WOW

MeanGreen61 · June 30, 2005

http://austin.bizjournals.com/austin/stori...ry3.html?page=1

UT athletic budget leaps by 57%

Jonathan Kealing

Austin Business Journal Staff

There's an arms race in the Big 12 athletic conference, but it's not just a battle among elite teams for conference championships.

Once again, the University of Texas' athletic budget is projected to be the largest in the Big 12 Conference. Including the $13 million spent to run the Erwin Center, UT's athletic budget for 2005-06 will be $82 million.

In fact, Texas' athletic budget has grown 57 percent over the past six years and shows no signs of slowing down. College and university teams throughout the conference -- and the country -- are spending more money as well.

One source of growth for Texas has been revenue from the Big 12. The conference recently announced it would distribute a record amount of revenue to each of its members in 2005-06.

Each school will receive $8.8 million, an increase from last year and a far cry from the $4 million distributed when the conference was formed less than 10 years ago. The money primarily comes from television contracts for Big 12 football and basketball championships.

That distribution represents only a small chunk of Texas' budget, however. Where, then, does most of the money come from? Two words: Longhorn football.

"In most general terms, 75 to 80 percent of our revenues are tied to our football program," says Ed Goble, associate athletic director for business.

Football ticket sales alone are projected to account for more than $19 million in revenue for the athletic department in 2005-06. In addition to the price of admission, $280 for a season ticket, fans make donations to the athletic department to qualify for certain games or to sit in certain areas.

Other revenue streams tied to football include a large portion of the newly renegotiated multimedia rights deal worth $5.5 million and a portion of the $600,000 merchandising agreement with Nike Inc.

Revenue for multimedia rights is projected to rise more than $2 million in 2005-06, reflecting changes to UT's deal with Host Communications Inc. Host produces, among other things, UT coaches' shows, Longhorn radio programs and corporate marketing.

In its seventh year, the Nike contract -- which doesn't include the value of free gear for UT athletes -- is another example of potential growth.

The UT contract was signed for seven years at the current rate, with a two-year option that features some increases, Goble says. However, the Nike deal with UT pales in comparison to some sporting goods contracts signed by other universities.

Big 12 opponent the University of Kansas signed an 8-year, $26.7 million contract with Nike rival Adidas while another conference foe, the University of Nebraska, signed an 8-year, $22.7 million contract with Adidas.

UT "is pretty consistent with most of our peer schools," Goble says.

Ohio State University, which operates one of the highest-spending athletic programs in the country, is budgeting about $92 million next year for sports -- about $19 million more than it spent just four years ago.

The University of Oklahoma, which projects a budget of about $62 million for 2005-06, has boosted its budget by more than $10 million over the past five years. Oklahoma has the second largest sports budget in the Big 12.

Kevin Wieberg, commissioner of the Big 12 Conference, says the conference constantly examines differences in spending among its members.

Wieberg points to the "middle group" of institutions, rather than the highest- and lowest-spending programs.

"If you have a vibrant and growing middle grouping, I think that reflects well," Wieberg says.

The sharp jump in college sports spending elicits some concern about blurring the lines between amateur athletics and revenue-driven professional sports. The National Collegiate Athletic Association recently convened a panel of university leaders to study the future of college athletics.

Peter Likins, president of the University of Arizona, chairs the committee. He says one of the concerns is that athletic expenditures and revenue are climbing four times faster than the same figures for academic departments at NCAA-member colleges and universities.

"We don't have a financial crisis," Likins says, "but we do have evidence of stress and trend lines that worry us."

jkealing@bizjournals.com (512) 494-2545

PlummMeanGreen · June 30, 2005

That budget would build us such a stadium in Denton that the Big 12 would be looking at us in a few years when there is another conference musical chairs; of course, they'd be looking at us assuming we are filling such a stadium.

adman · June 30, 2005

Anyone know what our athletics budget is? And what % is football. Also in the realm of budgets is there an NCAA breakdown for all Div 1 schools?

Stan R · June 30, 2005

I think ours is around 12M.

PlummMeanGreen · June 30, 2005

I think ours is around 12M.

For some reason, I thought we had climbed to around $14-15 million.

Can anyone link the 2004 budget for both men and women's athletics?

LSUfan4444 · July 1, 2005

Maybe if they spent $165 million a year they could find a way to beat OU.

user posted image

All the horns of the wicked also will I cut off- Psalms 75:10

shaneb · July 1, 2005

All the horns of the wicked also will I cut off- Psalms 75:10

An LSU fan quoting scripture???? Back up kids..... here comes the lightning.

