Athletics Costs Outpace Returns

In 1929, the average salary of head football coaches was a little more than $6,000 – about $65,000 adjusted for inflation.

That amount of money probably wouldn’t turn heads today, but it was enough then to spark heated public dialogue about ethics and money in college athletics.

The Carnegie Reports on the study of college athletics that listed that figure included remarks from scholars and educators at odds with, “The paid coach, the gate receipts, the special training tables, the costly sweaters and extensive journeys in Pullman cars, the recruiting from the high school, the demoralizing publicity showered on the players, the devotion of an undue proportion of the time to training.”

Despite the calls to action, not much has changed in college athletics since then – except the Pullman cars, of course.

Complete article from The Daily Tarhell

Additional Reading from SFN:

How Coaches Are Paid

NC State’s Coaching Salaries

Equity in Athletics

Schools file a report with the Federal Government each year. The report predominately deals with athletics, such as total numbers of athletes for each sport and some really broad, mostly undefined financial figures from the athletic department. All of the data is compiled and is available to the public at the Equity in Athletics Website.

Unfortunately, they don’t archive the reports from one year to the next, so trending is not possible. However, after looking at a number of schools over the last several years, I am left with the impression that more and more schools are playing games with the numbers:

– For example, the first year that I look at the numbers only UMD’s athletic department broke even. The last time I went through the reports, I found several that broke even….revenues matching expenses to the nearest dollar on budgets exceeding $20M per year.

– A couple of years ago, the numbers presented at this website showed that Duke football generated more revenue than NC State’s.

The Daily Tarhell article points out some differences between numbers presented to the NCAA and to Federal Government. Adding these differences to the oddities mentioned above means is that I no longer put much faith into the financial numbers reported at the Equity in Athletics website.

This might be something to remember this summer/fall because invariably various newspapers will write an article based solely on the numbers presented at this website. If you can’t trust the raw data, you certainly shouldn’t trust any conclusion drawn from that data.

About VaWolf82

Engineer living in Central Va. and senior curmudgeon amongst SFN authors One wife, two kids, one dog, four vehicles on insurance, and four phones on cell plan...looking forward to empty nest status. Graduated 1982

General NC State Administration

16 Responses to Athletics Costs Outpace Returns

  1. Dan 04/26/2007 at 12:51 PM #

    This to me is a commentary of society and what we value.

    Inflation is across the board. It applies to all things. Value applies to specific areas in our lives.

    Today’s value system, right or wrong notwithstanding, puts a higher value on one win than the value system in early 1900’s. These numbers prove it. The increase in the value we assign to a win has far outpaced overall inflation.

    Sports, and especially attendance at sports, has started to leave the poor man’s world. The lower class guy cannot afford to take his kid to the ball game. But there are plenty of rich guys that willing to pay way more than the poor guy can afford in order to take his kid. Again, I’m not talking about right or wrong. Its reality. And the more sports attendance becomes only part of the world of the wealthy, the more value that the rich can assign to it because they have more money to blow. Where an extra $10 hike from $10-$20 may keep the poor from the game, the guy who can afford $100 isnt going to as phased by a jump to $110.

    We just value wins more now in relation to other things. That’s why overall inflation doesnt accurately account for assigned value.

    (stepping off my soapbox)

  2. VaWolf82 04/26/2007 at 1:49 PM #

    We just value wins more now in relation to other things.

    Good thoughts. What is the purpose of the athletic department at a major university? Why does it need one?

    At the very worst, an athletic department that breaks even is providing hundreds of scholarships to kids participating in non-revenue sports. Is this more valuable than providing scholarships to an intelligent, but clumsy kid? Of course not, but it is not less valuable either.

    There is a proven relationship between success in college athletics and admission applications at that college. So one way to look at college atletics is as a form of advertising for the university. How much “free” publicity has UF received this year?

  3. BillyTheKid 04/26/2007 at 1:57 PM #

    I don’t think it’s “”free”” in any shape or form.

  4. Jeremy Hyatt 04/26/2007 at 3:12 PM #

    If this is frowned upon just let me know.

    From Tracy Smith:
    “I think we’re going to have a good frontcourt. J.J. and I can play good together, and we have the other two [big men] coming back. We’re going to be unstoppable.”

    http://story.scout.com/a.z?s=178&p=2&c=634136

    my recruiting news IV was tapping out, so..

  5. noah 04/26/2007 at 3:21 PM #

    1) A parent can still take his or her kid to the ball game. They just might not be able to go see a game at Fenway or at the Rupp Center or sit at midfield for the Ohio State-Michigan game.

    Minor league games are still affordable. I think the Braves still offer $1.00 tickets in their outfield (waaaaaay in the back) seats. You can still go see games at ECU reasonably cheap. You can always go over to Dook and see a football game.

    If you want to see an NFL game, just go see a really bad team. The year the Panthers were 1-15, you could walk up to the stadium on Sunday and just pick up tickets for free. Right around kickoff, anyone who hadn’t dumped their extras were just putting them on the panther statues and leaving them.

    But yeah, you can’t go see a game at Fenway unless you’ve got cash. They’ve sold out that stadium since the beginning of time. Even during the Tom Bruanansky years, bleacher tickets were expensive. A ticket behind a pole…literally BEHIND a pole…for the Devil Rays at Fenway will run you $75.

