Author Topic: Blog Archives: November 2009  (Read 1187 times)

Ashlen

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Blog Archives: November 2009
« on: January 08, 2010, 12:53:19 PM »
This is an archive of blog entries I published to the old Other Side Sports blog during November 2009.

Ashlen

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How a profit generating athletics program really operates
« Reply #1 on: January 08, 2010, 12:58:53 PM »
How a profit generating athletics program really operates
11/03/2009

Last week, I linked to an Inside Higher Ed article discussing the controversy at Berkeley concerning athletics department spending.  In the user comments section of that article, University of Kentucky’s John Thelin, professor of educational policy studies, described how athletics operates at the University of Kentucky.  Thelin has published books on higher education including intercollegiate athletics.  Here is one of Thelin’s comments:

At my university, there is no "athletics" committee under the auspices of the Faculty Senate. The explanation from the administration for this absence is that "intercollegiate athletics is NOT part of the university." The FAR (Faculty Athletic Representative) is appointed by the president of the university, not the faculty senate. The Athletic Association, a privately incorporated entity within the state university structure, controls getting and spending -- and appointment of its Association board members. At present, two faculty members -- one, being the FAR and a second faculty member -- are appointed by the Athletic Association board. The point being is that even if faculty and the faculty senate did wish to be involved and observant of a big time athletics program, it's difficult if not impossible to do so.

This was followed by another post by Thelin:

[…] yes, U of Kentucky's Athletics Program is one of the 20 or so among the big time program that operates in the black. And they deserve commendation for that.

I do think one reason they are able to do so is due to several privileges, subsidies and exemptions they receive from the University of Kentucky in which the UK Athletic Association (a private corporation) exists.

For example, until the UK admin accidentally found out about 8 years ago, the athletics department paid no expenses for custodial and maintenance services. These were being billed to the University's general operating fund. UK's president found this out -- and ended this practice.

The UK Athletic Association pays no rent for the facilities it built on university owned property. This includes a football stadium, a basksetball practice facility, an indoor football facility, a weight training facility, an academic support facility, and so on. Any other group, internal or external to the university, would be required to pay fair market rent -- on prime real estate.

The UKAA does receive substantial income from mandatory student fees (I believe this is about $650K per year).

The UKAA owns the logo for UK sports -- and charges for its use -- and at times charges the University proper for such usage.

UKAA employees are allowed to participate in university benefits programs (e.g., TIAA CREF) -- but are not subject to the same conditions (e.g., no salary increases) as most university staff and faculty.

UKAA coaches receive mid year bonuses based on bowl games, etc. even though no such bonuses are available to regular staff and faculty, regardless of the excellence of their performance, national honors, and so on.

UKAA coaches are NOT subject to the same hiring procedures or salary considerations as are, e.g., faculty.

So, along with the admirable self supporting revenues of the UKAA, I think some of the self supporting character is due to these added special privileges.


How much profit does athletics generate at the University of Kentucky?  The answer may not be as clear as the athletics department wants us to believe.

Ashlen

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Podcast discussion of Berkeley's athletic financing
« Reply #2 on: January 08, 2010, 01:00:35 PM »
Podcast discussion of Berkeley's athletic financing
11/09/2009

Last week, NPR radio station KQED hosted an hour long discussion about the athletics department funding debate at UC Berkeley.  Panel members include members of Berkeley's Academics First faculty group, Cal's athletics director, a member of Berkeley's administration, and Amy Perko, executive member of the Knight Commission on Intercollegiate Athletics.  I recommend listening to the free podcast if you are interested in the intercollegiate athletics financing debate.

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Three new articles on budget issues
« Reply #3 on: January 08, 2010, 01:03:44 PM »
Three new articles on budget issues
11/11/2009

The discussion of budgetary problems in intercollegiate athletics has been a hot topic lately.  First, Libby Sander of The Chronicle of Higher Education is reporting that the University of New Orleans is seriously considering a move to Division III from Division I in order to solve a large fiscal problem facing the athletics department.  The fiscal situation at the University of New Orleans was mentioned earlier on this blog along with commentary about another Louisiana college, Centenary College, also dropping to Division III.  As odd as it may seem, the state of Louisiana may become one of the leaders in athletics sanity. 

Sander also wrote an article detailing the fiscal problems at Stanford.  Although Stanford has many successful sports programs, the athletics department is struggling with money.  Sander suggests that it is quite possible that the living definition of a successful athletics program may have to drop some teams. 

Finally, USA Today, one of the leaders in covering college sports issues, published a set of articles yesterday detailing the rise in salaries for head and assistant football coaches.  While there have been many articles detailing the growth in head coaching salaries, the salaries of assistant coaches have comparatively flown under the radar.  The articles include a database of coaching contracts and salaries.  The articles, along with the databases, are a must read for anyone interested in researching coaching salaries.   

