Athletics revenue benefits University

Students enjoy their Bevo Bucks. But a look at the finances of Longhorn sports gives students a reason to be proud of Bevo’s real bucks too.

The University’s athletic department generates almost $20 million in profits annually, according to 2008 data compiled by the U.S. Department of Education.

“Most athletic departments receive money [from their respective universities],” said DeLoss Dodds, the men’s head athletic director. “We give money back to the University.”

Unlike most other universities, the UT athletic department is completely self-sufficient. All money is generated through ticket sales, fundraising and logo licensing fees, and none comes from the University as a whole. The total profit sum includes over $100 million of expenses.

“We’re totally self-funded,” Dodds said. “We generate all our own money for the budget. We build our own budget, and the University approves it.”

The football program alone generates a nation-high $59 million in profit. Men’s basketball is second with a little over $5 million. The department loses about $10 million of profit for all other sports, except for baseball, which breaks even.

Dodds said having the football profits helps fund the rest of the University’s 20 sports programs.

According to a 2006 study by the NCAA, UT’s athletic department is one of only 19 Division I football schools — out of a total 120 — to boost a net profit without University subsidies.

UT President William Powers said that the athletic department also pays for the use of University resources such as parking on game days and administrative accountants.

“When we say we don’t subsidize them, we mean they cover all of their own expenses,” Powers said. “We don’t subsidize them at all. If you meant profitable in that sense, there would be fewer than 19 schools on that list.”

Powers said an important factor in budget management is not having more sports than are fiscally manageable. Some NCAA official sports UT does not fund include men’s soccer, volleyball and rowing, as well as lacrosse, hockey and gymnastics for either men or women.

Both men said the relationship between the University and the athletic department positively contributes to UT’s fiscal success. A study released by the Knight Commission on Intercollegiate Athletics earlier this week found that the majority of surveyed university presidents felt powerless and undermined by their head athletic directors. Powers said the issue does not effect UT at all.

“[The University] has great relationships with DeLoss Dodds and [women’s athletic director] Christine Plonsky,” Powers said. “I don’t think we’ve had times when I wasn’t fully informed or supported by the directors. We have an open-door, easy communication policy, and they are fully part of the campus.”

Dodds said that working as the athletic director for three decades has helped him understand what UT presidents want to know. Dodds‘s tenure as athletic director at the 40 Acres has spanned across the administration of seven UT presidents.

“I’ve learned what presidents generally want to know about,” Dodds said. “Bill Powers is a guy I highly respect. We’re open about athletics and we’re open about issues we have. You get a feel for when you need to go to the Tower and sit down.”

The report cites fiscal transparency and rising coaches’ salaries as the issues that concern university presidents the most.

With a self-sufficient, profit-making athletic department, these issues have less troubling concern at UT than most other universities.

Dodds said the University has a number of unique assets that make profitability possible, including the name of the University, a supportive city and athletic talent in the state.

Austin also does not have any professional sports teams, Powers said. While winning may be a factor for profit-making, it is not the only thing.

“The important thing is that we’re competitive,” Powers said. “People want to see that more than just winning. It’s not critical to win the championship every time.”

3 comments

john walla

Sat Jan 9 2010 13:48

I am discusted watching the championship game. There was no injury to your quaterback and you know it. How much money did the school receive by throwing the game? I always thought that college football was on the up and up, but not anymore.

David

Thu Oct 29 2009 21:33

It does, actually. Deloss Dodds was quoted saying that the university receives money from the Athletic Department

phil

Thu Oct 29 2009 13:41

The article does not support its headline. The article merely claims athletics revenue benefits athletics.

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