Saturday, December 27, 2008

NCAA Men's Basketball

NCAA men's basketball hoops is under way and so here are the financial numbers from the 2005-2006 academic year. As you can see from the table below, NCAA division I men's basketball is very profitable. For the University of Iowa the average profit per student on the team was just over $260,000 and for Iowa State the average profit per student on the team was just over three quarter of a million dollars.

For the major conferences, other than the SEC, all were profitable. Not shown in the table below, the University of Louisville had the highest revenue - just shy of $21.5 million and also had the highest per student profit of almost one million dollars per basketball player. Yet not all schools were so fortunate. The University of Virginia incurred a loss of over 800 thousand per student on the team.

There are a variety of people - including economists - who advocate paying student athletes and site men's football and men's basketball as examples of the large sums that are being generated by universities. While this is true, not all schools in these two sports make a profit and the question then remains as to what to do with programs that make losses - especially with government regulations such as Title IX. I will come back to this topic of paying student athletes by the end of the Spring 2008 semester, with my take. I am torn between the realities and the economics.

School Number Revenues Expenses Profit/Loss Per Student
Iowa 13 $7,646,111 $4,247,794 $3,398,317 $261,409
Iowa State 15 $14,890,146 $3,566,578 $11,323,568 $754,905
ACC 15.5 $8,413,396 $3,521,426 $4,891,970 $318,095
Big 10 15.6 $6,910,226 $4,423,433 $2,486,792 $187,870
Big 12 15.3 $5,896,942 $3,444,889 $2,452,053 $162,459
Pac 10 14.9 $6,439,669 $3,804,843 $2,634,826 $176,263
SEC 15.2 $975,616 $1,270,200 -$294,585 -$17,861
NON 15.2 $3,079,682 $2,360,781 $718,901 $47,392

No comments: