The end of collegete athletics as we know it? - NCAA Report on finances

[FLPanhandle]

http://www.ncaa.org/wps/wcm/connect/public/ncaa/resources/latest+news/2011/june/report+shows+widening+financial+gap+in+division+i

Report shows widening financial gap in Division I

By Gary Brown
NCAA.org


The most recent annual report indicates that “generated revenues” (ticket sales, NCAA and conference distributions, concessions, contributions, media rights and other sources not including institutional or governmental support, or student fees) exceeded expenses at 22 Football Bowl Subdivision institutions, eight more than during the previous fiscal year.

The median net surplus at those 22 institutions was about $7.4 million (ranging from $211,000 to $41.9 million), compared with the median net deficit for the remaining Football Bowl Subdivision schools of about $11.3 million. That gap – almost $19 million – is significantly higher than the $15.6 million separation in 2009.

<snip>

That gap in revenue, either from self-generated or institutionally allocated sources, is significant,” Emmert said. “Indeed, it is coming to redefine what we mean by competitive equity. This will undoubtedly be a discussion point at the August presidential retreat.”

The total of 22 self-sufficient programs appears to be more in line with previous years and indicates that last year’s total of 14 may have been a recession-driven anomaly. For both the 2006-07 and 2007-08 reporting years, 25 schools generated revenues above expenses. There were 19 such institutions in 2005-06 and 18 in each of the two previous years.



Basically, the median cost for a school to have an athletic program is about $9 million for Division I schools. Only a few schools make money (and those few make a lot of money). Since the gap is between the money makers and the money losers is increasing, either a separate Division will be created for those with money, or many schools will just decide to drop athletic programs (which would be a shame).

[Angry Dragon]

1. Perhaps the way to do it would be to sell the atheletes

to the pro teams and privatize college sports

[FLPanhandle]

4. I think many schools will just drop athletics

The idea of a college sports at smaller schools will become a thing of the past, or they will form a lower league where the expenses aren't so steep.

[Johonny]

7. I think they would privatized their atheltics department

and run them as for profit teams. You would end up with way less teams, but the big name brand teams would be worth a lot and scare the * out of the NFL.

Small schools now have a lot of "club" sports and I think sports at the club level would still go strong and more reflect what people actual think of as amateur athletics.

[Manifestor_of_Light]

2. Lots of us can live without college football. Or pro football.

[Ron Green]

3. Yes, but lots of them can't.

[FLPanhandle]

5. Blasphemer!

College football is the only reason I have a television.

I suspect the number of team playing will drop in the next decade though as schools drop athletics as part of the college experience.

[dems_rightnow]

6. And I could live without soap operas

Just so you know.

[MadHound]

8. One thing that some folks are forgetting here,

Is that many, many school donations come in because of college athletics. Many of these donations aren't targeted at athletics, but if a college decides to drop their athletic program, those donations would disappear. I would suggest that a college takes that into consideration before making their decision to drop their athletic program.