2012 NCAA D1 Financials - Michigan #3 in total revenue and profit

Submitted by Leaders And Best on May 8th, 2013 at 7:43 AM

The USA Today released their annual look at NCAA Division 1 schools financials. Michigan was #3 in total revenue behind Texas and Ohio State and #3 in profit behind Texas A&M and Texas. Michigan's revenue increased from $122.7 million last year to $140.1 million this year with the expenses only seeing about a $3.5 million increase. Michigan's subsidy is mostly from the university to pay the salary of the academic services director.

Also of note, Rutgers and Maryland are in the top 5 of largest subsidies among the BCS schools. Rutgers is #2 overall among all Division 1 schools in subsidies. Subsidies in their analysis are any institutional or government support/subsidies and student fees.

Article: http://www.usatoday.com/story/sports/college/2013/05/07/ncaa-finances-subsidies/2142443/

Chart: http://www.usatoday.com/sports/college/schools/finances/

Chart with financials from 2006-2011: http://usatoday30.usatoday.com/sports/college/story/2012-05-14/ncaa-college-athletics-finances-database/54955804/1

Only 23 schools finished in the black:

School Total revenue Generated rev. Subsidy Total operating exp. Diff. 2011 subsidy
Texas A&M $119,702,222 $114,502,222 $5,200,000 $81,792,118 $32,710,104 $9,856
Texas $163,295,115 $163,295,115 $ 0 $138,269,710 $25,025,405 $ 0
Michigan $140,131,187 $139,872,302 $258,885 $115,200,187 $24,672,115 $272,684
Ohio State $142,043,057 $142,043,057 $ 0 $124,419,412 $17,623,645 $ 0
Arkansas $99,757,482 $97,808,302 $1,949,180 $82,470,473 $15,337,829 $1,850,500
LSU $114,787,786 $114,787,786 $ 0 $101,989,116 $12,798,670 $ 0
Florida $120,772,106 $116,415,649 $4,356,457 $105,102,198 $11,313,451 $4,367,071
Alabama $124,899,945 $119,438,745 $5,461,200 $108,204,867 $11,233,878 $5,235,300
Oklahoma $106,456,616 $106,456,616 $ 0 $96,250,328 $10,206,288 $ 0
Kansas State $63,271,615 $60,535,682 $2,735,933 $50,994,785 $9,540,897 $3,291,651
Washington $82,594,783 $79,529,283 $3,065,500 $73,833,643 $5,695,640 $2,458,983
Auburn $105,951,251 $101,734,643 $4,216,608 $96,315,831 $5,418,812 $4,307,040
Nebraska $81,631,252 $81,631,252 $ 0 $77,037,282 $4,593,970 $ 0
Texas Tech $67,928,350 $64,174,371 $3,753,979 $60,346,836 $3,827,535 $5,788,180
Kentucky $88,373,452 $87,546,280 $827,172 $84,929,819 $2,616,461 $819,124
Purdue $70,624,394 $70,624,394 $ 0 $68,056,269 $2,568,125 $ 0
Oregon $94,635,829 $92,159,969 $2,475,860 $89,709,350 $2,450,619 $2,419,855
Florida State * $100,049,444 $92,270,583 $7,778,861 $90,278,878 $1,991,705 $7,528,006
Michigan State $93,946,707 $89,739,977 $4,206,730 $88,100,432 $1,639,545 $3,650,280
Penn State $108,252,281 $108,252,281 $ 0 $107,389,258 $863,023 $ 0
Tennessee $102,884,286 $101,884,286 $1,000,000 $101,292,015 $592,271 $1,000,000
South Carolina $87,608,352 $85,270,084 $2,338,268 $84,963,037 $307,047 $2,248,275
Indiana $72,973,954 $70,191,874 $2,782,080 $69,915,060 $276,814 $2,686,769

 

Comments

gopoohgo

May 8th, 2013 at 8:10 AM ^

"Michigan $140,131,187: Since 2009, Michigan's revenue has grown by nearly $45 million. During this period, Michigan's annual operating surplus -- the amount by which the revenue generated from athletics each year has exceeded the program's expenses -- has more than doubled "

Love him or hate him, Dave Brandon has done a darn good job in running the AD profitably. 

