Athletics look to reduce costs, increase revenue
New conference yet to generate expected revenue
By Jacque Petersell
Editor in Chief

Editor’s note: This is the first installment of a two-part series.

In 2001, the university jumped from the Western Athletic Conference to Conference USA with an expected jump in revenue.

But according to reports, the university made and spent more in its final year in the WAC than it did in the first season in C-USA. However, athletic officials are looking for that trend to reverse.

According to reports from the athletics department, the various sports brought in about $10 million in revenue and had almost $18 million in expenses during the last year in the WAC. Both numbers were down slightly this past year with the department bringing in $8 million and spending $13 million in its first year in C-USA.

Expenses include athletic-related student aid, equipment, promotional activities, recruiting expenses, supplies and travel, among others. Revenue includes ticket sales, student activity fees, institutional support, post-season compensation, concessions, radio and television and sponsorships, among others.

According to a report from the NCAA on Division I schools, the average total in 2001 for revenue was $25.1 million, up 15 percent from 1999, and the average expense was $23.2 million, up 16 percent from 1999.

Carol Campbell, vice chancellor of business and finance, said gate receipts from 2001-02 were about $4.5 million.

“That was greater than budgeted because of two football events — the Pigskin Classic at Nebraska and a bowl game,” she said in an interview last semester.

She also said the current budgeted revenue is about $3.6 million, and said it is also expected to be higher because of TCU’s bid to the Liberty Bowl.

The athletic department’s budget is decided upon by the university and the revenue it brings in goes back to the university. Campbell said she would not comment on budget issues.

According to information from the University of Cincinnati, also in C-USA, its total revenue for the past fiscal year was about $18 million and its total expenses were about $20 million. Officials from Tulane University declined to comment and calls to other C-USA and WAC schools were not returned.

Jack Hesselbrock, associate athletics director for internal operations, said travel is the main difference between the WAC, C-USA and the Southwest Conference. TCU’s last year in the Southwest Conference was the 1995-96 school year.

“When (we) were in the Southwestern Conference (we) were using buses to go to SMU, Waco, College Station and Austin,” he said in an interview last semester. “Your length of travel in time, with the exception of non-conference games, vary year to year obviously.

Your furthest trip was to Fayetteville or Lubbock. The spending was obviously less in that area.”

Hesselbrock said, in regards to revenue, while there wasn’t always the guarantee of a bowl game while in the SWC, the university had connections with the Cotton Bowl and other top-rated teams.

“There was representation in the past with Arkansas and the Orange Bowl,” he said of the schools TCU played. “You usually had other schools (involved as well). It would vary from year to year. With (schools like) Texas A&M and Texas Tech, there was more of a competitive sponsorship.”

Bowl games are an extra source of revenue but are also extra expenses. In the 2000-01 year when TCU went to the Mobile Alabama Bowl, previously called the GMAC Bowl, the average payout for a non-BCS bowl was $1.2 million while the average expense was $927,639. The next season, when TCU went to the Galleryfurniture.com Bowl, now the Houston Bowl, the average revenue and spending was up slightly, at $1.3 million and $1 million respectively.

Hesselbrock said schools get a set expense for bowl games. The bowl committees decide how long the teams stay in the city and what hotel they stay at. Also, he said, the athletics department sets up a separate bowl budget.

Hesselbrock said they are expecting a larger cut of the distribution this year because of the type of bowl game they played in. According to NCAA data, in the 2000-01 year — TCU’s last year in the WAC when it played in the GMAC Bowl — the payout for that bowl was $1.5 million. The next season — TCU’s first in C-USA when it played in the Galleryfurniture.com Bowl — the bowl payout was about $1.6 million. Last year, the payout for the Liberty Bowl — where TCU played this year — was $2.6 million.

Revenue for BCS bowls is much higher, by almost $10 million according to NCAA data, because of corporate sponsorship, Hesselbrock said. Spending in BCS bowls is slightly higher than non-BCS bowls.

For the WAC, the average bowl revenue is $2.3 million, while the school expense is $1.8 million, according to NCAA data. For C-USA, the revenue was $4.4 million versus the expense of $4.2 million, according to the data.

Hesselbrock said travel and spending is better in C-USA because the majority of the opponents are in metropolitan cities.

“Our games are over earlier,” he said. “Your publicity is higher because your game is on the 10 o’clock news. (The game) is not just halfway through. People attend a little bit more readily. They travel behind the team.”

j.s.petersell@tcu.edu