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Tag:college football profits
Posted on: December 29, 2010 1:35 pm
Edited on: December 29, 2010 1:41 pm
 

BCS football turning bigger profits than ever

Posted by Jerry Hinnen

To boil this report from CNN Money down to one simple question: What recession?
The profit for the 68 teams that play in the six major conferences was up 11% from the prior school year, according to a CNNMoney analysis of figures filed by each school with the Department of Education.

In the school year that ended in 2010, the vast majority of the schools in one of these deep-pocketed conferences posted a profit. Four of them broke even and only one -- Wake Forest -- reported a loss.
Way to ruin the shutout, Demon Deacons.

But seriously, folks: that 11 percent increase (fueled by rising ticket sales and prices and juicy new television contracts) pushed BCS conference profits up over the collective $1 billion mark for the first time. Contrast that with the profits turned in by, say, the nation's swim teams, and it's easy to see why -- charges of hypocrisy notwithstanding -- the NCAA and its member schools are willing to do so much to protect its interests on the gridiron.

Of course, that business model doesn't work nearly as well at the non-AQ level. Even after their 2009 Fiesta Bowl berth and the largest set of profits in the country at the mid-major level, for instance, TCU only broke even. We've heard plenty of horror stories the past few weeks about the amount of money smaller schools are burning through on their bowl trips, thanks to ticket guarantees and the like; in 2009, eight of the 53 bowl-eligible smaller-conference schools wound up losing money on the year.

With the line drawn so firmly between the sport's haves and have nots, it's no wonder access to the big-money BCS games and television's never-ending contract coffers have become the sources of so much acrimony. (Given that even the best possible year for them in the Mountain West still amounted to chump change for most Big East teams, is it any wonder the Horned Frogs jumped ship?) With no sort of NFL -style revenue-sharing agreement forthcoming (in fact, the angry comments from BCS commissioners like Jim Delany make clear that such an agreement would be less likely now than ever), don't expect anything to change anytime soon. The rich of college football are only going to get richer, and the poor will simply have to make themselves attractive enough to join them.

HT: GTP .
 
 
 
 
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