Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, December 20, 1993 TAG: 9312200094
SECTION: SPORTS PAGE: B-5 EDITION: METRO
SOURCE: Associated Press
DATELINE: BOSTON LENGTH: Medium
"A lot of people presume that athletics is a profit-making enterprise and the universities make money hand-over-fist from it," said Robin Jenkins, who directed the study for the National Association of College and University Business Officers. "These numbers indicate that this is certainly not the case at a majority of institutions. In fact, the cost of these programs is enormous."
The report, distributed to university administrators last month with little fanfare, shows that 70 percent of Division I athletics programs lost money in 1989, the most recent year for which the costs could be determined. The average profit of a Division I-A intercollegiate athletic program was $39,000, while all other divisions had deficits ranging from $145,000 to $782,000.
The findings come as colleges and universities contend with chronic budget problems and resistance to continued increases in tuition.
"That pressure is going to continue throughout this decade, not over whether college athletics are good or bad or out of control, but to get the true facts on the table and let the presidents and the trustees and the governing boards make an informed decision," said Jack Blanton, vice chancellor for administration at Kentucky.
Fewer than 100 schools make any money from athletics, the study said.
"Even in the schools that are making money, the overall university is looking at that as maybe the source of a revenue stream, whereas before the athletic department could use that money to enhance sports," said Keith Martin, director of accounting for the NCAA.
The report, prepared with help from the accounting firm of Coopers & Lybrand, said that athletic programs camouflage 24 to 34 percent of their costs by grouping them under the heading of "expenses not related to specific sports." For example, the grooming of a football field may be listed under general university maintenance.
"There are a lot of people on campuses that would probably like to have the real costs obscured," Jenkins said. "The issue is, executive management should make that decision, not necessarily an athletic director or a coach."
The report acknowledges that intercollegiate athletics has unseen benefits, including boosting exposure and prestige, attracting alumni contributions and, at state schools, encouraging legislative support.
An economics professor at Boston College found the success of that school's football team and quarterback Doug Flutie in 1985 translated into a 30 percent increase in the number of student applicants to the school. That, in turn, led to an improvement in the SAT scores of entering freshmen.
"There's no question that visibility, image - for better or for worse - are largely formed in this country, particularly in the major institutions, based on their athletic programs," Blanton said.
The report urged universities to consider reducing the number of athletic scholarships, restricting scholarships to athletes with financial need, reducing team and recruitment travel and limiting equipment costs, which in 1989 averaged $1,200 per player. It also recommended that the compensation of head coaches be brought under control, and their endorsement income tapped by universities.
by CNB