2Chapter ObjectivesRead a case and feel comfortable understanding how the facts relate to one another.Appreciate the revenue and expenses seen in a typical college athletic program.Understand how mission and vision affect financial decision making.Appreciate how diverse and extensive personnel costs are for an athletic department.Answer questions associated with the case study and each chapter in the text.
3Facts About Division II Athletics There are 141 private universities in this group and 154 publicly owned universities as of 2010.Average program hosted around 380 athletes and spent on average $11,900 on each athlete.Average grant for students at private universities in 2009 was $31,600 per student-athlete.Average is between seven men’s and eight women’s teams, with most programs sponsoring 14 sports.(continued)
4Facts About Division II Athletics (continued) Total revenue in 2009 for schools offering football was averaged at $4,593,000, and the average expense was $4,522,000.2009 net generated revenue averaged $541,000.2009 average expense produced a loss of $3,907,000.2009 median expenditure on men’s sports was $2,292,900 (46.7% of expenditures).(continued)
5Facts About Division II Athletics (continued) 2009 median expenditure on women’s sports was $1,358,700 (27.6%).2009 median expenditure on administrative (gender- neutral expenditures) was $923,700 (18.8%).2009 median program loss was $319,600.2009 median amount spent on coaching salaries for men’s teams was $593,000.2009 median amount spent on coaching salaries for women’s teams was $276,000.
6University of Never Land Background This comprehensive university offers both bachelor’s and master’s degrees.Approximately 2,600 students attend.Tuition at the university is $25,000 a year.Room and board ranges from $9,000 to $12,000 a year.Every student is charged $1,500 a year for fees, but none of the fees goes expressly to support athletics on campus.(continued)
7University of Never Land Background (continued) Athletics at the university started in 1949.UNL is a Division II member of the NCAA and a member of the Fighting Eight Conference.There are more than 296 student-athletes.There are full scholarships available for men’s sports and full scholarships available for women’s sports.This equates to $4.86 million in grant and aid (covering tuition plus room and board).(continued)
8University of Never Land Background (continued) student-athletes pay the entire tuition.Based on nonscholarship equivalent athletes, the athletic department would generate around $5.5 million in tuition and room and board.Athletic department generated $10.36 million in tuition revenue in 2012.
9UNL Athletics Mission Statement The athletic department supports and endorses the goals and objectives of the university and serves to1. meet the competitive and educational needs of the student-athlete;2. unify the extended university community of students, faculty, staff, alumni, and townspeople;3. generate a positive image of the university; and4. promote student health and wellness for life.
10UNL Athletics GoalsProvide the necessary resources to field competitive teams in all sports within the Fighting Eight Conference and the NCAA Division II.Provide the resources to help our student-athletes maintain high academic standards and become better students and citizens of the campus and the community.Bridge the gap between athletics and the campus community by fostering a communicative and inclusive relationship between faculty, staff, coaches, and administrators.Foster dialogue with the general student population to rekindle pride in Tinkerbell Athletics and support for their fellow students, the athletes.Generate community pride and support for Tinkerbell Athletics, thus creating a positive image of the university through athletics.
11UNL Athletics Proposed Goals Generate at least one sold-out basketball and football game a year.Comply with Title IX to the best of the university’s ability through financial or numerical equivalency through either reducing the number of men’s sports or adding a new women’s sport.Have at least four of the teams break even by covering their expenses.Reduce the athletic department’s reliance on direct institutional support by 5% a year over the next three years.Reduce coaching and administrative expenses by 10% over the next three years.
