1. Current Status of NCAA Financial Dashboard and Reporting Systems
Knight Foundation Commission on
Intercollegiate Athletics
October 2008

2. Presidential Task Force
Fifty member presidential task force findings:
Not a financial crisis, however current trends are unsustainable.
Resource decisions made by institution.
Need for presidential leadership and institutional accountability.
Strategy for altering behavior is through education and assessment tools.
Establish standardized financial definitions and reporting.
Creation of dashboard indicators.
October 27, 2008
Knight Commission

3. Dashboard Indicators
Aggregate data supplied by member institutions after an independent third party review.
Twenty-six indicators (examples include):
Generated revenue/total athletics revenues.
Salaries and benefits/total athletics expenditures.
Athletics expenditures/institutional expenditures.
Athletics expend rate of change/university expend rate of change.
Athletics debt service/athletics expenditures.
October 27, 2008
Knight Commission

4. Allocated Versus Generated Revenues
Allocated revenues include:
Student fees allocated to athletics.
Direct institutional support.
Indirect institutional support.
Direct government support.
Generated revenues include:
Ticket sales.
Radio and television receipts.
Alumni and booster contributions.
Other revenues not dependent on entities outside the athletics department.
October 27, 2008
Knight Commission

5. Next Steps Presidents received dashboards last May.
Universities may update prior revenues and expenses data with submission of FY 2008 data.
Fiscal Responsibility Oversight group appointed to lead enhancement effort group comprised of President’s CFO’s, AD’s and Athletics Business Officers.
Reviewed comments from 1st year and modifications were made to 2nd year instructions.
Examples of modifications are:
October 27, 2008
Knight Commission

6. Goals of New NCAA Financial Data Collection Process
Consolidation of all financial data collection efforts.
Coordination of third party review with financial reporting.
Alignment of institutional audit cycles with NCAA financial reporting.
More consistency and transparency of financial reporting, leading to more relevant and accurate information.
Shared responsibility by CEO, CFO, and AD.
October 27, 2008
Knight Commission

7. Outcomes of New NCAA Financial Data Collection Process
Improved reporting of both revenue and expense line items:
Separate allocated and generated revenues.
Include indirect as well as direct expenses.
Minimize “Other” categories.
Better inclusion of ancillary revenues.
More detailed information on compensation issues.
Inclusion of partial capital expense information.
Because of these changes, the new data are generally not comparable to prior data.
October 27, 2008
Knight Commission

8. New Expense Lines Coaches’ compensation paid by third party.
Severance payments.
Support staff/administrative salaries paid by the institution (formerly included in “other”).
Support staff/administrative salaries paid by third party.
Direct facilities maintenance and rental.
Indirect facilities maintenance, rental and support (offsetting revenue item).
Spirit groups.
Medical and insurance.
Membership dues.
October 27, 2008
Knight Commission

9. Highlights from NCAA 2006 Revenues and Expenses Report

10. Dashboard Indicators Median Values 2006
FBS
FCS
No FB
Athletics as % of Total Institutional Budget 5%
Generated Revenues as % of Total Revenues
76%
28%
22%
Self-sufficiency (Generated as % of Expenses)
77%
26 %
21%
Reliance on Football Rev.
40%
18%
N/A
Reliance on MBB and WBB
14%
17%
31%
October 27, 2008
Knight Commission

11. Dashboard Indicators 2006 FBS FCS No FB
Grants in Aid as % of Total Operating Expenses
17%
29%
Total Comp. as % of Total Operating Expenses
33%
32%
Coaches’ Comp. as % of Total Operating Expenses
19%
18%
Adm. Comp. as % of Total Operating Expenses
16%
13%
October 27, 2008
Knight Commission

12. Division I Median Athletics Revenues and Expenses – Fiscal Year Ending 2006
FBS
FCS
No Football
Total Revenues
35,400,000
9,650,000
8,750,000
% Inc. from 2004
26%
22%
19%
Generated Revenues
26,450,000
2,350,000
1,800,000
16%
13%
20%
Total Expenses
35,750,000
9,500,000
8,900,000
23%
24%
Total Net Revenues
163,000
55%
N/A
October 27, 2008
Knight Commission

13. Median Operating Results Fiscal Year 2006
Number (%)
Average
% Change from 2004
Generated Revs Exceed Expenses
FBS
19 (17%)
4,300,000
65%
FCS
N/A
No Football
Expenses Exceed Generated Revs
99 (83%)
(8,900,000)
25%
118 (100%)
(7,100,000)
20%
93 (100%)
(6,600,000)
22%
October 27, 2008
Knight Commission

14. Top Three Average Revenue and Expense Categories at Division I Institutions By Subdivision for Fiscal Year Ending in 2006
Revenue Categories
Expense Categories
FBS
Highest
Alumni Contributions – 24%
Salaries – 32%
2nd Highest
Ticket Sales – 23%
Grants-in-Aid – 16%
3rd Highest
NCAA/Conf. Distributions – 14%
Direct Facilities/Maint. – 14%
FCS
Direct Inst. Support – 45%
Student Fees – 15%
Grants-in-Aid – 25%
Indirect Inst. Support – 10%
Team Travel – 8%
No Football
Direct Inst. Support – 47%
Salaries – 31%
Student Fees – 18%
Grants-in-Aid – 29%
Alumni Contributions – 8%
October 27, 2008
Knight Commission

15. Front Burner Issues Accounting for Grants-in-aid.
Improved reporting of ancillary revenues.
Inclusion of additional facilities data (as addendum to report).
Solicit feedback re: Dashboards.
Continued refinement of definitions, working with advisory committee.
EADA (DOE) reporting deadline/quality.
October 27, 2008
Knight Commission