(07-10-2019 10:44 AM)panama Wrote: (07-06-2019 03:50 PM)Attackcoog Wrote: I mean. yeah---its a cautionary tale for schools that use an 80+ million dollar budget to play G5 football. Thats a category with one member.
I doesnt have to be that way. S MIss and LaTech may not be Alabama---but they field perfectly respectable teams in a number of sports---for only about 25 million a year---and they typically have a pretty darn good football team. It can be done.
Frankly, Im not one that is all that big on athletics needing to break even or deliver a profit. To me, its a student amenity and a marketing device. Both are expense items---not profit centers. I see them as the front porch of the university. I think there is value in that. So, if they lose 5, 10, or even 20 million---you can probably make a reasonable argument that they are still a benefit to the school. Once you break that 20 million mark---I think that argument gets substantially harder to make.
Here's where I am---I dont think any school should be spending 80 million on sports unless they have the ticket sales and donor base to keep the school subsidy in that 20 million or below range. A 40 million dollar athletic deficit is just too large to reasonably defend---especially when the current performance of the 2 big revenue sports is so far below expectations.
Largely correct. Large public universities generally have operating budgets of about $1B. $15M - $20M as a marketing expense isn't a big deal.
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most of that money is spoken for
if you have a $1B budget and you do $200 million in research then you are down to $800 million because zero of that research money is going to athletics
if you have $12,000 in housing and meals X 6,000 students that is $72 million
so now you are at $728 million
$270 million in state funding (most states do not allow this to go to athletics) that gets you to $458 million
if you have a $1B endowment that will produce about $50 million per year in spendable funds and most of that will be spoken for it will not just go to the general fund to do whatever
so now you are at $408 million
say $28 million in non athletics gifts $380 million
$300 million in tuition so that leaves $80 million from various things (most of which will be spoken for)
so you are looking at that $20 million coming from that $300 million in tuition
so you are looking at 6.7% of the available budget not 2%
and while that seems small you have to look at what that money could otherwise go to
if you have $200 million on faculty salaries then that $20 million is equal to 10% of your faculty salary budget
if you have 1,150 faculty and a student to faculty ratio of 23:1 then even 5% more faculty can get that to 21.8
10% more faculty 20.9
that can help rankings and the student experience in a number of ways
then with research if you are doing $200 million in research with 1,150 faculty then you are doing $174,000 per faculty member on average
so 5% more faculty doing the same average of research would do an additional $10 million in research per year
10% more faculty would do $20 million more in research per year
so spending $20 million per year of basically student tuition at a university with 1,150 faculty and $200 million in faculty salaries doing $200 million a year in research cost you at least $20 million per year in research dollars if you hire "average" faculty relative to your current faculty