.2.4 Dance Team Expenditures

The MHS dance team, known as the Golden Girls, performs at

varsity football games and pep rallies. They also participate in

other activities and competitions. It is assumed that 45% of the

30

23

time and of this group is related to football; thus 45% of budgeted

expenditures and salaries will be assigned to the football program.

3.2.4.1 Salaries. The dance team is supervised by a single

sponsor who, during the 1995-1996 school year, taught four classes

in addition to the one formal period assigned to the dance team;

therefore, 20% of the $27,050.00 base salary of this employee will

be assigned to the dance team along with 100% of the dance team

stipend.^"^ These calculations are presented in Table 3.18.

Table 3.18 Dance Team Sponsor's Salary, Prorated for Football.

Employee

Dance team sponsor

20% of base salary

$ 5,410.00

Dance team stipend

$ 2,490.00


45

Cost related to football

$3,555.00


" Melba Longoria, Dance Team Sponsor, Midland High School, interview with author. Midland, Texas, 13 August 1996.

^̂ Midland High School Master Schedule, 1995-1996, from the records of Frances Smith, Data Processing Clerk, Midland High School.

31

3.2.4.2 Budgeted Fxpenditures and Travel. The dance team was

allocated $2,500.00 through teaching supplies at MHS.̂ ' This entire

amount (and more, from other sources) was used to cover expenses

related to the activities of the group. In addition, school funds were

used to transport the dance team to and from football games and for

meals on two occasions. Table 3.19 Itemizes and summarizes these

expenditures.

Table 3.19 Dance Team Budget and Travel, Prorated for Football.

Category type

Teaching supplies Travel to football games Meals Totals

Total cost

$2,500.00

1,442.09 200.40

$4,142.49


45

100 5 5 * 64.6


$1,125.00

1,442.09 110.20

$2,677.29 *0ne expenditure of $35.40 related to the Abilene football game is assigned 100% to football; another expenditure of $1 65.00 related to Dance Camp in June. 1995, is assigned 45% to football.

Source: Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas, and Carl A. (Kelly) Jacobson, Assistant Principal, Midland High School, Travel Expense Records, 1995-1996.

" Pat Erwin, School Secretary, Office of the Principal, Midland High School, Interview with author. Midland, Texas, 23 July 1996.

32

3.2.4.3 Dance Team Booster Organization. The dance team

booster organization, essentially an association of parents of the

participants, contributed funds to augment the budget provided by

the school. Some of these expenditures are more directly related to

football, and are thus assigned at a 75% rate to the football

program, while other are of more generic benefit to the group's total

activities and are thus assigned at lesser rates.^^ Table 3.20

summarizes these expenditures.

Table 3.20 Explicit Expenditures by Dance Team Booster Organization, Prorated for Football.

Category type

Practice, performing, travel, and uniforms Summer and line camps Officer camps Make-up Supplies for try-outs Office supplies Yard signs Totals

Total cost

$ 5,725.00 3,945.00

375.00 250.00 150.00 150.00

1.490.00 $12,085.00


75 75 75 75 50 50

2 5 * 68.2


$4,293.75 2.958.75

281.25 187.50

75.00 75.00

372.50 $8,243.75

*These signs are used for twelve months, thus, the three months of football season constitute 25% of total use.

Source: Linda Goddard, President, Midland High Dance Team Booster Organization, 1995-1996, personal records.

^̂ Linda Goddard, President, Midland High Dance Team Boosters Organization, 1995-1996, interview with author, Midland, Texas, 25 September 1996.

33

3.2.5 Cheerleader Fxpenditures

Similar to the band and dance team, the cheerleader

organization at MHS Is a part of many school-related functions, one

of which is football. Of the 59 total performances of the

cheerleaders during the 1995-1996 school year, 22 were related to

football.^^ Consequently, 37% of the budgeted costs of the

cheerleader organization will be assigned to the football program.

3.2.5.1 Salaries. The cheerleader sponsor is paid a stipend for

managing and supervising the organization; in addition, a one-

semester class is devoted to the group, representing 10% of the

annual teaching load of the sponsor.̂ ^ Therefore, 10% of the base

salary of $24,050.00 is assigned to the costs of cheerleading, along

with 100% of the cheerleading stipend. Of the sum of these two

payments, 37% will be assigned to the football program,

commensurate with the overall percentage of time the cheerleader

'̂' Casey Turner, Cheerleader, Midland High School, personal records and interview with author, Midland, Texas, 3 September 1996.