    But…so many more games are available on television. For the price of that restricted view seat, I can watch every single MLB game this year on my computer. Split screens and stats and replays and all kinds of cool stuff.

    College packages are equally affordable.

  6. Dan 04/26/2007 at 4:02 PM #

    “There is a proven relationship between success in college athletics and admission applications at that college.”

    Totally agree. There is definite real life merit to athletics in more than one aspect. Its why sports are so great.

    There is a point where the athletics become less about the student athlete and more about the machine though.

    Still, its circular. Once one school ramps up the payscale even the noble institutions have to follow in order to stay relevant. Vicious circle. That’s why I said its not about right or wrong. Its just reality. I’m not really sure how I feel about it. I’m as crazy about sports as anyone.

    Salary caps seem to work for pro sports. I wonder if a cap would be effective for college programs. Assign schools a budget. Especially for the state institutions. And if private institutions want to compete with public ones, they’d have to compete on the same field. Put a cap on coaches salaries. Hell, we have a dedicated pay-scale for more state employees.

    I’m not saying its the answer, but it would probably keep salaries and budgets from having these punctuated rises. The increase would have to be more gradual and thought out.

    Personally, I hate the idea of giving the government control of this. They cant handle the stuff they have now. Still, it would be an interesting experiement.

  7. TNCSU 04/26/2007 at 4:05 PM #

    I’m with you, Jeremy. I need some recruiting news in a big way — why hasn’t Tracy signed yet? or has he?

  8. RedTerror29 04/26/2007 at 5:40 PM #

    The concepts discussed in *The Winner Take All Society* by Robert Frank and Philip Cook explain the incredible spending on professional/college sports. The perceived value of being first (Florida) vs. being second (Ohio St.) are huge, so a team’s supporters are willing to spend enormous amounts of money to help their team win. However, only one team can be the NC, so the spending by everybody else tends to balance things out. And you get to a point where an enormous amount of spending is necessary to get even very small gains.

    It really makes you feel bad about giving money to athletic booster clubs…although the WPC still gets a check from me every year.

  9. TopTenPack 04/26/2007 at 6:07 PM #

    I always have a mixed emotions about college sports. I love to see the pack win and win big, but I wonder if we have lost our way. Now that the NBA and NFL basically force player to the college level before entering the big time, we keep seeing kids who have no business being in college. Does having a Chris Washburn bring enough additional application to make up for his embarrassment?

  10. VaWolf82 04/26/2007 at 6:23 PM #

    Does having a Chris Washburn bring enough additional application to make up for his embarrassment?

    Strawman
    30 days
    Next Case

  11. legacyman 04/26/2007 at 8:39 PM #

    “Does having a Chris Washburn bring enough additional application to make up for his embarrassment?”

    Does having a Todd Fuller offset a Chris Washburn…maybe. How about a Terry Gannon then?

    What is an embarrassment is when a State fan brings up the Washburn saga. That is old news…way old news. That is also not a loyal fan who keeps dredging up the unpleasant parts of our history as if there aren’t way more good things of which we are proud. If it makes you feel good then go back to the fifties and sixties and bring up what happened then to us and to some of our neighbors.

    It’s time to get over some of those things and move on. We have a chance to do good things over the next five to ten years and I will be pulling very hard for that and not recalling the bad things.

  12. Old_Wolf 04/27/2007 at 7:23 AM #

    It is not just athletic’s costs that have sky-rocketed in today’s world. It is entertainment costs in general. Think about movies (and stars salaries), concerts (and what the bands make), tv shows, etc. If you focus in on just what coaches make, (professional) players make, then it seems out of whack, but, it is not just in athletics.

  13. RedTerror29 04/27/2007 at 8:21 AM #

    ^^And those salaries are sky-high for the same reasons.

  14. redfred2 04/30/2007 at 5:26 PM #

    How much longer is the ghost of one damn BB player, Chris F’N Washburn, going to haunt this place??? Stop beating yourselves to death with something that no one else cares about anymore and give it up people.

  15. redfred2 05/02/2007 at 11:57 AM #

    This thread is old and I know no one will see this but…

    “Now that the NBA and NFL basically force player to the college level before entering the big time, we keep seeing kids who have no business being in college.”

    SAY WHAT???!!!

    The NBA and NFL use to leave players alone and allow them to participate in collegiate athletics. The kids/players fully expected, and moreover desired to play in college for FOUR YEARS, before setting out on a professional career. That’s all changed, and it’s college athletics and thosee kid’s EDUCATIONAL opportunites that have suffered and been foregone.

    Besides all of that, what makes you think that kids/athletes who didn’t really deserve to be in college, haven’t ALWAYS been there playing sports since the beginning??? Also, where do you get the idea that they are the victims now and somehow being burdened for being granted an opportunity to attend an institute of higher learning, if only for one year, in this day and time? It should be at least two years manditory, then you’d see some high schoolers buckle down and start studying to have what it takes BEFORE they stumble through one of college, and then have to sit out a year, before moving on to the professional ranks.

Trackbacks/Pingbacks

  1. StateFans Nation » Blog Archive » Quote: ACC Expansion Exceeds Expectations - 04/27/2007

    […] StateFans Nation Your independent blog on the NC State football, basketball and the athletics community. « Athletics Costs Outpace Returns […]

Leave a Reply