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- Thread starter Buckskin86
- Start date
They mentioned during the Northwestern game that our football budget alone is bigger than Northwestern's entire athletic budget...
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jimotis4heisman
Banned
wall street journal article
oct 19th
the wsj has a good read on the osu athletic department
Inside College Sports' Biggest Money Machine - WSJ.com
oct 19th
the wsj has a good read on the osu athletic department
Inside College Sports' Biggest Money Machine - WSJ.com
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Wall Street Journal article on Ohio State's athletic department
Inside College Sports' Biggest Money Machine
The story goes on to essentially point out that people are idiots for taking subprime loans, although I don't know why that has anything to do with Ohio State's athletic budget since it is self-sufficient at this time.
Surprisingly enough, this article is relatively neutral. There is a great quote in here from Gene Smith about not denying an opportunity to an athlete due to money issues.
Inside College Sports' Biggest Money Machine - WSJ.com
Inside College Sports' Biggest Money Machine
Inside College Sports' Biggest Money Machine
What do you get for $109 million a year? Jon Weinbach on Ohio State's record-breaking budget.
By JON WEINBACH
October 19, 2007; Page W1
At $109,382,222 for the current year, Ohio State's athletic budget is the largest in the nation and the biggest in the history of college sports. It allows the school to field 36 varsity teams in everything from baseball and soccer to riflery and synchronized swimming. The school spends about $110,000 on each of its 980 athletes, which is triple the amount the university spends per undergraduate on education.
The budget for this academic year allots $65,000 in private jet time, or roughly 11 hours, to men's basketball coach Thad Matta for recruiting trips over 200 miles -- and a further 15 hours of jet time for the coach's personal travel. A just-completed $19.5 million renovation of the football team's practice facility, funded with a large donation from Limited Brands Chief Executive Leslie Wexner, added a players-only entrance, a lounge that has six flat-panel TVs, three videogame systems and a juice bar. "There's always a race to get up there after practice," says Jake Ballard, a sophomore tight end for the football team that enters this weekend ranked No. 1 in the country.
The men's and women's ice-hockey teams train on a $75,000 hockey treadmill that features a lubricated, ice-like surface that tilts at sharp angles and goes as fast as 16 miles per hour. Men's hockey coach John Markell solicited a donor to buy the equipment, which he says has become a key part of players' workouts. It's a machine most college teams -- and even many National Hockey League clubs -- haven't purchased. "We don't have the space or resources for that," says a spokesman for the Anaheim Ducks, last season's Stanley Cup champions.
Here in Columbus, the OSU athletic department is a gold-plated island in a region getting roiled by harsh economic forces. The lavish program is the most vivid example of how college sports have turned into a humongous business and created a parallel universe of high-living in the world of academia. OSU's athletic budget, which has grown 46% in five years, has expanded despite a prolonged downturn in the Ohio economy and several rounds of public-funding cuts to higher education. The state's median household income fell 9.3% between 2000 and 2005, one of the worst declines for any state during that span.
The story goes on to essentially point out that people are idiots for taking subprime loans, although I don't know why that has anything to do with Ohio State's athletic budget since it is self-sufficient at this time.
Surprisingly enough, this article is relatively neutral. There is a great quote in here from Gene Smith about not denying an opportunity to an athlete due to money issues.
Inside College Sports' Biggest Money Machine - WSJ.com
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ScriptOhio
Everybody is somebody else's weirdo.
Re: "Ohio State was one of just 19 schools to turn a profit on athletics in 2006, according to data collected by the NCAA. OSU says its athletic department is self-sufficient -- it uses sports revenues to pay for its teams and operations. It doesn't draw from the same budget that's used to fund academic departments. How much the athletic department spends is determined by how much it brings in, not by how much the university decides to give it. A 2005 economic-impact study, commissioned by OSU, estimated that the school's sports program pumps over $100 million a year into the local economy, with more than a third coming from Buckeyes fans' spending on hotels, food, parking and shopping."
At least they mentioned that. All and all, last Friday must have been a really slow day for any important business/economic news.
At least they mentioned that. All and all, last Friday must have been a really slow day for any important business/economic news.
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BrutusBobcat
Icon and Entertainer
Yeah, make it sound like Columbus is freaking Youngstown. "Roiled"? "Harsh economic forces"? "Lavish"?
