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RutgersUniversity

IntercollegiateAthleticsReview

Fall,2018

RutgersUniversityIntercollegiateAthleticsReview CollegeSportsSolutions

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Tab le of Contents

Introduction.................................................................................................................................................3

WorkSummary............................................................................................................................................4

ExecutiveSummary......................................................................................................................................6

Assumptions.................................................................................................................................................9

PeerInstitutionsComparisons/Benchmarking...........................................................................................10

Academics..................................................................................................................................................12

SportSponsorship......................................................................................................................................13

RutgersTransitiontotheBigTen...............................................................................................................14

RevenueBenchmarking.............................................................................................................................16

DebtBenchmarking....................................................................................................................................23

FinancialAssistanceBenchmarking............................................................................................................26

StaffingBenchmarking...............................................................................................................................29

Facilities......................................................................................................................................................35

TitleIX/GenderEquity................................................................................................................................37

ResearchontheEffectofAthleticsonUniversities...................................................................................40

Conclusion..................................................................................................................................................47

CaseStudies...............................................................................................................................................50

UniversityofCalifornia,Berkeley...............................................................................................................50

UniversityofWashington...........................................................................................................................52

UniversityofMaryland...............................................................................................................................55


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I n troduct ion

In2012,theBigTenConferenceannounceditsexpansionintotheTri-StateandWashingtonD.C.areas,withRutgersandMarylandscheduledtojointheConferencein2014.ThischangeinconferenceaffiliationhascreatedanunquestionableopportunityforRutgerstojoinanelitegroupofacademicinstitutions,elevateitsintercollegiateathleticsprogram,and,withcompetitivesuccess,enhancetheUniversity’sreputation,therebybecomingagreatersourceofpridetoalumniandfriends.ThiswasclearlythegoalofboththeUniversityandtheBigTenatthetimeofentry.

In2018,inconjunctionwithitsdevelopmentofaStrategicPlan,RutgersAthleticsengagedCollegeSportsSolutions(CSS)toconductanoperationalreviewofitsathleticsenterprisetoassisttheuniversityindevelopingacomprehensive,multi-dimensionalplantoreachcompetitivenessinafiscallyresponsibleway.Suchastrategywillrequirealong-termfinancialplanonmultiplefronts,andCSSwasaskedtoassistinidentifyingareasofopportunity,whichmayinclude,butnotbelimitedtofacilitiesimprovement,debtmanagement,universitysupport,vendorcontractleveraging,namingrightssolicitations,increasedfundraising,possiblestateassistance,andreviewofthenumberofsportsofferings.

CSS’sworkincluded:

• Acomprehensivereviewofalldocumentationrelativetotheintercollegiateathleticsoperation,includingfinancialinformation(revenueandexpense),organization,staffing,andotherrelevantinformation.

• Oncampusandotherin-personandtelephonicinterviewswithidentifiedstakeholders,bothinternalandexternal.

• Acomprehensivereviewofcurrentandplannedathleticfacilities.• Researchandbenchmarkingofotheridentifiedinstitutionsintheareasofrevenue(allocated

andgenerated),expenseanddebt,aswellasgeneralinstitutioninformation.• TitleIX/GenderEquityreviewandanalysis.• Adviceandcounsel.

TheCSSteamthatparticipatedinthisreviewwascomposedofJeffSchemmel(President),andconsultantsRickBay,HeatherOuldandKristiDosh.

WewouldliketothankallofthepeopleatRutgersfortheircooperationandcourtesiesduringourseveralvisitstocampus,withparticularthankstoAthleticDirectorHobbs,SeniorAssociateAthleticDirectorMichaelSzul,andSpecialAssistanttotheathleticdirectorKerryBrum,whocoordinatedthemanyinterviewsandmanagedourconstantlychangingitineraries.

Ourgoalwastolearnasmuchaspossibleabouttheinstitutionanditsathleticsenterprise,andproviderelevantinformation,analysisandcounseltoassistRutgersinplanningasuccessfulandfinanciallysoundintercollegiateathleticsfuture.TothatendCSSsubmitsthisreport.


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Work Summary

ReviewofDocumentsCollegeSportsSolutionsreviewedthefollowingdocuments:

• StrategicPlanforRutgersUniversity(2014)• DraftStrategicPlanforRutgersUniversityAthletics• RutgersEADAReportsforyears2014-15,2015-16,and2016-17• NCAAFinancialReportsforyears2012,2013,2015,2016,and2017• SquadListsforyears2014-15,2015-16,and2016-17• OperatingBudgetsforallsportsanddepartmentsforthe2017-18year• ProjectedOperatingBudgetsforallsportsanddepartmentsforyears2018-19,2019-20,2020-

21,and2021-22.• Compensationsummaryforcurrentemployees• CurrentAdidasAgreement• CurrentIMGAgreement• CurrentPaciolanAgreement(Ticketing)• FacilitiesOverviewDocument• TitleIXReport(2013)• Otherrelevantsurveys/information/documents

Interviews/MeetingsCollegeSportsSolutionsvisitedtheRutgerscampusonfourseparateoccasions,gatheringinformation,interviewingcoaches,student-athletes,seniorathleticadministrators,senioruniversityofficials,campusstudentleadership,alumni/donors/friendsoftheUniversity,andtouringathleticsfacilities.Inaddition,Mr.SchemmelandMr.BaytraveledtoChicagoformeetingswithBigTenCommissionerJimDelanyandimmediatepastchairoftheRutgersUniversityBoardofGovernors,GregBrown.Additionalphoneinterviewswerealsoconducted.

PersonsInterviewed:• Dr.RobertBarchi–President• PatrickHobbs–Director,IntercollegiateAthletics• TomStephens–FacultyAthleticsRepresentative• C.VivianStringer–HeadWomen’sBasketballCoach• StevePikiell–HeadMen’sBasketballCoach• ChrisAsh–HeadFootballCoach• Student-athletes

o JennaSobieskio DimitriDemoso AbbeyBrookso JoeyDowneso ChristineDillulo


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• SarahBaumgartner–DeputyDirectorofAthletics• MichaelSzul–SeniorAssociateAthleticDirectorforFinance,AdministrationandPlanning• RickThorpe–SeniorAssociateAthleticDirectorforExternalAffairs• KathyDettloff–VicePresidentforFinancialPlanningandBudgeting• TimFournier–SeniorVicePresidentforEnterpriseRiskManagement,EthicsandCompliance• NevinKessler–President,RutgersUniversityFoundation;ExecutiveVicePresidentfor

DevelopmentandAlumniRelations• MichaelGower–ExecutiveVicePresidentforFinanceandAdministration;UniversityTreasurer• AntonioCalcado–ExecutiveVicePresidentforStrategicPlanningandOperations;Chief

