EDHS Contemporary World Affairs

Recent All-Sports College Deals

Notre Dames 10-year deal with Adidas, reportedly $6 million+ a year

North Carolinas 10-year/$3.4 million-a-year deal with Nike

Alabamas 8-year deal with Nike, reportedly $3.75 million a year

UCLAs reported $4.5 million-a-year deal with Adidas goes through 2011; it's the largest in the Pac-10 Conference

Highest Paid Coaches - 2010

John Calipari (Kentucky): $4 million

Tom Izzo (Michigan State): $3.4 million

Billy Donovan (Florida): $3.3 million

Bill Self (University of Kansas): $3 million

Top Basketball Team Earners 2009-2010

1. Duke: $26.6 million
2. Louisville: $25.9 million
3. North Carolina: $20.5 million
4. Arizona: $19.3 million

Source: Forbes.com using financial data for the 2009-2010 academic year obtained from the U.S. Department of Education USA Today and The Oregonian

What All-Sports Sponsorships Deliver

• Athletic departments get a generous supply of sponsor's products and apparel. For example, Nikes allowance to supply Alabama is valued at $2.3 million per year.
• Colleges get an average 10-12 percent royalty on sales of co-branded apparel and merchandise and local media and advertising
• Perks. Michigan got a $6.5 million signing bonus from Adidas after being lured away in '07 from Nike. Teams and coaches get first class hotels/air travel, expensive club memberships, etc.
• Performance bonuses. These can amount to millions a year for tournament wins, championship games, coach-of-the-year titles, etc.

Money In, Money Out

Athletic programs get most of their money from ticket sales, championship games -- plus tv rights to those games -- and student fees. Other sources: merchandise sales, sponsorships and local radio/TV advertising revenue. Student fees are the only primary revenue that's non-commercial. Despite these income streams, the average Football Bowl Subdivision (Division I FBS) athletic program in 2009 ended up more than $10 million in the hole. 2005 was the last year any Division I program without a football team turned a profit. Currently, according to an NCAA study, only 14 schools nationwide generate revenue.

What flows into a high profile athletic department quickly flows out through facilities' maintenance, travel, training, tutors, and coaches' salaries.

In 2009, the top 10 NCAA public schools that spent the most on athletics spent an average of $98 million.  By 2020, average spending by those ten college athletics departments is forecast to top $250 million a year, according to the Knight Commission on Intercollegiate Athletics, using NCAA data submitted by member schools over the past five years.

Read more: http://www.pbs.org/wgbh/pages/frontline/money-and-march-madness/big-bucks-bracket/#ixzz1OWN45qsV

Read more: http://www.pbs.org/wgbh/pages/frontline/money-and-march-madness/big-bucks-bracket/#ixzz1OWMqLnmM