Category Archives: Pac-10
After making a public records request in December, the Oregonian and KATU.com received over 500 pages of documents related to alleged NCAA violations committed by Oregon’s football program between 2008 and 2011. The documents detail findings related largely to Oregon’s payment to a recruiting service company, whose talent scout, Will Lyles, allegedly had impermissible contact with prospective Oregon student-athletes. While reports have focused upon Oregon’s payment of $25,000 to Lyles’ recruiting service agency, it appears that the bulk of the NCAA’s concern does not lie with that payment, but rather, practices that Lyles allegedly engaged in.
One such practice is that Lyles allegedly did not provide written or video reports about recruits to Oregon. Under NCAA bylaw 13.14.3, recruiting services must provide subscribers with written or video reports quarterly. Up until 2011, Lyles allegedly provided neither, but instead, provided Oregon with oral reports about prospective student-athletes. On the face, this practice seems like a minor issue and another instance of the NCAA making a mountain out of a molehill. However, the NCAA requires recruiting and scouting service companies to provide written or video reports to prevent institutions from gaining unfair advantages when it comes to gleaning information about recruits. Requiring written or video reports ensures that each institution subscribing to the service receives the same information.
Given that Lyles allegedly was providing oral reports to Oregon, the notion is that Oregon was getting information about recruits that other institutions using Lyles’ services were not receiving. It is unknown whether this was the case, but a number of recruits with ties to Lyles eventually signed with Oregon. This, however, does not in and of itself depict any impropriety by Oregon or Lyles.
Perhaps the biggest issue Oregon faces, though, is explaining allegations that upon the NCAA’s discovery that Lyles wasn’t providing Oregon with written or video reports, that Lyles allegedly provided “outdated” reports to Oregon. From the outside, this allegation depicts a cover-up of sorts. If a cover-up was in fact orchestrated, it is for the NCAA to decide who ordered the cover-up. Did Lyles earnestly provide written reports to save face with the NCAA in an honest attempt to continue being an NCAA-sanctioned recruiting service? Or, did Oregon ask him to do so after the NCAA realized that Lyles hadn’t provided the report? In the coming months, Oregon should prepare to answer this question. Should the NCAA find that the cover-up was upon Oregon’s request, the program will likely suffer stiffer penalties from the NCAA.
For now, the biggest issue Oregon faces is whether the football program’s alleged receipt of Lyles’ oral reports on recruits was a major or secondary NCAA violation. Secondary infractions are those isolated or inadvertent instances that only provide minimal recruiting, competitive or other advantages. Major infractions provide major recruiting or competitive advantages. Over the coming months, the NCAA’s committee on infractions will issue a final report on its findings related to whether a major or secondary violation was committed. Thereafter, sometime within the year, Oregon will have a hearing before the committee on infractions.
The good news, perhaps, for Oregon is that reports indicate that the NCAA found neither a lack of institutional control nor unethical conduct present. These factors should help Oregon avoid some of the NCAA’s harsher penalties. However, one issue Oregon continues to face is that the NCAA may determine it is a repeat violator, as the alleged violations came within five years of Oregon’s 2004 violations. Should Oregon be deemed to be a repeat violator of the NCAA bylaws, harsher penalties could be imposed on that ground.
Overall, Oregon must prepare the case as to why this alleged violation did not amount to a major violation. To do this, it must show that it did not receive major recruiting or competitive advantages. This may be difficult, given the recruits Lyles was allegedly tied to who committed to Oregon. Reports indicate that Lyles served as a “mentor” to LaMichael James, Tra Carson, Dontae Williams and Marcus Davis, all of whom committed to Oregon. Thus, Oregon must work to demonstrate that it would have recruited those student-athletes even without the information Lyles provided them with orally. Given the talent level of these players, this arguably won’t be difficult to accomplish. Additionally, Oregon must demonstrate that those recruits’ decisions to commit to Oregon were unattached to any relationship they may have had with Lyles. This may prove to be the more difficult task for Oregon. However, given the program’s offerings and success over recent years, it likely will not be impossible. Nonetheless, spring is shaping up to be a busy time for Oregon’s athletics department.
