Coming Disaster in College Football

[NoVaJack]

Washington Post has a very interesting piece this morning from two big-time college administrators predicting a meltdown in college football financing. Says average coach salary now is $1.36 million, and that like a lot of things, the finances of BCS football aren't sustainable.

http://bit.ly/6PrwEY

[JackJD]

Re: Coming Disaster in College Football

Good article discussing the gorilla sitting in the room that everyone wants to ignore.

[Cowbell]

Re: Coming Disaster in College Football

For many BCS institutions, football is the "cash cow" that makes other sports possible. There will be a domino effect at many institutions - loss of programs.

By the way, I'd bet there's a lot of creative accounting at colleges throughout the country, regardless of division, to keep athletic programs intact. That would include SDSU. As money gets tighter there is going to be a growing demand by elected officials to "look at the books." The day of reckoning is coming soon.

[NoVaJack]

Re: Coming Disaster in College Football

For many BCS institutions, football is the "cash cow" that makes other sports possible. There will be a domino effect at many institutions - loss of programs.

By the way, I'd bet there's a lot of creative accounting at colleges throughout the country, regardless of division, to keep athletic programs intact. That would include SDSU. As money gets tighter there is going to be a growing demand by elected officials to "look at the books." The day of reckoning is coming soon.

Prime points, reps coming at ya. I would like to believe that institutions like SDSU are in better shape because they have not gone into the financial stratosphere like a lot of others, but I have no idea whether this is true or not. We keep debating coach's salaries on this board, a valid topic, but it seems a greater problem if you have to sustain these huge salaries to get a coach.

[filbert]

Re: Coming Disaster in College Football

Either the college presidents, through the NCAA, will grab the reins on this runaway horse of out-of-control athletics spending, or control will be imposed by Congress.

I don't think the college presidents will have the political strength to do it against the headwind of ESPN and the other networks, rabid fan bases that care much more about wins and losses than about kids getting educations, and simple greed in most the big-time athletic departments. Maybe the economy will give the presidents some political leverage to regain that control, but I really sincerely doubt it.

And IMHO Congressional control of college athletics would be a disaster.

So, in short, I think college athletics is, in the long run, screwed.

Merry Christmas . . .

[JackJD]

Re: Coming Disaster in College Football

For many BCS institutions, football is the "cash cow" that makes other sports possible.

Isn't the point that for many BCS institutions, football is not the cash cow? Most schools find football is a huge drain on the system -- sure, it may bring in a lot but it usually takes more out than it brings in.

I recall reading how a successful basketball program can be the real salvation for an athletic department. Great revenue and relatively low cost.

[1stRowFANatic]

Re: Coming Disaster in College Football

Either the college presidents, through the NCAA, will grab the reins on this runaway horse of out-of-control athletics spending, or control will be imposed by Congress.

I don't think the college presidents will have the political strength to do it against the headwind of ESPN and the other networks, rabid fan bases that care much more about wins and losses than about kids getting educations, and simple greed in most the big-time athletic departments. Maybe the economy will give the presidents some political leverage to regain that control, but I really sincerely doubt it.

And IMHO Congressional control of college athletics would be a disaster.

So, in short, I think college athletics is, in the long run, screwed.

Merry Christmas . . .

It will be interesting to see how this plays out. Haven't had a chance to read the article yet, but do know that one thing that is getting a serious look, is to remove non-profit status for athletic departments at educational institutions. There is no requirement, other than previous Congressional action, that athletic donations be given the same status as educational gifts. If this were to happen, athletic departments would, most likely, be considered for profit subsidiaries of the non-profit educational institution. Federal income taxes would have to be paid on any income the athletic department has, but more importantly, the donations that help to pay those huge salaries would no longer be a tax deduction. This would be a major change for college athletics at all levels.

[Jacks99]

Re: Coming Disaster in College Football

It will be interesting to see how this plays out. Haven't had a chance to read the article yet, but do know that one thing that is getting a serious look, is to remove non-profit status for athletic departments at educational institutions. There is no requirement, other than previous Congressional action, that athletic donations be given the same status as educational gifts. If this were to happen, athletic departments would, most likely, be considered for profit subsidiaries of the non-profit educational institution. Federal income taxes would have to be paid on any income the athletic department has, but more importantly, the donations that help to pay those huge salaries would no longer be a tax deduction. This would be a major change for college athletics at all levels.

Government tends to grow or add, not often it simplifies or fixes. However, it may not be off base to change that code, but very unlikely on many levels. If they did, it would send shock waves through the BCS.

As far as congress stepping in to curb salaries, it would be yet another time that they focus on something other than fixing their own problems and overstepping their bounds.