The Cost of DI

[Drake]

A (Money) Losing Proposition

Revamped NCAA report on Division I finances reinforces previous findings that big-time college sports programs spend far more than they earn — especially when institutional subsidies are included.

http://insidehighered.com/

[NorCalJack]

Re: The Cost of DI

Well I don't necessarily agree with the article. I don't think you can really look at D1 only on cost vs. revenue for sports teams. Since SDSU has moved to D1, the enrollment has increase at a rate far above the other schools in this state. Those added students spend money for tuiton, room, board, gas, clothing, etc. The increase in enrollment means more jobs are needed to support the students. The university is an economical engine and the engine is not just for the benefit of the university. The econimical engine spreads to Brookings, the county and the state in increased taxes and job opprotunities.

Take the University of Nebraska for example, they spend a lot of money on college football and all the other sports. They probably don't make any money on sports for the university. Do you think they really care if the sports program is making money? No. Maybe UNO is breaking even on their sports programs. Do you think the economical engine driven by UNO is anywhere close to UNL? Not even close. The economical engine driven by UNL far exceeds the defecit the sports program is running. The impact of D-1 is far reaching beyond the borders of Nebraska. I can go to a sports apparel store here in the Bay Area and buy a Nebraska hat and some of that money I would spend would go right back to UNL. I don't think I could find a UNO hat however.

All in all, SDSU moving up to D-1 is a good thing for SDSU, the alumni and most importantly, the state of South Dakota.

Go State!!!
Go Jacks!!!

[Hammersmith]

Re: The Cost of DI

I tend to look at the alumni retaining aspects of athletics at state schools like ours. Without some link to keep your school in the thoughts of your alumni, they tend to drift away and you never hear from them again. Private, religious, and elite schools can use other methods, but athletics are the best tool for most state schools.

To use an example from NDSU: Just as we were starting our DI move, we also started a major fundraising campaign. The goal was $75M. Thanks in no small part to the BB wins at Wisconsin and Marquette and the FBS wins at Ball State, CMU & Minnesota, the campaign ended up bringing in $108.5M. The majority of that went to faculty and scholarship endowments, and less than $10M went to athletics(BSA renovation). Many of the donors contacted during the campaign had only recently reconnected with NDSU through the big DI games.

[JackJD]

Re: The Cost of DI

Reps points to Hammersmith...his point can't be stated often enough!