http://blogs.forbes.com/sportsmoney/2011...-football/

Who’s Making Money in SEC Football?

Jan. 26 2011 - 3:43 pm
Posted by Kristi Dosh

Is your team turning a profit in its athletic department? Is it spending in line with its revenue? Could this have any effect on performance on the field? Thanks to a federal statute requiring all colleges and universities that receive Title IV funding (federal student aid) to report the financials for their athletic department, I have the answers for you.
First, let me explain the data and why it’s credible. The data I have is from the U.S. Department of Education. Federal statute not only require schools to report the financials for their athletic department (if they receive the Title IV funding, which all SEC schools do), but it also prescribes what should be included in each category. For example, when we take a look at revenue it includes gate receipts, broadcast revenues, appearance guarantees and options, concessions, and advertising. In terms of expenses, we’re looking at grants-in-aid, salaries, travel, equipment, and supplies. Because these items are defined by federal statute, creating as much uniformity as possible, the financials of each institution are fairly easily compared.
It’s also important to note that this data is from July 1, 2009 to June 30, 2010, so we’re talking about the 2009 football season. Data for 2010 will be available late this year. Another note is that Vanderbilt and Ole Miss presented financial statements that perfectly balance, showing no profit in the football program, so both their revenue and expenses for football are identical.
Let’s take a look at how the schools rank in terms of revenue for just the football program. For added comparison, I have put each school’s stadium capacity next to their name, since that would have a direct effect on their ability to bring in revenue:
Stadium Capacity Football Revenue
1 Univ. of Alabama 101,821 $71,884,525.00
2 Univ. of Georgia 92,746 $70,838,539.00
3 Louisiana State Univ. 92,400 $68,819,806.00
4 Univ. of Florida 88,548 $68,715,750.00
5 Auburn Univ. 87,451 $66,162,720.00
6 Univ. of South Carolina 80,250 $58,266,159.00
7 Univ. of Tennessee 102,037 $56,593,946.00
8 Univ. of Arkansas 76,000 $48,524,244.00
9 Univ. of Kentucky 67,606 $31,890,572.00
10 Mississippi State Univ. 55,082 $14,551,275.00
11 Vanderbilt Univ. 41,448 $14,152,061.00
12 Univ. of Mississippi 60,580 $11,920,510.00

I’m sure it comes as no surprise to see perennial contenders like LSU, Florida and Alabama at the top. I was surprised to see, however, that Ole Miss brings in less than Vanderbilt.
Now let’s take a look at who the big spenders are:
Football Expenses
1 Univ. of Alabama $31,118,134.00
2 Auburn Univ. $27,911,713.00
3 Louisiana State Univ. $25,566,520.00
4 Univ. of Florida $24,457,557.00
5 Univ. of South Carolina $22,794,211.00
6 Univ. of Arkansas $22,005,104.00
7 Univ. of Georgia $18,308,654.00
8 Univ. of Tennessee $17,357,345.00
9 Vanderbilt Univ. $14,152,061.00
10 Univ. of Kentucky $13,905,724.00
11 Univ. of Mississippi $11,920,510.00
12 Mississippi State Univ. $9,951,097.00

Again, perennial contenders Alabama, LSU and Florida maintain their positions atop the list. However, take a look at Auburn, who ranks higher in terms of spending than revenue. Perhaps a foreshadowing of the 2010 season that was to come? And what about Georgia? They move from being the second highest in terms of revenue to only the seventh biggest spender.
In fact, Georgia brings in the most in terms of profits in SEC football because of their lower expenses relative to their revenues. Their profit was over $8 million more than the next highest school, Florida:
Football Profit
1 Univ. of Georgia $52,529,885.00
2 Univ. of Florida $44,258,193.00
3 Louisiana State Univ. $43,253,286.00
4 Univ. of Alabama $40,766,391.00
5 Univ. of Tennessee $39,236,601.00
6 Auburn Univ. $38,251,007.00
7 Univ. of South Carolina $35,471,948.00
8 Univ. of Arkansas $26,519,140.00
9 Univ. of Kentucky $17,984,848.00
10 Mississippi State Univ. $4,600,178.00
11 Vanderbilt Univ. $0.00
12 Univ. of Mississippi $0.00

Georgia isn’t just #1 in the SEC in terms of profits, they’re #2 in the entire country behind Texas.
If you do the math, Georgia is only putting 25.8% of their football revenue back into the program. Meanwhile, the 2009 National Champion, Alabama, was putting 43.3% back into their program, and the 2010 National Champion, Auburn, invested 42.2 percent. Is there perhaps a correlation between this and results on the field? Georgia went 7-5 in 2009 and just 6-6 in 2010. Comparing Georgia to Texas, who is the only school with bigger profits from football, the two are spending at about the same rate, with Texas putting 26.7% back into their program. However, Texas is spending $25,112,331 to Georgia’s $18,308,654.
I’ll also note that Georgia is second in the SEC in terms of overall athletic department profit at $11.7 million. Alabama, who posted the highest profits for its athletic department, is an outlier with a $44 million profit (more to come on that in a later post). Ole Miss presented a balanced sheet, so they show no profit in the athletic department. However, the other 10 schools posted an average profit of $5.4 million, putting Georgia’s athletic department at more than twice the average profit.
Can these 2009 numbers predict the future for Georgia? Take a look at the teams ahead of Georgia in terms of expenses (in the second chart above). In 2010, Georgia lost to every team they played who spent more than them in 2009: Florida, Arkansas and South Carolina.
Just some food for thought as we all spend the offseason pondering what went wrong in 2010 for our respective teams and what we can expect in 2011.
Follow Kristi on Twitter @SportsBizMiss and visit her website at http://www.kristidosh.com.

This article offers the personal observations of Kristi Dosh, and does not represent the views of her law firm or its clients. Any information contained herein does not constitute legal advice. Consult your own attorney for legal advice on these matters.

I'd be interested to see a similar breakdown of the BE schools. Unfortunately, I feel like UC would be at or near the bottom of the conference.