jodi upton - athletics dept budgets

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Jodi Upton USA TODAY [email protected] Indiana University March 10, 2010

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The Donald W. Reynolds National Center for Business Journalism presents "Investigating the Business of College Athletics" at Indiana University Purdue University-Indianapolis. For more information, please visit http://businessjournalism.org.

TRANSCRIPT

Page 1: Jodi Upton - Athletics Dept Budgets

Jodi UptonUSA [email protected]

Indiana University

March 10, 2010

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Is covering athletic department spending worth the trouble?Aren’t most athletic departments self-supporting?

Don’t football programs pay for all the other sports?

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Three Sources:

Federal government

Department budget

NCAA report

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Federal report

Equity in Athletic Disclosure Act data

http://ope.ed.gov/athletics/

Revenue and expenses off in one-third of schools, some as much as $30 million

Few details No incentive for accuracy!

Emergency use only!

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Athletic Budget

Local Confusing Does not include expenses picked up by

the university or alumni foundation which can include millions in capital spending.

Can’t be compared to other schools

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National Collegiate Athletic Association Due to the NCAA every

January 15 for the previous fiscal year (usually July-June).

Same format and rules for all schools

Uses national accounting guidelines

NCAA will not release the report. It has to be gathered using open records laws from each school.

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Caveats

Does not always include capital expenses (stadium costs, for example).

Schools can fudge categories Alabama eliminated a student fee that generated

$3.8 million for athletics in 2006-07. They added it to tuition. Athletics got $4.1 million

extra from the university in 2007-08. Oops! Alabama double-counted $24 million in

revenue in 2007-08. Reported to the NCAA?

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Two kinds of revenue:

Allocated: student fees, direct and indirect university support, state support

Any money taken from a tax-paying group (university, students) to run the department

Generated: money made from athletic activities

Ticket sales, guarantees, contributions*, conference money, broadcast, licensing…

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USA TODAY’s version

http://www.usatoday.com/sports/college/ncaa-finances.htm

Currently: all 99 public schools in the 120-school FBS (top football schools. More coming.

Not available: private schools, PA schools, Navy

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What it can do for you

Alabama 2007-08

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If schools are more dependent on subsidies, are they cutting spending?

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How dependent is your athletic department:

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Other stories

(Lies My College Told Me)

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“A major in eligibility, with a minor in beating the system.”

--C. Keith Harrison, associate director of the University of Central Florida’s Institute of Diversity and Ethics in Sports

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Majoring in eligibility

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Clustering of college athletesusatoday.com/sports/college/2008-11-18-majors-graphic_N.htm

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How common is clustering?

83% of the schools (118 of 142) had at least one team in which at least 25% of the juniors and seniors majored in the same thing.

More than half of the clusters are "extreme": at least 40% of athletes on a team are in the same major.

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Unusual degrees

Florida Atlantic42 upperclassmen enrolled in “Week-End

Management” (cq) South Florida

279 students enrolled in “Bulls Network.” General studies/university studies

Nearly one in five clusters are ambiguous or vague programs

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Favorite sports myth # 12

We don’t need to save for college – my kid’s getting a scholarship…

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Arizona State 2007