Last week Evans Diamond, the home of the California Bears since 1933, held its first night game. It is the first true home night game in the program’s 121 years history, although there have been postseason night games at off campus venues. In addition to eight light poles, the stadium will also receive a new scoreboard soon which will feature a video board. The importance of these facility upgrades cannot be overstated.
Just two seasons ago, Cal was a team on the verge of elimination due to budget cuts. After exhaustive fundraising efforts saved the program, news that was announced midseason, the Bears made an improbable run to the College World Series. Now, through even more donor support, the team is taking steps to becoming more competitive on the field and financially.
Night games will make it easier for Cal baseball to be televised, increasing exposure for the program. That increased exposure could have a strong effect on the programs recruiting efforts. A well-lit stadium will also give Cal the ability to vary its practice schedule, possibly creating less conflict with the schedules of baseball student-athletes.
Attendance should see an increase as games can now be scheduled outside of the typical working hours for most fans. The new scoreboard will feature fixed advertising space. Of course, the video component opens virtually unlimited advertising avenues as well. While these features will not create an overwhelming increase in revenue, it should be enough to make a difference for the program that had its funding pulled nearly three years ago.
Considering that the team was virtually dead just two years, the progress is pretty incredible. These projects should ensure that Cal’s baseball team will maintain its success for years to come. As this baseball program continues to defy the odds, it will become the poster child for programs saved from elimination.
A group of University of Washington students, United Students Against Sweatshops, has convinced the school’s advisory committee to end their relationship with Adidas over unfair labor practices in Adidas factories in Indonesia.
Washington becomes the third known school to sever ties with Adidas. Cornell and Oberlin College have also done so, and as I wrote earlier, the University of Wisconsin is currently involved in litigation to terminate their agreement with Adidas for the same reason.
UW’s athletic teams wear Nike uniforms and the Adidas licensing contract was one of the school’s smaller deals, bringing in about $3K a year, so the financial ramifications are minimal. However, concern on Adidas’ part has to be increasing as schools are not content to let this issue be swept under the rug.
The story of the University of Oregon’s new football operations center has been interesting from the get-go. With the $68 million, 130,000 square foot operations center set to open for the 2013 season, now is as a good time as ever to reflect on how the project came to life, and what it will include once done.
The most unique part of this building project isn’t the final product itself, but the way in which it is being constructed. Back in 2010, Oregon decided to lease the land surrounding Autzen Stadium to alumnus and Nike co-founder Phil Knight. This essentially gave a private company the ability to build on public land. At the end of the project, Knight will send the center back to Oregon as a gift. It’s not the first time Knight has done this on the University of Oregon campus, but it’s not something routinely seen in other athletic departments. The closest example is Louisiana State University where the Tiger Athletic Foundation constructs all projects and then gifts them to the athletic department once all debt is paid.
The arrangement with Knight brings up two issues. First, it must be noted that traditionally the impending construction of most buildings on a public university is opened up to a public bidding process, in which the most qualified company that can deliver the project at the cheapest price is chosen to construct the project. Thus, the fact that Oregon is essentially circumventing this process and going through private means is a departure from the norm.
Next, this brings up the issue of oversight. This kind of set-up allows Knight to control the design of the expansion and avoid public oversight. This has been a sticking point for many on the outside looking in who feel the project lacks transparency.
As for the actual look of the new operations center, less is known than with most athletic building projects. Because the project is being privately funded and built, the athletic department has less control over the outcome. Some features which have been discussed include a 25,000-square-foot weight room, climate-controlled lockers with iPod docks, and a cafeteria that will be open to all University students.
All of this looks great, especially with Knight footing the bill. However, although Knight is handling construction, the building does not come without costs for Oregon. For example, after Knight built the $41 million Jacqua Academic Center for Student Athletes, the university was obligated to pay $2 million per year for operations expenses, some of it coming from the academic budget. Senior associate athletic director Craig Pintens explains that academic support reports to the Provost’s office, and therefore that department pays the programming costs. However, the athletic department pays 2/3rds of the operations and maintenance costs.
The new project will bring its own operating costs, which will become the responsibility of the athletic department much like any other new athletic facility. According to the Register-Guard, “In the contract signed two years ago, the university agreed to staff the [new football operations] center — for six years — with a facilities manager, museum curator, museum receptionist, food service administrator and a senior administrative assistant for football operations. The building’s maintenance is also on the university’s nickel.” However, Pintens tells us the athletic department will cover 100 percent of the building’s costs.