OperatingOfficer• AlexPerez–AssociateUniversityCounsel(assignedtoathletics)• KateHickey–Sr.AssociateAthleticDirectorandTitleIXCoordinator• CampusStudentLeaders

o KarlenRubinsteino AlyssaRiverso JonathanZimmerman

• JimDelany-Commissioner,BigTenConference• BradTraviolia–DeputyCommissioner,BigTenConference• GregBrown-PastChair,RutgersUniversityBoardofGovernors• JeffTowers–Donor• RonandJoannaGarutti–Alumni/Donors• MarkAngelson–ViceChair,RutgersUniversityBoardofGovernors


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Execut ive Summary

SixyearsaftertheannouncementthatRutgersUniversitywasinvitedtojointheBigTenConference,theschoolcontinuestobecomefullycognizantofthechallengesofcompetinginaleaguecomprisedofsomeofthemostpowerfulathleticprogramsinthenation.AlreadyapeerofmanyBigTenschoolsintermsofacademicprestigeatthetimeofitsentranceintotheConference,Rutgerswasnotatthelevelofitsconferenceathleticpeerscompetitively,financially,orintheareaofathleticfacilities.

TheBigTen’spursuitofRutgerswasinpartfueledbytherealignmentofconferencesintheEast,particularlythedepartureofSyracuse,BostonCollege,Pittsburgh,andMiamitotheexpandingAtlanticCoastConference.InlandingRutgers,theBigTenwasabletobringinaschoolthataddedbothacademicprestigeandattractivesportsmediademographics.

Rutgers’firstfouryearsintheConferencehavedemonstratedastrongcorrelationbetweentheuniversity’sbudgetandfacilitydeficitanditslackofcompetitivesuccess.Its4-yearwinningpercentageinallsportsis26percent,lastintheConference.

ComingfromtheAmericanAthleticConference,whereitsexpensebudgetwas$76Minitslastyear(2014),theScarletKnightswereenteringarguablythestrongestofthe“PowerFive”leagues,wheretheaveragebudgetwaswellinexcessofthatnumber.Addingtothatissuewasthefactthatathleticshadlongreliedonsubstantialinstitutionalfinancialsupportandwished(andcontinuestowish)tolessenthatrelianceintheyearsahead.

TheexpectationsrelativetofinancialdistributionsfromtheBigTen,althoughreal,havebeentemperedbythesix-yearwaitforfulldistribution,whichwillbeginin2021.Moreover,advancestakenagainstthosefuturedistributionswillresultinlesserdistributionsin2021andbeyondascomparedtoestablishedBigTenpeers.Forexample,whileafullconferencesharetoitstraditionalmembersfor2021isprojectedtobeapproximately$52million,Rutgers’distributionwillbesubstantiallyless.

Thelackofcompetitivefacilities,especiallyascomparedtootherschoolsintheBigTenConference,hascontributedtothelackofsuccess.Althoughfacilityneedshavebecomeatoppriorityofthecurrentathleticadministration,andsignificantprogresshasbeenmade,therecontinuestobeanongoingneedtoupgradefacilities,particularlyasitrelatestorecruiting,theoverallstudent-athleteexperience,andrevenuegeneration.

Thecompetitivevenues,particularlytheprimaryrevenueproducers(Highpoint.comStadiumandtheRAC),lackmanyrevenue-producingopportunitiessuchassuites,premiumseating,andadequateconcessions.ThroughthemanyinterviewsconductedbytheCSSteam,notewasparticularlytakenofsomeofthefollowingthoughts,commentsandopinions:


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• “Thebiggestchallengeisgettingtheuniversityonboardwithathletics.”• “Thereisn’tuniversalsupportofcurrentuniversityinitiativestomakeScarletKnightathletics

better.”• TherewasaconsistentthemethatRutgershastoomanysports–that“ifweintendtocompete,

wecannotsustain24sports,absentendowingsomeofthem.”• “WethoughtwewerebetterthanwearegoingintotheBigTen.Wewerenaïve,butthereis

resistancetoadmittingthatnow.”• “TheearlylackofsuccessofRutgersteamsintheBigTenhasbeenasurprisetodonorsand

alumni,asubstantialdisappointment.”• “Itisunrealistictoexpectathleticstobeself-sufficientby2021,requiringnodirectinstitutional

supportexceptforstudentfeemoneyandTitleIXsupport.TheremustevolveadifferentlevelofawarenessofthefiscalrealitiesofbeingintheBigTen.”

• “AthleticsDirectorPatHobbshasbroughtstabilityandaccountabilitytothedepartment.”• “Theathleticsdepartmentmustdoabetterjobofengagingstudentsintherightway.“• “Thereisaconcernthatwhilemanydonorsaregenerallysupportingcapitalprojects,many

moremustbesolicitedforcontributionstowardtheannualfundforoperations.”• “Rutgersfootballandbasketballteamsmusthaveameasureofsuccesstokindleanemotional

connectionbetweenathleticsandalluniversityconstituencies.”• “Itistimetoconsiderthesaleofbeeratathleticsevents.”

CSSbelievesthattherearesubstantialopportunitiesforRutgersAthleticstobecomeaconsistentandsignificantlysuccessfulmemberoftheBigTenConference.Opportunitiesandrecommendationsinclude:

• PossiblerestructuringofinternalandexternaldebtandcurrentfinancialarrangementwiththeBigTenConference

• ImprovedMultimediaRightsAgreemento PossibleUniversity-wideagreement

• Continuedfacilitiesimprovementsforstudent-athletes• Leveragingofcurrentuniversityvendorstohelpmaximizerevenue• Ticketingimprovements,includingfocusedoutboundsalesefforts• Increasedfundraisingeffortsandsuccess,particularlywiththeannualfund• Pursuitofnamingrightsopportunities,particularlyinmajorcompetitivevenues• Improvedequipmentandapparelcontracts• Considerationofthesaleofalcoholatcompetitivevenues

• WiththechangesforthcomingasaresultoftheSupremeCourtdecisiononsportswagering,

inquiryandvettingofrevenuegenerationpossibilitiesthroughthismedium

Ithasbeenshownatothersimilarinstitutionsacrossthecountrythatconsistentsuccessinathleticscanhaveanidentifiablypositiveeffectontheinstitutionasawhole,bringinggenuineandunmistakableattentiontotheinstitution.Theindirectbenefitsthatsuccessfulathleticshasonacampusasawhole


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aredifficulttoquantify,butnumerousstudieshavefoundthatapplications,enrollment,stateappropriationsanddonationscanbepositivelyimpactedbythepresenceofasuccessfulathleticprogram.AScarletKnights’runinfootballand/orbasketballwouldlikelybringatelevisionratingsbonanzafortheschoolandtheconferenceand,webelieve,afinancialandpublicrelationswindfallfortheuniversity.