^̂ Midland High School Master Schedule, 1995-1996, from the records of Frances Smith, Data Processing Clerk, Midland High School.

34

organization devoted to football-related activities. Table 3.21

summarizes these calculations.

Table 3.21 Cheerleader Sponsor's Salary, Prorated for Football.

Employee

Cheerleader sponsor

10% of base salary

$2,405.00

Cheerleading stipend

$2,630.00

Percentage of gross salary

related to football

37


$1,862.95 Source: Payroll Department, Midland Independent School District, Dr. Joseph

Baressi, Payroll Administrator, July, 1996.

3.2.5.2 Budgeted Expenditures and Travel. In a manner similar

to the dance team, the cheerleader organization at MHS is partially

funded through the teaching supplies budgetary line item.^^ In

addition, uniforms represent a separate budget item. As explained in

Section 3.2.5 above, 37% of the general expenditures on the part of

the cheerleader organization will be assigned to the football

program but. In the case of travel to football games, 100% of the

expenses will be allocated to football. These calculations are

presented in Table 3.22.

^̂ Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas.

35

Table 3.22 Cheerleader Budget and Travel, Prorated for Football.

Category type

Teaching supplies Travel to cheerleader camp Travel to football games Meals related to cheerleader camp Meals related to football games Totals

Total cost

$1,000.00

614.00

496.08

506.25

344.00 $2,960.33


37

37

100

37

100 55


$ 370.00

227.18

496.08

191.01

344.00 $1,628.27

Source: Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas, and Carl A. (Kelly) Jacobson, Assistant Principal, Midland High School, Travel Expense Records, 1995-1996.

3.2.5.3 Cheerleader Booster Organization. The cheerleader

booster organization provides monetary benefits to the cheerleading

program at MHS. These benefits are spread across the entire school

year and thus are not specific to football. However, as previously

explained, 37% of cheerleader activities are related to football;

therefore, this multiplier will be used to assign booster

organization spending to the football program. Some contributions,

such as the purchase of advertising space In the MHS basketball

magazine, are omitted as they have no bearing on football. Table

36

3.23 provides a general Itemization of selected contributions and

calculates the portion applicable to football.

Table 3.23 Explicit Expenditures by Cheerleader Booster Organization, Prorated for Football.

Category type

Cheerleader camp, summer of 1995 Poster expenses Publicity Uniforms, etc.* Totals

Total cost

$ 4,245.00 327.50 700.00

4,800.00 $10,072.50


37 37 37 37 37


$1,573.98 121.18 259.00

1,776.00 $3,730.16

*Each of the 12 cheerleaders spends approximately $400.00 on uniforms and related items; this expenditure is included here although it is not technically provided by the booster club but is absorbed by the cheerleader households.

Source: Lisa Sutton, President, Cheerleader Booster Organization, Midland High School, 1995-1996, personal records and interview with author, Midland, Texas, 26 September 1996.

3.2.6 Pep Rallv Costs

During the week of each football game, the campus

participates in a pep rally, where the band, cheerleaders, dance

team, the entire student body, teachers, administrators, and a few

community members assemble in the gymnasium to generate

enthusiasm for the upcoming contest. Prior to this assembly, eight

members of the custodial staff require approximately 45 minutes to

37

prepare the facility and, at its conclusion, 90 minutes to return the

gymnasium to its original conditlon.̂ ° In determining the cost of

staging a pep rally, an average hourly wage of $6.15 Is assumed for

the custodial staff, $21.84 for the teaching staff, and $27.88 for

administrative staff.̂ ^ The monetary values of band, cheerleaders,

and dance team related to pep rallies are included as a part of the

Category II examination of each respective organization. Table 3.24

summarizes the preparation and supervision costs of the nine

football-related pep rallies at MHS during the fall of 1995, plus the

parade and bonfire associated with school homecoming activities;

the entire cost of these events is assigned to football.

^°J. D. Davis, Building Manager, Midland High School, interviews with author. Midland, Texas, 24 July 1996, 20 September, 1996, and telephone interview 21 September 1996.

^̂ These average hourly rates were calculated by dividing the total campus wages for each group by the contract length In days, then dividing the result by eight, representing the hours In a standard work day, a method which overstates the hourly wage of both administrators and teachers.

38

Table 3.24 Custodial and Supervisory Pep Rally Costs.

