Interesting opinion piece in yesterday's Christian Science Monitor http://news.yahoo.com/s/csm/yrosenberg I've never understood why colleges spend so much on one or twp sports compared to their other school needs (Although I understand that some schools make a profit).
Hi Ian - A lot has been written about this in recent years. Here is some of it: http://www.opinionjournal.com/taste/?id=110009082 http://www.usatoday.com/sports/college/2003-08-14-ncaa-finances-study_x.htm http://coia.comm.psu.edu/News%20of%20interest/College%20athletics%20budgets%20are%20bulging%20but%20their%20profits%20are%20slm%20to%20none%20-%20Sports%20Business%20Journal%2018%20June%2007.pdf
Why do coaches make more money than professors? Simple economics. I. Professor's Pay A. How much do students pay for a ticket to see a professor's lecture? B. How many students (on average) are in the stands watching a professor's lecture? C. How many lectures does a professor give in a year? II. Coach's Pay A. How much do fans pay for a ticket to an athletic competition? B. How many fans (on average) are in the stands watching an athletic competition? C. How many athletic competitions does a coach coach in a year?
I think that's the point of the article that Ian posted and it's supported by the articles I posted. There are strong indications that the profit margin just isn't there. As for your analysis, you've forgotten to factor in expenses. Salaries are not the only expense. Just the travel expenses of a major college team are HUGE. Airfare for 70 people plus hotel, plus meals, plus ground transport. Who knows what else? Typically, college instructors tend to stay put. Don't get me wrong, I am a big sports fan. I will drive 2 hours to watch my Breakers. For many schools the bottom line is fuzzy. A lot of it has to do with alumni contributions that are (in part) based upon sports. College is a business. If you're a physics dept chair and you come up with a t-shirt that makes a thousand dollars profit for the school then you will get a little gold star on your forehead. It's all about the benjamins boys. It's all about the benjamins.
Oh, yeah, then there's the issue of how much revenue universities derive from the television and cable rights to their athletic competitions versus the amount of revenue universities derive from television and cable rights to their professors' lectures.