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Assumpt ions

ThefollowingassumptionsareprovidedbasedontheinitialchargegiventoCSSandinterviewsthroughouttheprocess.TheseassumptionshaveguidedCSSinitspreparationofthisreport.

1. TheUniversityanditsconstituents/stakeholderssupportedandcontinuetosupportentryintotheBigTenConference.

2. ThereisadesirebytheUniversityandamajorityofstakeholdersthatathleticsbecomemorecompetitiveintheBigTenConference.

3. Allinterestedpartiesandconstituentswishtohelpathleticsbecomemorecompetitiveinwaysthattheyareable.

4. Allpartieswishtoassistathleticsinbecomingfinanciallysoundandincreasinglyself-sufficient.


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Peer Inst i tut ions Compar isons/Benchmark ing

InadditiontoobviouscomparisonstootherBigTenConferenceinstitutions,CSS,incollaborationwithRutgers,identifiedthefollowing11peerinstitutionsforresearchcomparison.TheseincludemembersoftheBigTen,Pac-12,ACC,andBig12.

• ArizonaStateUniversity• IowaStateUniversity• IndianaUniversity• NorthCarolinaStateUniversity• PurdueUniversity• UniversityofMinnesota• UniversityofCalifornia,LosAngeles• UniversityofCalifornia,Berkeley• UniversityofVirginia• UniversityofWashington• UniversityofWisconsin

LikeRutgers,allofthePeersarepublicinstitutionswitha“Power5”FBSfootballprogram.AcademicallythepeersallcarryaCarnegieclassificationofDoctoralUniversities:HighestResearchActivity.Thelistalsoincludesuniversitiesatornearlargercitiesandmajormetropolitanareas.Informationisprovidedforenrollment,graduationrates,andtuitioncostsforeachPeer.

TotalEnrollment

Undergraduatestudents

In-StateOut-of-State

Rutgers NewBrunswick,NJ City:Small 49,577 35,641 80% 14,638$ 30,579$NCState Raleigh,NC City:Large 34,432 24150 94% 9,058$ 27,406$Cal Berkeley,CA City:Midsize 41,891 30,574 91% 14,170$ 42,184$Virginia Charlottesville,VA Suburb:Small 24,360 16,655 95% 16,853$ 47,273$UCLA LosAngeles,CA City:Large 44,027 31,002 91% 13,261$ 41,275$Washington Seattle,WA City:Large 46,166 31,331 84% 10,974$ 35,538$ArizonaState Tempe,AZ City:Midsize 51,164 42,427 63% 10,792$ 27,372$Wisconsin Madison,WI City:Midsize 42,977 31,358 87% 10,533$ 34,783$Minnesota Minneapolis,MN City:Large 51,848 35,433 80% 14,417$ 26,603$Purdue WestLafayette,In City:Small 42,699 32,132 78% 9,992$ 28,794$IowaState Ames,Ia City:Small 36,158 30,571 73% 8,636$ 22,472$Indiana Bloomington,IN City:Small 43,710 33,429 77% 10,533$ 34,845$

RutgersRank 3 2 7 2 7Average 42,077 31,225 83% 11,988$ 33,260$Min 24,360 16,655 63% 8,636$ 22,472$Max 51,848 42,427 95% 16,853$ 47,273$

PeerInstitutionInstitutionCharacteristicsStudentPopulation Tuition(2017-18)

CampussettingLocationInstitution

Source:NationalCenterforEducationStatistics

GraduationRate(Fall2011

Cohort)


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Rutgersisoneofthelargerinstitutionswithinthepeergroup,ranking3rdfortotalstudentsand2ndforundergraduatestudents.Rutgers’undergraduategraduationrateof80%isclosetothepeeraverageof83%.Amongthesepeers,Rutgershasthe2ndhighestcostforin-statetuitionand7thhighestforout-of-statetuition.


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Academics

RutgersiswellplacedamongitsBigTenpeersinmanyacademically-relatedcategories,accordingtothe“RutgersintheBigTen”report.Thefollowingitemswerenotedforthe2015-16academicyear:

• Doctoraldegrees(620):8th• National-academiesmembership(39):5th• Totalresearchspending($628.6million):7th• Patentsissued(75):5th• Licenseincome($15.4million):5th• U.S.New&Worldranking:T-8th

In2017-18,249Rutgersstudent-athleteletterwinnerswereAcademicAll-BigTenselections,postingacumulative3.0gradepointaverageorbetter,anall-timeschoolrecord.

Inboththe2015-16and2017-18academicyears,thefollowingeightRutgersteamswerehonoredbytheNCAAasbeingamongthetop10percentnationallyinAPR,ameasurementutilizedtomonitoracademicsuccess.

• 2016-17:Baseball,menandwomen’scrosscountry,women’sgolf,gymnastics,women’slacrosse,women’stennis,andvolleyball

• 2015-16:Baseball,women’sbasketball,men’scrosscountry,women’sgolf,gymnastics,women’slacrosse,women’stennis,andvolleyball

Clearly,Rutgershasjoinedanelitegroupofsuccessfulacademicinstitutions.AccordingtotheBigTenAcademicAlliance,“Noconsortiumofuniversitiesgraduatesmorestudents,conductsmorefundedresearch($10billionFY2017),orhasalongerhistoryofsuccessfulcollaboration”thantheBigTenConference.”


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Sport Sponsorsh ip

Rutgerssponsors24sports,10menand14women’s,allofwhichcompeteintheBigTenConference.Similarly,thePeersaverage24sponsoredsports,withanaverageof11menand13women’s.Rutgers’24sportsareonemorethantheconferenceaverage,but4-5morethanitsrevenuecohortsinthebottom3rdoftheleague.(Purdue–20,Northwestern–19,Maryland–20,Illinois–21).

ThefollowingprovidesasummaryofthenumberofNCAADivisionIandBigTenteamsforeachsportofferedatRutgers.

Onthemen’sside,basketball(347schools)andcross-country(311schools)havethehighestparticipationinNCAADivisionI,whilewrestling(76schools)andlacrosse(71schools)havethelowest.AllmembersintheBigTensponsorfootball,basketball,wrestling,andgolf.Men’sLacrossehasthelowestparticipationintheConferencewith5members.JohnsHopkins,asanaffiliatemember,bringsthattotalto6.

Forwomen,basketball(345schools)andcross-country(344schools)againhavethehighestparticipationinDivisionI.Inaddition,soccer,tennis,indoorandoutdoortrack,andvolleyballallhaveover300schoolscompetinginthosesports.Gymnastics(61schools)andfieldhockey(79schools)havethelowestparticipationnumbers.Basketball,golf,soccer,softball,tennis,andvolleyballaresponsoredbyallmembersoftheBigTen.Lacrossehasthelowestparticipationat6members.JohnsHopkins’participationbringsthattotalto7.