Also of note, only 23 D1 ADs were in the black. 

Mr. Yost

May 8th, 2013 at 9:05 AM ^

Dave Brandon SUCKS! He's the worst! Every loss, every bad uniform, every branding opportunity is all his fault!

Hiring great coaches and building great facilities and bringing in more money and providing more opportunities is just riding the wave Martin left behind. Brandon should be fired! IT'S ALL HIS FAULT!!!

HOW ARE WE NOT #1? Who cares about growth over his tenure.

Besides, he wasn't going to bring the band to Dallas! He's holding student accountable for attendance! AHHHH!!! #BrandonSUCKS!!

 

...did I get it right?

Blue In NC

May 8th, 2013 at 9:20 AM ^

I do believe that DB has done a good job in this area.  I will point out however that (without looking at the past numbers so correct me if I am wrong) Bill Martin was the one that really turned things around for the AD taking it from borderline in the red to solidly in the black.  Whatever people think of Martin's coaching hires (I think overall he was a very good AD), Martin was very successful in managing the AD's finances and paved the way for what DB has done.  I think DB has faced less "hard decisions" but has done a pretty good job with what he has faced and it certainly appears that the Hoke hire has turned out as well or better than anyone could have expected.

gopoohgo

May 8th, 2013 at 10:07 AM ^

I was wondering about how much of the increased revnue was attained via the luxury box revenue (Martin's decision & financing).  However, as noted below in LSA's post, there seems to be an across-board increase in revenue with only having 6 home games (0.5 if you include the payment from the Jerryworld game)

LSAClassOf2000

May 8th, 2013 at 8:28 AM ^

The fact that only 23 programs on this list are running at a profit right now makes Michigan's performance financially even more spectacular. Looking at the numbers, 2010-2012 represents a span of three years of 10% or better growth in revenue year-to-year, with 2011 and 2012 each representing about 12% growth over the previous year. 2010 and 2011 saw 30% or better increases in contributions as well. There has been about a 20% increase in licensing revenue in the last three years as well. Favorable opinion of Brandon or otherwise, I think that as people that contribute to these totals and invest in the program as consumers, this is the sort of financial performance we might want to see. 

Leaders And Best

May 8th, 2013 at 8:48 AM ^

Counting the Alabama game as half a home game, that is pretty amazing.

Ohio State, Texas A&M, & LSU had 8 home games last year, and Florida, Alabama, & Auburn had 7.5 home games (Florida and Georgia always play in Jacksonville). Texas and Oklahoma played 6.5 home games last year like Michigan.

MichiganManOf1961

May 8th, 2013 at 9:28 AM ^

Also, what is the "Academic Services Director"?  Sounds like a redundancy that needs to be cut.  How many academic programmers, advisors, etc are there at Michigan?  We really need another one?  Typical academia... there is obviously a NEED for an "Associate-Dean Director of Student Athlete Diversity Study Abroad Coordinator".  Okay, I made that last one up... but if you've utilized any university resources at any university in the past five years, you'll know what I mean.  A lot of unnecessary jobs... one of the biggest factors in the insane rise in tuition (another fact people seem to gloss over when talking about Mary Sue... I believe tuition double under her tenure.) 

Leaders And Best

May 8th, 2013 at 9:45 AM ^

His job description is on the athletics website. I am guessing he oversees the operations of the Ross Academic Center and academic advising/tutoring for all the student-athletes. Not an insignificant position but still a pretty hefty salary. His job description as listed on the website:

Phil Hughes
• Director, Academic Success Program / Assistant Provost
• Program Administration, Training, & Evaluation
• Program Budget, Academic Progress Systems
• Representative to University Faculty, Staff, Units, and Offices

http://www.mgoblue.com/asp/staff-directory.html

oriental andrew

May 8th, 2013 at 8:49 AM ^

It is of note that the Differential is based on Generated Revenue - Operating Expense.  It does not consider the subsidy.  Also note that this only includes public universities, as private universities (e.g., Northwestern, notre dame, Stanford, etc.) tend to not release this information.

