Spending trends in college athletics has been a popular topic of late, especially now that the Division I Board of Directors has appointed a task force to study what drives institutions to spend what they do on their athletics programs -- particularly football and men's basketball.

As assistant vice-chancellor for development at Chattanooga, I come into frequent contact with donors who give not only to Chattanooga's athletics and academic interests, but to those at the University of Tennessee, Knoxville, as well. I have seen first-hand the positive effects that a profitable athletics program can have on an entire university system.

The athletics program at Tennessee is one of the largest and most successful in the country. It is successful both in terms of athletics competition and as a multimillion-dollar business.

With annual income exceeding $50 million, Tennessee's athletics program could be considered one of the larger businesses in Knoxville. The program also is an entirely self-sufficient operation, which means it receives no state support to provide athletics programs for the eight men's and 10 women's teams it fields.

Football ticket sales bring in more than $15 million annually. However, this does not begin to reveal the total income that football provides to Tennessee. Neyland Stadium is sold out on a season-ticket basis. Priority for football seats and parking are determined by an individual's Volunteer Athletic Scholarship Fund (VASF) contribution. The VASF, begun in 1986 with athletics contributions of $600,000, ballooned to more than $12.5 million in annual gifts in 2000.

Tennessee's athletics program even benefits the regional campuses at Chattanooga and Martin by enabling academic donors to these campuses to be eligible for priority seating at Neyland Stadium. For the 16,000 seats that are controlled by academic contributions, a gift to Tennessee is a gift to any UT campus. About $3 million annually is contributed to academic interests at the total UT campuses from priority football seating.

In addition to the revenue received from ticket sales and priority seating, Tennessee has trademarks on more than 100 assorted logos and insignias. More than 600 licensees produce a variety of merchandise that bears a Tennessee trademark.

Part of the Board of Directors Task Force study probes into whether a correlation exists between financial success and athletics success. In terms of Tennessee's athletics accomplishments, the Vols have won two national championships in football, six in women's basketball, one in men's swimming, one in men's cross country and three in men's outdoor track and field.

Of even greater interest to the Board Task Force is whether financial and/or athletics success translates into success in the classroom. Among the student-athletes who entered the university in 1993, 59 percent earned a degree, a rate that is 2 percent better than that of the student body. And football graduation rates went from 11 percent in 1998 to 65 percent in 2000.

Tennessee's athletics program is a true partner with the university's academic programs. The successes of the athletics program have enabled the university to provide financial support to enhance the academic programs. Tennessee's athletics program contributes about $7 million per year to the academic programs. Nearly $2 million is given back to the university's academic scholarships and band scho-
larships. Licensing fees from the sale of Tennessee merchandise contributes more than $2 million as well.

In October 2000, Tennessee announced its Trustees Scholarship Program, which will provide a $1,000 four-year academic scholarship to any Tennessee high-school senior in the top 10 percent of his or her class or who scores above 26 on the ACT. In addition to this support, the athletics department has pledged an additional $20 million over 20 years to continue to provide academic scholarships for Tennessee high-school students.

The intangibles

The Board Task Force also is investigating the "intangibles" of winning. Does athletics success elevate the school's overall image? Tennessee Associate Athletics Director Mike Hamilton said that a main benefit of a successful athletics program is the sense of pride it adds to the university community. The passion alumni have for athletics can open the door for relationship-building and future gifts to academic departments.

Fred Obear, chancellor emeritus at Chattanooga, has said that a successful athletics program connects a broader public to the campus than if you did not have a competitive athletics program. It helps provide a more collegiate atmosphere for the student body. Athletics events are a great way to build alumni relations.

And as for the question of whether championships prompt a "spike" in giving, Tennessee reported that the total number of donors increased by more than 2,500 individuals after the school's 1998 national championship in football. The participation rate for annual gifts also went from 17.9 percent to 18.5 percent at the same time the rate for most of our peer institutions decreased. Applications for admission also went up 20 percent for the next fall session.

So, is athletics spending "out of control," as critics might assert? Do the "risks" of spending outweigh the benefits? The Board Task Force certainly will have to take a hard look at the numbers when it attempts to answer those and other questions over the next several months.

But it is at least this writer's view that the University of Tennessee is very fortunate to have an athletics program that enhances the reputation of the entire university and provides millions of dollars of support each year to its academic initiatives.

Bob Martin is the assistant vice-chancellor for development at the University of Tennessee at Chattanooga.