But we are talking about $300m here.
Corrections always come.All these P2 programs will be locked into higher expenses and travel and financial commitments. Then the networks can start to pull the rug back until the revenue bubble bursts.
When have college athletic programs made money? Do any D2 or D3 schools make money on sports? No, but many of them would argue that they are attracting students to the school who play sports and pay tuition. And, athletics, specifically basketball, have helped make UConn the school it is today. Obviously, there is a limit to how much athletics can lose at a given college/university, but don't expect athletics to make money except at a very few schools.
The problem we're touching on is that the growth of the budgets/spending are like tumors metastasizing inside the schools. So when you "there's a limit to how much athletics can lose" we are now at a point where any pullback from the network or fans will cause an enormous rupture in school budgets. Think of what happened in West Virginia, but now it's 10x worse.
If you think Ohio State football and UConn basketball haven't made money for the schools you're nuts. They've made tons of money for the schools and the states.
Couple of points on the OSU AD finances. They don't receive any money from the institution, state, or students. And, they spent $45 million on athletics facilities debt. They expected a loss, but it ended up larger than they expected, but they have plans to fill the hole. (Side note, OSU had 6 home football games in the period vs a normal 7 or 8. That is why the Big 10 will not go to a 10 game conference schedule as OSU would be limited to either 6 or sometimes a 7 home game schedule.)
When you're at $300m with your budget, you may have a spending problem.
AND ironically this doesn't even count the money they spend on facilities, and you'll notice they mention branding as a revenue source.
I very much agree that sports drives the great sale of sweatshirts and such, but even non-sports universities like NYU and Rutgers sell some merch, especially to students.
Either mismanagement or creative accounting work.
When you're at $300m with your budget, you may have a spending problem.
AND ironically this doesn't even count the money they spend on facilities, and you'll notice they mention branding as a revenue source.
I very much agree that sports drives the great sale of sweatshirts and such, but even non-sports universities like NYU and Rutgers sell some merch, especially to students.
I'm not sure that thos two items would be much more than a rounding error within a $300mm budget.
In FY2023, Ohio State football generated $63.3 million in ticket sales and $9 million in parking/concessions, etc. for 8 home games or an average of ~$9 million in revenue per home game. Game expenses for all sports at Ohio St. in FY 2023 were $10 million so I would estimate football game operating expenses are close to $1 million per game. Since almost all of the other costs are fixed like stadium debt costs, player scholarships, coaching salaries,... I would think the loss of a home game costs Ohio St. ~$8 million. That number would be reduced by any game guarantees.
