NCAA revenue, spending increase
by Steve Berkowitz and Jodi Upton, USA TODAY Sports
Major-college athletics departments increased the amount of money they generate by nearly $385 million in 2012, but they increased operational spending by more than $665 million, a USA TODAY Sports analysis finds.
Only 23 out of 228 public schools in NCAA Division I generated enough money to pay for athletics, a figure basically unchanged for three consecutive years.
In addition, subsidies for athletics in the form of student fees, school or state support rose dramatically in 2012 after the rate of increase had declined in the two previous years. Across the 228 schools, the amount of these subsidies rose by nearly $200 million compared with what the athletics programs received in 2011. That is the greatest year-over-year dollar increase in the subsidy total since USA TODAY Sports began collecting the finance information that schools annually report to the NCAA; the first year of those data covers the schools’ 2004-05 fiscal year.
The data are now collected in conjunction with Indiana University’s National Sports Journalism Center.
In 2012, the subsidies for Division I programs totaled $2.3 billion — keeping this as nearly a third of the money they spent.
This comes at a time when academic spending at many schools is declining or not increasing at the same pace as athletics spending, according to a report by the Delta Cost Project at the non-profit American Institutes for Research that was based on data from the Education Department and the athletics data collected by USA TODAY Sports.
Rising scholarship costs continued to play a major role in athletics spending increases in 2012, but outlays for coaching compensation rose faster. Spending on scholarships went up by 8.7%, spending on coaching compensation by 9.2%
This is the fifth time in the past six years that sports programs have added more to their annual operating expenses than they have to their revenues. And revenues generated from media rights deals, ticket sales, corporate sponsorships and donations all rose in 2012.
There were 11 schools whose athletics programs generated at least $100 million in 2012; there were nine such schools in 2011.
There were 10 schools whose athletics programs spent at least $100 million in 2012; … [For more on NCAA member revenue, spending increase, click here.]