TSLMail #175 - Friday, May 13, 2005

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Tech Sports News

Hokie Fans: Thanks for the Support of Advance Auto Parts
by Will Stewart, TechSideline.com

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2003-04 College Sports Finance Numbers Are In
by Will Stewart, TechSideline.com

Every year, this time of year, a new set of college sports finance data becomes available, and it's always an interesting read. Every summer, the figures for the previous college year become public, and by "previous year," I mean that the figures lag the calendar by one year. So this spring/summer of 2005, the figures for the 2003-04 academic year are just becoming available.

For the last decade or so, thanks to the Equity in Athletics Disclosure Act (EADA), colleges are required to report their athletic revenue and expenditures to the federal government. Those numbers are also available to the NCAA and the media, of course, giving the average fan some insight into what universities make and spend on athletics.

But while the numbers that schools must report are standard -- total athletic revenue, total athletic expenditures, football revenue and expenses, women's sports revenue and expenses, etc. -- the way those numbers are figured by each university varies wildly. For example, schools allocate donations (such as Hokie Club contributions) as revenue in varying ways.

Another example: Many private universities will report money that is transferred from the university's general fund to cover shortcomings as "revenue," even though it's not technically income as you or I would think of it (ticket sales, TV revenue, etc.). Money transferred from a private school's general fund to their athletic fund is often filed as women's athletic revenue, in order to make the school look better with regards to Title IX, when in reality, the money wasn't actually "revenue" from women's sports.

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According to the 2003-04 EADA figures, for example, Rice University had the highest revenue total from women's sports ($6.6 million) in all of Division 1-A. Does anyone believe that tiny, private Rice University, with an undergrad enrollment of just 2,800 students, makes more off of women's athletics than any other school in the country? Pfffffttt. I don't.

Despite varying accounting approaches and practices among the 117 Division 1-A schools, the EADA financial numbers are fun to look at. And the numbers for 2003-04, the most recent numbers available, reveal the following:

Ohio State is the first school to ever report athletic revenue of over $100 million, with $103.8 million in revenue. OSU spent $90 million for a net income of $13.8 million from athletics.
#2 is Texas, with $83.5 million in revenue, a full $20.3 million behind OSU.
The top 14 schools in terms of revenue are all from the Big Ten, Big 12, or SEC, with the exception of independent Notre Dame, which comes in 12th at $55 million in revenue. The first school outside of the Big Ten, Big 12, or SEC to appear in the rankings is USC of the PAC 10, with $53 million in revenue, good for 15th place.
UNC led the ACC, with $49.9 million in revenue, good for 19th place overall.
Virginia Tech ranked 43rd in athletic revenue, with $38.9 million. That was good enough for third in the Big East, VT's conference at the time. Miami (21st, $47.5 million) and Syracuse (37th, $40.6 million) were both ahead of VT in the Big East. Connecticut, which was independent in 2003-04, was 28th with $43.0 million in revenue.
VT's rank in revenue would have put them 7th in the ACC behind UNC, Virginia (31st, $42.5 million), Clemson (33rd, $40.8 million), Maryland (38th, $40.4 million), Georgia Tech (40th, $39.7 million), and Duke (41st, $39.0 million).

Here are the top 10 schools.

Athletic Revenue and Expenses, 2003-04 Top 10, Sorted by Total Revenue
Conf	School	Total Rev.	Total Exp.	Net
B10	Ohio State	$103,871,324	$90,087,604	$13,783,720
B12	Texas	$83,474,135	$70,602,483	$12,871,652
SEC	Florida	$72,735,275	$64,055,300	$8,679,975
B10	Michigan	$68,920,479	$59,327,237	$9,593,242
SEC	Tennessee	$66,795,023	$66,764,712	$30,311
SEC	Alabama	$59,819,035	$52,811,245	$7,007,790
B12	Kansas	$59,327,117	$34,798,397	$24,528,720
B10	Wisconsin	$58,121,893	$50,871,850	$7,250,043
B12	Oklahoma	$57,924,631	$47,843,256	$10,081,375
B10	Penn State	$57,546,522	$55,036,212	$2,510,310

Here are the ACC schools (noting that VT, Miami and BC were still in the Big East in 2003-04).

