How Much Money Did College Football Make In 2016
When five Partition ane teams from Texas earned their way into this yr's NCAA men'southward college basketball tournament, they reserved featured roles in a massive money-making event.
Television broadcasts generate hundreds of millions of dollars for the NCAA, which regulates college sports. Sponsors' ads are all over the arenas. Fifty-fifty first-round losers earn a $1 million-plus payout for their conference.
But when it comes to the overall acquirement for many participants, the coin from the NCAA tournament can hardly annals a blip. College basketball teams in Texas — even the skillful ones — are rarely key moneymakers for their athletic departments. If schools desire a profitable section, in that location's usually only one place to build it: the football field. And but a few universities accept the fanbases and conference affiliations to succeed.
The Texas Tribune analyzed the annual NCAA financial reports of the eight public universities in the state that play in the Football Bowl Subdivision, the height level of higher football.
UTEP lost near $15.5 million in revenues overall in the 2014-xv school year, bringing in simply $thirteen.9 million in revenue and spending about $29.iv million. That does not include educatee fees or coin transferred into the athletic department by the university. That aforementioned year, football reported a loss of about $three.v 1000000, while men's basketball had a profit of just under $130,000.
In the 2015 fiscal twelvemonth, the athletic departments in Texas' public universities — the University of Texas at Austin, Texas A&M University, Texas Tech University, the University of Texas at El Paso, the University of Houston, the University of N Texas, the University of Texas at San Antonio and Texas State Academy — earned simply less than $520 million from athletics. Well-nigh $300 million of that came from football game. Men'due south basketball, the side by side-highest earner, brought in $39 million.
The acquirement is non evenly distributed. UT-Austin and A&One thousand'south football profits take approached $100 1000000 in contempo years. Texas Tech unremarkably turns a more modest profit. And the residuum of the public Texas FBS universities, which play outside of the major football game conferences, consistently lose money on their teams.
(Individual schools besides accept to file the reports, but they aren't subject field to open up records laws and don't have to make the reports public.)
Without football profits, managing a self-sustaining athletic section is nearly impossible. Critics might complain that college football coaches' salaries are also high at the top schools or that university leaders overemphasize the sport. Just a successful football game team can prop upwards an entire athletic department, and a struggling football team tin cause a university to miss out on millions. It's non unusual for the less pop sports, similar women's tennis, to see their expenses outpace revenues by more than than 5,000 pct. At UTSA, for case, the women's tennis squad earned $1,507 in the 2015 fiscal twelvemonth, while spending $275,012.
"I know there are people within any university saying we ought not to exist spending money on football," Texas A&Thousand University System Chancellor John Sharp said. "But sports like football pay for themselves, and generate coin for virtually everyone else."
Aggie renaissance
Nowhere is that dynamicclearer than at A&1000. Last decade, times were tough for the Aggies. Their honey football team went the whole 10 years without finishing a season with an Associated Press Top 25 ranking. And its athletic section was oftentimes running a arrears.
In 2005, the university agreed to loan its able-bodied department $16 million to assist get its house in guild. Much of that money went to upgrade athletic facilities. Simply in side by side few years the school likewise gave head football coach Dennis Franchione a raise, so, after few more hard seasons, spent $4.4 million to buy out his contract.
The able-bodied department was expected to begin repaying the loan in almanac $1.6 one thousand thousand increments in 2009. Merely the department struggled in the beginning few years, and had to lay off staff. The football team thenhad somedisappointing seasons, and a move from the Big 12 conference to the Southeastern Conference toll the department about $12 one thousand thousand. Officials said the school "re-advanced" the department $5.2 million during that transition, allowing the department to restarting paying the coin a piddling more than two years ago.
Around that time, the department'southward fortunes reversed. It had a popular new coach, Kevin Sumlin. And a Heisman trophy-winning quarterback named Johnny Manziel took the sports world by storm. Basketball was struggling, just the football team was and then successful that the department'south bottom line wasn't hurt. Football games were selling out. Plans were made to rebuild the football game stadium, Kyle Field. And donations poured in from alumni to pay for it.
NCAA financial reports evidence that A&M's football revenue climbed steadily, upwards to $110 million in the 2015 fiscal yr (during which the 2014 season is played). Total athletic section revenue rose to nearly $193 million, up most $100 one thousand thousand from 7 years earlier.
That amount of money, which puts the A&Thou men'southward able-bodied department in the peak echelon of moneymakers in the country, isn't likely to be sustainable long-term. Nearly $fifty one thousand thousand of it came from donations earmarked specifically for Kyle Field'southward renovation, officials said. But they say the school's new "normal" for almanac football revenue is now around $60 million. That's plenty to create a financially stable, profitable department, they say.
Officials say the turnaround has benefited more than than just the sports teams.
"When nosotros were raising money for Kyle Field, it was not uncommon for someone to give $10 1000000 to build Kyle Field and another $10 meg to the chemistry department or $10 1000000 to applied science," Sharp said.
The department hasn't required whatever kind of subsidy from the university since 2009, officials said. And now university officials are planning to reverse the period of cash. Jeff Toole, chief financial officer for the athletic department, said A&M athletics has committed to sending the university some boosted money dorsum to assist "with some one-time expenditures."