Group

Custodians

Custodians

Custodians

Administration Administration

Teachers

Total

Activity

Pep rally set-up Pep rally clean-up Bonfire preparation, clean-up Pep rally supervision Homecoming parade and bonfire supervision Pep rally supervision

- -

Average hourly wage

$ 6.15

6.15

6.15

27.88

27.88

21.84 - -

Number of

pa r t i cipants

8

8

14

5

5

118 - -

Hours required

.75

1.50

10.00

.75

3.00

.50 - -

Events

9

9

1

9

1

9 - -


$ 332.10

664.20

861.00

940.95

418.20

$11,597.04 $14,813.49

Source: Budget for the Fiscal Year 1995-1 District, Midland, Texas, pp. 8-9,

996, Midland Independent School 12.

3.3 Categorv III Costs

This section is likely to be the most controversial part of this

study as it examines the implicit costs related to the football

program at MHS. Any attempt to monetize opportunity costs and the

value of resources in alternative uses is often seen as suspect,

especially on the part of those unfamiliar with standard economic

39

concepts and methodologies. However, a consideration of such costs

is what separates economics from similar disciplines. Therefore,

this portion of the study Is perhaps the most critical In

understanding the actual level of resource utilization of the school's

football program.

3.3.1 Implicit Student Resources

The following represents an accounting of the time resources

provided by various student groups and a monetized measure of the

percentage of that time absorbed by the MHS football program.

3.3.1.1 Football Team. Members of the MHS football team

devote an enormous number of hours to the team's efforts. There are

the formal, scheduled practices, travel time, and games as well as

informal expectations and obligations related to responsibilities of

the student-athletes during the off-season. Obviously, the time

required for formal activities is easily quantified; time resources

expended on informal activities is an approximation based on reports

of the participants. Table 3.25 itemizes major activity groups,

calculates total hours related to each activity, and uses the 1995

minumum wage of $4.35 to monetize the result.

40

Table 3.25 Implicit Value of Time, Members of the Football Team.

Activity

Practice before the start of school Practice during school hours Practice after school hours Scrimmages and games* Required off-season conditioning (1 6 weeks) Expected off-season conditioning (1 6 weeks) Spring training (21 days, 18 workouts) Summer conditioning** Totals

Total hours per par t i c i

pant

16.0

65.0

123.5

91.0

80.0

40.0

51.0

76 542.5


103

103

103

103

75

75

123

123 - -

Total person hours

1,648.0

6,695.0

12,720.5

9,373.0

6,000.0

3,000.0

6,275.0

9,348 55,059.5

Value at $4.35 per hour

$ 7,168.80

29,123.25

55.334.18

40,772.55

26,100.00

13,050.00

27,287.55

40,663.80 $239,500.13

*lncludes travel time. **During June and July, 1995, 38 days at 2 hours per day expected of each player.

Source: Horace Doyle, Russell Dunlavy, and James Paschal, MHS football players, personal records and interview with author, Midland, Texas, 24 September 1996.

3.3.1.2 Band. Participation in the band at MHS requires a

substantial commitment of time on the part of the students. During

the 1995-1996 school year, it is estimated that this time totaled

28,857.5 person hours, of which 57.7% is attributable to football-

41

related activities and events.'' Table 3.26 lists the various band

activities, the hours associated with each applicable to football, and

the dollar value of this time calculated at a wage of $4.35 per hour.

Table 3.26 Implicit Value of Time, Members of the Band, Prorated for Football.

Activity

Summer band practice Summer percussion practice Summer flag practice Rehearsal during school Rehearsal after school Percussion practice after school Flag practice after school "Blastoff" pep rally*

Hours per s tu dent

34

28

30

48

82

18

18

3

Number of

students

100

20

20

105

105

20

20

105

Total hours

3,400

560

600

5,040

8,610

360

360

315

Percentage

related to

football

50

50

50

60

30

30

30

100

Hours related to football

1,700

280

300

3,024

2,583

108

108

315

Value at $4.35 per

hour

$ 7,395.00

1,218.00

1,305.00

13,154.40

11,236.05

489.80

469.80

1,370.25

32 Cody Meyers, Band Director, Midland High School, interview with author. Midland, Texas, 4 September 1996.

42

Table 3.26, Continued.