Leaders And Best

May 8th, 2013 at 9:30 AM ^

I am guessing Phil Hughes runs the Ross Academic Center and oversees the academic support and tutoring for all the athletes at Michigan.

His job description is on the athletics website:

Phil Hughes
• Director, Academic Success Program / Assistant Provost
• Program Administration, Training, & Evaluation
• Program Budget, Academic Progress Systems
• Representative to University Faculty, Staff, Units, and Offices

http://www.mgoblue.com/asp/staff-directory.html

UAUM

May 8th, 2013 at 9:12 AM ^

So what do they do with all that extra profit?  Is that profit after servicing debt on the facilities expansions?  If so, how long until we pay off all the constrution costs? 

Once we pay off all construction costs, what do with do with $25M per year?  Can we endow scholarships for all athletes so we can start scooping up Nat'l championships?  What other facilities need to be upgraded?

I have a lot of questions today.

UMgradMSUdad

May 8th, 2013 at 9:28 AM ^

Asssuming this list is fairly accurate, Michigan's revenue is even more impressive given that there aren't permanent ads cluttering up the stadium or a corporate sponsor's logo plastered all over the backdrop used for press conferences.  It might not be a huge thing, but when I compare the scoreboard at Michigan stadium to  other schools, or watch Brady Hoke give a press conference after a game, I'm damn proud there is a Michigan difference, no matter how many dollars it costs.

UAUM

May 8th, 2013 at 9:33 AM ^

I'm not a marketing guy, but I'll bet that because UM doesn't allow advertising in the stadium or at press conferences, it drives up the per unit price that companies do pay for marketing related to UM.  Not sure where I'm going with this, but some Ross grad probably knows.

Zone Left

May 8th, 2013 at 12:24 PM ^

That's probably not true. There really isn't any direct marketing at all that associates a company with Michigan with the exceptions of (shudder) Adidas and the M-Den. The only corporate logos in Michigan Stadium are on the Coke dispensers, other food stands, and the M-Den. The companies are probably only paying for the stands themselves.

Firms would have to pay more if there was, say, one giant logo on the scoreboard, one at midfield, and one TV commercial. When there's really no ad space available, you can't charge more for it.

004

May 8th, 2013 at 10:45 AM ^

This may be too political, but it may also be worth its own thread which I lack the points to start... so MODs feel free to treat as you wish.

Bill Bennet, former US Sec. of Education did ROI calculations on universities and found that only ~300 have positive ROI.

The good news is that UM makes the list for both in-state and out-of-state... the bad news is that we are only ~70th on the list and below many institutions which we compare ourselves to academically. 

Other good news is that all of the B1G makes the list (a quick browse saw even OSU and MSU on the list, so I assume all the others are as well).

Lots of money being spent of college athletics... and tuition bills are at all time highs.

 

http://finance.yahoo.com/blogs/daily-ticker/only-150-3500-u-colleges-worth-investment-former-132020890.html?vp=1

 

 

Zone Left

May 8th, 2013 at 12:36 PM ^

In straight ROI, Michigan (in-state) ties with Harvard and Stanford at 10.4% year-over-year. The rankings are in terms of absolute dollar return. I'm pretty happy with 10.4%--the only better investment you'll probably ever make is the ROI on your house downpayment--and that's only if it's in a good area and you don't put too much down.

Picktown GoBlue

May 8th, 2013 at 2:13 PM ^

For 2013, only the last 30 entries out of 1511 show a negative 30 year ROI.  There are 1481 with a positive ROI which represents probably 700-1000 schools (since schools are listed twice for in-state and out-of-state tuition).  Even the 2012 data has many more than 150 entries or 150 schools with positive ROI, including my alma mater down below the half-way point in the list.

YMMV, but all these analyses are based on medians.  Be exceptional.  Enjoy life.  And you may end up with returns well beyond these, or benefits that are more than financial.