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From:
Robert Svec <[log in to unmask]>
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Date:
Sat, 7 Jun 1997 02:47:38 -0400
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At 01:04 AM 6/6/97 -0500, J. Michael Neal wrote:
>Warning: This post is long.  I've tried to be brief in the past since
>this topic is technically off subject for hockey-l.  all that has meant
>is that I'm accused have having no facts to back up my statements.  In
>the future, I might not make this mistake and will give the list a
>lot,of off-topic information.  Sorry, folks, I tried to be brief.
>
 
 
I've cut out most of my earlier posting and Michael's explanation of how he
computed the following table.  We can argue back and forth about specific
numbers but our differences would be relatively small so I'll accept most of
his estimates for discussion sake.
 
 
>
>Where do we stand at this point?  Assuming that Northwestern is an
>average institution and based on the assumptions I have outlined above
>we get:
>        Scholarships:   $2,100,000
>        Coaches:          $500,000
>        Travel:           $300,000
>        Recruiting:       $250,000
>        Medical:          $350,000
>        Insurance:      Who knows?
>        Overhead:         $400,000
 
Your assumption "that Northwestern is an average instiution" is grossly
invalid.  Northwestern, the only private school  and is the most expensive
college in the Big Ten.  Tuition at most of the Big Ten universities is
roughly $6000 - $10000 cheaper than at Northwestern (I assume you weren't
trying to skew the data and it was just an error in picking Northwestern as
"an average institution".)  Thus your estimate of scholarship costs is
anywhere from a half a million dollars to $850,000 too high for  more
typical  conference schools.  Also by picking Northwestern as your "average
institution"  you convieniently selected the school with the second smallest
revenue in the Big 10.
 
 
>This gives us $3.9 million dollars.  Insurance is at least $50,000.  So,
>even with conservative estimates, I've made it to the published figure
>before getting to the punchline.  Nowhere in the above analysis have I
>addressed capital expenditures, debt service or maintenance of
>facilities.  How much are these?  I have no idea, but they aren't cheap.
> Upkeep on an artificial turf surface by itself is usually figured to be
>at least $100,000 per year (from Sports, Inc. magazine and again a
>decade old).  Dyche Stadium in Evanston is a dump (or at least it was
>when I went down for a Minnesota game three years ago), but this lowers
>the maintenance bill by less than you might think.  Besides, if it's
>still as bad as it was then , I'll also question the revenue numbers NU
>provided.  If it isn't, they've put a lot of money into capital
>improvements that will only add to my total.
 
USA TODAY Gender Equity Study
 
School.........Foot. Rev....Foot. Exp....Bask. Rev....Bask. Exp.
Northwestern...7,697,618....3,951,692.....3,289,121....1,046,995
 
School.........Wom. Bask. Rev....Wom. Bask. Exp.
Northwestern.......26,970.............606,316
 
School........Other Men Rev. Men Exp....Other Wom. Rev....Wom. Exp.
Northwestern......69,035......1,568,489.......48,647.......2,316,995
 
Even if you look at the situation at an expensive school like Northwestern,
it is clear that football is a money making sport.  If add $1,000,000 (ONE
MILLION DOLLARS)  or roughly 25% to your estimate for these other costs.
Northwestern still made $2.7 million on football in 1995/96.
 
You question the revenue data for NU and state that if the data is correct
"they've put a lot of money into capital improvements".  There is another
more logical posibility...they may be funding non-revenue and women's sports
with it.
 
 Northwestern's football revenue was the second lowest  in the Big 10 while
Penn State, Michigan and Ohio State have the highest levels of revenue from
football...as expected.  I was somewhat surprised by the low level of
revenue since in 1996 Northwestern went to the Rose Bowl and I would have
expected higher attendance at their home games.
 
 I have no problem believing the facts as presented by USA TODAY.  In most
cases, the data for individual schools appeared to be consistent with
tuition costs, stadium sizes, attendance and fan support not only for
football but also for basketball, women's basketball and for other men's and
women's sports.
 
There is little doubt that for the large football schools money is being
made to pay for women's and nonrevenue sports.  Based on the data availble
for the Mid American Conference, the smaller schools are probably losing
money not only on football but throughout their sports program.
 
 
Bob Svec
 
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