Alabama A&M Division
BIRMINGHAM, Alabama — Five of the eight Division I public universities in Alabama subsidize college sports more than the national average, according to fiscal year 2012 NCAA figures released today and individual university financial reports obtained by AL.com.
The percentage of athletics revenue allocated by institutions at South Alabama (81 percent), Alabama State (80 percent), Jacksonville State (75 percent), Troy (71 percent) and UAB (68 percent) exceeded national averages last year. The total subsidy was 20 percent in the Football Bowl Subdivision and 71 percent in the Football Championship Subdivision.
Alabama and Auburn, two of 23 Division I schools operating in the black, were each subsidized 4 percent. Alabama A&M was at 68 percent, slightly under the FCS average.
Subsidies are defined as student fees, government money and direct or indirect institutional support. Samford, a private school, was part of the NCAA survey but not required to release financial information.
Alabama generated $18.9 million more in revenue than Auburn last year, marking the fifth straight year Alabama’s advantage exceeded at least $13 million. The two rivals were separated by $5.8 million in 2007 and $1.1 million in 2006, prior to Nick Saban’s arrival and the expansion of Bryant-Denny Stadium.
Finances for Alabama Division I Public Universities
|School||Revenue||Expenses||Total Subsidy||Pct. of Revenue from Subsidy||Surplus/Deficit Minus Subsidy|
Source: AL.com analysis of individual universities’ NCAA financial reports for 2011-12.
While athletic revenues are increasing nationally, expenses are rising even faster. FBS costs increased 10.8 percent from 2011 to 2012, while revenues increased only 4.6 percent — about half of the revenue increase from 2010 to 2011.
Athletic expenses are increasing at a slightly higher rate than overall university costs. The percent of FBS athletic expenses as part of a university’s overall budget climbed from 4.6 percent in 2004 to 5.5 percent in 2012, and from 5 percent in 2004 to 6 percent in 2012 for FCS schools.
The average net deficit for Division I schools that lost money was $14.6 million in 2012, up from $12.1 million in 2011. UAB and South Alabama each exceeded the average.
When factoring out subsidies, UAB lost $18 million on athletics last year after losing $16.2 million in 2011. UAB’s deficit was $10.1 million in 2006, when AL.com first began compiling annual financial reports for many state schools, and its student fees increased 57 percent over the next six years.
South Alabama, which has been transitioning into full FBS membership, lost $15.3 million last year without subsidies. South Alabama’s student fees totaled $7 million last year, up from $6.2 million in 2011. The school’s revenue from student fees was $1.9 million as recently as 2008.
Troy had a deficit of $11.6 million without subsidies in 2012. Troy’s student fees were $920,616 (up 94 percent since 2006) and its institutional support was $10.7 million (up 48 percent from 2011).
The efforts to control costs in college athletes remain tied largely to two line items: salaries/benefits (34 percent of expenses) and scholarships (15 percent). Facilities maintenance and rental weighed in at around 14 percent.
Ticket sales (27 percent) and contributions (26 percent) remain the highest sources of generated revenue. As television contracts increase, the line item for NCAA/conference distributions (22 percent) is getting increasingly closer.
UAB’s total 2012 ticket sales in all sports was $1.1 million, down about $200,000 from 2007. UAB’s contributions saw a $303,000 increase last year to nearly $3 million, although that’s still down $3.7 million in 2006.
Troy’s ticket sales totaled around $830,000 in 2012, up $140,000 from the previous year. But contributions declined about $202,000 and dipped below $2 million for the first time since 2007.
For the wealthiest schools, Alabama’s ticket sales reached $33 million in 2012 (up 4 percent from a year earlier) and its contributions were slightly up to $30.1 million. Auburn’s ticket sales were $29.2 million in 2012 (up 1 percent) and its contributions increased to $33.5 million.