ShaneB

FirefightnRick · July 1, 2005

....$600,000 merchandising agreement with Nike Inc.....
In its seventh year, the Nike contract -- which doesn't include the value of free gear for UT athletes -- is another example of potential growth.
The UT contract was signed for seven years at the current rate, with a two-year option that features some increases, Goble says. However, the Nike deal with UT pales in comparison to some sporting goods contracts signed by other universities.
Big 12 opponent the University of Kansas signed an 8-year, $26.7 million contract with Nike rival Adidas while another conference foe, the University of Nebraska, signed an 8-year, $22.7 million contract with Adidas.

Thank goodness. Where would North Texas be without having CLC out there protecting our multi-million dollar merchandising programs too.

Rick

Edited July 1, 2005 by FirefightnRick

PlummMeanGreen · July 1, 2005

Big 12 opponent the University of Kansas signed an 8-year, $26.7 million contract with Nike rival Adidas while another conference foe, the University of Nebraska, signed an 8-year, $22.7 million contract with Adidas.

Thank goodness. Where would North Texas be without having CLC out there protecting our multi-million dollar merchandising programs too. (FFR quote)

................................................................................................................................

KANSAS U IS OUT THER HUSTLING BIG MONEY! As some of our very own NT constituency have doubted the availabilty of monies out there for the construction of a new football stadium, just look what the Kansas Jayhawks freakin' received from Adidas?

BUILT IT, DAMMIT, JUST BUILD THE DAMN STADIUM! Troy U did it, why are we acting like its The Impossible Dream sometimes when we know it isn't? Hellsbells, we could build a state of the art college football stadium with half of UT-Austin's athletic budget. What the hell we doing wrong in Denton?

Is Denton (DFW) located in Appalachia or something? To hear some of our people talk, you'd think we were. I just don't get it with our alma mater sometimes, I just don't.

Who knows, maybe someone on campus is just trying to position themselves into looking like NT's Fund-Raising Messiah by "finally" finding the Big Donor for our new stadium, but geewillakers people, we are in the Garden Spot of Coporate America in this part of the sovereign state of Texas in the greatest and wealthiest nation in the world.

There is some Big Money out there if we just seek it without possibly pissing off potential Big Donors like some of our very own most loyal NT constituency get treated over simple customer service at times from the very campus we've invested much money and time; and too many times from people who have never taken 1 course at NT and perhaps spend way too much time dressing up resumes rather than performing the job at hand. Go figure?

People buy from people they like and they also give to people they like. Don't know about yall, but I still see 15,000 empty seats at Fouts Field most games AND our coaching staff and football team deserve better, in fact, they deserve standing-room-only at every Mean Green home game. They have given us much the last 5 years--what have we given them in return?

At NT, do we need to add Customer Service 101 to our curriculum for some who obviously missed taking the course wherever they went to school? Do we need to add the Troy U fundraisers to our staff, you know, the Troy U fundraisers who didn't talk about how hard it is to raise money, but just went out there, did it and finished a (basically) new stadium about 2 years ago.

Sorry, too early for a Friday morning rant, I know!

Edited July 1, 2005 by PlummMeanGreen

grad88 · July 1, 2005

Plumm, I understand your rant, but the reason we are finding it difficult to find the big donor is because we are asking the egg to come before the chicken...it is operating in the "big time" that draws the big donors. Big fish like to swim in big ponds and big donors are attracted to projects that they feel a genuine connection to. If Matress Mac had the money, I am sure that he would be that donor...I just don't think he has that kind of money to throw at a new stadium. If he did, we would already have it. The Interstate Battery guy (another connection) is not interested.

It is going to take someone that sees athletics (particularly football) as the gateway for the university as a whole to take it to the next level. Has NT cultivated a lot of those kinds of alums? With money? It is obvious that we have not.

What this univerisity should do is build the stadium with student fees, continue to build the program and constituency (pack the new stadium) and the big donors will then be cultivated to retire that debt.

The Troy State example that some keep touting is an anamoly (sp?)....they happened to have a strong relationship with the individual who could make it happen. That and the fact that Troy State has not cultivated an "Arts" culture that dominates their campus...as NT has over the past 50 years.

Just food for thought....why was a new Business building not built on this campus 20 years ago--when the College of Business has been the largest school right up there with Arts and Sciences all this time? The answer to that question is the answer to my above comment.