Jan. 31, 2005 Reality Check

The Enemy Is Us: Cost Reduction in College Sports

By John V. Lombardi

You have to love university people.Their leaders meet, wring their hands over the high cost of big-time football, and form a committee of themselves to consider how to deal with this problem; as if there were new as yet undiscovered solutions. Their trade organization for sports, the NCAA, issues ringing statements about the high cost of superstar coaches and endorses a committee composed of those who hire superstar coaches to address the issue. It is a spectacle worthy of admiration.

We who watch all this as participants or observers recognize the activity as a spectator sport itself; designed to entertain, amuse and confuse. Here is our mini-FAQ: Frequently Asked Questions on big money college sports (based on our experience and the analysis of the research university sports enterprise in The Sports Imperative (TheCenter, 2003).

Q: How did coaches’ salaries get so high?

A: About a dozen or maybe a few more big-time basketball and football coaches have exceptionally high salaries in the range of $1 million a year. The rest of them work for about half as much or less in Division I-A, have long hours, and enjoy relatively little job security. For all of these coaches, if they don’t win, they get fired.

Q: Who is responsible for the super coach salaries in basketball and football?

A: The run-up of superstar salaries began with basketball coaches who were the first to hit the $1 million mark. The superstar football coaches wanted be paid as much as their basketball colleagues, so the race was on.

Q: Why don’t universities pay superstar coaches less and put the money into teaching?

A: Most big-money coaches have a base salary in the $200K to $300K range, and the additional $900K to $1M comes from income earned through shoe contracts, television shows, endorsements and booster contributions, all funds generated outside the university based on the coach’s fame and success. The companies and boosters who pay for these salaries have no interest in supporting teaching.

Q: Are these Division I-A football programs making lots of money?

A: Maybe five in the country make money (if you could get them to report their income and expenses honestly and fully). The other 112 or so lose money; some lose a great deal of money.

Q: What can the universities do to reduce the cost of football?

A: Reduce the number of football scholarships awarded for each team from 85 to 65.

Q: Why don’t university presidents do that?

A: There are not enough high talent football players to fill 85 spots on the 119 teams struggling to compete in Division I-A. The schools with the most money to spend on coaches, stadiums, and amenities can attract 85 super players with the scholarships, leaving the poor schools unable to recruit as many superb players. Talent is what matters in sports, and with 85 scholarships, the top schools can monopolize much of the talent leaving less for their competitors.

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