The exact corporeality it will send hasn't been determined, Toole said. Only the transfers will put A&Chiliad in rare visitor. Simply a few dozen athletic departments — out of hundreds — in the country survive without some kind of subsidy from their academy. Far fewer ship money dorsum to their schoolhouse, though UT-Austin has washed information technology for years.
"As nosotros take the ability to provide funds to the university to assist in coming together academic needs while still achieving our cadre athletics mission, we intend to do so, every bit information technology it'southward the right thing to practise equally part of Texas A&Yard," Toole said.
Without football game, the state of affairs would be much unlike. A&Grand fans are known to be strong supporters of all their teams, showing up in the thousands even at women's soccer games. Merely those other sports don't pay for themselves. The women's soccer team spent almost $4 1000000 in 2015, while generating about $3 1000000. Women's softball spent $2 million, while earning $600,000. And men's golf spent more than $1 1000000, while but bringing in $165,000.
Overall, the football team turned an $86.7 meg profit in the 2014-xv school yr. The remainder of A&M's sports teams lost a combined $19.4 meg.
Other sports bear witness costly
UT-Austin and Texas Tech are in similar positions. Longhorn football game is consistently one of the nation's most profitable programs. Concluding yr, the squad turned a $94.9 1000000 profit, compared with a $9.four million combined loss for the rest of UT-Austin's sports, documents show. Texas Tech generated $xix.1 million turn a profit in football, compared with a $14.four one thousand thousand loss for the other teams.
Those large profits in football too pay for administrative salaries, and protect the universities from having to chip in institutional transfers to support the less popular sports. Only the situation raises the question: If football is by far the sport that people on campus care about the about, why not simply focus on that and tone back the expenses for the other teams?
Athletics officials gave ii reasons. Ane, gender equity rules require that comparable opportunities be bachelor for men'south and women's athletes. Colleges would violate federal law if they only devoted resources to football and men's basketball. The other reason is that the schools say they take pride in all kinds of athletic success — not simply in the revenue-generating sports.
"Each of those teams is a part of our tradition and part of our pursuit in excellence in all endeavors," UT-Austin Athletics Director Mike Perrin said.
While few programs across the country come up close to generating as much revenue as UT-Austin, the football team's contempo struggles have hurt the able-bodied section's bottom line. Adding to those struggles, the squad played 1 of its 2015 domicile games during a major tempest. That caused a lot of stadium seats to sit empty, and missed opportunities for concession and ticket revenue. The department will accept to look for ways to compensate, said Dave Marmion, primary financial officeholder for athletics.
"When we feel the effects of a losing flavor in football, is it as much every bit a school of a smaller budget? No," he said. "Simply nosotros practice still feel it."
Meanwhile, programs without cash cow football teams struggle to pay their bills. The UH, UTSA, UTEP, Texas State and UNT football teams all operated at a loss, even though their revenue ranged from $2 million to $7 million and far outpaced other teams on their corresponding campuses.
"Football drives television acquirement for the briefing, donors pay to acquire priority season tickets, which are used for scholarships," said Bob Stull, athletic director at UTEP.
That leaves the departments searching for other sources to brand upwards for the financial losses of the other teams. For instance, at Texas State, the men's golf game squad earned about $35,600, while spending about $282,000. At UH, the volleyball team generated about $15,000 in full revenue while spending about $784,000. So in those cases, the universities rely on millions of dollars from pupil fees and university subsidies to brand upward the difference.
UH sent its athletics department almost $26 one thousand thousand in pupil fees and university money in 2015, the largest subsidy among the Texas FBS schools. Texas State and its students contributed $24 1000000. The lowest subsidy came fromUTSA, which contributed more than than $13 million.
University officials say the coin is worth it; college sports provide invaluable marketing and alumni outreach. But as the big budget schools keep trying to outbid one some other on coaching salaries, facility upgrades and other expenses, the schools without those cash lucrative teams struggle to keep upward, critics say.
"Why do we go along hearing that they need more money, they need more money, they need more money?" said Donna Lopiano, who served for 18 years as the University of Texas at Austin director of women's athletics and is currently the president of the consulting firm Sports Management Resources. "Don't exist conned in terms of we need more than money."
This story is office of the Texas Tribune's "Ballpark Figures," a look at the finances of the eight public Texas universities that play in the Football Basin Subdivision.
UTEP Sports Acquirement
2014-15 School Yr
Total
Expenses: $29.4 meg
*Acquirement: $thirteen.9 million
Loss: $15.5 million
Men's Sports
Expenses: $14.ix million
Revenue: $10 million
Loss: $4.8 one thousand thousand
Football: Loss: $3.5 1000000
Basketball game: Profit: $129,186
Women'due south Sports
Expenses: $8.3 meg
Revenue: $ane.viii million
Loss: $half dozen.half-dozen million
Coin Spent
Athletic scholarships: $seven.3 meg
Coaching salaries: $5.7 million
Recruiting: $720,500
Money Earned
Ticket sales: $two.5 million
NCAA/Briefing distributions: $3.8 meg
*Acquirement does not include pupil fees or money transferred into the department by the university. UTEP'due south athletic department received $v.9 million from student fees and $viii.v million from the university itself in the 2014-15 school year.
Source: Texas Tribune using figures from reports filed with the NCAA in 2016 for the 2014-15 schoolhouse year.
Source: https://www.elpasotimes.com/story/archives/2016/09/20/football-revenue-helps-other-sports-colleges/81911158/
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