Profit to CU?

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Profit to CU?

Postby Panhandle Jay » Mon Apr 03, 2017 7:53 pm

I'm genuinely curious and naive about this. But what does Creighton University athletics do with money it makes through ticket sales, ad money, etc?

Does it get pumped back into athletics while some of it goes to help school programs and academics?
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Re: Profit to CU?

Postby LynchMob » Mon Apr 03, 2017 8:12 pm

I strongly doubt Creighton covers the cost of athletics with men's basketball revenue. The vast majority of schools, even those with successful football programs, can't cover the costs of the athletic department. According to an NCAA study in 2015, none of the schools without football covered costs.

http://www.ncaa.org/about/resources/med ... -increases

DIVISION I WITHOUT FOOTBALL
• Two Men’s Programs, but no Women’s Programs, and no Total Programs reported positive Net Generated Revenues for the year. The average losses were $3,912,000, $4,598,000, and $11,764,000 (5.5) No overall program has reported profits since one program reported a small profit in 2004. Net losses have increased steadily over the twelve-year period from $5,367,000 in 2004.
• Six Men’s Basketball programs reported positive Net Generated Revenues, averaging $800,000, while all others reported losses averaging $1,445,000. Women’s Basketball losses averaged $1,308,000 (5.6) Losses for both men’s and women’s programs have grown rapidly over the time period reported.


Note that this does not consider increased revenue from increased donations or increases in tuition through higher demand, neither of which is usually ascribed to the Athletic Department, and would represent by far the largest revenue-generating through athletics. Creighton certainly takes in far more in men's basketball-related donations than they do in ticket sales, especially after splitting the sales with MECA.

From what I can tell, this information is unknowable from Creighton's audited financial statements, which group athletics under 'Auxiliary Enterprises' for revenue, and has no breakout for athletics expenses.
http://www.creighton.edu/fileadmin/user ... y_2016.pdf
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Re: Profit to CU?

Postby bird_call » Mon Apr 03, 2017 9:39 pm

I would take any numbers from the NCAA with a serious grain of salt due to their inherent conflict of interest in reporting athletics revenue.

This article from the Washington Post is quite enlightening. Most schools don't make money, but their spending is almost exactly equal to their revenue, because they spend every single penny they get.

http://www.washingtonpost.com/sf/sports/wp/2015/11/23/running-up-the-bills/?utm_term=.48ff0babec28

So they are losing tiny amounts of money. But at the same time, Coach salaries are increasing, and facility costs are increasing. But revenues are increasing exactly the same amount. Lots of people are making money, it just isn't the guys playing the sports. It is the building contractors and assistant coaches, and companies selling beer at the game.
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Re: Profit to CU?

Postby KenoshaJay » Mon Apr 03, 2017 9:46 pm

bird_call wrote:I would take any numbers from the NCAA with a serious grain of salt due to their inherent conflict of interest in reporting athletics revenue.

This article from the Washington Post is quite enlightening. Most schools don't make money, but their spending is almost exactly equal to their revenue, because they spend every single penny they get.

http://www.washingtonpost.com/sf/sports/wp/2015/11/23/running-up-the-bills/?utm_term=.48ff0babec28

So they are losing tiny amounts of money. But at the same time, Coach salaries are increasing, and facility costs are increasing. But revenues are increasing exactly the same amount. Lots of people are making money, it just isn't the guys playing the sports. It is the building contractors and assistant coaches, and companies selling beer at the game.


Great post.
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Re: Profit to CU?

Postby CU Final Four » Mon Apr 03, 2017 11:21 pm

Agree 100% with bird call.

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Re: Profit to CU?

Postby bird_call » Tue Apr 04, 2017 10:24 am

CU Final Four wrote:Agree 100% with bird call.


WHAT IS HAPPENING!!! :shock:
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Re: Profit to CU?

Postby cujaysfan » Tue Apr 04, 2017 10:44 am

i'm only aware of one program that gives profits back to any student or university or general fund - ND football
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Re: Profit to CU?

Postby TBC Alum » Tue Apr 04, 2017 12:32 pm

bird_call wrote:
CU Final Four wrote:Agree 100% with bird call.


WHAT IS HAPPENING!!! :shock:

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Re: Profit to CU?

Postby LynchMob » Tue Apr 04, 2017 2:50 pm

cujaysfan wrote:i'm only aware of one program that gives profits back to any student or university or general fund - ND football


If I recall, the few profitable FBS programs are exactly the ones you would expect: Notre Dame, Texas, Ohio State, Michigan, etc. They make enough in football and basketball revenue to cover the cost of all other sports and return some to the university.
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Re: Profit to CU?

Postby Panhandle Jay » Tue Apr 04, 2017 4:09 pm

Thanks for the answers.

So with all that said, then how would your average D1 basketball school pay its players if they barely break even?

I'm 50/50 on the paying players debate. Just wondering how it would logistically happen.
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