Ashlen

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Students say no to intercollegiate sports
« Reply #4 on: January 08, 2010, 01:07:06 PM »
Students say no to intercollegiate sports
11/16/2009

Two interesting developments occurred this month. First is the curious case of University of New Mexico athletics. About a month ago, we discussed an article discussing how New Mexico essentially blew off a case of head coach-assistant coach violence on the football team. More recently, New Mexico soccer player Elizabeth Lambert made headlines across the country when the shocking video reel surfaced showing her conducting multiple acts of unsportsmanlike conduct, to put it lightly, towards BYU players.

Apparently, some people on the New Mexico campus are a bit embarrassed about the way the athletics department is representing the school and state. One of them is a student, Lissa Knudsen:

Knudsen is the president of the graduate and professional student association [Graduate Student Association] on campus and said there is too much of a premium put on athletics at the expense of academics.

"Why are we investing so much money into this program when there's so many others that need more," Knudsen said.

Knudsen said every year $1.5 million worth of student fees go to sports. She's leading an effort to get that money cut if not all of it, at least a big chunk.

"To send a message that says, 'Hey, we're putting you on probation. We don't want you to continue to use our money, force us to pay you to do things obviously that are not effective,'" Knudsen said.


It will be interesting to see how far Knudsen is able to take her proposal. I would be highly embarrassed if I was a New Mexico resident based on these two incidents alone.  That would be doubly so if I was a New Mexico student, alumnus, or employee. I'm sure Knudsen isn't the only one in the New Mexico community who feels the same way I do.

Earlier this month, the University of Alaska Anchorage Student Government voted by a ten-to-one margin to disallow an increase of student fees for athletics. Apparently, the students had a novel idea:

The athletics department cited a current student sentiment about being severely underserved and a difficulty for students to use exercise and recreational equipment. The resolution passed by USUAA [Union of Students] resolved a redirection of funds away from athletics and towards student recreation and fitness in order to compensate for this sentiment.

Wow, the student body desires to enjoy recreational equipment instead of restricting it for just a few students? What a concept! I give a lot of credit to the Student Government for realizing that intercollegiate athletics is a bad way of providing recreation for the student body. I'm hoping we will see this sentiment spread to the mainland.

Ashlen

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Maybe big-time sports in New York wasn’t such a great idea
« Reply #5 on: January 08, 2010, 01:11:09 PM »
Maybe big-time sports in New York wasn’t such a great idea
11/17/2009

Yesterday, Katie Thomas of the New York Times published an article describing the trials and tribulations of Division I sports at the four SUNY schools (Buffalo, Binghamton, Albany, Stony Brook) that have moved to the top division since trustees allowed athletic scholarships in 1986.  Binghamton’s recent problems have been well chronicled.  The other three campuses have had more than their share of issues as well:

The adjustment has been painful at the other universities as well. In 1999, the N.C.A.A. placed Buffalo’s men’s basketball team on probation for recruiting violations. The N.C.A.A. has also cited Buffalo’s football team for the players’ poor academic performance. In 2006, three Albany football players were arrested on charges of raping a fellow student and were dismissed from the university. And in 2005, the N.C.A.A. placed Stony Brook on three years’ probation for a series of minor violations involving more than 50 athletes. The N.C.A.A. cited the university for a “lack of institutional control,” removed 12 ½ scholarships for two years, and said Stony Brook had been “ill-equipped” to handle the transition.   

These issues, along with state budget cuts, are making some people question the legitimacy of SUNY schools competing on the big athletic stage:

Now, with the university system facing a proposed $90 million cut in state financing, some are questioning whether the emphasis on athletics is misguided. Assemblyman Peter M. Rivera, a Democrat from the Bronx, said state money should not be spent on building athletic powerhouses.

“That’s not the purpose of a SUNY school,” he said. “The purpose of a SUNY school is to provide the best education possible.”

Naturally, school administrators are defending athletics:

“I suppose you can say that the universities are all looking toward intangible goals in terms of student education,” said Shirley Strum Kenny, who helped bring Division I sports to Stony Brook as its president from 1994 until her retirement this year. “There’s very little way to measure it, unless you’re going to wait 40 years.”

40 years?  What is going to magically happen if we wait 40 years?  Will some, or all, of these SUNY schools suddenly become consistent national powers?  Will they join the big conferences?  If not, they will continue to lose millions of dollars in order to gain very little regional, much less national, publicity.  Even the schools that do have national publicity through sports have had trouble parlaying that to any meaningful benefit outside athletics.  The Buffalo athletics director can gush all he wants about the team appearing in (and losing) the International Bowl last year, but nobody nationally cares about such an accomplishment.  Although some people in the Buffalo community may have become interested in the football program last year because of the bowl appearance being a high point for the program, few people will retain interest unless they make better bowl games more consistently. 

