Unit 4: Athletic Costs: Steps to Recovery

The earlier post spotlighted the spending on athletics at Division I-A schools. It is important to note several points not mentioned in the article before costs and productivity are discussed. The article only highlighted what institutions spent on athletics and not the amount of revenue generated by athletic departments. Although positive net generated revenue was not found in all D I-A athletic programs, the cost of athletics was not completely shouldered by the institutions. For example, if Arkansas spent 56 percent on athletics, how much of that was shouldered by the department? The figures can be misleading.

Another point worth mentioning was the revenue generated through athletics elsewhere on campus. Enrollment, especially at Division II and III schools, and private dollars have a tendency to follow successful or well marketed athletic programs. In 2009, the University of Memphis saw a 6 percent increase in student enrollment, while the University of Alabama saw a 6.5 percent increase in enrollment. Both schools were listed in the top half of athletic spenders in the study and both had national notoriety for successful athletic teams.

An institution could minimize athletic costs by identifying what programs deplete money greatest with the least return or which programs were most inefficient. Factors should include costs to maintain the athletic team and the number of athletes enrollment due to the sport's presence on campus. The D-II football program at one of my past employers easily carried the most expenditures of any other program on campus. The program also brought an additional 60 students to campus and no one received a full scholarship during my time there; most football players on the 60 man squad received a 30 to 40 percent discount on tuition and had to pay full housing costs. Another institution I served was a Division I-A school. While in graduate school, the swimming program was terminated. The maintenance expense was too great. It didn't affect Title IX because the sport was replaced with a less expensive alternative, cross country running.

Obviously my attempts to save on athletic expenses are novice compared to the professionals at the Eastern College Athletic Conference or ECAC. The conference examined operations to reduce costs in 2009 and implemented new initiatives in officiating, marketing, championship tournaments, communications, administration, and going green (ECAC, 2009). The list of cost-cutting programs are extensive, but here are the highlights. The conference did not increase officiating fees in 2009. A full time marketing professional was contracted out to secure sponsorships from companies, which helped athletic departments throughout the conference save money. For example, sponsorships with Avis Budget Group saved on vehicle rentals and Sherbrook SBK Hockey saved on equipment and apparrel costs. The conference streamlined purchasing for chamionships so bulk orders were made mandatory; a larger quantity purchase resulted in less expense per item. Committee members for the conference, who lived where championships were played, were appointed ambassadors to save on meal, travel, and lodging costs. The ECAC eliminated printed media guides and drastically reduced game and event programs. Some staff positions were eliminated and contracts with employees and vendors were renegotiated. A new recycling program was encouraged throughout the conference and new energy efficient thermostats were installed. The conference did not mention how much money was saved, only that is was significant.

References:

Eastern College Athletic Conference (2009). ECAC announces cost-saving initiatives. Retrieved October 12, 2009, from http://www.ecac.org/news/08-09/cost_saving_initiatves.

University of Alabama (2009). Grow with quality. Retrieved October 12, 2009, from http://www.ua.edu/features/enrollment.html.

University of Memphis (2009). U of M enrollment promises to be up significantly this year. Retrieved October 12, 2009, from http://www.memphis.edu/releases/sep09/firstenrollment.htm