Discussing the Poor Financial Situation for Maryland Athletics
by Dave Tucker on Jul 12, 2011 2:20 PM EDT
in Other Maryland Athletics
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PrintI was trying to see if I could find enough articles to pull together a Maryland Minute and stumbled across this piece that Heather Dinich did for ESPN, in which she investigated whether Maryland could afford to pay their student athletes. The answer is an overwhelming no, at least based on the 2009-2010 financial numbers from the athletic department that she references:
Maryland's revenue and expenses:
Football: (116 athletes) Revenue: $11,540,368 Expense: $9,863,748
Men's basketball: (14 athletes) Revenue: $10,739,282 Expense: $5,160,381
Men's other sports (cross country is included with track and field, and competitive cheerleading was not included): (eight sports / 274 athletes) Revenue: $2,185,847 Expense: $5,399,723
Women's other sports (cross country is included with track and field, and competitive cheerleading was not included): (12 sports / 359 athletes) Revenue: $4,599,703 (including women's basketball) Expense: $9,661,431 (also including women's basketball)
Grand total expenses: $51,418,347
Grand total revenue: $51,641,771
TOTAL: $223,424
Um, wow. That's....not good. I don't know where things like paying back the loans for the expanded suites falls, but that could be one factor weighing down the revenue for the department. The lag in football season ticket sales, which Dinich notes is probably the biggest source of potential new income, also hurt. Now I see why the Athletic Department was willing to move the home games with WVU and Va Tech to Baltimore in 2013 and 2014, respectively. That additional revenue they received from doing so, some of which they got up front, appears to have been desperately needed.
Dinich also discusses Maryland's lack of support for football, noting that they make the smallest investment in football among all 12 ACC schools, including Duke.
No other school in the ACC spends less money on its football program than Maryland. The Terps’ overall expenses for football were $9.8 million, according to the most recent report. Boston College spent $17.9 million during that reporting period. Duke spent $14.3 million. Wake Forest $12.5. The only other school that even came close was NC State at $10.4 million.
The numbers show that Maryland isn't on the same playing field as the rest of the ACC when it comes to putting money into the football program.
I think we've discussed before that Maryland spends the least on football among schools in the ACC, although I don't know Duke spent more than us. From what I remember, Duke's numbers, as well as Wake and Miami's, weren't available because they were private schools who didn't have to release that information. I think that is changing and Maryland will slowly climb up that latter in the coming years, probably to the middle of the ACC pack, where they belong. But being #12, behind Duke, Wake, and BC is embarrassing, in my opinion.
Overall, I think these numbers reflect poorly on former AD Debbie Yow and probably help articulate why Maryland didn't have a problem giving Friedgen the boot. It was clear that many fans had grown tired of the big man and they were showing it by not putting their butts in the seats at Byrd, despite what was turning into a good season for Maryland. The revenue being lost by the lack of attendance for football games was probably more than what Friedgen's salary was for 2011, thus buying him out might end up making sense financially.
Dinich also makes one final point worth mentioning:
Overall, including competitive cheerleading, which wasn’t included in the DOE’s report, Maryland has 27 sports, and too many of them don’t have a prayer of making any money.
She's probably right. And when you factor in that competitive cheer wasn't included in those numbers above, you have to think that the athletic department's numbers are probably even worse than what they appear above. The game this year a FedEx against Notre Dame plus moving the two games to Baltimore will probably help pull the department out of this hole, but they're going to need football season ticket sales to continue to do well moving forward if they want to continue to climb the ladder of financial stability. If they're unable to do so, you'd have to think that Maryland might need to consider cutting back on some of the 27 teams they currently field, which would obviously stink. So, go buy football season tickets!
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how does BC do it?
They field 31 teams! And you can bet they don’t generate the bball revenue that MD does. And you’d have to think MD gets more in donations. I know hockey generates revenue there but I dunno how much
Much higher tuition?
If you are correct about the 31 teams number, they must be operating at a loss and paying for it with tuition, right?
maybe
I don’t know what their budget breakdown looks like
College hockey
I think folks might underestimate how big college hockey is in Boston – I didn’t know it until attending school there myself. That and BC football. Plus a rich alumni base
Here is a suggestion
SERVE BEER! Is it a NCAA regulation that beer cannot be served on a college campus? It would be a cash cow. I wonder if teams like Villanova are able to take advantage of beer sales when they play in downtown philly at the 76ers arena. I would think that the football games in bmore will sell beer and that could be a reason MD is expecting to generate a million more than if they played the game on campus. Thoughts? I wish they would play some more bball games at ther Verizon center.