The guy is practically running a campaign. How does a decline in median income (not in Columbus, btw) or education funding cuts have a THING to do with a self-funded athletics program?
Would you write an article about how "lavish" the new Limited Group offices are in New Albany while the rest of the state "suffers under crushing poverty"?
This is typical east coast snobbery towards "flyover space". They think we're a bunch of bumpkins wasting money on football.
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A view of the tOSU Athletic department from the New Orleans Times-Picayune.
EDIT - use shetuck's link a few posts below this.
NOLA.com: Everything New Orleans
EDIT - use shetuck's link a few posts below this.
NOLA.com: Everything New Orleans
Last edited:
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Lockup
Off Season BLAH
I was just wondering if that was from the WSJ articel they ran a couple of months ago.
That Hockey treadmill is pretty crazy and I believe the article even quotes an NHL team as saying the don't have because of room restrictions or cost I am not sure.
Edit: NM I should try switching to the mext page before commenting.
BB I don't think that article linked right. I keep getting thrown to what looks like the front page.
That Hockey treadmill is pretty crazy and I believe the article even quotes an NHL team as saying the don't have because of room restrictions or cost I am not sure.
Edit: NM I should try switching to the mext page before commenting.
BB I don't think that article linked right. I keep getting thrown to what looks like the front page.
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Lockup;1048347; said:
I tried several times to fix the link. It forces you to the main page, but the article is listed on that page.
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ScriptOhio
Everybody is somebody else's weirdo.
College Teams Are Feeling the Squeeze From Fuel Costs
Shortly after Ohio State?s football team returned from a walloping by Southern California, Ben Jay, the Buckeyes? senior associate athletic director for finance and operations, said he did a double take when he received a $346,000 bill for the group?s two charter flights to Los Angeles for players, staff and boosters. The fuel surcharge, which in previous years added at most a couple of thousand dollars to the bill, tacked on another $24,200.
?It?s kind of one of those things that you knew was coming,? Jay said of the cost. ?You just didn?t know how much.?
Collegiate sports programs throughout the nation, from powerhouses to pushovers, were facing increasing costs even before the current economic crisis. Athletic department administrators said that was one of the most serious issues confronting their programs, which are straining to find innovative ways to stay within their budgets.
In recent years, the cost of bus rides for shorter trips has also increased, as has the cost of feeding teams at home and on the road. Now, when teams take commercial flights, they are confronted with extra baggage fees at check-in, unbudgeted and considerable expenses for large teams with lots of equipment.
Administrators at Ohio State, with a $115 million annual athletic budget, are feeling the pinch.
?For each and every one of these trips, you have to make a decision on whether it?s cost efficient or not and whether it?s worthy,? Jay said. ?It can?t be business as usual.?
Entire article: http://www.nytimes.com/2008/10/03/s....html?_r=2&ref=sports&oref=slogin&oref=slogin
Shortly after Ohio State?s football team returned from a walloping by Southern California, Ben Jay, the Buckeyes? senior associate athletic director for finance and operations, said he did a double take when he received a $346,000 bill for the group?s two charter flights to Los Angeles for players, staff and boosters. The fuel surcharge, which in previous years added at most a couple of thousand dollars to the bill, tacked on another $24,200.
?It?s kind of one of those things that you knew was coming,? Jay said of the cost. ?You just didn?t know how much.?
Collegiate sports programs throughout the nation, from powerhouses to pushovers, were facing increasing costs even before the current economic crisis. Athletic department administrators said that was one of the most serious issues confronting their programs, which are straining to find innovative ways to stay within their budgets.
In recent years, the cost of bus rides for shorter trips has also increased, as has the cost of feeding teams at home and on the road. Now, when teams take commercial flights, they are confronted with extra baggage fees at check-in, unbudgeted and considerable expenses for large teams with lots of equipment.
Administrators at Ohio State, with a $115 million annual athletic budget, are feeling the pinch.
?For each and every one of these trips, you have to make a decision on whether it?s cost efficient or not and whether it?s worthy,? Jay said. ?It can?t be business as usual.?
Entire article: http://www.nytimes.com/2008/10/03/s....html?_r=2&ref=sports&oref=slogin&oref=slogin
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ScriptOhio
Everybody is somebody else's weirdo.