Athletic Revenue and Expenses, 2003-04 ACC, Sorted by Total Revenue
School	Total Rev.	Total Exp.	Net
North Carolina	$49,885,075	$43,658,735	$6,226,340
Miami	$47,470,707	$47,470,707	$0
Virginia	$42,465,400	$41,790,858	$674,542
Clemson	$40,835,150	$39,626,704	$1,208,446
Maryland	$40,472,162	$40,472,148	$14
Georgia Tech	$39,674,362	$40,359,027	-$684,665
Duke	$38,988,933	$17,290,499	$21,698,434
Virginia Tech	$38,900,607	$35,835,924	$3,064,683
FSU	$36,009,213	$33,512,430	$2,496,783
Boston College	$35,663,942	$36,748,711	-$1,084,769
NC State	$32,382,028	$32,115,672	$266,356
Wake Forest	$29,560,866	$27,316,065	$2,244,801
Note: Miami, VT, and BC were in the Big East in 2003-04

In case you're wondering, the net income of $21.7 million reported by Duke was second-highest among Division 1-A schools, trailing only Kansas ($59.3 million revenue, $34.8 million expenses, $24.5 million net). But, given that Duke is a private university, who knows how the numbers were cooked and what they really mean? One thing's for sure, if Duke "made" $21.7 million on athletics, then they need to pump more than a little bit of that money into their pathetic football program.

Virginia Tech's numbers bring about many questions. Putting them into historical context, take a look at the following figures, reported in the Roanoke Times on Oct. 12th, 2003:

VT Athletic Revenue and Expenses in Millions of Dollars, 1998-99 to 2003-04
Year	Total Rev.	Total Exp.	Net
1998-99	$20.8	$19.6	$1.2
1999-2000	$26.2	$22.5	$3.7
2000-01	$28.5	$25.4	$3.1
2001-02	$26.9	$25.4	$1.5
2002-03	$33.5	$27.8	$5.7
2003-04	$38.9	$35.8	$3.1
Note: All figures are from The Roanoke Times article "Tech Vice President Courted ACC Bid," Page A1, October 12, 2003, with the exception of the 2003-04 figures, which are from the Orlando Sentinel via the 2003-04 EADA data.

One wonders why VT's athletic expenditures suddenly skyrocketed, jumping by $8 million from 2002-03 to 2003-04. Something smells fishy here, especially when you consider this: for the Roanoke Times article on 10/12/03, the VT Athletic Department gave projected 2003-04 numbers to reporter Mark Berman of $33.8 million in revenue and $26.5 million in expenses.

But when it came time to file their EADA report to the federal government, VT's revenue was $38.9 -- $5.1 million higher than projected in the Roanoke Times article -- and VT's expenses were $35.8 million, a jump of $9.3 million over the projected figures given to Mark Berman for his article. One wonders where the huge leap between an October 2003 projection and the actual figures came from.

TSL Pass subscriber benefit: TSL Pass subscribers can view a Microsoft Excel spreadsheet of figures from 117 Division 1-A universities, downloaded from the Orlando Sentinel, by clicking here.

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TechSideline.com Updates From the Past Week

Clifton, Malone and Green Leaving Hokies
by Will Stewart, TechSideline.com, 5/12/05, 4:10 pm
Beamerball.com announced Monday that rising r-Sr. wide receiver Chris Clifton, rising r-Jr. wide receiver Michael Malone, and true freshman fullback Mike Green will be leaving the football program. Malone and Green will be transferring, while Clifton's plans are unknown at this time. Clifton's departure ends a VT career that started at quarterback and ended far down the depth chart at wide receiver.
in News and Notes

Bryan Randall Rookie Diary #8: Mini-Camp in Atlanta
by TechSideline.com, 5/11/05, 3:05 pm
When we got down there [Thursday, April 28th] we went to the Falcons’ facility, and everybody had already reported in. I think I was one of the last ones to report in and get checked up. They do weight, height, blood pressure, your sight, just the basic things you do when you get a physical. Then we had a rookie meeting, for all the people reporting that were rookies or first year players, with Coach Mora. He talked about the general things, like welcome to the organization and how the week was going to go.
in TSL Pass

Lane Stadium Expansion Pictures
by TechSideline.com, 5/10/05, 12:10 am
These pictures, taken May 9th, show steel work that has almost topped out, and the size and scope of the $52.5 million West Side expansion can now be seen, though the phrase "pictures don't do it justice" certainly applies in this instance. In short, this thing is big. Photo credits: Will Stewart.
in Lane Stadium Expansion

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