WEST LAFAYETTE - With the Big Ten women’s basketball tournament staged this weekend in Indianapolis at Bankers Life Fieldhouse, the Journal & Courier takes a look at the revenues and expenses of the programs.
How much are teams generating in ticket sales? Do any of the programs come close to breaking even or turning a profit for their athletic departments? Does spending more money equal winning seasons?
Only two sports – football and men’s basketball – routinely make money for athletic departments. At some schools, baseball and hockey turn a profit. At Nebraska, the volleyball program generated about $1.2 million in revenue
Otherwise, a majority of athletic teams operate at a deficit and rely on the revenues generated by football, men’s basketball and conference television contracts to help fund their programs.
The women’s basketball figures are based on the 2015-16 fiscal year, the latest available. Information was obtained through an open records request for each school’s NCAA Revenues and Expenses summary. This information is reported annually to the NCAA.
Penn State hasn't posted its report and Northwestern, a private school, isn’t required to comply with open records requests, per university policy.
Ticket sales
One of few opportunities for women’s basketball programs to generate revenues. On average, about 23 percent of each program’s revenue comes from ticket sales. Minnesota is at the high end (76 percent) and Rutgers is at the bottom (0.06 percent).
Purdue is above the average, producing revenue from 39 percent of its ticket sales.
Nebraska ranked first, totaling nearly $690,000, a figure not at all surprising considering the support from the school’s fan base and the long-term success under former coach Connie Yori.
The Huskers finished the 2015-16 season with an 18-13 record and were 9-9 during the Big Ten regular season. Nebraska averaged 5,404 fans during the season to rank second in the conference behind Purdue and 12th nationally.
Head coach salary
The two highest paid coaches – Ohio State’s Kevin McGuff and Maryland’s Brenda Freese – are producing the winningest programs.
Coaching salaries listed include base compensation, supplemental income, benefits and bonuses paid by the university.
Maryland and Ohio State finished a combined 31-5 during the Big Ten regular season in 2015-16. The two programs have been the most successful in the league the last three years and it should continue. They’re the top two seeds in the Big Ten tournament for the second consecutive year.
Freese and McGuff were the only coaches paid over $1 million in 2015-16 but the commitment is paying off with victories. Iowa’s Lisa Bluder is the dean of Big Ten coaches and her income was reported at just under $1 million. Rutgers head coach C. Vivian Stringer also came in at just under $1 million.
Assistant coach salaries
Investing in the head coach is one sign of commitment but how much are athletic directors willing to pay assistant coaches? Each basketball program is permitted three assistants.
Iowa and Rutgers ranked first and second in assistant coaches salaries, benefits and bonuses, the only Big Ten programs spending over $600,000.
The average was $523,010 among the 12 conference schools. Purdue ranked next to last, spending $430,738, just in front of Wisconsin.
What was the cost per victory during the 2015-16 season?
The best bargain belonged to Indiana head coach Teri Moren and her assistants. The school paid an average of $45,405 for its 21 victories. The worst deal? Wisconsin compensated Bobbie Kelsey and her coaching staff an average of $139,367 for their seven wins. Kelsey was fired after the season.
The teams at the top – Maryland’s averaged $54,729 per win; Ohio State earned $75,236 per victory.
Purdue paid Sharon Versyp and her staff $59,345 per victory, which ranks seventh among the 11 programs.
Recruiting expenses
The lifeblood of any college program.
The schools spending the most – Maryland and Ohio State – rank first and second. Both programs spent over $200,000 on recruiting, above the league average of $170,471
The money spent on recruiting in 2015-16 should pay dividends this season and beyond. Head coaches and their assistants spend most of July on the road watching prospects at AAU tournaments.
Hosting recruits on campus for official visits are part of the expenses, which include lodging, transportation and meals for prospects.
Game Day expenses
Nebraska and Purdue spent more than $500,000 in this area and the gap was more than $100,000 Michigan State, which reported $389,613.
These expenses include officials, security, event staff, personnel to scan tickets, etc.
Operating revenue
Five programs reported more than $1 million in revenue, but a closer look at the information provided by Rutgers shows the program received plenty of help.
More than $3.4 million from student fees and direct institutional support was funneled into the program. Part of the decision to join the Big Ten was to allow the school to begin eliminating fees and support from the university.
Overall, the athletic department received more than $28.5 of its $83.9 million in revenue from student fees and direct institutional support.
Rutgers wasn’t the only program to receive financial support from its university. Nearly $1 million of Wisconsin’s reported revenue was generated through contributions.
Maryland’s program received $211,480, which was a small fraction of the $3.7 million the university sent to the athletic department.
Illinois ($52,660) and Michigan State ($1,500) also received money from their respective universities.
Women's basketball teams also generate revenue from contributions, game programs, apparel, parking and concession sales.
Operating expenses
Salaries for the head coach and assistants usually account for around one-third of each program’s total expenses.
Scholarships and team travel also rank high.
Big Ten women’s basketball programs had an average deficit of around $3.4 million.
Purdue’s biggest cost was game day expenses, but scholarships were a close second, totaling just over $491,000.
Athletic aid at Maryland and Michigan ranked first and second, costing over $800,000 at each school. Minnesota’s scholarships totaled around $375,000.
It’s difficult to compare team travel costs because of several factors, including campus locations and where programs are playing. Tournaments played over Thanksgiving are popular destinations, including events in Hawaii, Mexico, Bahamas, Las Vegas and Florida.
Ohio State spent $1.1 million on travel, followed by Iowa ($999,814), Minnesota ($960,612) and Nebraska ($838,126). Purdue’s travel costs in 2015-16: $465,864.
Another rising expense is guarantees – paying mid-level or lower-level Division I programs to play home games in an attempt to lock up victories. Four programs – Maryland, Nebraska, Minnesota and Iowa – paid more than $100,000 for non-conference home games.
Purdue paid $95,773 in guarantee games.
A portion of Nebraska’s expenses were attributed to severance payments. Yori resigned in April, 2016, and the university reported payments totaling $1.28 million.