Men NCAA BigTen Women Teams BigTenBaseball 295 13 Basketball 345 14Basketball 347 14 FieldHockey 79 9

Football(FBS) 128 14 Golf 263 14Golf 297 14 Gymnastics 61 10

Lacrosse 70 5 Lacrosse 111 6Soccer 203 9 Rowing 89 8

CrossCountry 311 Soccer 329 14IndoorTrack 260 Softball 291 14OutdoorTrack 281 Swimming&Diving 194 13

Wrestling 76 14 Tennis 315 14CrossCountry 344IndoorTrack 325OutdoorTrack 334Volleyball 330 14

BigTenBudgetComparisons

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SportSponsorship(2016-17)

Source:NCAA®SportsSponsorshipandParticipationRatesReport


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Rutgers Trans i t ion to the B ig Ten

Asstated,in2012theBigTenConferenceannounceditsexpansion,withRutgersandMarylandjoiningtheConferencein2014.

OriginalEntranceAgreementItwasagreedthatforthefirstsixyearsofmembership,theBigTenConferencewouldpayRutgersanamountequaltoitsprojecteddistributionsfromtheBigEast/AmericanAthleticConferenceforthosesixyears.Afterthoseinitialsixyears,RUwouldreceivefulldistributionthesameasallotherBigTenschools.ThiswasessentiallythesameagreementthatwasreachedwithbothNebraskaandMaryland.

Actualdistributionsforthosefirstsixyearswere/areestimatedasfollows:

InitialAdvanceofFutureDistributionsInadditiontotheabove,theBigTenagreedtoadvanceanadditional$10Magainstfuturedistributions,tobedistributedasfollows:

• 2019 $3M• 2020 $7M

Theseadvancesreducefuturedistributionsasfollows:

• 2021 Reduction/repayment$6M• 2022 Reduction/repayment$4M

AdditionalAdvancesfromtheBigTenIn2017,theBigTenagreedtoadditionaladvancestotaling$38M,asfollows:

• 2018 $14M• 2019 $13M• 2020 $11M

Theseadvanceswillberepaidandfurtherreducefuturedistributionsbeginningin2021andcontinuingthrough2026.

Year Distribution2015 $8,645,9862016 $9,043,6062017 $9,442,1782018 $9,841,7212019 $10,242,2462020 $10,643,801


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TotalDistributionsforthefirstsixyearsAddingtheaboveadvancestoscheduleddistributions,thetotalsreceivedbyRutgersfromtheBigTenthrough2020were/willbeasfollows:

ProjectedDistributionswithRepaymentofAdvancesThefollowingprovidesprojectedconferencedistributionsbeginningin2018.The2018numbersaretakenfromaJunearticleinSBNation.Futureprojectionsincludea3%annualincreasefromthat2018number.Rutgers’estimatedshareforeachyearreflectsthereductionsnotedabove.ThedistributionestimatealsoincludesaonetimedeductionfortheRoseBowl/CFPin2021.Rutgers’firstyearwithafulldistributionisprojectedtobe2027.

Year TotalDistribution Distribution+loan/advanceamount2015 $8,645,9862016 $9,043,6062017 $9,442,1782018 $23,841,721 ($9,841,721+$14,000,000loan)2019 $26,242,246 ($10,242,246+$13,000,000loan+$3,000,000advance)2020 $28,643,801 ($10,643,801+$11,000,000loan+$7,000,000advance)

2018* $50,000,000 $23,841,7212019 $51,500,000 $26,242,2462020 $53,045,000 $28,643,8012021 $54,636,350 $43,705,6002022 $56,275,441 $46,029,5662023 $57,963,704 $48,941,2042024 $59,702,615 $50,970,2152025 $61,493,693 $53,055,1932026 $63,338,504 $56,178,3792027 $65,238,659 $65,238,6592028 $67,195,819 $67,195,8192029 $69,211,694 $69,211,694

*Sourcehttps://www.sbnation.com/college-football/2018/6/22/17492302/big-ten-distribution-payout-2018

FullDistributionEstimate

Year RutgersEstimatedDistribution


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Revenue Benchmark ing

CSSresearchedinformationforrevenueanddebtusingtheNCAAInstitutionalPerformanceProgram(IPP)andpublishedBigTenbudgetcomparisons.TheNCAAIPPsystemdataisshownatthe25th,50th,and75thpercentilewithadefinitionforeachcategoryfollowingitsrelatedchart.ThemostrecentdataavailablefromtheIPPsystemisFY17andincludesinformationforthePeergroupaswellastheBigTen(all14members).DataforBigTenbudgetcomparisonsisprovidedforallconferencememberswiththeexceptionofPennStateandNorthwestern.

TotalRevenueForFY17,BigTenrevenuesfromallsourcesrangedfrom$185M(OhioStateandMichigan)to$85M(Purdue).Rutgersranked10that$96,883,027,with34%ofRutgers’“revenues”($33million)emanatingfromdirectinstitutionalsupportandstudentfees.


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WhencomparedtothePeergroup,Rutgerstotalathleticsrevenueisslightlybelowthe50thpercentileof$102M.

Thefollowingchart,preparedbytheBigTenConference,showsthatFY18andFY19expensebudgetswillcontinuetorise.TheaverageFY18budget(excludingNorthwesternandPennState)is$123Mwithariseto$130MbyFY19.TheFY19projectedexpensebudgetforRutgerswillbethelowestintheconference.


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AllocatedRevenueAllocatedrevenues,asdefinedbelow,areprovidedinmanydifferentwaysfrominstitutionsthroughoutthecountry.Theseallocationsareinfluencedbymanyfactors,includingstatelaws,systemandinstitutionalpolicies,andofcoursecharacteristicsuniquetoeachschool.

Thedefinitionofallocatedrevenueincludes,butisnotlimitedto:

• DirectInstitutionalSupport• IndirectFacilityandAdministrativeSupport• AthleticFacilitiesDebtService,LeaseandRentalFees• StudentFees• DirectandIndirectGovernmentSupport


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Rutgers’allocatedrevenueinFY17totaled$33M.ThisamountsignificantlyexceededthatofboththeBigTenandPeerinstitutions.Theallocatedrevenueincludes$21,320,750(22%)classifiedasDirectInstitutionSupportand$11,766,728(12%)inStudentFees.

