NCAA DII Athletic Department Budgets

This week I will be looking into Division II athletic department budgets including revenues and expenses of institutions with a football program for the 2014 academic year. I will also compare and contrast revenues and expenses of public and private institutions.

Among all institutions, the largest generated revenue reported was $5.4 million compared to the median at $676,500.1 However, the largest total expense reported was $15.4 million, well above the $6.0 million median.1 The median negative net revenue, which shows a “net loss” for an athletics program, has increased from $2,360,000 in 2004 to $5,172,900 in 2014.1

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Typically, the program with the most generated revenue also has the greatest expenses.1 In both men’s and women’s sports, ice hockey has the most generated revenue and most expenses.1 Men’s ice hockey generates $427,700 but has expenses totaling $1,454,800.1 Women’s ice hockey is much lower at $46,900 of generated revenue but $972,900 in expenses.1

The median loss for men’s programs in 2014 was $2,265,200 and that for women’s programs was $1,576,300.1 When it comes to individual sports, the median loss for football programs was $1,098,800, men’s basketball had a loss of $389,900, and women’s basketball slightly less with a loss of $372,800.1

There are substantial differences between public and private institutions. For instance, the median total generated revenue for public institutions is $1,081,700 compared to $393,800 for private institutions.1 Conversely, the total expenses for public institutions on average is $5,682,200 and $7,003,500 for private institutions.1

Coaches’ salaries are the highest in ice hockey, football, basketball and baseball for men’s sports.1 Men’s ice hockey coaches have the highest salary at an average of $185,300.1 For women’s sports, ice hockey, basketball, field hockey and gymnastics have the highest coaches’ salaries with ice hockey coaches also receiving the highest salary at $127,200.1 The lowest paid head coaches in Division II athletics are men’s water polo coaches, $6,500, and women’s equestrian coaches, $7,800, when it comes to individual men’s and women’s sports.1

Cash contributions, 41%, and ticket sales, 11%, provide the majority of generated revenue for both public and private institutions.1 However, the two sources combined only provide 8% of total revenue.1 A large majority of total revenue for Division II athletic departments, both private and public, comes from direct institutional support, 64%.1

Grants-in-aid, 34%, and salaries, 30%, make up the majority of overall expenses.1 Grants-in-aid account for 11% of men’s programs expenses and 13% of women’s programs expenses at public institutions.1 At private institutions, grants-in-aid account for more of the total expenses at 18% for men’s programs and 21% for women’s programs.1

The amount of generated revenue and the amount of expenses can differ largely between institutions. Also, the median net loss for an athletic department has seen a significant increase in the last ten years. When comparing public and private institutions, public institutions generate more revenue and have less expenses than private institutions. However, both types of institutions receive the majority of their revenue from direct institutional support and donors.

Reference

1Fulks, D. L. (2015, September). Revenues and Expenses: 2004-2014 NCAA Division II Intercollegiate Athletics Programs Report. Retrieved from http://www.ncaa.org/sites/default/files/2015%20Division%20II%20RE%20report.pdf