Activity

Pep rallies Concert Football game performances, pre-contest* Football game performances, post-contest* Flag and per cussion clinic Marching festivals* MHS Homecoming parade* Totals

Hours per s tu dent

6.75 2

50.5

26

8

7

3 - -

Number of

students

105 105

105

105

40

105

105 - -

Total hours

708.75 210

5,302.5

2730

320

735

315 28,857.5

Percentage

related to

football

100 50

90

100

30

30

100 57.7


708.75 105

4,772.25

2,730

96

220.5

315 16,656.75

Value at $4.35 per

hour

$ 3,083.06 456.75

20.759.29

11,875.50

417.60

959.18

1370.25 $75,559.93

*lncludes travel time.


3.3.1.3 Cheerleaders. During the 1995-1996 school year, the

cheerleaders were Involved in 5,028 person hours of practice,

travel, and performances.̂ ^ As explained in Section 3.2.5 above.

" Casey Turner, Cheerleader, Midland High School, interview with author, Midland, Texas, 3 September 1996.

43

it is assumed that 37.3% of this time should be attributed to

football. Consequently, 1,875.4 hours can be assigned to the football

program. In order to monetize the value of this resource, a wage of

$4.35 is assumed. Table 3.27 summarizes appropriate data using

these assumptions.

Table 3.27 Implicit Value of Time, Cheerleaders, Prorated for Football.

Total hours per individual

419


37.3


$ 679.91

Number of cheerleaders

12

Total value related to football

$ 8,158.92 Source: Kelli Martin, Sarah Ray, Casey Turner, and Casey Webb, Midland High

Cheerleaders, personal records.

3.3.1.4 Dance Team. Approximately 484.25 hours were

required on the part of each dance team participant during the 1995-

1996 school year, of which 45% were related to football.̂ "̂ The

value of this time is presented in Table 3.26, with an implicit wage

of $4.35 used to monetize the resource.

"̂̂ Melba Longoria, Dance Team Sponsor, Midland High School, interview with author, Midland, Texas, 13 August 1996.

44

Table 3.28 Implicit Value of the Time, Dance Team, Prorated for Football.

Total hours per individual

484.25


45


$947.92


1 1

Total value related to football

$10,427.12 Source: Melba Longoria, Dance Team Sponsor, Midland High School, personal

records.

3.3.2 Implicit Community Resources

Just as certain student activities represent implicit costs of

the football program at MHS, so do the activities of various

community groups, mainly the support groups, or booster

organizations, of the student programs.

3.3.2.1 Football Booster Organization. The football booster

organization provides substantial support to the football program

through the donation of time. Each organization officer is assigned

an area of responsibility and records of time required to meet these

obligations are maintained and aggregated based on position, not on

the specific tasks involved. Further, the hours stated for each

position often represent the efforts of more than one individual, as

spousal assistance is the norm within the ranks of the officers of

45

this group. '̂ Table 3.29 presents these data and, at a wage of $4.35

per hour, monetizes the resource. However, with regard to adult

volunteer labor, such a rate most likely represents a gross under

estimation of the actual value of the resource as It is doubtful that

those contributing their labor would find the actual market value of

that labor to be only minimum wage. Naturally, the entire value of

these volunteer hours is assigned to football.

Table 3.29 Implicit Value of Time, Football Booster Organization

Position or activity

Club president Senior vice president Junior vice president Sophomore vice president Corresponding secretary Recording secretary Treasurer Spirit committee (8 members) Program committee (2 members)* Totals

Average monthly

hours

140 45 40 40

8 28 25

130 60

516

Annual hours

1,680 540 480 480

96 336 300

1,560 240

5.712


$ 7,300.00 2.349.00 2.088.00 2,088.00

417.60 1,461.60 1,305.00 6,786.00 1,044.00

$24,839.20 ""This represents only a four-month commitment, June through September.

Source: Rick Dunlavy, Treasurer, Football Booster Organization, Midland High School, personal records and interview with author, Midland, Texas, 25 September 1996.

^̂ Rick Dunlavy, Treasurer, Football Booster Organization, Midland High School, 1995-1996, telephone interview with author, 27 September 1996.

46

3.3.2.2 Band Booster Organization. Supporting the activities

of the band, and thus providing implicit support for the

football program, is a group of band parents and other interested

individuals which contribute many hours of volunteer labor. These

volunteers assist in practices, rehearsals, travel, equipment and

uniform maintenance and repair, and other necessary and useful

endeavors.^^ As with other volunteer labor included in this study,

a wage of $4.35 will be used to monetize this resource. Table 3.30

itemizes and summarizes these data.