TheDirectInstitutionalSupportasnotedabovewasinclusiveof:

• Cashsubsidyof$12,626,218whichincludesapproximately$2MofTitleIXfunding• Out-of-StateTuitionWaiversof$3,494,617• StateFringeBenefitsupportof$5,199,915for23athleticdepartmentemployees,whichis

passedthroughfromtheStateofNewJerseyAsanote,perthecurrentauditorrecommendation,theabovefundingforStateFringeBenefitsupportwillbeclassifiedinfutureyearsasDirectandIndirectGovernmentSupport.UsingtheFY17figures,thatwouldadjusttheDirectInstitutionalSupportfiguretoapproximately$16M,stillhigherthantheBigTenandPeergroups.

IntheBigTen,thenexthighesttotalsininstitutionalsupportareMinnesotaandMarylandatapproximately$14million,afterwhichthereisasignificantdroptojustover$3million(Illinois).OhioState,Nebraska,andPurduereceivenodirectinstitutionalsupportforathletics.Theconferenceaverage,countingbothdirectinstitutionalsupportandstudentfeesisjustunder$5.2million.


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Rutgersreported$0forthefollowingothersourcesofallocatedrevenueincluding:

• IndirectFacilityandAdminSupport• IndirectInstitutionalSupport• DirectStateorOtherGovernmentSupport

Aspreviouslynoted,infutureyearsthepass-throughfromtheStateofNewJerseyforfringebenefitsfor23athleticdepartmentemployeeswillbeclassifiedasDirectandIndirectGovernmentSupport.ComparisontoyearspriortoBigTenInanefforttomakecomparisonstoallocatedrevenuepriortoannouncementofentryintheBigTen,CSSlookedatFY12andFY13.Studentfeesrepresented13-15%ofathleticdepartmentrevenueduringthoseyears.Interestingly,directinstitutionalsupportduringthosetwoyearsrepresented29%and47%ofdepartmentrevenuesrespectively.Seethechartbelow.

DirectInstitutionalSupport

%ofRevenue

StudentFees

%ofRevenue

TotalRevenue

FY12 18,462,023$ 29% 9,518,734$ 15% 64,038,720$FY13 37,106,107$ 47% 9,877,989$ 13% 78,989,475$


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GeneratedRevenueGeneratedrevenueisdefinedasthatrevenuegeneratedbyAthletics.Thosesourcesinclude,butarenotlimitedto:

• Contributions• TicketSales• Royalties,Advertising,&Sponsorships• Gameguarantees• ConferenceandNCAADistributions• Broadcastrights• Endowmentandinvestments• Thirdpartyrevenue• Campincome• Otherexternalrevenueareas

Rutgersreported$64,795,549ingeneratedrevenueinFY17.Thisisbelowthe25thpercentileforbothbenchmarkgroups,trailingthe25thpercentileintheBigTenby$26MandthePeersby$18M.


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ContributionsRutgersAthletics’majorgiftsuccess,whichhasfocusedonimprovedfacilities,isalreadyevidentoncampus.However,itsannualfundlagsfarbehinditspeers.Theschoolrankedlastin2017annualcontributionsatjustover$7M.OhioStateandMichiganleadtheconferenceatroughly$38M.TheBigTenaverageofthetwelveinstitutionsis$23.9M.

TicketSalesIn2017ticketsalesforallevents,Rutgersranks10thof12intheBigTen,withatotalof$12.8M,wellaheadPurdueandjustbehindIllinois.Marylandisnextat$15.3million,whileIndiana($18M)andMinnesota($20M)follow.Theconferenceaverageoftheseinstitutionsis$27.2M.


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Debt Benchmark ing

CSSresearchedinstitutionalandathleticsdebtincomparisontothetwogroups.Institutionally,Rutgershasatotalof$1.9Bindebt,which,whencomparedtothePeers,isbelowthe75thpercentileof$2.129B.ComparedtotheBigTen,Rutgersisabovethe75thpercentile,whichisapproximately$1.7B.

InFY17,Athleticshadacurrenttotaldebtof$82.87M.Thisisclosetothe25thpercentilesofboththePeers($83M)andtheBigTen($87M).


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WhenathleticsdebtiscalculatedasapercentageofuniversitydebtforFY17,Rutgers’4.3%falls3.5%belowthe25thpercentileofthePeers(7.8%)andnearthe25thpercentileintheBigTen(4.7%).

DebttotheUniversityCurrentlythedepartmenthastwoprimarysourcesofdebttotheUniversitythoseare:

• Capitalexpendituresforfootballstadiumimprovements($80.1M)andtheAthleticPerformanceCenter($30.8M),ataninterestrateof4.75%.TheStadiumdebtisscheduledtoberetiredinFY2039andtheAthleticPerformanceCenterdebtinFY2043.Thetotaldebt(principalandinterest)lessinstitutionfundingandprojectedgiftsisestimatedat$144.6M.

• TransitionalexpenseandoperatingdeficitsforFY17andFY18totalingapproximately$43.4M(principal),ataninterestrateof5.75%.

InFY17,athleticshadcapitalexpendituresinitsoperatingbudgetof$9,497,568forathleticallyrelatedin-progressconstructionprojects.Thesecostswilltransitiontoathleticdebtoncetheprojectsarecompleted.WhencomparedtothePeers,Rutgersfellbetweenthe50thand75thpercentileinthiscategoryofannualcapitalexpenditures.Thisissomewhatmisleadinghowever,asthisnumbercanvarygreatlyfromyeartoyear.IntheBigTen,Rutgerswasatthe75thpercentile.


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HistoricaldataforthiscategorywasonlyavailableforonepreviousfiscalyearwithintheNCAAIPPsystem,datacollectionforthiscategorybegininFY16.ThefollowingchartshowsRutgersincomparisontothe50thpercentileofthebenchmarkinggroupsovertwofiscalyears.InFY16Rutgersexpenditureswere$1,447,493fallingbelowthe50thpercentileofbothbenchmarkgroups.


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F inanc ia l Ass istance Benchmark ing

ThefollowingsummarizedresearchonvariousassistanceprogramsutilizedatDivisionIinstitutionstohelpwithathleticsoperatingbudgetissues.

TuitionWaiversUniversitySystemofGeorgia:PresidentialTuitionWaiver

TheGeorgiaBoardofRegentshasapolicyallowingforPresidentialWaiversforout-of-statestudentsacrossallstateinstitutions.Thisincludeathletics.PresidentialwaiversattheUniversityofGeorgia(UGA),GeorgiaTech,andGeorgiaState(allFBSinstitution)maynotexceed(4%)oftheequivalentfull-timestudentsenrolledattheinstitutioninthefalltermimmediatelyprecedingthetermforwhichtheout-of-statetuitionistobewaived.GeorgiaSouthernUniversity,theotherFBSinstitutioninthestate,islimitedto2%.Waiverstostudent-athletesshallnotexceedone-third(1/3)ofthetotalnumberofPresidentialWaiverswhichtheinstitutioniseligibletooffer.

