University athletic programs are a money pit to burn financial aid dollars, but a few nationally known universities turn a profit on them.
A new analysis from Forbes points to the University of Texas as having the most valuable football team.
The method focuses on college football, but men’s college basketball can also make a profit for nationally recognized programs.
Based on profit margins and team earnings, the rankings aren’t rooted in revenues, but the return on investment that universities pour into the football program. Those profits get poured into bonuses for coaches, scholarships for other athletes, and other uses.
The top 20 football programs are:
- University of Texas, $92 million
- University of Tennessee, $70 million
- LSU, $58 million
- University of Michigan, $56 million
- Notre Dame, $54 million
- University of Georgia, $50 million
- Ohio State University, $50 million
- University of Oklahoma, $48 million
- Auburn University, $47 million
- University of Alabama, $46 million
- University of Oregon, $40 million
- Florida State University, $39 million
- University of Arkansas, $38 million
- University of Washington, $38 million
- University of Florida, $37 million
- Texas A&M University, $37 million
- Penn State University, $36 million
- Michigan State University, $32 million
- University of Southern California, $29 million
- University of South Carolina, $28 million
Ticket sales, concessions, merchandising, and broadcast deals all help top-program profitability, as well as limits on spending.
The profit margins, to some, “are insane.” Imagining college football as a national profit machine for higher education, however, would be dramatically wrong.
More often than not, students foot the bill for athletics programs. Bernie Sanders referenced it during the last Democratic debate when he blamed “giant football stadiums” for higher costs. More specifically, student fees that subsidize university athletics can be dramatic. At public institutions, they can range from $2,000 to $5,000 annually.
“The costs of maintaining an intercollegiate athletics program at the Division I for-profit level are immense. There’s a vigorous off-the-field arms race for the building the most attractive facilities and bringing in big-name coaches,” David Ridpath, an associate professor at Ohio University and a faculty fellow at the Center for College Affordability and Productivity, wrote.
For schools who want to build their reputation and prestige through high-quality athletic programs, the financial burden on students weighs heavily. The large profit margins for major football universities is a stark contrast for the large subsidies students send to athletic departments at other schools.
Note: Anthony Hennen previously served as administrative director at the Center for College Affordability and Productivity.
