National Collegiate Athletic Association

The NCAA News - News and Features

The NCAA News -- October 12, 1998

Survey shows increase in deficits

Overall moderation noted in I-A profits, losses

The latest study of revenues and expenses at NCAA Divisions I and II institutions shows that financial deficits for intercollegiate athletics programs are growing at an increasing rate.

The deficit for the average Division I-A program grew from $237,000 in 1995, when the last study was made, to $823,000 in 1997. In 1993, the average decifit was $174,000.

Larger deficits also were reported in other divisions and subdivisions in the 1997 study:

Division 1995 1997
I-AA $1.7 mil. $2.0 mil.
I-AAA $1.4 mil. $1.9 mil.
II (with FB) $842,000 $947,000
II (w/o FB) $584,000 $773,000

Daniel L. Fulks, director of the study and accounting program director at Transylvania University in Lexington, Kentucky, noted that the figures do not include any direct financial support provided by the institution to the athletics department. If institutional support is included, Fulks noted that the figures change significantly and that the average I-A program shows a profit of $437,000.

However, he said the data are most meaningful if institutional support is excluded.

"The most significant figure is probably the overall cost to the university," he said.

The study showed that in Division I-A, 43 percent of all programs reported revenues (after removing institutional support) over expenses. That figure is consistent with recent trends. In the 1993 study, it was 51 percent, and in 1995, it was 46 percent. Also, the percentage of I-A institutions with expenses exceeding revenues continued to increase. That figure was 49 percent in 1993, 52 percent in 1995 and 56 percent in 1997.

For those I-A institutions with revenues exceeding expenses, the average profit in the most recent study was $1.7 million, compared to $2.3 million in 1995. For those with expenses exceeding revenues, the average deficit was $2.82 million, compared to $2.76 million in 1995.

Fulks said that those numbers may reflect some good news.

"The trend in the past -- and I don't like this expression -- was for the rich to get richer and the poor to get poorer with either bigger profits or losses," he said. "That has eased up a bit as the rate of decline in average profits was much greater than the increase in average deficits. The current study also shows that for I-A programs operating in the black, the average profit declined $587,000 over the last two years. For I-A programs operating at a loss, the average deficit was relatively stable, with an increase of only $66,000."

The NCAA has conducted the study, "Revenues and Expenses of Divisions I and II Intercollegiate Athletics Programs/Financial Trends and Relationships," under Fulks' direction every other year since 1993. Previous studies were conducted outside the NCAA beginning in 1985. The study examines virtually all sources of revenues and expenses for intercollegiate athletics programs. A similar study in Division III will be released later this month.

Football

Fulks said that football continues to carry the financial load in Division I-A, with 71 percent of I-A institutions showing revenues over expenses in that sport. The average profit in those cases is $5.0 million. At a typical Division I-A institution, football provides 66 percent of the revenue generated by men's sports (54 percent of men's expenses are attributable to football).

The situation is quite different in Division I-AA, where only 16 percent report revenues over expenses from football. For that 16 percent, the average profit is $295,000.

"The difference is revenue," Fulks said. "It is relatively expensive to run a I-AA football program, but revenues are much less." The figures show that while the typical I-A football program costs four times as much as a typical I-AA program ($4.4 million vs. $1.1 million), a I-A program brings in about 13 times more revenue ($7.6 million vs. $578,000).

Basketball

As for basketball, 74 percent of Division I-A men's basketball programs made an average of $2.2 million in revenues over expenses. In Division I-AA, 27 percent of the basketball programs showed revenues over expenses (the average was $594,000), while in Division I-AAA, 37 percent of the men's basketball programs made money (an average of $385,000).

Twenty Division I respondents made money on women's basketball programs. Only two of those were in Division I-A, although the average figure was substantial ($274,000). Ten women's basketball programs at Division I-AA institutions made money, averaging $193,000. The remaining eight were in I-AAA (average profit of $58,000). In 1995, 11 Division I institutions made money on women's basketball.

Revenues in Division I football and basketball are up substantially since 1995. The percentage increases for women's basketball are impressive (30.8 percent for I-A institutions), although the actual numbers remain substantially smaller than for men's basketball ($174,000 for women compared to $2.8 million for a typical Division I-A men's basketball program).

Expenses for Division I football and men's basketball have been relatively flat over the last two years, with neither sport increasing more than eight percent since 1995 in any subdivision. "I'm surprised the increase in expense is as low as it is in the men's sports," Fulks said. "The changes are probably only inflationary."

However, the survey shows that spending on women's basketball is up significantly, rising by 28, 21 and 23 percent, respectively, at Divisions I-A, I-AA and I-AAA institutions. The pattern is similar in Division II.

Other information

Fulks noted other information found in the study:

  • The primary source of revenue at Division I-A institutions (28 percent of all revenue) is ticket sales. At all other levels surveyed, the primary source of revenue is student activity fees (between 22 and 25 percent).

