(10-26-2010 05:20 PM)Bigoldtackle Wrote: (10-26-2010 01:47 PM)LAOwl Wrote: (10-26-2010 01:31 PM)gsloth Wrote: But don't take me as a fan of the multi-million dollar coach salaries, either. Yes, in a supply and demand world, particularly in looking at the revenues generated by the most successful teams, you can probably justify it. Doesn't make it right.
I guess that's what I was getting at. We can find a way to justify giving someone like Mack Brown $4 million but can't find a way to keep tuition costs low or keep some academic departments from getting cut altogether. As my master's alma mater Cal showed, athletic programs are making cuts, but to lower level sports. At the same time, the football team is getting a $300 million+ stadium renovation.
Cal's football and basketball programs are very profitable. They have a slate long as your arm of other athletic programs that are purely expense, however, dragging down the bottom line to a negative overall number ($7 Mil in the red, iirc). As such, the decision was made to cut a handful of them.
The UT football/basketball program is HUGELY profitable, particularly when you add in donations. It actually gives a big chunk of money each year back to the university for academic scholarship purposes, so I've read.
If I had to bet, it would be that Cal's stadium expansion will be funded primarily thru private donations. UT Memorial Stadium expansions were privately funded.
Whatever money athletics programs give to the university is puny compared to the money REGULAR STUDENTS provide.
Let's look at the University of Texas. 50,000 students, and let's just assume each has a 25% scholarship (aside from loans). Cost per year is $9,418. (50,000 x $9,418 x 0.75) = $353,175,000
Let's assume around 300 full scholarships at U.T. @ $9,418 = $2,825,400 (cost to the University). Room and board for those 300 @ $10,000 each = $3,000,000. Total cost = approximately $6,000,000.
Football revenues (ignoring salary, facilities upkeep, etc): 100,000 x $75 (ticket cost average) x 6 home games = $ 45,000,000. With the associated costs, I could believe that this number would come in at about $35,000,000.
There are tremendous costs for the many "non-revenue" sports, but I would have no idea how much they eat away at the football revenue (even with basketball and baseball money).