Some schools that could sell (stadium) naming rights are hesitant.
"Money On The Table"
Ohio State Athletic Director Gene Smith conceded that he's "leaving money on the table'' by not selling naming rights to 102,000-seat Ohio Stadium.
"People from all 88 counties in Ohio raised money to help us build this stadium, so it's really owned by the people of Ohio,'' Smith said in a telephone interview. "Commercialism requires a fine balance. Some things go too far.''
Entire article: Bloomberg.com: North American
Way to go Gene.....:)
"Money On The Table"
Ohio State Athletic Director Gene Smith conceded that he's "leaving money on the table'' by not selling naming rights to 102,000-seat Ohio Stadium.
"People from all 88 counties in Ohio raised money to help us build this stadium, so it's really owned by the people of Ohio,'' Smith said in a telephone interview. "Commercialism requires a fine balance. Some things go too far.''
Entire article: Bloomberg.com: North American
Way to go Gene.....:)
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jimotis4heisman
Banned
granted parts of the stadium are named, the band center, press box, suite levels, etc...
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ScriptOhio
Everybody is somebody else's weirdo.
Interesting S/I story on college's have and have nots...
Gap growing ever wider between college sports' haves, have-nots
To understand how the recession will affect college sports, scan the headlines. On Monday, Florida coach Urban Meyer agreed to a six-year contract that will pay him $4 million a year. Earlier this year, the Alabama state university system's trustees approved earlier a $80.6 million project that will expand Alabama's Bryant-Denny Stadium to accommodate more than 101,000 fans. Meanwhile, on the other end of the Football Bowl Subdivision food chain, Hawaii athletic director Jim Donovan last week took a voluntary seven percent pay cut to help offset a projected $2.6 million deficit for the 2008-09 fiscal year.
Florida and Alabama, which don't use public money to subsidize athletics, aren't spending foolishly. According to figures filed with the U.S. Department of Education, Florida's football program generated $66.1 million in revenue in the 2007-08 school year. Meanwhile, Alabama has a football season-ticket waiting list of more than 10,000, and football-only revenue topped $57 million for the 2007-08 school year. Meyer's $750,000-a-year raise and Alabama's stadium expansion should more than pay for themselves. The Gators, Crimson Tide and the rest of a handful of almost recession-proof athletic departments should continue to surge forward. Meanwhile, Hawaii and its ilk will struggle mightily.
"The gap is going to continue to get wider between the haves and have-nots," said Dan Fulks, a Transylvania University accounting professor who also studies athletic department spending for the NCAA. "That's kind of a microcosm of society. That's happening to you and me as well."
Facing a recession, college athletic departments generally encounter the same issues as corporations or private citizens. The healthiest ones, the profitable ones who spent money wisely while also accruing a nest egg, can use their increased buying power to take advantage of the down economy. Meanwhile, the ones who already lived month-to-month or year-to-year must take on more debt or slash costs to the bone.
Fulks, who just completed a study of 2008 financial data to update his 2006 study, said 25 of the 120 FBS athletic departments generated more money than they spent. That's up from 19 in 2006, and the median surplus for the departments turning a profit jumped more than $1 million to $3.9 million. Now for the bad news. The other 95 departments ran a median deficit of $9.87 million. For public schools, taxpayer dollars usually cover that deficit. Fulks expects the gulf between the profitable and unprofitable departments to grow more next year because of the recession.
Because Fulks' study guarantees anonymity, he didn't name the profitable schools, but some are easy to guess. Alabama, Florida, Michigan, Ohio State and Texas are examples of programs with huge fan bases and massive revenues. Those programs should be better positioned to withstand a dip in the economy. But being a public university in a power conference doesn't necessarily guarantee financial success.
Last month, The Eagle in College Station, Texas, obtained documents that showed Texas A&M's athletic department took out a $16 million line of credit from the university's general fund in 2005. Beginning this year, the department has 10 years to repay the loan interest-free. Meanwhile, Oregon State athletic director Bob De Carolis painted an unhappy picture in a June 2 letter to fans posted on the athletic department Web site. De Carolis wrote pledges had dropped $1 million from a year earlier to $10 million. Also, the program had suffered a net loss of 600 donors, and 12 percent of football season-ticket holders had not renewed. "When you combine the trends in giving and ticket renewals, the potential for a negative effect on the OSU Athletic Department and our offerings becomes a stark reality," De Carolis wrote. "Because gifts and football tickets make up 40 percent of our annual $47 million athletic department budget, they represent key sources of revenue for us."