It should be noted that the football-related percentage of time

for each activity is consistent with the various percentages

used earlier in this study; for example, as it was previously

determined that 77% of the cost of band uniforms should be assigned

to the football program, 77% of the volunteer time related to care

and maintenance of band uniforms will herein be counted as a

football-related cost.

^̂ Cody Meyers, Band Director, Midland High School, interview with author. Midland, Texas, 4 September 1996.

47

Table 3.30 Implicit Value of Time, Band Booster Organization, Prorated for Football.

Activity

Afternoon water breaks Flag "moms" Uniform care and maintenance Loading and driving crew Performance set-up Equipment repair Performance announcer Misc. (snacks, office help, etc.) Totals

Hours

90 270

600

352

168

80

20

100 1,680


58 58

77

87

71

58

100

75 73.7


52.20 156.60

462.00

306.24

119.28

46.40

20.00

75.00 1,237.72


$ 221.85 681.21

2,009.70

1.332.14

518.87

201.84

87.00

326.25 $5,378.86


3.3.2.3 Dance Team Booster Organization. As with the band

booster organization, the dance team booster club provided

volunteers to assists with various aspects of the operation of the

group. Table 3.31 categorizes and summarizes those hours related

to the MHS football program. A value of $4.35 per hour Is again used

to assign a minimum value to this resource.

48

Table 3.31 Implicit Value of Time, Dance Team Booster Organization, Prorated for Football.

Activity

Supervision of football game travel Performance supervision Supervision of team meetings, events, clinics, and fund-raisers Planning Totals

Hours

133

48

116 99.5

396.5


100

50

50 50

66.8


133.00

24.00

58.00 49.75 264.75


$ 578.55

104.40

252.30 216.41

$1,151.66 Source: Linda Goddard, President, Midland High Dance Team Booster

Organization, 1995-1996. personal records and interview with author, Midland, Texas, 25 September, 1996.

3.3.2.4 Cheerleader Booster Organization. Volunteer time and

labor also plays a role in the operation of the cheerleader

organization. The hours donated by the cheerleader booster

organization are presented in Table 3.32 with an assigned an hourly

wage of $4.35 used to estimate minimum value. As with other

aspects of the cheerleading program, 37% of total implicit

contributions will be allocated to the MHS football program.

49

Table 3.32 Implicit Value of Time, Cheerleader Booster Organization, Prorated for Football.

Activity

Club meetings* Executive board meetings** Supervision, summer 1995 Yard sign installation Cheerleader camp travel Construction of run-through signs Coordination, pictures and posters Assistance on homecoming float Fund-raisers Totals

Hours

384

80

120

12

110

100

17

4 70

897


37

37

37

37

37

37

37

100 37

37.3


142.1

29.6

44.4

4.4

40.7

37.0

6.3

4.0 25.9

334.4


$ 618.14

128.76

193.14

19.14

177.05

160.95

27.41

17.40 112.67

$1,454.66 *Twelve monthly meetings of approximately two hours each, attended by an average of sixteen persons. **Four persons meeting at various times, totaling twenty hours.

Source: Lisa Sutton, President, Cheerleader Booster Organization, 1995-1996, Midland High School, personal records and interview with author. Midland, Texas, 26 September 1996.

3.3.3 Real Estate Resources

The school district's main football facility. Midland Memorial

Stadium, occupies approximately 16.3 acres in a primarily

50

residential area of Midland.'^ As previously described, the stadium

complex Is used for home football games for both local high schools,

practice for MHS football and baseball teams, various track-related

activities, and by the community at large. Again, for the purposes of

this study, it is assumed that were it not for football, Memorial

Stadium would not exist. Consequently, all implicit costs related to

the value of the stadium will be assigned to football. Any and all

other uses of the facility would represent benefits to the school and

community in the form of positive externalities, the value of which

is outside the purview of this study. In addition, the value of the

structures built upon the land of Memorial Stadium (bleachers,

buildings, scoreboard, track, fencing, etc.) will not be considered as

a cost to the football program. There are several reasons for this,

including the difficulty in constructing a depreciation schedule for a

facility originally constructed in 1946 and the vagaries of the

improvements to those facilities over time. Due to these concerns,

no attempt will be made to isolate a percentage of the value of

^̂ Lawrence Reeves, Supervisor of Maintenance. Midland Independent School District, interview with author. Midland, Texas, 24 July 1996.

51

these facilities and assign It to a specific football program.