I went to the Jordan classic and they sold beer here at Time Warner Arena. If they can sell beer at a high school all star game it has to be legal at an off campus venue for college. I want to say that they sold beer at NC States bball games because they play in the same venue as the Carolina Hurricans…. could be wrong on that though.
by Charlotte NC Terp on Jul 12, 2011 2:57 PM EDT reply actions
beer sales
ive seen beer sold at every single NCAA event I’ve been to that wasn’t on a college campus, with the exception of the NCAA tournament itself. BB&T, 2KSports Classic, the Navy game last year, etc, all had beer sales. I’m guessing that there is some kind of rule that you can’t do it on campus.
Yea thats what I thought
NC State plays all of their games off campus. No wonder they are ahead even though they suck. We need more games at Verizon…. even some big name games. Not the Duke/Carolina game but throw in an ACC game… maybe VA or NC State. A game in Bmore would be huge… although hard for the students to make it. Verizon is just a metro ride away for students.
by Charlotte NC Terp on Jul 12, 2011 3:09 PM EDT up reply actions
our students are way too lazy
to go to verizon multiple times a year. guaranteed. were lucky if they come to comcast for nc st or va
yea
the student attendance was awful last year. I think 1 ACC game off campus would be big. A MD vs. Gtown game at Verizon would be huge. Split the revenue.
by Charlotte NC Terp on Jul 12, 2011 3:15 PM EDT up reply actions
that would just be a home game for gtown
theyre not gonna agree to split the revenue of any game played at verizon, its their court
I'm pretty sure it's campus by campus
Maryland “technically” has a “dry” campus, but they have exceptions to that rule in the suites in Tyser Tower – they serve beer and wine there. They also serve it at CSPAC and at the Alumni Center ( i went to a wedding reception there). So, I’d assume it’s up to individual Universities, although the ACC could have a policy about it on campus I suppose…
Can you imagine
how much more annoying and hated our fans would be to the opposing team if they could drink all game.
by Charlotte NC Terp on Jul 12, 2011 3:11 PM EDT up reply actions
I was wondering why they didn't sell beer at Byrd
I went to the Navy game at M&T last year and I think just about every person had a drink. It definitely made the game more fun to watch!
Disagree...
I find the game more enjoyable when all the people around me aren’t slobbering over each other because they are bombed. Having a few beers is fine – I enjoy that too – but don’t ruin it for everyone else.
by Terpsfan4ever on Jul 12, 2011 3:20 PM EDT up reply actions
people are drunk at the games one way or the other. The only difference is that if they drink on their own instead of at the game, the university doesn’t make money off of it.
MASN Announcer: "Ususally they have what they call here 'the privilege,' and that's what bobby cox calls it when he let's the veteran guys swing away on 3-0. This is not such a hitter."
Jason Heyward: Single up the middle, ballgame.
not in my section
People aren’t drunk where I sit.
by Terpsfan4ever on Jul 12, 2011 3:53 PM EDT up reply actions
Students
they dont have the money to purchase $8 beers. It would just be your alumni that would be consuming beer. No different than going to an NFL game. People tailgate before hand but usually calm down during the game because who wants to be buying a ton of rounds of $8 beers. If selling beers at games leads to more money for better facilities etc… which usually means better recruits and more wins… I am all for it. I love a cold Bud or Coors. Miller sucks
by Charlotte NC Terp on Jul 12, 2011 4:10 PM EDT up reply actions
With all due respect
Charlotte there were lots of college kids at the Navy game buying those $8 beers. I like a Bud or Coors too but prefer something from Dogfish Head. :)
by Terpsfan4ever on Jul 12, 2011 4:13 PM EDT up reply actions
college kids are morons
they will pay $8 for bad beer, and they will do it 5-6 times per game
by spideyguy0 on Jul 12, 2011 4:15 PM EDT up reply actions 1 recs
I still pay $8
for a beer and I have been out of college for 5 years…. there is something about sitting back and watching sports with a beer in hand.
Any other ideas on boosting revenue? I think the beer talk has pretty much run its course
by Charlotte NC Terp on Jul 12, 2011 4:18 PM EDT up reply actions
Jumping on this beer wagon before its course is run completely!
My uncle told me once that when he used to be a student, that they would have beer cup battles in the student section. Gigantic, towering beer cup blades, shining in the Maryland autumn sun.
Absolutely
along with the occasional ice cube battles when a 20 lb bag of ice would be lifted from a concession stand. Things got a little crazy at the games in the early ’80s (Boomer Esiason and top 20 teams).
