College Sports Dilemma

T he explosive growth of the college athletics " business " has dramatically altered these amateur games over the past decade. The multimillion dollar university sports enterprises often dwarf academic departments in terms of resources. Athletic departments are commanding more and more attention of college presidents and governing boards, and rightfully so! While many of the perennial top competitors in college athletics reap the benefits of success in ticket sales, merchandising, TV revenue, and alumni support, those not making the grade in terms of wins and losses often are forced to rely on the general funds of the university to balance the budget. When general university funds are diverted from the academic mission to support athletic programs, questions of the university's priorities are understandably raised. A few examples might clarify this issue. In 2015, Oregon was reportedly the most profitable university/sports complex, generating $196 million in revenue over $110.4 million in expenses, for a profit of $83.5 million. 7 The balance sheet was made very positive by a gift of $95 million. On the other side of the spectrum, Rutgers reportedly had the largest athletic department deficit for 2013-2014 at $36.3 million. 7 According to the National Collegiate Athletic Association (NCAA), just 24 of the 230 public Division 1 schools had balance sheets in the black and were able to support their athletic programs without help from the general funds of the university. 7 Consequently, the trends in rising costs of competition have generated fears among those responsible for university fiscal policy, so much so that the state of Virginia recently passed a law limiting the dollars that can be diverted to athletic programs from the university's general finances. 1 With these thoughts in mind, it is interesting to look at where the money in college athletics often goes. Athletic venues help generate the atmosphere and experience of the athletic contests and are often tops in athletic department budget items. Auburn spent $13.9 million on an 11,000–square foot high-definition video board roughly the size of a 5-story building. 4 Close behind the infrastructure costs are those of the personnel required to run college athletic departments. Coaches and staff account for approximately 30% of Division 1 athletic expenditures. 2 Coach Krzyzewski of Duke appears to top the list at $9.7 million annually, while 35 coaches in the 2015 NCAA basketball tournament had 7-figure salaries. 2 On the revenue side, NCAA March …