ReviewofthesefourFBSprograms,usingtheUSAToday’sNCAAFinancialdatabase,GeorgiaTech,GeorgiaState,andGeorgiaSouthernallreportedschoolfundsasasourceofrevenue.Schoolfundsincludedbothdirectandindirectsupportfromtheuniversity,comprisedofstatefunds,tuition,andtuitionwaivers.UGAdidnotutilizesuchsupport,whichislikelyexplainedbytheirstrongpositioninanddistributionsfromtheSEC.

Policy:7.3.4.1Out-of-StateTuitionWaiversSource:https://www.usg.edu/policymanual/section7/C453/http://sports.usatoday.com/ncaa/finances/StateofWashington:GenderEquityTuitionandFeeWaivers

AStatelawpassedin1991allowsforgenderequitytuitionandfeewaivers.Limitedinformationwasfoundregardingthevalueofthesewaiversatvariousstateinstitutions.ThefollowinginformationisprovidedfortheUniversityofWashingtonandWashingtonStateUniversity.

• UniversityofWashington:InFY14,athleticsbeganfunding50%ofthecostsfortheGenderEquityFeeWaiversatacostof$1.94M.Theother50%wasfundedthroughthestatestatute.(Source:IntercollegiateAthleticsFY16BudgetReportandFinancialStabilityPlanBoardofRegentsPresentationJune9,2016)

• WashingtonStateUniversity(2012):-Thegoverningboardmaywaivealloraportionoftuitionandfees,nottoexceedonepercent,forthepurposeofachievingormaintaininggenderequityinintercollegiateathleticprograms.Duringfiscalyear2012genderequitywaiversassistedapproximately163studentswithavalueofapproximately$2.7million.

Statute:RCW28B.15.460

Source:http://app.leg.wa.gov/RCW/default.aspx?cite=28B.15.460


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ArizonaBoardofRegents:TuitionWaivers

StateinstitutionswithinArizonareceivetuitionwaivers.Fromanarticledated2014itwasnotedthatbothArizonaandArizonaStatereceive315tuitionwaivers.Fromfurtherconversationwithaformerathleticdirectorwithinthestate,NorthernArizonaalsoreceiveswaiversbutatalowerrate.

Source:https://arizonawildcats.com/sports/2014/5/22/209502660.aspx

UniversityofMontanaSystem:TuitionWaivers

InFY2017thefollowinginstitutionswithinthestatesystemhadtuitionwaivers.TheUniversitysystemasawholewasbudgetedtogiveout$43.6millionininstitutionalwaiversasawholeforalltypesofrecipients.Thefollowingwasallocatedforstudent-athletes.Montana,whilenotaFBSinstitution,istheflagshipstateinstitution.

• UniversityofMontana:$2.67M• MontanaStateUniversity:$3.299M

Source:https://missoulian.com/news/local/the-state-and-university-of-montana-give-tuition-dollars-to/article_96388162-fb1f-5ec0-ab93-0bdeae4f8c57.html

StateLotteryStateofOregon:

WithinthestateofOregon,lotteryfundingincludesasportslotteryaccountwiththedistributionofrevenueswith70%usedtofundnon-revenueproducingsports.Ofthetotalamount,50%mustbemadeavailableforwomen’sathletics.

Seventypercentoftherevenuesinthefundshallbeusedtofundnonrevenueproducingsportsand30percentshallbeusedforrevenueproducingsports.Ofthetotalamountavailableinthefund,atleast50percentshallbemadeavailableforwomen’sathletics.ItappearsfundingwasoriginallytiedtoagamecalledSportsAction.Whilethisgameisnolongeravailable,thelotterydoesnotefundingforintercollegiateathleticscholarships.Withtherecentsupremecourtruling,theOregonLotteryCommissionhasexpressedinterestinsports-basedplay.

Source:https://www.oregonlegislature.gov/bills_laws/archive/2001ors461.pdfhttps://www.oregonlottery.org/docs/default-source/commission-meeting/2018-commission-meetings/june-29-2018-commission-meeting/ex-1---approved-minutes-of-the-previous-meeting.pdf?sfvrsn=524031a7_4https://www.oregonlottery.org/beneficiaries/education


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StudentFeesUniversityofArizona:StartsstudentFee(Fall2017)

IntheFallof2017,Arizonaintroducedanewmandatorystudentfee.Theannualfeewas$100forundergraduatestudentsand$50forgraduatestudents.Graduatestudentsmayoptoutofthefee.Theestimatedyearlyrevenueis$3.2M.

Source:http://www.wildcat.arizona.edu/article/2017/04/incoming-students-face-new-100-mandatory-athletics-fee


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Staff ing Benchmark ing

CSSresearchedathleticstaffingforBigTenandPeerinstitutions.Staffingwasdividedintothefollowingfourareas:

• Senioradministration• Student-athleteservices• Externaloperations• Internaloperations

DatawasgatheredfromtheNCAAIPPsystemforFY17.Tocapturethisinformation,CSSreviewedeachathleticdepartmentstaffdirectory.Staffwerethendividedintocategoriesbasedonthedepartment,withinformationprovidedforthe25th,50th,and75thpercentilesroundedtothenearestwholenumber.CSSdidnotincludestudentworkers,interns,orgraduateassistants.

SeniorAdministrationThiscategoryincludestheathleticdirectorandallassistantathleticdirectorsorabove.Rutgershas19staffpeoplewhofallwithinthiscategoryinFY17.ThisfallsfourpositionsbelowthemedianforthePeersandtwobelowtheBigTenmedian.


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Student-AthleteSupportServicesStudent-athletesupportservicesincludethefollowing:

• Strength&Conditioning• SportsMedicine• Academic/Student-AthleteDevelopment• Equipment• Nutrition• SportPsychology

Intheseareasofdirectservicetothestudent-athletes,Rutgershadcompetitivestaffingcomparedtobothbenchmarkgroups.Academicsupportandstudent-athleteservicesarereportedasonecategoryasmanyinstitutionsreportthisasacombineddepartment.AtRutgers,academicsupportandtheRutgersleadershipacademyarereportedunderthiscategory.ThisisastrengthforRutgers,withstaffingabove75thpercentile.SportsmedicineatRutgerswasatthe50thpercentile.Forcountpurposes,teamphysicianswereexcludedalongwithanyfellowshipsnoted.Itisnoteworthythattwoinstitutionsalsohadcompletediningservicesinadditiontonutritionist/dieticiansonstaffwithinathletics.AllcategoriesatRutgers,withtheexceptionofequipment,wereatorabovethemedianofthetwogroups.Equipmentwasonepositionbelowthemedian.


