Athletics: The Major Money Machine

Boise State University has a predicted budget for 2010 of over 350 million dollars. That can go a long way toward building the university, expanding academic success and providing the best post secondary education that its students can receive. Of that 350 million dollar budget, it is a popular belief that much of that is spent on athletics. A new press box and suites in the football stadium, a new indoor practice facility, renovations to the men’s and women’s basketball locker rooms, and a completely new track facility are all reasons why people think money is being thrown to the athletic department without discretion. However, closer examination of where that money comes from and how it’s distributed shows a much different story.
According to the 2010 financial plan for Boise State 350 million dollars is the expected budget, and of that 350 million dollars, the athletic department receives a mere 5 percent of the entire budget from the school, contrary to what many people believe. Considering the fact that athletics is the face of the university and the major marketing tool that Boise State has, then that small amount of money is not nearly enough. If one complains that athletics receives too much money, they must also consider that instruction receives over 88 million dollars, scholarship funds get 75 million annually and even the library receives 7 million, 2 million more than the athletic department! Too much money for athletics? Considering what the athletic department brings in, 5 million may not be enough.
The biggest moment in Boise State history was the 2007 Fiesta Bowl win over football powerhouse Oklahoma. Frank Zang, Boise State’s director of communications and marketing said, “Athletics is a window to the university and the Fiesta Bowl journey provided unprecedented media coverage of the university, valued at between $100-$150 million.” 150 million dollars in return for a 5 million dollar investment (across the entire athletic department, not just football) means that Boise State brought in 33 times more money than they spent! Those statistics tell us the bold truth that athletic spending is a wise investment. That one game brought so much to Boise State where we have seen enrollment grow by 4,000 students since then. Jessica Hill, an incoming student from Seattle said, “I never even knew there was a university in Boise until the Fiesta Bowl. I cam through here a lot driving with my family to Utah, but I had no clue about Boise State.” The athletic department is what brings money and attention to our university.
The financial return from athletics is one of the biggest sources of income for any university and as any economist can tell you, to make money, you must spend money. Despite popular opinion, athletics does not receive most of the money from the universities budget, they get very little, but bring in nearly 30 percent of the universities funds annually. The athletic department is funded in a large part by donors, and not the university. However, with what is spent on athletics and the return that comes, it’s clear that athletics is a huge part of the budget, not in terms of spending, but in terms of income. Athletics fund the rest of the universities functions and operations. Athletics funds academics! It’s the money machine.