(Expenditures for maintenance are Included In Sections 3.2.1.3 and

3.2.2.) With regard to the value of the real estate. It was

determined that bare land in the Immediate vicinity of Memorial

Stadium is worth approximately $1.25 per square foot.̂ ^ With this

figure as the base. Table 3.33 summarizes the estimated property

value of the land comprising the stadium complex. In order to

calculate the annual cost of this property, It Is assumed that a sum

equal to its amount is invested in a one-year certificate of deposit

in a local financial institution, earning 5.5%, representing a

reasonable and realistic rate of return for such an investment In

Midland In 1995.^^ Of this value, 62.5 % is assigned to MHS football

(see Section 3.2.1.3 for explanation and justification of this

assumption); the remainder would be a part of the Robert E. Lee High

School football program.

^̂ Robert Brown, Director, Midland Central Appraisal District, telephone Interview with author, 30 July 1996.

^̂ Wayne Merritt, President, Norwest Bank of Midland, Texas, NA, telephone Interview with author, 11 September 1996.

52

Table 3.33 Implicit Annual Cost of Memorial Stadium Real Estate.

Area in

acres

16.3

Area in square

feet

710.028

Market value at $1.25 per

square foot

$ 887.535.00

Average yield on

1 2-month CD,

Midland, 1995

5.5%

Value of income

foregone

$ 48,814.43

62.5% of income

foregone

$ 30.509.02

Source: Robert Brown, Director, Midland Central Appraisal District and Lawrence Reeves, Supervisor of Maintenance, Midland Independent

School District.

CHAPTER 4

COST SUMMARIES

4.1 Introductorv Comment

The tables in this chapter provide summaries and totals by

category, of all expenses, explicit and implicit, identified in this

study as relating to the Midland High School football program.

4.2 Category I Costs

This section Itemizes each explicit cost directly assigned by

the school district or the community to the MHS football program. A

summary of these costs is presented in Table 4.1.

Table 4.1 Category I Costs.

Expenditure type

Football coaching stipends and additional-day

Source Total

payments Football equipment and maintenance Transportation and meals

Table 3.1 Table 3.2 Table 3.3

$ 49,518.20 37,805.16 13.850.20

Scouting Game expenses Coaching clinics


2,069.91 11,670.74

1,828.21 Accident insurance Table 3.7 973.14 Explicit spending by football boosters Table 3.8 24,761.47 Total $142,477.03

54

4.3 Category N Costs

The costs summarized herein represent explicit expenditures

which at least partially benefit the football program at MHS but

which are not formally assigned as a part of the program's cost.

Table 4.2 itemizes and totals these costs.

Table 4.2 Category II Costs.

Expense type

Payments to coaches and trainers Athletic directors' salaries Athletic facility custodial salaries Memorial stadium expenses Band directors' salaries Band budget Band uniforms Band travel Band boosters Dance team sponsor's salary Dance team budget and travel Dance team boosters Cheerleader sponsor's salary Cheerleader budget and travel Cheerleader boosters Pep rally custodial and supervision Total

Source

Table 3.9 Table 3.10 Table 3.11 Table 3.12 Table 3.13 Table 3.14 Table 3.15 Table 3.16 Table 3.17 Table 3.18 Table 3.19 Table 3.20 Table 3.21 Table 3.22 Table 3.23 Table 3.24

- -

Total

$ 31,712.32 15,594.37 35.990.20 41,521.56 50,513.75

5,502.27 4,554.39 5,785.82 8,489.46 3,555.00 2.677.29 8,243.75 1,862.95 1.628.27 3,730.16

14,813.49 $236,175.05

55

4.4 Category III Costs

Implicit costs of the MHS football program are presented in

Table 4.3. As a reminder, in order to assign a monetary value to

donated hours, a wage of $4.35 Is used; however, this rate

represents a substantial under-valuation as the true market value of

these resources would, in many cases, be much higher.

Table 4.3 Category III Costs.

Implicit value of . . .

Football team's time Band members' timfe Cheerleaders' time Dance team's time Football boosters' time Band boosters' time Dance team boosters' time Cheerleader boosters' time Memorial stadium Total

Source

Table 3.25 Table 3.26 Table 3.27 Table 3.28 Table 3.29 Table 3.30 Table 3.31 Table 3.32 Table 3.33

- -

Total

$239,500.13 75.559.93

8,158.92 10,427.12 24,839.20

5,378.86 1.151.66 1.454.66

30,509.02 $396,979.50

4.5 A Cost Summary

By combining totals from Category I, Category II, and Category

III, the overall cost to the community of Midland of the 1995-1996

Midland High football program can be determined. This value is

presented In Table 4.4.