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ExternalOperationsExternaloperationsisdividedintosixcategories:

• Development• Ticketoperations/sales• Marketing/promotions• Mediarelations• Video/digitalmedia• Sportsproperties

Whencomparedtobothbenchmarkinggroups,Rutgerswasconsistentlyatorbelowthe25thpercentilefordevelopment,mediarelations,andvideo/digitalmedia.Conversely,ticketoperations/salesandmarketing/promotionsrankednearthe75thpercentile.Sportsproperties,whicharetypicallyoutsourced,wasatthe50thpercentile.


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InternalOperationsInternaloperationsincludethefollowing:

• Businessoffice• Facilities/events• Compliance• Humanresources• Informationtechnology

Facilities/events,compliance,andhumanresourcesrankedbelowthe25thpercentileforbothbenchmarkgroups.Inthefacilities/eventscategory,institutionshaveavarietyofoperations,withsomeincludingcapitalplanning/construction,aswellasfacilityworkersincludingtechnicians,electricians,custodians,etc.Thoseinstancesresultedinsignificantlyhigherstaffcountscomparedtoothers.Ingeneralworkerslistedforspecificfacilitiessuchasgolfcourseswerenotincludedwithinthecount.

InformationTechnologyatRutgerswasslightlyabovethe25thpercentile,whiletheBusinessofficeatRutgerswasabovethe75thpercentile.ThreeRutgersstaffmembersarelistedunderbothBusinessandHumanResources.Twowerecountedunderthebusinessoffice,andoneunderHumanResources.OnlycountoneindividualasHRandnotthreeforRutgers.


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AlthoughitisclearthatRutgersAthletics,particularlyinadministration,isbynomeansoverstaffed(andinseveralareasisbehindthestaffingnumbersofitsBigTencompetitors),theremaybeopportunitiestoreducestaffexpenseandpossiblybecomemoreefficientthroughoneormoreofthefollowingchanges/initiatives:

• Assimilatemoreadministrativeandsupportservicesstaffintotheuniversitysystem.Thosemayinclude:

o Additionalacademicssupportstaffo Additionalcompliancestaffo Additionalfundraisingstaffo Medicalandtrainingstaffo Marketingandpromotionsstaffo Ticketsandsalesstaffo FacilitiesMaintenancestaff


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• Streamlinetheorganizationthoughchangesinreportinglines,withparticularfocusonamoreverticaloperation,havingalessernumberofdirectreportstotheAthleticDirector.Thisnotonlycanhelptheorganizationbecomemoreefficient,butcanalsoallowtheAthleticDirectormoretimetofocusonthoseissueshebelievestobeofgreatestimportancetothesuccessofRutgersAthletics.


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Fac i l i t i es

Rutgers,undertheleadershipofAthleticsDirectorHobbs,hasmadeextraordinaryprogressinthelastthreeyears,including:

• Rutgers’3-field,$9-millionfootballpracticearea,whichisarguablyamongthebestinthenation,andthenewindoorFredHillTrainingComplexforbaseballandsoftballpractice,whichisunique,innovative,andfunctional.

• Thenew$60-millionRodkinLearningCenter,whichpromisestobeanoutstandingsettingforlacrosse,soccer,anewacademiclearningcenter,andbadlyneededadministrativeoffices.

• Thenew$115-millionRJWBarnabasHealthAthleticPerformanceCenter(2019),whichwillbethenewheadquartersformenandwomen’sbasketball,gymnastics,andwrestling,completewithabasketballpracticefacility.OurunderstandingisthatthisAthleticsPerformanceCenteristhefirstmajornewathleticsfacilitytobebuiltatRutgersinover40years.

Still,thereismuchtodotobringRutgersfacilitiesandinfrastructuretocompetitiveBigTenstandards:

• Highpoint.comStadium,whilelaudableforitsintimateviewinglinesandproximitytothefield,isinastateofdisrepair.Concretethroughoutthestadiumiscracked,leaking,andunpainted.Thereareobviousunfinished,possiblyvaluable,spacesinmanyareasofthefacility.Theexteriorwallsandroofsinthestadiumarepaintedindifferentshadesofred.Thereisnocomprehensivedeferredmaintenanceprograminplaceforthestadium.

• TheLouisBrownAthleticCenter(morecommonlyknownastheRACfromitsoriginalname–RutgersAthleticsCenter),althougharguablyanintimateandintimidatingvenueforcontests,isindesperateneedofupdating,refurbishing,andinfrastructurerebuilding.

• Currently,inboththefootballstadiumandtheRAC,thereareminimalrevenuegeneratingopportunitiesbeyondthesaleoftickets,especiallyascomparedtoBigTenpeers.WiththeexceptionoftheAudiClub,therearenosuitesandfewsubstantivepremiumseatingopportunities.ThisisparticularlynoteworthyinlightoftheobviousmarketplaceinwhichRutgersislocatedanditsattendantrevenueopportunitiesintheNewark/NewYorkCitymetropolitanarea.

• Boththebaseballandsoftballfieldsaresignificantlysub-parasBigTenvenues.• Otherareasforteams(lockerrooms,teamrooms,offices)andpracticevenuesarecurrently

sub-standardascomparedtoBigTenpeers.CSSunderstandsthatmanyofthoseneedsarebeingaddressedwithnewfacilitiesunderconstructionandinfuturefacilitiesplans.

• Bothgolfprogramsareinneedofadedicatedpracticefacility• TheHaleCenterisinneedofremodel/updating• TheFootballpracticebubble,whichweunderstandwasintendedtobeatemporarystructure

whenbuiltnearlytwentyyearsago,isobsoletecomparedtoBigTenpeers.• Theoutdoortrackandfieldsurfaceneedstobereplaced

Inaddition,areviewofRutgersfacilitiesbytheBigTenNetworkoutlinedthefollowingprioritiesregardingconnectivityandTVbroadcastreadiness:

• AllVenues:NeedtohaveCICconnectivity• BaintonField(Baseball)

o VenueneedstoinstallanIOpanelforourMICRvantohavepowernearfacility


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o VenueneedstohavestructuresandplatformsforBTNcamerapositionswhichincludesapermanentCFplatformatleast15-20fthigh

o Venueneedstobepre-cabledo Boothshouldbeabletofit6BTNcrewmembers(PXP,color,stats,stageMGR,camera,

andanA2),a12.8’x7.5’backdrop,acameraandlightingforatalentboothshot.Shouldbelocatedpressareaandprotectedfromtheelements

• RutgersSoftballComplexo VenueneedstoinstallanIOpanelforourMICRvantohavepowernearfacilityo VenueneedstohavestructuresandplatformsforBTNcamerapositionswhichincludes

apermanentCFplatformatleast15-20fthigho Venueneedstobepre-cabledo Boothshouldbeabletofit6BTNcrewmembers(PXP,color,stats,stageMGR,camera,

andanA2),a12.8’x7.5’backdrop,acameraandlightingforatalentboothshot.Shouldbelocatedpressarea,protectedfromtheelements