12Revenues and Expenses for UNL Athletics Ticket Sales (2012)Five home football games: 300 tickets average at $5.00 a ticket = $7,50015 men’s basketball games: 150 tickets average at $3.00 a ticket = $6,75015 women’s basketball games: 100 tickets average at $3.00 a ticket = $4,50020 soccer games (men’s and women’s): 100 tickets average at $3.00 a ticket = $6,00025 baseball games: 40 tickets average at $3.00 a ticket = $3,000Total ticket sales average: $27,750 a year(continued)
13Revenues and Expenses for UNL Athletics (continued) Alumni ContributionsAthletic department currently generates $300,000 a year in donations earmarked for athletics.There is a total of 450 alumni.One alumnus gives an annual gift of $100,000.Additional $200,000 needs to be raised every year.(continued)
14Revenues and Expenses for UNL Athletics (continued) School wants to launch an aggressive capital campaign for athletics to endow four coaching positions; estimated need to raise $1,000,000 for each position.UNL wants to refurbish the athletic field and fix the bleachers.Total capital campaign for will be $8 to $10 million.(continued)
15Revenues and Expenses for UNL Athletics (continued) Concessions: School generates more novelty sales than most Division II schools.Direct Institutional SupportUniversity has committed at least $4 million a year in institutional support as long as the total number of athletes is at least 290 a year.(continued)
16Revenues and Expenses for UNL Athletics (continued) Administrative and Coaching Staff ExpensesAthletic director ($110,000)Associate AD ($85,000)Assistant AD ($60,000)Administrative assistant ($40,000)Director of sport medicine ($60,000)Two athletic trainers (part-time) ($25,000 each)Sports information director ($48,000)Equipment manager ($40,000)Strength and conditioning coach (part-time) ($29,000)(continued)
17Revenues and Expenses for UNL Athletics (continued) Administrative and Coaching Staff ExpensesBaseball head coach and two assistant coaches ($64,000 total)Softball head coach and two assistant coaches ($53,000 total)Basketball head coach and two assistant coaches, men’s ($129,000 total)Basketball head coach and two assistant coaches, women’s ($110,000 total)Football head coach and eight assistant coaches ($317,000)(continued)
18Revenues and Expenses for UNL Athletics (continued) Administrative and Coaching Staff ExpensesLacrosse head coach and one assistant coach ($62,000)Volleyball women’s head coach and one assistant coach ($63,000)Volleyball men’s head coach ($23,000)Soccer women’s head coach and one assistant coach ($60,000)Soccer men’s head coach and one assistant coach ($50,000)Track and field head coach and two assistant coaches ($60,000)(continued)
19Revenues and Expenses for UNL Athletics (continued) Medical expenses: salary and benefits for the director of sport medicine and two part-time athletic trainers.Medical operating budget is around $5,000.Expenses covered by the university: human resource, information technology, facility maintenance, and utilities.Purchasing and receiving, ticketing, and TV and radio operations are paid for by the athletic department.
20Facilities Facilities are more than 35 years old. Dumbo Arena Home of UNL’s basketball and volleyball programs29,000 square feetSeating capacity of 1,500 spectators for athletic eventsCan be configured for everything from concerts and speeches to dinners, meetings, and graduationFour bathroomsBatting cages, athletic trainer’s room, equipment room, laundry facilities, offices, and storage(continued)
21Facilities (continued) Pluto Athletic ComplexThe complex accommodates facilities for all of UNL’s outdoor sports.Goofy Field is home to UNL’s football program, women’s lacrosse, and men’s and women’s track and field teams.UNL’s softball and baseball teams play on two of the best fields in the state.(continued)
22Facilities (continued) Gumby Soccer ComplexThe complex seats 1,800 fans in its bleachers.Astroturf field is five years old.Hosts conference tournaments on a yearly basis.Fields are often rented for local soccer tournaments when school is not using them.Complex has lights.
23Administrative Resources Heat during the winter comes from the power-generating plant that services the entire university.UNL pays all the electrical expenses for lights, equipment, and ventilation.UNL pays for janitorial care of the arena and landscaping care for the fields and surrounding areas.Athletic department does not need to pay for janitorial supplies, cleaning supplies, paper goods, water for watering lawns, care of landscaping equipment, and all fertilizer and related lawn care chemicals.Estimated value of such services is estimated at more than $500,000.