#OWS

sports economics/finance

BCS School Athletic Budgets On The Rise In 2012

It’s no surprise that the athletic budgets for schools associated with a Bowl Championship Series conference are quite large. There is a recent SBJ article which shows the athletic budgets for these schools from 2010 to 2012.

As I anticipated, some of the schools with the biggest increases over this period are predictable. For example, Utah comes in at a 25.9% increase during that time period. It makes sense as the school moves into the Pac-12 conference. A large increase might even make sense for a school like  South Florida (23.5%) which is trying to up its level of competitiveness in the Big East.

Take a look at the rest of the top 10 largest increases from 2010 to 2012:

The first one that sticks out is Michigan. A 29.8% increase is massive when you are talking about a 2010 fiscal year budget of $84.6 million. That one wasn’t so predicable in my mind. That said, it makes sense. They are trying desperately to correct the direction of their athletic department in Ann Arbor. If those millions of dollars don’t help, what is going on in Columbus, OH might do the trick.

Louisville coming in at number one is interesting. Recently home to a perennially good hoops program, but the Cardinals are a struggling bottom feeder in Big East football. I would imagine this increase in spend has a lot of to with that latter point.

Also interesting to look at; the largest athletic budgets:

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More Universities To Sell Beer At Games

In early June I mentioned that West Virginia University has decided to sell beer at football games. Some more commentary is coming out on the subject. Apparently WVU athletic director Oliver Luck is expecting to profit around $1 million when it comes to beer sales. In the same statement, Luck also mentioned that he believes many more schools will be doing the same soon.

I never understood the alcohol consumption rules that well. Some schools sold beer at some events, but it was definitely a case-by-case decision. What criteria was behind that decision — I do not have the slightest idea.

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Economic Impact Of The Super Bowl In Las Vegas

Maybe the most intriguing analysis I have seen is that the Super Bowl will take in $85.6 million in Las Vegas. In addition, sports books estimate to take wagers in the $88 million to $90 million area. In essence, people will gamble on the game more than the eat, drink and play all weekend.

This estimate would be an increase over the past two years. Last year, $82.7 million was wagered on the New Orleans Saints – Indianapolis Colts game. The year prior, $81.5 million was bet on the Pittsburgh Steelers – Arizona Cardinals  Super Bowl.

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