WVU
I had a friend who went to WVU (I’m not proud to admit it), and he said they’ll be serving beer at their stadium next season, I found a bunch of articles to back it up when I Googled it, one of which…
http://wvillustrated.com/wvufootball/story/id/1092
It seems that their trade off and justification for the change is to not allow re-entry to the game if you leave, so that people can not “refuel” in the parking lot. UMD already does not allow this. Some of the most annoying, belligerent, and vulgar fans in the NCAA just got a little worse…
Help me connect the dots
How does this http://ccsap.wsu.edu/default.asp?PageID=3352 line up with what WVU is doing? Is it because the NCAA says “suggests” and not “requires”? If it was such a loose policy, wouldn’t every school decide to serve beer? Or does WVU just not give a F because they are rednecks and public opinion can’t be any lower?
I dont get it but am all for selling beer at Terp games!
Yeah, I assume you're right..
It sounds like those are suggested guidelines for NCAA schools to follow. Maybe if selling beer at WVU is a complete disaster those guidelines might become more than a suggestion. Selling alcohol at sporting events would be a huge financial boon for any school though, if one can do it, I think many schools will try to follow suit. It could also create an uneven playing ground with the amount of funds I imagine would be generated and poured back into the athletic programs.
Any other ideas on boosting revenue?
Hire a crazy, out there, personality filled, successful HC that gets the fans AND alumni AND boosters excited?
Rimshot
Saw a tweet today that the boys latin OL says that MD and more specifically Edsall is pursuing him the hardest. My damn phone is acting funny so I cant find his name but Im pretty sure its the 4 star lineman that everyone has been raving about.
by Charlotte NC Terp on Jul 12, 2011 5:46 PM EDT up reply actions
I’m just waiting for the results. Leach would have put the butts in seats right away, which is what this post is about. If Edsall turns out to be a great coach with great (by UMD standards) teams, then no one will even remember the Pirate Fiasco. But if he doesn’t…….
Greg Pyke?
Hopefully Tillman and Edsall can tag-team recruit this guy to UMD. He’s a top attackman in the country in addition to his football prowess; however, I’ve heard that he is only interested in playing football.
When my sister went to UMD there was a bar on campus.
Of course, she also had two guys strung out on LSD come streaking naked through her room and right out the window. Both guys dead. Six stories will do that. Things were different back then.
by NY Terp on Jul 12, 2011 9:12 PM EDT up reply actions 1 recs
Not the same..
Dinnich was looking at whether schools had the finances to play players not whether the Athletic Department was in sound fiscal shape. They aren’t one and the same
Explain the difference?
First off, Maryland is not in sound financial shape. Second, can you articulate the difference?
Yes they are.
We are in hard economic times and the Sports Department is operating within it’s own means. If the money wasn’t there, the non positive revenue producing sports would be cut back in some shape or form or eliminated all together. FB, BB, LAX & Soccer are the sports that gives us National recognition. They are untouchable. Everything else is a side show unless you or someone you know actually plays that sport.
by TwerpsNoMore on Jul 12, 2011 6:47 PM EDT up reply actions
Why do you say...
they aren’t in sound financial shape? Just because they cannot afford to play players? Granted, any business would love to see a larger bottom line, but that has nothing to do with the idea of paying players. There is way to much to consider when getting into pay for play – do you pay the 10th man on the hoops team the same as the star, etc, etc.
they're breaking even
but 200,000 is not a lot to play with, and the athletics dept should be making more than that. there have been a ton of signs that we’re not in great shape if you’re paying attention. even little things like the # of giveaways at football and bball games that used to happen every week barely happen at all anymore. many other signs like this that the dept is cutting back
not knowing the books but,
im guessing MD works like any other business with money “ear marked” or “separated” into different pools. The revenue in is prob just from direct sales and related items, and revenue out is prob must the same designated under an “operating cost / profit” pool of money. Then you have things like booster money and the “great expectations” type campaigns that are marked differently but still spent on sports. MD raised 100+ Million in that campaign, and got 20 mil from Chase Bank for naming rights. So you cant just look at it on the surface.
scratch that, looks like
800+ mil was raised as of March 2011
by Corey Snyder on Jul 12, 2011 3:26 PM EDT up reply actions
Athletic Programs Typically Lose Money
Only your most financially dominant athletic programs actually make money – Florida, Ohio State, Texas, USC, etc. – because their football and basketball programs make mega-millions from TV deals, large donations, merchandise sales and the like. The typical D-1 overall athletic program loses money.
Dollars
I believe the ESPN article valued the cost of the scholarship at 35k or something like that. It’s my understanding that we value it as in-state tuition + room and board + books, etc… pretty sure that does not add up to 35k. If you use those #s, then our bottom line looks better. Still pathetic, but better.
Question
Do athletic scholarships count towards the expenses? I figured that the university foots the bill on those ones but I’m not really sure.