  • Salaries and grants-in-aid are by far the greatest expenses at all levels. In Division I-A, salaries are the largest expense; at other levels surveyed, grants-in-aid create the largest expense.

  • Spending on women's programs is up at all levels surveyed. In Division I-A, the percentage spent on women's programs in 1997 was 18 percent, up from 16 percent in 1995. (Men's expenses are 48 percent, while non-gender expenses are 34 percent.)

    The report is available from NCAA publishing (913/339-1900).

    Organization and activity data


    		 I-A I-AA I-AAA II with football II w/o football
    Participating athletes--total




    Men's 1997 305 246 136 200
    Men's 1995 315 249 140 195
    Men's 1993 321 274 139 200
    Men's 1989 335 260 150 229
    Women's 1997 181 141 114 97
    Women's 1995 154 123 107 88
    Women's 1993 131 125 98 84
    Women's 1989 136 109 88 104
    Varsity sports offered*




    Men's 1997 8 7 7 6
    Men's 1995 10 9 8 7
    Men's 1993 10 10 8 7
    Men's 1989 10 9 8 8
    Women's 1997 8 7 7 6
    Women's 1995 9 9 8 6
    Women's 1993 9 8 8 6
    Women's 1989 8 8 7 6
    *Indoor track, outdoor track and




    cross country counted as one sport




    beginning with 1997 survey.




    Number of full-time coaches




    Men's 1997 22 12 7 6
    Men's 1995 23 15 9 7
    Men's 1993 23 15 8 8
    Men's 1989 N/A N/A N/A N/A
    Women's 1997 15 8 7 4
    Women's 1995 14 8 7 4
    Women's 1993 12 7 6 4
    Women's 1989 N/A N/A N/A N/A
    Number of coaches (total)




    Men's 1997


    Men's 1995 29 25 15 16
    Men's 1993 28 24 15 15
    Men's 1989 23 15 8 8
    Women's 1997


    Women's 1995 18 13 13 9
    Women's 1993 16 13 12 8
    Women's 1989 11 7 5 4
    Athletics aid equivalencies




    Men's 1997 133 82 41
    Men's 1995 128 78 39
    Men's 1993 137 94 35
    Men's 1989 N/A N/A N/A
    Women's 1997 77 49 41
    Women's 1995 64 39 37
    Women's 1993 60 37 29
    Women's 1989 N/A N/A N/A
    Noncoaching personnel




    Total 1997 63 19 15 6
    Total 1995 60 19 14 5
    Total 1993 59 19 13 7
    Total 1989 50 16 11 6
    Annual cost of a full grant




    1997 In-state 10,237 11,928 13,648 9,220
    1997 Out-of-state 14,771 14,528 16,744 11,978
    1995 In-state 9,131 10,101 11,550 7,596
    1995 Out-of-state 13,353 12,905 14,596 9,955
    1993 In-state 8,127 8,907 10,601 7,208
    1993 Out-of-state 11,725 11,413 13,354 9,011
    1989 Average 7,731 6,672 9,838 6,034

    I-A football net profits and deficits

    Dollars in thousands




    		1989 1993 1995 1997
    Revenues Exceed Expenses



    Number of Respondents 47 57 60 70
    Average Profit 2,771 3,883 3,908 4,972
    Percentage Reporting Profits 55% 67% 69% 71%
    Expenses Exceed Revenues



    Number of Respondents 39 28 27 29
    Average Deficit 638 1,020 969 1,065
    Percentage Reporting Deficits 45% 33% 30% 29%

    Note: The average profits shown reflect the average only for those institutions reporting profits. The average deficit is for those reporting deficits.

    I-A men's basketball net profits and deficits

    Dollars in thousands




    		1989 1993 1995 1997
    Revenues Exceed Expenses



    Number of Respondents 55 57 62 73
    Average Profit 1,167 1,637 1,939 2,201
    Percentage Reporting Profits 66% 67% 70% 74%
    Expenses Exceed Revenue



    Number of Respondents 28 27 26 26
    Average Deficit 238 226 227 282
    Percentage Reporting Deficits 34% 32% 29% 26%

    Note: The average profits shown reflect the average only for those institutions reporting profits. The average deficit is for those reporting deficits. Survey reflects Division I-A institutions sponsoring men's basketball.

    I-A women's basketball net profits and deficits

    Dollars in thousands




    		1989 1993 1995 1997
    Revenues Exceed Expenses



    Number of Respondents N/A 1 5 2
    Average Profit N/A 57 67 274
    Percentage Reporting Profits N/A 2% 6% 2%
    Expenses Exceed Revenues



    Number of Respondents N/A 81 81 96
    Average Deficit N/A 373 459 550
    Percentage Reporting Deficits N/A 95% 91% 97%

    Note: The average profits shown reflect the average only for those institutions reporting profits. The average deficit is for those reporting deficits. Women's basketball results for 1989 are not available. Survey reflects I-A institutions sponsoring women's basketball.