DATE: Thursday, August 28, 1997             TAG: 9708280711

SECTION: SPORTS                  PAGE: C1   EDITION: FINAL 

SERIES: NSU STADIUM 

SOURCE: BY HARRY MINIUM, STAFF WRITER 

DATELINE: NORFOLK                           LENGTH:  126 lines

DESPITE DEBT, NSU OK FINANCIALLY SPARTANS NEED MORE CASH TO MEET DIVISION I EXPENSES

You're a business owner who lost $353,157 last year, leaving your company with accumulated debts of $1.2 million.

Though times are tight, you decide to borrow $12.2 million to make improvements to your facilities. That means you must fork over $800,000 per year over the next 15 years to repay your new loan.

Moreover, your expenses are increasing from $3 million last year to $4.3 million this year.

Time to call a good bankruptcy attorney, right?

Dire as this sounds, that is the economic state of Norfolk State University's athletic program as it enters Division I and the Mid-Eastern Athletic Conference.

NSU's athletic teams lost $353,157 last season, increasing its total debt to $1.2 million. Then it built the $12.2 million, 28,088-seat Dick Price Stadium, whose $800,000 yearly debt payments must be met with athletic revenues.

And costs are going up $1.3 million per year, to $4.3 million, because of the jump to Division I and the stadium debt.

All of which means NSU's battle cry - ``Behold the Green and Gold'' - will take on new meaning as the search for cash becomes a main issue in the school's first year in Division I.

Yet William R. Miller III, rector of NSU's Board of Visitors, says the debts ``are not life-threatening.''

``We're going to be OK,'' he said. ``We are in the process of bringing in financial experts . . . to make certain that these deficits do not continue and do not cause any long-term problems for the university. We will take whatever steps necessary to stop the bleeding and get back on track. It's a problem that can and will be dealt with.''

The picture is not all bleak, according to budget figures provided by Earlie P. Horsey, the university's acting vice president for finance. NSU officials predict that an increase in athletic fees charged to students, higher ticket prices and an expected attendance surge will swell revenues from $2.7 million to $4.6 million.

They project the university will clear about $250,000 in profits in 1997-98. That prediction assumes Price Stadium will be full for at least three of six home football games, including Saturday's opener against Virginia State.

But in some ways the budget is conservative. It includes only $12,000 in road gate revenue for the basketball team. Coach Mike Bernard has scheduled 18 road games that will bring in approximately $150,000. It also assumes NSU will raise nothing from alumni, and fundraisers expect to raise tens of thousands of dollars.

Some questions and answers on the financial state of NSU athletics:

Who is footing the bill for NSU athletics?

The university's 8,574 students, who will provide about 75 percent of the school's athletic revenue. They will pay an estimated $3.1 million in athletic fees when they sign their tuition checks. Because of a fee increase approved last March by the university's Board of Visitors, students will pay about $633,000 more this season than last.

What are the other big revenue producers?

Football ticket revenues are supposed to jump from $238,326 last season to $1,058,330 this season. Men's basketball ticket revenue, $47,521 last season, is expected to increase to $294,438, probably an unreasonable expectation with only nine home games.

How does NSU's budget compare with other Division I schools?

Although budgets are difficult to compare - some schools include costs in athletic budgets that others don't - NSU's is much smaller than crosstown rival Old Dominion, which does not have the expense of football. ODU spends about $7.1 million on athletics. Virginia Tech, which has a successful Division I-A football program, had $11.6 million in football revenues alone last season.

How can ODU afford such a larger budget?

ODU's student body is twice the size of NSU's, and at most state schools student fees provide the bulk of athletic revenue. The Monarchs' alumni are far more generous than NSU's. ODU raised about $1.2 million from alumni for athletics last season. NSU's alumni contributed about $25,000. ``We're going to have to raise a lot more money than we have been raising,'' said Malverse Nicholson, director of the NSU Athletic Foundation.

Does it hurt NSU to spend so much less?

Price says it hurts very much. ODU athletic director Jim Jarrett has five assistant athletic directors to handle matters ranging from event management to fundraising. Most MEAC schools have at least one assistant AD, some as many as three. But Price is a one-man show. ``We have to have more administrative help,'' Price said.

NSU also is forced to scrimp on salaries. Price is paid $70,000 for a position that commands $100,000 or more at many Division I schools. NSU also uses full-time faculty members to coach nine of its 11 teams.

Who gets the lion's share of NSU's athletic money?

The football team will spend $906,350 for scholarships, equipment, salaries and travel. Men's basketball ($324,976), women's track ($184,033) and women's basketball ($177,014) receive the next largest shares.

Will football make money at NSU?

Not if you include the cost of Price Stadium, but losing money is not unusual in Division I-AA. According to the NCAA, 94 percent of Division I-AA schools lose an average of $535,000 per year. Based on the $906,350 in expenses, NSU will make money if it attracts $1 million in ticket sales. But if you include the cost of building Price, football loses about $700,000 per year.

Is there any other reason for concern?

Title IX, the federal law mandating male-female equity in athletics, is a major concern. Because of recent rulings from the federal courts, universities are required to spend athletic funds based roughly on the male-female ratio of their student bodies. Norfolk State is 64 percent female, meaning federal law requires the Spartans to spend roughly 64 percent of their revenues on women. But NSU will spend about two thirds of its athletic revenue on men. The school will provide 114.7 scholarships for men worth $1,047,438. Women will receive 65 scholarships worth $559,826.

Why is this a concern?

Now that it is in Division I, Norfolk State can expect more scrutiny on this issue. Four MEAC schools have been named in lawsuits claiming they violate gender equity guidelines. If NSU is named as well, the school might have to fight a costly lawsuit and then make painful choices on athletic spending.

USA Today reports that 19 major college football powers with far more revenue than NSU have dropped men's teams since 1991 to comply with gender-equity guidelines. ODU dropped men's cross country and added women's soccer to reach equity. NSU president Marie V. McDemmond has ordered a gender-equity review of NSU. MEMO: Staff writer Rich Radford contributed to this story. ILLUSTRATION: NSU ATHLETIC BUDGET, 1997-98

VP GRAPHIC

SOURCE: Earlie P. Horsey, acting vice president for finance, Norfolk

State University

[For a copy of the graphic, see microfilm for this date.]

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