The financial situation regarding SUNY sports is not good:

While ticket sales, student fees, private donations and other revenues help pay for athletics, the universities’ contribution has grown in recent years. At Albany, the university subsidy to athletics increased 77 percent, to $6.7 million in 2007-8 from $3.8 million in 2003-4. During the same period, Binghamton’s contribution rose 47 percent, to $3.1 million from $2.1 million. Buffalo contributed $7.5 million to athletics in 2007-8, a 31 percent increase over 2003-4, when it provided $5.7 million.

Stony Brook calculates its contribution differently than the other SUNY members, but officials said its subsidy totaled $8.5 million in 2007-8, a 119 percent increase over the $3.9 million contributed in 2003-4. The large increase was a result of a one-time payment by the university to relieve the athletic department of its debts in 2007-8, officials said.

Two of the universities have benefited from connections to powerful state senators. In 2002, Stony Brook completed construction on a football stadium that is named for State Senator Kenneth P. LaValle, the former chairman of the chamber’s higher education committee, who helped procure the $22 million in state money used to build it. The Binghamton University Events Center, an all-purpose arena where the Bearcats play basketball, opened in 2004 and cost the state $33 million. The financing was secured with the help of a local senator, Thomas W. Libous.

Division I sports at the SUNY schools are costing the universities and taxpayers a significant amount of money.  As the article points out, there has been growth in the amount of applications since the schools added Division I sports, but the campuses without Division I sports have also seen growth in the number of applicants.  In fact, many schools across the country have seen rising application numbers.  As previous research concludes, I don’t think application rate increases can be attributed to sports.

The natural question then becomes why do these schools continue to run Division I sports programs.  Here appears to be the answer:

The transition to high-level athletics began in the 1980s, when administrators at Buffalo were looking to raise visibility and establish a rallying point for the university, which had a sprawling campus and a large number of commuter students. Buffalo and the other state universities, which range from 15,000 to 30,000 students, were large research institutions, yet they competed against small, private colleges. SUNY’s 12 smaller four-year colleges with athletic teams continue to play in Division III.

“At Division III, we were playing institutions that simply were not of our type,” recalled William R. Greiner, who served as Buffalo’s president from 1991 until 2004. “It was simply a peculiarity, our athletics program.”


Earlier this year, the chancellor of the University of New Orleans made a similar statement.  I don’t understand this concept that research institutions have to be members of Division I.  The NIH and other research funding agencies don’t base their grant decisions on whether or not a school has big-time sports.  That idea would be ludicrous.  Some of the most productive research institutions in the country, like the University of Chicago and Carnegie Mellon, are members of Division III.  Universities are always trying to find one facet that separates them from the crowd.  Instead of viewing athletics as that facet, perhaps they should have advertised that all of the universities’ resources were going towards improving academic quality and student access instead of failing marketing and entertainment enterprises.  That strategy had a chance of being successful.  Students care about quality and accessibility much more so than they care about sports.

It would be one thing to laugh off the SUNY schools as being misguided lemmings in thinking that they will reap benefits from something that has not provided many, if any, schools with any positive missionary benefits.  Unfortunately, the combination of bad behavior and terrible budgets mean that this is no laughing matter.  The best strategy now is to jump off the sinking ship of big-time athletics instead of hoping that the huge gaping hole will magically cure itself within 40 years.         

Ashlen

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Northeastern punts varsity football
« Reply #6 on: January 08, 2010, 01:12:29 PM »
Northeastern punts varsity football
11/24/2009

Yesterday, Northeastern University made an interesting decision to drop varsity football.  The private Northeastern, a Division I team competing in the Colonial Athletic Association, will continue to field other varsity sports.  Northeastern football has had a down period on the field in recent years and the team is only averaging 1,600 people per home game this season.

An Inside Higher Ed summary of the news stated:

Northeastern officials stressed that the decision was not simply about saving money, but about where the university should spend money. A review determined that sustained multi-million investments would be required to build up the program -- and the university decided that wasn't appropriate.

I think Northeastern is making a sound decision.  Although football is considered a revenue sport, it is often one of the least profitable sports at a lower end Division I school like Northeastern because of the high number of scholarships and travel expenses.  I’m guessing Northeastern isn’t matching those expenses with gate money based on the 1,600 attendance figure.  New football facilities worth building will be expensive and there does not appear to be enough interest in the team to justify it.  Finally, getting rid of football can seriously ease the school’s Title IX burden.  That equates to even more money in the bank.     

