How Many Schools Make Money Off Of Football
Does College Football Brand Coin?
By
Mary Gormandy White
Mary currently teaches at a customs college. She has worked in college education assistants and has taught in college and university settings.
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M.A., SHRM-SCP, SPHR - College Teacher
The question of whether or not college football makes money is a complicated one. While at first glance, it may seem the answer is obvious, it's important to realize higher football isn't express to the big-name schools with high profile programs and championships. Even schools that take in a lot of football game-related money aren't necessarily bringing in more than they spend.
Sources of Higher Football Acquirement
College football game programs tin can generate acquirement in a diverseness of ways, including ticket purchases, corporate sponsorships, endorsements, licensing fees, television contracts, alumni donations, capital letter campaigns, student able-bodied fees and, for the elite few, bowl game fees or playoff/championship acquirement.
A lot of money changes hands in the world of higher football game, particularly in the big programs within the powerhouse conferences. Even so, taking in a significant amount of football game money doesn't hateful a school's football program is actually profitable. Profitable college football programs are not the rule; they are the exception. As pointed out in the International Business Times, "Most public universities lose coin on their athletic programs."
Big-Time Perspective
A 2015 Washington Post commodity states, "Big-time college sports departments are making more money than ever before... but many departments are likewise losing more money than ever." This is true for both schools that have in a lot of money, likewise as those that take in less. Losses can be attributed to low acquirement in some cases, but in others, it is related to adding loftier-dollar scoreboards, expensive stadium upgrades, additional administrative positions, corporate jets for recruiting trips and more.
Large-Time Revenue
According to CBS Sports, the 65 schools in the "Power Five" (i.e., wealthiest) athletic conferences, which are the Southeastern Conference (SEC), Large 10, PAC- 12, Large 12 and Atlantic Coast Briefing (ACC), paired with Notre Matriarch, took in $6.3 billion in full athletic department revenue for the 2014/2015 flavour. The vast majority of this revenue can exist attributed to football.
Out of these 65 schools, 28 raked in more than $100 million each (in terms of total athletic revenue - not just football), based on CBS' analysis of data from the U.South. Section of Instruction's Office of Postsecondary Education. As of the 2011/2012 season, but 11 schools brought in more than $100 1000000 in athletic revenue. That is a huge increase, largely associated with what CBS describes as "the infusion of College Football Playoff dollars and increased television receiver money." (The College Football Playoffs began with the 2014/2015 season).
According to Forbes, the Academy of Texas is the only school to ever laissez passer the $100 million acquirement marking merely for football. The 2014/2015 season marked the 4th year the Longhorns exceeded this benchmark, bringing in $121 one thousand thousand that year. This figure far exceeds the football program's expenses and contributes significantly to overall athletic expenses.
Spending Money to Brand Money
The Washington Post analyzed NCAA financial reports for 48 schools in the "Power V" briefing. Their assay revealed that athletic department revenue at those schools increased from ii.half dozen billion to four.5 billion from 2004 to 2014. However, 25 of these 48 departments actually lost money (i.eastward., operated in the ruby-red) in 2014.
The Washington Post highlights key expenditures to illustrate spending:
- Auburn University spent $13.9 million on a new scoreboard.
- Rutgers spent $102 million to expand its football game stadium.
- University of California at Berkley added a $23.4 1000000 mortgage associated with athletic buildings.
- University of Wisconsin increased maintenance spending on athletic facilities by $27.vii million (more than than a 300% increase).
Beyond the Big-Time
Of course, there are thousands of higher football game programs outside the "Power V" that don't take anywhere near the acquirement-generating potential of the large-fourth dimension programs. While they do bring in coin, they aren't raking in a profit, nor are they expected to do so. As stated in the Washington Post article, "for the vast bulk of the more than than iv,000 colleges and universities in America, able-bodied departments should lose coin." They are intended to enrich the collegiate feel for students.
Money-Making Myth
According to the American Council on Pedagogy (ACE), the notion that college sports makes money is a myth. Fifty-fifty where football does turn a profit, that coin frequently goes to embrace expenses associated with other sports. Co-ordinate to the Texas Tribune, "a successful football squad can prop up an entire able-bodied department." However, by and large, college athletics programs are not fully cocky-supporting, fifty-fifty with football game money. In a 2014 news release, the NCAA indicated athletic department expenses exceeded revenue in all but 20 Football game Bowl Subdivision (Division I) schools and in all Division II and Three schools.
Cocky-Sustaining College Athletic Programs
In 2012, ACE indicated only eight public university athletic programs either covered their expenses (beyond all athletic programs; non just football game) or broke even. These eight schools, that ACE describes as an "elite fraternity," are members of the Big Ten, Big 12 and SEC. They are:
- Louisiana State University (LSU)
- Pennsylvania Country University (Penn State)
- University of Georgia
- University of Iowa
- Academy of Michigan
- Academy of Nebraska
- Academy of Oklahoma
- Academy of Texas
At these schools, athletic programs brought in enough acquirement in 2012 to cover their expenses without requiring financial support from the university. Co-ordinate to ACE, almost of that money can exist attributed straight to football.
Best Doesn't Mean Most Profitable
It's interesting to note the schools included in ACE's list of universities with self-sustaining able-bodied programs aren't the first ones to come to heed when thinking about the elevation football programs. None of these schools have won championships lately. The last ane from this list to win a championship is LSU, and that was in 2007.
Since 2007, the national championships have been won past the University of Alabama, Ohio State Academy, Florida Country University, Auburn University and the Academy of Florida. These schools all bring in significant revenue associated with football game, yet their overall athletic programs still require university support.
Interesting examples cited on EthosReview.org include:
- University of Alabama: The University of Alabama's football revenue was $110 meg for the 2011-2012 season, confronting $41.five million in operating expenses and $13 meg in debt-service costs. So, the football program brought in a tremendous amount of acquirement - much more than it cost to operate. However, a lot of that money went to subsidizing the schoolhouse's other athletic programs. With the exception of basketball, all other able-bodied programs at the schoolhouse operated at a loss.
- Marshall Academy: At this much smaller schoolhouse, the costs and expenses associated with football are close to existence even for the 2011-2012 season. Even though the football program brought in a much smaller corporeality of revenue than Alabama's program, the sport sustained itself. The school brought information technology in just over $7,760,000 in football revenue against just under $7,100,000 in football expenses. Some football coin was bachelor to offset other athletic programs, but just a small-scale corporeality as compared to a bigger-name, higher-revenue-generating football school.
Other Financial Factors to Consider
Analyzing the dollars and cents straight attributed to football and athletic plan expenses and revenues is important, but when considering if college football makes money it is too important to consider other impacts. Equally an Inside Higher Ed commodity points out, having a successful football program can pb to an increment in applications for admission to the schoolhouse. A U.s.a. Today article also points out football provides a unifying cistron for the student torso, impacting "campus civilization" and leading to displays of "school pride."
These factors can have a positive financial impact on schools in terms of increased enrollment, improved student retention and (down the road) alumni donations. This, of course, doesn't show in an objective analysis of the money flowing in and out of the athletic section.
The Financial Impact of College Football
The reality is higher football is a money-maker in some schools, simply not all. The schools that don't make money from the sport far outnumber those that do. It'due south important to note bringing in money and making money (i.due east., turning a profit) are two dissimilar things. Simply put, looking at dollars and cents doesn't tell the full story of the value of college football.
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