56

Table 4.4 Overall Cost of the Midland High Football Program.

Cost type

Category Category II Category Total

Source


Cost

$142.477.03 236.175.05 396,979.50

$775.631.58

From the total above, it is accurate to assert that a minimum

of $775,631.58 worth of community recourses were absorbed by the

MHS football program during the time period under consideration.

This represents an empirical statement of value with no judgments

made other than those necessary to collect data and monetize

implicit costs.

57

CHAPTER 5

OBSERVATIONS AND CONCLUSIONS

5.1 Observations Related to Costs

There are intangible costs which are not included in this study.

For example, the entire question of injuries was omitted; what Is

the cost to the community of a football-related injury which results

In some form of physical disability for an athlete? In addition, no

attempt was made to assess the value of lost educational

opportunities resulting from resource competition between football

and academics, if, indeed, such a competition exists In any

meaningful way. A common fallacy which seems to exist is that

were it not for football, those resources consumed by the football

program would be directly available for academics. This assumes

academics to represent the second-best alternative for football

resources In the mind of the community, an assumption which is not

supportable. Football provides entertainment value not matched by

academics and generates clear short-run benefits while academics

often provides Intangible returns, the value of which is dimmed by

58

their long-run nature. To assume that, absent football, these

resources would transfer to academics Is to assume too much.

5.2 Observations Related to Benefits

Although the goal of this study was to determine the economic

costs of football at MHS, some discussion of the benefits accruing to

the community from the football program is appropriate. Football

generates revenue in the form of gate receipts. During the 1995-

1996 football season, the MHS football program grossed $80,336.14

in ticket sales.^° Of this, $20,794.66 was paid to the opposing

school, as per contractual agreement; therefore, an income of

$59,541.48 resulted. While this does represent a significant sum,

when compared to the most basic accounting costs to MISD of

$117,804.66 (Category I total costs of $142,566.13 minus explicit

football booster organization contributions of $24,761.47), football

generates an accounting loss of $58,263,18. The assertion that

football covers its own costs and provides funding for other sports

is patently false.

'̂ ^ Account Totals, Football Receipts, Office of the Athletic Director, Midland Independent School District, Midland, Texas.

59

On the other hand, if the Indirect explicit benefits to the

community, such as revenue generated from retail sales, lodging, and

meals to out-of-community visitors attending football games were

to be considered, it may be the case that the MHS football program

generates a net monetary gain to the community, even while

representing a net accounting loss to the school district. If one goes

further and considers the positive externalities resulting from

football, such as the existence of Memorial Stadium and the ensuing

benefits to various track and field programs, the MHS baseball

program, and the community at large, a different scenario results,

one where benefits may exceed costs.

Finally, if the implicit benefits of entertainment, school

spirit, community pride, and the potential beneficial physical and

character-building aspects a competitive program such as football

Is reputed to provide its members could be monetized, it is quite

likely that football could more than cover its total costs.

Assignment of such monetary benefits is, however, outside the

scope of this study. Suffice it to say that. If some method of

identifying and assigning value to the benefits resulting from the

60

football program could be devised, the total impact of the Midland

High football program on the community could be measured. Until

this occurs, this study of the cost of the program represents only

half of the equation.

5.3 Conclusion

It must be remembered that a high school is a reflection of the

values of the community in which it exists. If the community

demands a football program of a certain caliber, then resources

necessary to achieve this goal will be made available. Even though

it is doubtful that, until this study was done, anyone knew the real

cost of the football program at Midland High, the very fact that the

program exists Is Indicative of the community's willingness to

expend the resources accordingly. While one might question the

values of a society which places so much emphasis on activities

providing relatively short run benefits, it is doubtful that when

confronted with the more realistic costs presented in this study,

any meaningful reconsideration of the nature of the football program

at Midland High School would, or even should, be made.

61

SOURCES

Documents. Public Records, and Publications

Account Check List, Budget Code 6219. Office of the Athletic Director, Midland Independent School District, Midland. Texas.

Account Check List, Budget Code 6399. Office of the Athletic Director, Midland Independent School District, Midland, Texas.

Account Totals, Football Receipts. Office of the Athletic Director, Midland Independent School District, Midland, Texas.

Accountability Data Tables, Base Indicators. Texas Education Agency, 1996, for Midland High School, Campus Number 165901003, 6 June 1996.