The new operations center will help alleviate strain on the Casanova Center, which currently houses operations for every sport, including football. Since the Casanova Center was built in 1991, Oregon has added three sports and over 100 employees to the building with no expansion of the building’s footprint.
It’s also worth noting Oregon’s athletic department has seen a vast change in its finances over the past decade. In 2004-2005, the athletic department’s NCAA disclosure showed a net loss of $131,198. However, in 2010-2011 the department showed net revenue of over $9.5 million. The athletic department relied on no direct institutional support from the university in 2010-2011, although it did take in student fees of $1.4 million. The athletic department says those student fees cover football and basketball tickets and that none of those funds will be used for the operation of the new building. The increased success and exposure of the Oregon athletics department has led to licensing revenue growing from $750,000 in 2004-2005 to $2.25 million in 2010-2011, with the majority of revenue being retained by the University.
Knowing all this, is there reason for concern over the finances of the new operations center? What is your opinion on this project at the University of Oregon? Have they bolstered their facilities to a level that is necessary for recruitment of new players, or have they gone overboard? Is Knight commanding too much control at Oregon? Leave your comments below.
Editor’s Note: The original article posted July 23, 2012 contained several inaccuracies and has been edited following conversations with the University of Oregon.
Guest author: Tyler Jamieson (BusinessofCollegeSports.com Intern)
When it comes to cash the SEC is king…
…but just barely. NCAA disclosures (and EADA reports for private schools) from the 2010-2011 school year (the most recent available) reveal that the SEC is top dog when it comes to revenue. In 2011, schools from the SEC and Big Ten conferences both posted revenues of over $1 billion. The SEC earned top billing with earnings of $1,080,219,133, with the Big Ten right behind at $1,078,727,312.
The SEC also led the nation with a staggering 5 schools posting revenues of over $100 million. Leading the way was Alabama ($124,498,616), followed by Florida ($123,514,257), LSU ($107,259,352), Tennessee ($104,368,992), and Auburn ($103,982,441). The Big Ten was second with 3 schools over $100 million: Ohio State ($131,815,821), Michigan ($122,739,052), and Penn State ($116,118,025). The Big 12 had two schools over $100 million: Texas, with the highest overall net revenue in the country ($150,295,926), and Oklahoma ($104,338,844).
What’s even more impressive about the SEC’s revenue numbers is how far they have climbed since 2004-2005. Since 2004-2005 the conference as a whole has almost doubled their revenue, skyrocketing from approximately $600 million to over $1 billion. Over that time the average SEC school’s revenue has jumped from approximately $55 million to a little over $91 million, which is a robust 71% increase.
Once again amongst the notables is Alabama who doubled their revenue from $62 million to $124 million, no doubt due to recent success on the football field with the hiring of Nick Saban and 2 National Championships in the past 3 years. Also among the big movers was Mississippi State who back in 2004-2005 had a very paltry (by SEC standards) revenue of $26 million. In 2010-2011 the Bulldogs took the SEC crown for highest percentage climb in revenue since 2004-2005 with a 131% increase up to $59 million, but that still leaves them at less than half of Alabama and Florida are earning.
With a $3 billion television deal set to kick off in 2012, the PAC-12 is in position for some serious growth. In 2010-2011, the conference had the 2 lowest net revenue earners for all automatic-qualifier conferences. Utah, still transitioning from its move from the Mountain West Conference, had a revenue of $38 million, and Washington State came in at just under $40 million. Those numbers will no doubt see hugely significant increases in the coming years with each school in the conference estimated to receive over $20 million a year from the new TV deal.
It has been quite a season for the University of Arizona baseball team. Winning the most games of any Wildcats baseball team for a single season since 1989, the Wildcats punched their ticket to Omaha, NE and the College World Series after beating St. John’s University in the NCAA Super Regional tournament.
