RE: Scoring Big With New Football Teams
Oh you'd be surprised at what it could do. I've seen it first hand at Cincinnati.
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You all aren't going to like this so you may want to stop reading now. I was told yesterday that Dr. Noland is very bottom-line and data driven when it comes to making decisions. If that is true I would not call his attention to Cincinnati's athletics program. Although they increased institutional support by 114% from fiscal year 2004-2005 to fiscal year 2009-2010 (adjusted for inflation $6,300,000 to $13,400,000) Cinci's athletic program lost money all 6 years. Although it only lost $855,000 in FY 2008-2009. it lost $2,500,000 in 2009-2010, $4,000,000 in 2007-2008, $5,700,000 in 2006-2007, $6,700,000 in 2005-2006 and $4,100,000 in 2004-2005. These numbers are rounded down and not adjusted for inflation. There are a number of reasons to bring football back, but comparisons to other programs should be carefully done. Given the state's financial situation a significant increase in cost of any program will be a big red flag. I'd likewise caution about bringing App St up very often. Student fees and institutional support accounted for about 75% of its athletic income from 2004-2005 to 2009-2010, but the ASU athletic program had an income-expense negative each year except 2005-2006 when it had the magnificant surplus of $67,623. The average deficit for the other 5 fiscal years was $350,000 per year. These are self-report data from the USA Today website on college athletic finances. Support from student fees and the university at ETSU is also about 75% of the athletic income, but the program hasn't run a deficit. There are many good arguments for bringing back football, but the financial impact will always be a significant part of the discussion. However you work it out football at a school like ETSU will add more additional costs than it generates in revenue and the higher you try to rise in terms of conference the more it will cost. Florida International is an example. Since moving to the Sunbelt Conference it has had an operating deficit 3 of 5 years.
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In looking at the USA Today data for 2009-10, I see that 55% of App State's revenue came from student fees and institutional support. Their deficit for that year (revenue/expenses) was some $320,000.00. Could their deficit have been bills that were carried into the next accounting year awaiting payment out of the next budget (accounting maneuver)? Regardless, at some point they had to pay them, unless they took out a loan (doubt the state of NC would allow that). ETSU, for 2009-10, showed 77% of its revenue from student fees and institutional support, and with a surplus of some $573,000.00. Of that amount, it can be assumed that there were still bills to be paid and they carried the money forward into the next accounting cycle. Otherwise, where's that money (maybe in a secret new basketball arena account in the Caymans)? App State raised 17.2% of its revenue from direct ticket sales while ETSU raised 2.5%.
Bottom line. If you're going to play NCAA Division I Mid-Major athletics, you're gonna have to generously subsidize your athletic program. Are you going to have a sports program with a team line up that has the best chance of generating as much external revenue as possible to help offset the large subsidies or not? If you are, you better start with football at the top of your team list.
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