I am not sure if many schools will follow Northeastern’s precedent, but there are certainly many Division I schools in the same predicament as Northeastern.  Hopefully some of these schools will be brave enough just to consider the change Northeastern made.  There may be a few people that think dropping the football team means Northeastern isn’t a real university anymore, but that is a very extreme opinion.

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Vaccaro and the future of college sports
« Reply #7 on: January 08, 2010, 01:15:05 PM »
Vaccaro and the future of college sports
11/27/2009 

As odd as it may seem, the biggest person in American basketball over the last few decades may very well be Sonny Vaccaro.  No, he wasn’t a legendary player or coach, but instead he was a legendary shoe company representative that put athletes in the national spotlight from high school through the highest levels of the pros.  Vaccaro may not be a shoe company representative anymore, but he is presence still looms large in basketball. 

Vaccaro is not shy about the lack of rights young athletes have.  So-called amateur athletes are not allowed to profit from their popularity even though schools and other organizations happily generate immense revenue from these athletes.  In the case of basketball and football players, athletes are not allowed to leave the amateur system after high school to join the NBA or NFL because of arbitrary age requirements.  This, at least for basketball, may change in the future.  Brandon Jennings, a blue chip college basketball recruit, was advised by Vaccaro to skip college in order to go pro in Europe.  Jennings did this, but it did not appear to be a successful strategy because Jennings struggled in Europe.  However, Jennings was still an NBA lottery pick this year and has been dominating the hardwood for the Milwaukee Bucks.  Other basketball players may choose the Europe one-and-done path instead of the NCAA one-and-done path in the future since Jennings has been so successful in the NBA. 

Vaccaro is encouraging other players to stand for their rights.  Travis Sawchik of Charleston’s The Post and Courier described Vaccaro’s stance:

Still, Vaccaro says he is not speaking to the generation in power.

His message is to the next generation.

He has toured the country for three years speaking to students at dozens of colleges. He speeches center on the ills of the NCAA – including the unintended consequence of a black market, where players are illegally compensated.

“The revolution starts with young people,” Vaccaro said. “It starts with the thing trying to be cut out of life - journalists, free speech. Go to China, Tibet, Iran it’s all about free speech. …. It may not happen tomorrow or next week but it will happen. It will be demanded.

“What happens when kids say ‘I’m not going on the field for the Fiesta Bowl or Final Four?’ It just takes a group one time to shut down the mechanism of a nationally televised game. You’ll see it.”


There is no doubt that Vaccaro’s voice will be heard by the players.  It is nearly impossible to imagine players on a BCS bowl or Final Four bound team going on strike, but never say never.  I wonder what the public and sports media would say about it.  I doubt public sentiment would favor the athletes, but maybe athletes standing up for themselves would force the pro leagues, as well as the NCAA, to make some changes. 

Although I think Vaccaro has been destructive to the youth sports system, I think he has a good point here.  There is no reason why athletes should be forced to stay in a pseudo amateur athletic system under the auspices of education when the schools refuse to academically educate them.  If Vaccaro is as successful as he has been in the past, we might be seeing a rebellion in the future.

Ashlen

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Flushing money down the bowl
« Reply #8 on: January 08, 2010, 01:16:36 PM »
Flushing money down the bowl
11/30/2009

The Daily Toreador, a student newspaper at Texas Tech University, published an interesting article by Jacob Moore today.  Moore, who has internship experience at the NCAA, discusses some of the myths surrounding the profitability of intercollegiate sports.  In particular, Moore focused on bowl games:

But even great success is less lucrative than most would imagine. When Kansas went to the Orange Bowl, according to the Lawrence Journal World, they took 500 people in the “official traveling party,” including the team, coaches, athletic trainers and university dignitaries and that number doesn’t include the band, which Kansas also paid to send. In all, the Jayhawks spent about $2 million on airfare, hotels and per diems.

Plus, Kansas didn’t receive anything close to the bowl’s total payout. Instead the Big 12 uses a formula and distributes the money amongst conference teams. Kansas made money off going to the bowl, but nothing like the bonanza many people imagine. And most bowls are nowhere as good a financial deal for schools.

Last December for example, Florida Atlantic was paid for its appearance in the Motor City Bowl entirely with tickets. No money at all. Just 16,000 tickets. After selling what they could — you try getting Floridians psyched for a trip to Detroit in December — the school took a significant financial loss in playing the game. This is an extreme case, but most bowls are financially closer to the Motor City Bowl than the Orange Bowl.


I thought this was a good article.  Many sportswriters focus on the big bowl payouts without actually looking at the costs associated with bowl games and the payout structure.  I added additional commentary to the article in the user comments section.