While the Wildcats’ road back to Omaha is impressive, perhaps what is more interesting about the team’s season is the increase in revenue enjoyed by the the University of Arizona baseball program. While the team’s on-field success drove interest in the program, the increase in revenue was largely generated by the team’s move from its previous on-campus home of 44-years, Jerry Kindall Field at Frank Sancet Stadium, to the off-campus location of Hi Corbett Field.
Given the history that the Wildcats created while playing at Jerry Kindall Field, along the field’s convenient on-campus location, there was some initial resistance from Wildcats baseball fans regarding the move. However, University of Arizona Director of Athletics, Greg Byrne, knew that the move to the former Spring Training facility of the Cleveland Indians and Colorado Rockies would bring great things to the team and the Arizona athletics department.
“When we did this, our thought was that there was a community connection with Hi Corbett. It was a dramatic facility improvement for our team, as we have a great clubhouse, locker room and training facilities. We felt that if we could re-engage Tucson with our baseball program, it would have a tremendous impact for us this year and many years to come,” Byrne said.
Byrne’s intuition about the success that moving to Hi Corbett Field could bring the baseball program was correct. The athletics department invested $350,000.00 to update the field’s clubhouse and provide it with University of Arizona paint and banners. After those measures, Hi Corbett was open for business and fears that fans may not attend games at an off-campus location were quickly quashed.
For starters, ticket revenue for the baseball team this season was five-times that of what it was last year. In 2011, Arizona baseball brought in $69,000.00 worth of ticket revenue. This season, the baseball team brought in just shy of $350,000.00 in ticket revenue, which does not include revenue for tickets sold during the NCAA Regional tournament or NCAA Super Regional tournament. Arizona baseball games were a hit with fans this season, as the team has brought in an average home attendance of 2,460. Last season, the average attendance for games was just over 1,000. The popularity of watching the Arizona baseball team play at Hi Corbett Field is further demonstrated by the fact that during one weekend series against Arizona rival ASU, the baseball team was able to bring in ticket revenues of $98,500.00. The ticket revenue that Arizona baseball was able to generate during one weekend series was nearly $30,000.00 more than it generated all last season.
Along with obtaining revenue from ticket sales, Arizona’s athletic department also receives revenues from concession sales at the baseball games. One luxury the athletics department has found in its move to Hi Corbett, is the ability to sell beer at baseball games. This year, $360,000.00 worth of concessions, including beer, were sold at Arizona baseball games. Of that gross number, the Arizona athletics department received $160,000.00 from Hi Corbett’s concessionaire. Although beer sales accounted for a significant portion of the concession gross receipts, Byrne is quick to note that he does not believe beer sales are driving ticket sales. “The nice thing, is that for our NCAA Regional game, we had 5,400 people at the game and we didn’t sell beer. They came to support Arizona baseball; not for the amenity of beer,” said Byrne.
Arizona’s move to Hi Corbett has also presented the school’s athletic department with another way to generate revenue: Hosting NCAA postseason baseball games. For the first time in 20 years, the Wildcats hosted the NCAA Regional baseball tournament. Additionally, Arizona hosted its first-ever NCAA Super Regional baseball tournament. To host these tournaments, the athletics department placed bids with the NCAA. The starting bid for the NCAA Regional tournament was $35,000.00, while the bid for the NCAA Super Regional is $50,000.00. Byrne noted that the Arizona athletics department exceeded the bid amount for the NCAA Super Regional tournament. Although Arizona spent money to bring these tournaments to Tucson, it gets to keep ticket sales revenue exceeding the bid amount. Additionally, the athletics department gets to keep all concession revenues from the tournaments. On the first day of the NCAA Regional tournament, $24,000.00 worth of concessions were sold.
For the first time since 2004, the Arizona Wildcats baseball team took the field in Omaha to compete for the College World Series. While the team’s success is much to celebrate, the financial turn-around of the program that was sparked by the team’s play and move to Hi Corbett is another cause for celebration. Last year, the baseball team lost revenues of $816,000.00. This year, Byrne expects the team’s net loss in revenues to be closer to $650,000.00. In the next five years, Byrne expects the teams net losses to be under $500,000.00. Although these numbers still represent net losses, in the grand scheme of things, it is a major win for the University of Arizona baseball program.
One thing is certain to happen this evening at Radio City Music Hall: The first name to be called in the 2012 NFL Draft will be that of former Stanford quarterback Andrew Luck.