I believe all sports tuitions and coaches salaries are covered by TC and one other program. The facility upgrades through fund raisers and normal operations through the University and State Funding. Could be wrong though……………………..
by TwerpsNoMore on Jul 12, 2011 9:22 PM EDT up reply actions
It prohibits the consumption of....... too.
But check out the lots or the Comcast Garage after tailgating or the stands after games. It’s never going to stop, but it’s not like a Pro Game (Ravens-Skins) where people get trashed. There is a respect factor for minors and as long as you don’t act stupid, it’s pretty much overlooked. You just have to be sneaky walking to the stadium with a brew and respect others.
A lot of people go to college games as to not expose themselves or their kids to a Pro Game atmosphere ( drinking – vulgarity, etc.) . That is why at least one game a year should be in a Pro Stadium. 7 home games and FedEx is a lot of local exposure this year. I’m hoping 1 FedEx & 1 M&T game a year. That will help financially also.
by TwerpsNoMore on Jul 12, 2011 9:07 PM EDT up reply actions
1 Game w/ beer would net us
$48000 (Basketball)
by stripesean on Jul 12, 2011 10:29 PM EDT via mobile reply actions
Too lazy to do a fanshot
Anyone else see DOB on the cover of Sporting News College Football? Or is this old news?
Wise up and join the Big Ten
The “financial crisis” could easily be eliminated if we join the Big Ten in a couple of years. When the new contract gets renewed around 2015 it will be HUGE compared to what the ACC just signed and is stuck with for the next 12 years or so (11.9 M per school). I think it is a no-brainer- 11.9 M or about 30 M per year! Plus I think another reason our football attendance and money is poor is that people are just tired and bored of watching ACC football, which is just a step above the Big East (if at all) these days.
Too Many Sportsq
Maryalnd funds too many sports programs – 27. First start by eliminating sports that MD is not competitive in and/or where costs are too high compared to competitve rewards: Golf(M/W); Competitive Cheer; Water Polo; Cross Country (M/W); Tennis (M/W) to start. Once football restores itself (if it does) and the revenues come in then MD can look at bringing back some of the above. Bottom line-MD cannot possibly fund so many sports.
by floridasteeler on Jul 13, 2011 11:23 AM EDT reply actions
I'm guessing they fall under OR costs are too high
And good luck cutting a womens’ sport.
"Complacency is your demise." - Kerry King
Comp. Cheer
Point is that the costs of many of these sports outweigh their value. MD can’t fund football even to the level of Wake or Duke and we are screwing around with Competitive Cheer? Come on!
by floridasteeler on Jul 14, 2011 8:14 AM EDT up reply actions
Every sport other than football and basketball
outweighs its value. Every sport. That’s why they’re called “non-revenue.” The point of cutting sports isn’t to cut the ones we don’t like or aren’t competitive in: it’s what costs the most money. Unfortunately, I don’t know what those are. Water Polo would be one, I’d assume, but it’s a women’s sport and is I’m guessing pretty key to keeping the scholarship numbers in balance.
BC, Syracuse and the Big Ten
BC has a high student athletic fees and gets money from the church. Syracuse sells beer at the Carrier Dome which is on campus, so it can be done and you’ll never join the Big Ten, cause they want NYC eyeballs.
Dikaia Upotheke - Justice Our Foundation
Would not bet the Bank
I would not bet the bank on UM not joining the Big Ten. Big Ten is definitely interested as they not only want NYC eyeballs but also want to control entire northeast corridor eyeballs. And to add UM, Rutgers, Syracuse, and hopefully ND would wrap up TV audience from The District, Md, NJ, and NY.
Big 10
Unless MD makes a serious commitment to football they will get their asses handed to them in the Big 10.
by floridasteeler on Jul 14, 2011 8:15 AM EDT up reply actions
ND never
Irish will stay independent, and MD lost the opportunity when they selected Nebraska, a school of lesser quality and eyeball generation. UConn and Rutgers have a better shot now.
Dikaia Upotheke - Justice Our Foundation
UMD needs to do a better job
Filling the seats at women’s BBall games and both Men’s and women’s LAX. Hell, we were in both LAX national championship games, and women’s BBall is usually better in ACC competition than Men’s. Plus, the Terp baseball team always sucks. This is a sport we should excel….
Sad
Really sad that MD continues to be near the bottom in support of its football program. Direct reflection on the regents and administration and alumni. Granted football has been up and down on the field in the last 5-6 seasons and there is competition from the Deadskins and Ravens But the state of MD is in far better economic shape than many other states where support is huge for college football. Face it- MD has never made a major commitmernt to football and never will.
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