Allocation for Teaching Supplies, 1995-1996. Office of the Principal. Midland High School, Midland, Texas.

Bissinger, H. G. Friday Night Lights . Reading, MA: Addison-Wesley Publishing, Inc., 1990.

Budget for the Fiscal Year 1995-1996. Midland Independent School District, Midland, Texas.

Jacobson, Carl A. (Kelly). Assistant Principal, Midland High School, Midland, Texas. Campus Travel Expenses, 1995-1996.

Martin, Kelli, Sarah Ray, and Casey Turner. Cheerleaders, Midland High School, Midland, Texas, personal records.

62

Master Schedule, 1995-1996. Midland High School, Midland, Texas.

Payroll Department. Midland Independent School District, Midland, Texas, Dr. Joseph Baressi, Payroll Administrator.

Personal Interviews

Blair, Roy. Assistant Football Coach, Midland High School. Interview with author. Midland, Texas, 4 September 1996.

Brown, Robert. Director, Midland Central Appraisal District. Telephone Interview with author, 30 July 1996.

Bucy, Martin. Energy Manager, Midland Independent School District. Personal letter to David Fly, Midland, Texas, 23 September 1996.

Davis, J. D. Building Manager, Midland High School. Interviews with author, Midland, Texas, 24 July and 20 September, 1996, and telephone interview with author, 21 September 1996.

Doyle, Horace, Russell Dunlavy, and James Paschal. Football Players, Midland High School. Personal records and interview with author, Midland, Texas, 24 September 1996.

Dunlavy, Rick. Treasurer, Midland High School Football Booster Organization. Personal records and interview with author, Midland, Texas, 24 September 1996 and telephone interview with author, 27 September 1996.

Erwin, Pat. School Secretary, Office of the Principal, Midland High School. Interview with author. Midland, Texas, 23 July 1996.

Goddard, Linda. President, Midland High School Dance Team Booster Organization, 1995-1996. Personal records and interview with author. Midland, Texas, 25 September 1996.

63

Hanks, Dan. Supervisor of Grounds, Midland Independent School District. Interview with author, Midland, Texas, 25 July 1996.

Heintz, Ann. Secretary to the Athletic Director, Midland Independent School District, Midland, Texas. Telephone interviews with author, 9 and 13 September 1996.

Longoria, Melba. Dance Team Sponsor, Midland High School. Personal records and interview with author, Midland, Texas, 13 August 1996.

Merritt, Wayne. President, Norwest Bank of Midland, Texas, NA. Telephone interview with author, 11 September 1996.

Meyers, Cody. Band Director, Midland High School. Personal records and Interview with author. Midland, Texas, 4 September 1996.

Reeger, Ronnie. Head Football Coach and Athletic Director, Midland High School, 1995 Football Season. Interview with author. Midland, Texas, 7 August 1996.

Reeves, Lawrence. Supervisor of Maintenance, Midland Independent School District. Interview with author, Midland, Texas, 24 July 1996.

Schneider, William (Hondo). Trainer, Midland High School, 1995 Football Season. Interview with author. Midland, Texas, 22 August 1996.

Smith, Frances. Data Processing Clerk, Midland High School. Interview with author. Midland, Texas, 18 September 1996.

Sutton, Lisa. President, Cheerleader Booster Organization, Midland High School, 1995-1996. Personal records and interview with author. Midland, Texas, 26 September 1996.

64

Turner, Casey. Cheerleader, Midland High School. Personal records and Interview with author. Midland, Texas, 3 September 1996.

Webb, Susan. Communications Specialist, Midland Independent School District, Midland, Texas. Letter to author, 27 August 1996.

Whalen, Tim. Athletic Director, Midland Independent School District. Interview with author. Midland, Texas, 15 July 1996 and telephone interview with author, 13 September 1996.

65

PERMISSION TO COPY

In presenting this thesis in partial fulfillment of the

requirements for a master's thesis at Texas Tech University, I

agree that the library and my major department shall make It

freely available for research purposes. Permission to copy this

thesis for scholarly purposes may be granted by the Director of

the Library or my major professor. It is understood that any

copying or publication of this thesis for financial gain shall not

be allowed without my further written permission and that any

user may be liable for copyright Infringement.

Agree (Permission is granted.)

Student's Signature Date

Disagree (Permission is not granted.)

ie-i-<=i(^

Studenfs Signature Date