While the NFL just finished its 2011 draft this weekend, it once again is in a lockout, with the owners and players fighting over revenue, season length, health care and other issues. The actual numbers for each of the teams are hard to come by, but thanks to Forbes, we wanted to see what kind of money is being fought over by the 32 owners (as a confession, I am a little biased towards the players).
Take home message: Women’s sports lose money and only men’s basketball/football are profitable. As the great movie Starship Troopers probed: “Would you like to know more?”
Recently, there has been growing investigations into NCAA school impropriety in form of athlete payment, and while the amount of actual money changing hands might not be perfectly reported, we are continuing our own investigation on how much money college sports and their respective universities truly spend and generate. We compiled a list of 24 different sports across 135 colleges and universities that field at least one of the athletic activities. While this included many smaller schools that did not generate much revenue, the average amount of money spent per year by institutions is upwards of $30 million. While most of these schools investigated have an average of 15000 undergraduate students and assuming the money comes from their tuition, thats an approximately $2000 burden per student.
While football season is behind us, the amount of money generated by the NCAA and its schools remains of interest to us. Thanks to our friend Wesley Turner, we have acquired data on all NCAA Division I schools for total football revenue and expense. Much of the data can be further investigated at USA today’s website, and when available at Equity in athletics .
As would be expected, the big name football factories spend the most money on football related expenses, but the amount of profit that is generated on average per year is staggering. Over the 7 year period of 2003 till 2009, the top 10 schools (Texas, Georgia, Florida, Notre Dame, Michigan, Alabama, Penn State, LSU, Auburn and Ohio State) generated more than $30 million in profit per year. Texas which generates on average almost $50 million a year, has seen incredible sustained growth. In 2003, their profit margin was $34.6 million. In the year 2009? $68.8 million!