Andrew Zimbalist, a sports economist at Smith College, says college sports programs are losing an average of $10.2 million based on 2008-09 data.
The $10.2 million median loss reflects capital costs only and does not include total operating losses.
Zimbalist says the NCAA conducted a study of every FBS program’s operating costs and concluded that the average expenditure was $24 million annually.
Coupled with those costs and the capital losses, big time college athletic programs are losing an average of more than $34 million annually.
Zimbalist suggests that if college athletic programs don’t begin taking measures to curb spending, the average median loss per program could reach $22 million in capital costs by the year 2015.
College athletic programs have seen drastic spending increases over the past decade as a result of new stadiums, athletic facilities and coaches salaries.
Zimbalist says the average coach’s salary for a top 15 college basketball program is roughly the same as most NBA coaches, yet the average median revenue for a top college basketball program is 10 times less than an NBA franchise.
Zimbalist believes one way to cut spending is for the NCAA to seek an antitrust exemption that would allow each school to trim coaches salaries.
Another area Zimbalist says college athletic programs could reduce costs is by limiting the number of players on each school’s football teams.
The NFL has an active roster of 45 and an additional 8 players on the practice squad.
NCAA football programs can have 85 scholarship players and an unlimited number of walkons, bringing the total number of players on a team to well over 100.
In an effort to generate additional revenue, Zimbalist believes the NCAA should eliminate the BCS and create a playoff system in college football.
Zimbalist says that college athletic programs will have to seriously address spending issues in the immediate future or face dire long term consequences.