In his four years at Stanford, Luck threw for 31 wins, led Stanford to three bowl appearances and was a runner-up for the Heisman Trophy twice, all while completing an engineering degree in architectural design. Luck’s impressive resume at Stanford left the university with not only a stronger football program, but with a great marketing opportunity.
Joe Karlgaard has served as Stanford’s Senior Associate Athletic Director for Development since February 2011. Prior to that, he was the athletic director at Oberlin College for six years and as a Stanford student, worked in Stanford’s track and field office. When asked whether a Stanford student-athlete has captivated donors like Luck, Karlgaard says the school has never seen a current student-athlete as celebrated as Luck.
“I think that Andrew certainly has a profile in college athletics that we haven’t seen at Stanford in a long time. Tiger Woods may have a similar profile, but his profile grew after he left Stanford and won the Masters. Luck is a two-time Heisman finalist, who helped us turn around our football program and performed well in the classroom,” Karlgaard explained.
The profile Luck developed during his four-year tenure at Stanford has assisted the Stanford athletics department in fundraising. In particular, the athletics department has received two anonymous donations totaling $15 million dollars from donors who said they were inspired by Luck. While these large donations were definitely given as a result of Luck’s presence at Stanford, Karlgaard believes that Luck has motivated others to donate money to the Stanford athletics department.
The $15 million which the Stanford athletics department received from donors who were inspired by Luck will only further propel Luck’s positive presence on the campus. According to Karlgaard, the $15 million will be used to fund endowment and capital projects. One capital project that will be funded in part by the $15 million donation, is Stanford’s renovations to its Arrillaga Family Sports Center. Stanford will break ground this summer on the 18 month renovation process to the facility. Renovations will include an expanded weight room, new football locker room, two new auditoriums, new football coaches offices and new film rooms. The total cost of the renovations to the Arrillaga Family Sports Center is expected to be $18 million, of which Karlgaard indicates has all been raised by Stanford.
Luck’s presence as Stanford has been used by the athletics department to generate annual giving donations. Stanford athletics utilizes the website BuckCardinal.com for annual giving purposes. As of this Tuesday, the front page of the website features a nine-and-a-half minute video featuring Luck discussing his experience at Stanford. Karlgaard said that the email was pushed out to donors who have not given this year to the annual find with invitation for them to donate to the athletics department. Within 24 hours of the video being uploaded, it had received over 2,000 page views.
As for whether Luck’s being drafted number-one will further motivate donors to give money to Stanford athletics, Karlgaard said, “I don’t think his going number-one necessarily changes the minds of our donors regarding how they feel about Luck or Stanford football. He’s the whole package. He’s the consummate student-athlete as Stanford envisions it. His success on the football field and his commitment to finishing his degree in a rigorous subject, like architecture, have inspired our donors at a variety of levels. I don’t think his going number-one has any real impact. If the Colts decided to take Robert Griffin III, I don’t think we would see any real downturn to our donations for development.”
Today, there is an air of excitement on the Stanford campus, as the school’s quarterback is expected to be the first name called in the NFL Draft. However, given the profile Andrew Luck built-in his four years at Stanford, his name will certainly continue to ring out on Stanford’s campus.
To conclude this week’s series, BusinessofCollegeSports.com will list in order the athletics departments earning the highest net income in 2010-11.
Issue has been raised by some over the classification of revenue minus expenses in this series as “profit,” since athletics departments are nonprofit organizations. It should be noted, that in the disclosures to the Department of Education, the athletics departments do not report either profit or net income. Rather, they report their revenues and expenses. For this series, profit/net income was calculated by subtracting the total expenses reported from the total revenues reported.
As noted above, the data was obtained from the Department of Education and is for 2010-11. The data from the Department of Education is by no means perfect. Throughout this series, net income was calculated by subtracting the “grand total expenses” from the “grand total revenues” that the athletic department reported to the Department of Education. Expenses in this instance included: head and assistant coach salaries, athletically related student aid, recruiting expenses, operating (game-day expenses) and “not allocated” expenses. The expenses faced by athletic departments, however, may be greater than those reported in this snapshot provided by the Department of Education. For example, an athletic department may have capital expenses outside of those expenses included in the report. This all being said, this data is the only data publicly available for both public and private institutions. Thus, it at least provides some insight into athletic department revenues, expenses, and net income before taking into consideration additional expenses, like capital projects.