Oregon State receives a share of revenue from the Pac-10's television contracts and from bowl money collected by conference members. But even with that, a financial chasm exists between the Beavers and USC, the conference's dominant football program. According to data submitted to the Department of Education, USC had a $76.4 million athletic department budget in 2007-08.
It's even worse outside the BCS. Hawaii's $2.6 million deficit for 2008-09 will be added to the $5.4 million deficit the department carried into the fiscal year. "We've made $1.3 million in cutbacks, we have open positions that aren't being filled," said Donovan told the Honolulu Star-Bulletin last month. "We're doing everything we can do to lower our expenses without doing any long-term damage to the athletic programs."
Salaries, scholarships most expensive
When most of their spending is tied up in scholarships and salaries, schools are hard pressed to find ways to minimize the recession's effects. Most programs are loath to cut sports, but some have had no other choice. In April, Cincinnati announced it would phase out financial aid for athletes in men's track and men's swimming. In May, Washington eliminated men's and women's swimming and Arizona State eliminated men's tennis, men's swimming and wrestling. Even Stanford, which just won its 15th consecutive National Association of Collegiate Athletic Directors Cup last week, will eliminate varsity fencing unless athletes can raise $250,000 to pay for the 2009-10 season and then raise enough money to endow the program. Stanford also has cut into its other major budget line: salaries. To help offset a projected $5 million shortfall over three years, Stanford eliminated 21 positions (13 percent of its staff) in February.
Fulks said the highest salaries -- for head football and men's basketball coaches -- won't fall because those rates are market-driven. Unfortunately for the unprofitable programs, the profitable schools usually set the prices and the salary scale trickles down. "If (Kentucky) is paying (basketball coach John) Calipari, then Tennessee has to pay (basketball coach Bruce) Pearl," Fulks said. "That's totally market-driven. The reality is that if you cut the salaries to a couple hundred thousand dollars, they'd still be lining up around the block to get the jobs. But if one school is paying, everybody has to."
While it might be true that Ohio State football coach Jim Tressel or North Carolina basketball coachRoy Williams would work for a low six-figure salary, the NCAA can't cap coaches' income. A reporter asked SEC commissioner Mike Slive about such a salary cap in May. Slive, a former attorney and judge, cracked a smile and said a cap would be great, if only Congress would repeal the Sherman Antitrust Act
.
.
.
continued
Entire article: Recession widening gap between college football's haves, have-nots - Andy Staples - SI.com
Gap growing ever wider between college sports' haves, have-nots
To understand how the recession will affect college sports, scan the headlines. On Monday, Florida coach Urban Meyer agreed to a six-year contract that will pay him $4 million a year. Earlier this year, the Alabama state university system's trustees approved earlier a $80.6 million project that will expand Alabama's Bryant-Denny Stadium to accommodate more than 101,000 fans. Meanwhile, on the other end of the Football Bowl Subdivision food chain, Hawaii athletic director Jim Donovan last week took a voluntary seven percent pay cut to help offset a projected $2.6 million deficit for the 2008-09 fiscal year.
Florida and Alabama, which don't use public money to subsidize athletics, aren't spending foolishly. According to figures filed with the U.S. Department of Education, Florida's football program generated $66.1 million in revenue in the 2007-08 school year. Meanwhile, Alabama has a football season-ticket waiting list of more than 10,000, and football-only revenue topped $57 million for the 2007-08 school year. Meyer's $750,000-a-year raise and Alabama's stadium expansion should more than pay for themselves. The Gators, Crimson Tide and the rest of a handful of almost recession-proof athletic departments should continue to surge forward. Meanwhile, Hawaii and its ilk will struggle mightily.
"The gap is going to continue to get wider between the haves and have-nots," said Dan Fulks, a Transylvania University accounting professor who also studies athletic department spending for the NCAA. "That's kind of a microcosm of society. That's happening to you and me as well."
