Southeastern Conference schools have likely completed their athletic department budgets for 2015-16.
They'll once again be able to include a record payout from the SEC. This year the league distributed a record $455.8 million to its 14 members. The total includes $436.8 million distributed from the conference office, about $31.2 million each for athletic departments such as the University of Arkansas, as well as $19 million in revenue retained by institutions that participated in 2014-15 bowl games.
(Yes. It's one of those columns. Y'all know the drill around here. College sports is nothing if not a business, etc.)
Sounds great, but I do wonder if we're close to a scenario where revenue sharing gets so big that fans wonder why the program needs their money? Could folks stop donating or buying tickets because they figure UA, or wherever, has enough money without them?
It's a question I posed recently to UA sports management professor and sports business guru Steve Dittmore. After patiently hearing me out, Dittmore explained that there are no data to support the idea that increased payouts could lead to decreased donations.
However ...
All that money is being generated because of TV contracts. TV is able to pay out all that money because (essentially) every game is broadcast, bringing in billions in advertising revenue.
Knowing they can stay home and get a good view, comfortable seat and no wait for the bathroom, fans are beginning to rethink the in-stadium experience. At Arkansas, for example, the revenue sharing money is now about equal to money generated from ticket sales.
"Fans are being more judicious about how they're spending money," Dittmore said. "That means athletic departments are evaluating how they're spending. They're looking at how to make the fan experience better."
As people become more reliant on mobile technology and more interested in interacting during sporting events, a few million for dependable wireless Internet at the venue seems like a good investment. How often have you attended a game and been unable to text a photo of your seats to a buddy or post snarky commentary about the coaching to Twitter because the network is overloaded?
If a team plays six games or fewer at its home venue in a season, there is some debate whether such an investment would be worth it. Athletic departments have to consider that when evaluating where to spend their money.
Auburn University trustees in February unanimously approved a $13.9 million video board for Jordan-Hare Stadium. The screen is reportedly 190 feet by 57 feet.
For years the arms race in college athletics was focused on capacity. Amenities are now the name of game, which is why we saw UA try out a nightclub atmosphere in the upper deck of Donald W. Reynolds Razorback Stadium in an attempt to lure students last year.
Perfecting the in-stadium experience will take time for schools. They've got a nice financial cushion until they do.
SundayMonday Business on 06/14/2015