In 2010-11, 48 athletics departments in BCS AQ conferences generated a positive net income.
|School||Athletic Department Net Income
|Penn State||$31,619,687.00||Big Ten|
|Kansas State||$23,395,408.00||Big 12|
|Notre Dame||$19,147,710.00||Big East|
|Ohio State||$18,630,964.00||Big Ten|
|Oklahoma State||$14,365,376.00||Big 12|
|Michigan State||$13,512,269.00||Big Ten|
|Texas A&M||$3,224,429.00||Big 12|
|Texas Tech||$3,124,246.00||Big 12|
|North Carolina State||$192,151.00||ACC|
|Iowa State||$121,686.00||Big 12|
In previous posts from this series, you’ll remember that every Big Ten athletics department ranked in the top-50 for revenues and expenses. However, neither Minnesota nor Northwestern achieved a net income above zero.
The conference with the highest percentage of members having a positive net income was the SEC. All but one SEC member (Ole Miss) generated a positive net income in 2010-11. The SEC was also home to the athletics department with the highest net income of any BCS AQ school, Alabama. However, the ten schools generating the greatest net income in 2010-11 are from a mix of conferences. The only conference not represented in the top-10 is the ACC.
|Conference||# of Athletics Departments||% of Conference|
This week, BusinessofCollegeSports.com showed you the revenues, expenses and net income of athletics departments in the BCS AQ conferences. To conclude this series, BusinessofCollegeSports.com is ranking the top-50 athletics departments with the highest revenues, expenses and net income. In this installment, we will show you which athletics departments spend the most.
The data was obtained from the Department of Education and is from 2010-11. While this data is not perfect, it is the only data publicly available for both public and private institutions.
|School||Athletic Department Expenses||Conference|
|Ohio State||$113,184,855.00||Big Ten|
|Penn State||$84,498,339.00||Big Ten|
|Notre Dame||$75,360,209.00||Big East|
|Texas A&M||$71,719,872.00||Big 12|
|Michigan State||$67,450,913.00||Big Ten|
|Oklahoma State||$55,757,830.00||Big 12|
While 80 percent of the Big 12′s members ranked in the top-50 in terms of revenue generated, only 70 percent ranked in the top-50 for expenditures. Thus, it is expected that at least several Big 12 members should generate a net income in the black. Only four Big East members ranked in the top-50 for revenue generated. However, five Big East members ranked in the top-5o for expenditures (Pittsburgh did not generate enough revenue to make the top-50 list, but is on the top-50 list for expenditures). Again, every Big Ten athletics department made the top-50 list for expenditures.
The chart below depicts how many places each conference held in the list and the percentage of the conference which made the list.
|Conference||# of Athletics Departments||% of Conference|
This week, BusinessofCollegeSports.com has shown you the revenues, expenses and net income (profit) of athletics departments in the BCS AQ conferences. To conclude this series, BusinessofCollegeSports.com will rank the top-5o athletics departments with the highest revenues, expenses and net income. First up is athletics department revenues.
The data was obtained from the Department of Education and is from 2010-11. While this data is not perfect, it is the only data publicly available for both public and private institutions.
|School||Athletic Department Revenue||Conference|
|Ohio State||$131,815,819.00||Big Ten|
|Penn State||$116,118,026.00||Big Ten|
|Notre Dame||$94,507,919.00||Big East|
|Michigan State||$80,963,182.00||Big Ten|
|Texas A&M||$74,944,301.00||Big 12|
|Oklahoma State||$70,123,206.00||Big 12|
|Kansas State||$68,875,266.00||Big 12|
Several things stand out in this list. First, every Big Ten team made the list. This is notable, as the SEC is typically viewed as the “power conference” when it comes to all things finance. The SEC had a great showing in the top-50, but only nine of its twelve athletics departments made the list. The conference with the least athletics departments on the list was the Big East, which only placed four of its members on the list.
The chart below depicts how many places each conference held in the list.
|Conference||# of Athletics Departments on List||% of Conference|