Facing a recession, college athletic departments generally encounter the same issues as corporations or private citizens. The healthiest ones, the profitable ones who spent money wisely while also accruing a nest egg, can use their increased buying power to take advantage of the down economy. Meanwhile, the ones who already lived month-to-month or year-to-year must take on more debt or slash costs to the bone.
Fulks, who just completed a study of 2008 financial data to update his 2006 study, said 25 of the 120 FBS athletic departments generated more money than they spent. That's up from 19 in 2006, and the median surplus for the departments turning a profit jumped more than $1 million to $3.9 million. Now for the bad news. The other 95 departments ran a median deficit of $9.87 million. For public schools, taxpayer dollars usually cover that deficit. Fulks expects the gulf between the profitable and unprofitable departments to grow more next year because of the recession.
Because Fulks' study guarantees anonymity, he didn't name the profitable schools, but some are easy to guess. Alabama, Florida, Michigan, Ohio State and Texas are examples of programs with huge fan bases and massive revenues. Those programs should be better positioned to withstand a dip in the economy. But being a public university in a power conference doesn't necessarily guarantee financial success.
Last month, The Eagle in College Station, Texas, obtained documents that showed Texas A&M's athletic department took out a $16 million line of credit from the university's general fund in 2005. Beginning this year, the department has 10 years to repay the loan interest-free. Meanwhile, Oregon State athletic director Bob De Carolis painted an unhappy picture in a June 2 letter to fans posted on the athletic department Web site. De Carolis wrote pledges had dropped $1 million from a year earlier to $10 million. Also, the program had suffered a net loss of 600 donors, and 12 percent of football season-ticket holders had not renewed. "When you combine the trends in giving and ticket renewals, the potential for a negative effect on the OSU Athletic Department and our offerings becomes a stark reality," De Carolis wrote. "Because gifts and football tickets make up 40 percent of our annual $47 million athletic department budget, they represent key sources of revenue for us."
Oregon State receives a share of revenue from the Pac-10's television contracts and from bowl money collected by conference members. But even with that, a financial chasm exists between the Beavers and USC, the conference's dominant football program. According to data submitted to the Department of Education, USC had a $76.4 million athletic department budget in 2007-08.
It's even worse outside the BCS. Hawaii's $2.6 million deficit for 2008-09 will be added to the $5.4 million deficit the department carried into the fiscal year. "We've made $1.3 million in cutbacks, we have open positions that aren't being filled," said Donovan told the Honolulu Star-Bulletin last month. "We're doing everything we can do to lower our expenses without doing any long-term damage to the athletic programs."
Salaries, scholarships most expensive
When most of their spending is tied up in scholarships and salaries, schools are hard pressed to find ways to minimize the recession's effects. Most programs are loath to cut sports, but some have had no other choice. In April, Cincinnati announced it would phase out financial aid for athletes in men's track and men's swimming. In May, Washington eliminated men's and women's swimming and Arizona State eliminated men's tennis, men's swimming and wrestling. Even Stanford, which just won its 15th consecutive National Association of Collegiate Athletic Directors Cup last week, will eliminate varsity fencing unless athletes can raise $250,000 to pay for the 2009-10 season and then raise enough money to endow the program. Stanford also has cut into its other major budget line: salaries. To help offset a projected $5 million shortfall over three years, Stanford eliminated 21 positions (13 percent of its staff) in February.
Fulks said the highest salaries -- for head football and men's basketball coaches -- won't fall because those rates are market-driven. Unfortunately for the unprofitable programs, the profitable schools usually set the prices and the salary scale trickles down. "If (Kentucky) is paying (basketball coach John) Calipari, then Tennessee has to pay (basketball coach Bruce) Pearl," Fulks said. "That's totally market-driven. The reality is that if you cut the salaries to a couple hundred thousand dollars, they'd still be lining up around the block to get the jobs. But if one school is paying, everybody has to."
While it might be true that Ohio State football coach Jim Tressel or North Carolina basketball coachRoy Williams would work for a low six-figure salary, the NCAA can't cap coaches' income. A reporter asked SEC commissioner Mike Slive about such a salary cap in May. Slive, a former attorney and judge, cracked a smile and said a cap would be great, if only Congress would repeal the Sherman Antitrust Act
.
.
.
continued
Entire article: Recession widening gap between college football's haves, have-nots - Andy Staples - SI.com
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