§ Currentlytheback-stopisachainlinkfence.Thisneedstobereplacedwithstandardnetting

• CollegeAveGym(Volleyball)o VenueneedstoinstallanIOpanelforourMICRvantohavepowernearfacilityo Venueneedstobepre-cabledo Venueneedstoinstall6analogphonelinesforproduction

• LouisBrownAthleticCenter(Gymnastics/Wrestling)o Needa10pairBNCmultfromannouncetabletotruckpanelIOo Venueneedstoprovideareaonthefloorforannouncers,bigenoughtofit6BTNcrew

members(PXP,color,stats,stageMGR,camera,andanA2)• YurcakField(Soccer)

o Venueneedstobepre-cabled• HighPointSolutionsStadium(Men’slacrossechampionshipsarebeingheldhereinMay2019)

o Venueneedstobepre-cabledo Windowframesneedtobewiderforgameandhighcameralocatedinofficesfor

mobilityofacamerafromlefttoright


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T i t le IX/Gender Equ i ty

CSSprovidesthissummaryofcurrentTitleIX/GenderEquitylawandpracticeinintercollegiateathletics.TheLawandItsInterpretationInterpretationofTitleIXlawasappliedtointercollegiateathleticshasevolvedconsiderablyovertime.Areasofmeasurementincludeparticipation,financialaid,andotherbenefitssuchasequipmentandsupplies,scheduling,travel,academicservices,coaching,competitionandpracticefacilities,lockerrooms,medicalandtrainingfacilitiesandservices,publicity,recruiting,andothersupportservices.

ParticipationAninstitutionmaycomplywithTitleIXbysatisfyingoneofthreeprongsinthewell-knownthree-parttest.Aninstitution’sathleticsprogramwillbedeterminedtooffernondiscriminatoryparticipationopportunitiesifitcandemonstrateoneofthefollowing:

1) Itsintercollegiateathleticsparticipationopportunitiesformaleandfemalestudentsare“substantiallyproportionate”totheirrespectivefull-timeundergraduateenrollment;

2) Ithasa“historyandcontinuingpracticeofprogramexpansion”fortheunder-representedsex;3) Itis“fullyandeffectively”accommodatingtheinterestsandabilitiesoftheunder-represented

sex.ThefollowingexcerptistakenfromEquityandTitleIXinIntercollegiateAthletics:APracticalGuideforCollegesandUniversities—2012regardingproportionality:Aschoolcandemonstratecompliancewiththefirstpartofthethree-parttestifitcanshowthattheathleticsparticipationrateoftheunder-representedsexissubstantiallyproportionatetotheschool’sfull-timeundergraduateenrollment.TheOCRhasrefusedtodefine“substantiallyproportionate”usingconcretepercentagepoints,butratherhasstatedthatitistobedeterminedonacase-by-casebasis.Accordingly,institutionsarelefttotheirownbestjudgmentwhendecidingwhethertheirnumbersare“substantiallyproportionate.”Inaddition,thefactthatOCRofficesandcourtsthroughoutthecountryhaveinterpretedthisrequirementinslightlydifferentwaysonlycontinuestocomplicatetheprocess.The2005ClarificationLetterrecognizedthattherehavebeendifferencesinenforcementandpledgedtoenforcethelawinamoreuniformfashioninthefuture.Althoughfederalcourtshaveapprovedsettlementagreementsincaseswithparticipationvariancesasgreatas5percent(rangingbacktothe1990s),theOCR,throughits1996Clarification,hastakenamoreconservativeapproach.Itcitesthefollowingexamplesofsubstantialproportionality:(1)exactproportionality;(2)adisparityof1percentcausedbyanincreaseinthecurrentyear’senrollmentafterayearofexactproportionality;and(3)aninstitution’spursuitofproportionalityoverafive-yearperiodandinthefinalyear–whenproportionalitywouldotherwisehavebeenreached–enrollmentoftheunderrepresentedsexincreasedsothattherewasatwopercentdisparity.Whiletheseexamplesareillustrativeonly,theysuggestamoreexactingstandardthanthatsetforthbythecourts.Atleastoneregionalofficestatedinformallythatanythinggreaterthanonepercentwouldraiseredflags.


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Ofcourse,percentage-pointdisparitiesrepresentvaryingnumbersofactualparticipantsdependingupontheoverallsizeoftheathleticsprogram.Wherethereexistsadisparitythattranslatesintoanumberlessthanthatrequiredtofieldaviableteam(inotherwords–notenoughwhohaveboththeinterestandtheability),thelawprovidesthattheprogramisincomplianceandthatanadditionalteamneednottobeadded.Finally,boththeOCRandthecourtshaverecognizedthatschoolsshouldbepermittedtodeterminehowtheycomplywiththisprong.Althoughstronglydisfavored,schoolsmaychoosetoimplementarostermanagementsystemoreliminateprogramsinsteadofexpandingopportunitiestotheunder-representedsex.Suchapracticewillnot,however,aidcomplianceundereitherthehistoryorinteresttests.Whereverpossible,schoolsareencouragedtocomplywiththespiritofthelawbyaddingopportunitiesfortheunderrepresentedsexthroughtheallocationofadditionalfundingorbyreallocatingexistingresourceswithouteliminatingviableprogramsforeithersex.OtherBenefitsInstitutionsmust“provideequalathleticsopportunitiesformembersofbothsexes.”Inordertodeterminewhetheraschoolprovidesequivalentathleticsbenefitsandopportunities,thefollowingareasarereviewed:

a. Provisionandmaintenanceofequipmentandsupplies;b. Schedulingofgamesandpracticetimes;c. Travelandperdiemexpenses;d. Opportunitytoreceivetutoringandassignmentandcompensationoftutors;e. Opportunitytoreceivecoaching,andassignmentandcompensationofcoaches;f. Provisionoflockerrooms,practiceandcompetitivefacilities;g. Provisionofmedicalandtrainingservicesandfacilities;h. Provisionofhousinganddiningservicesandfacilities;i. Publicity;j. Supportservices;andk. Recruiting.

RutgersCSShasreviewedthe2013TitleIXReportissuedbyconsultantHelenGrant.AlsoreviewedwerethemostrecentEADAReports(2014-15,2015-16,and2016-17).Thosereportsshowafull-timeundergraduatepopulationratioofapproximately50%menand50%womenforeachofthoseyears.Unduplicatedstudent-athleteratiosforthoseyearswereasfollows:

• 2014-15:51.5%menand48.5%women(317menand298women)• 2015-16:51.6%menand48.4%women(334menand313women)• 2016-17:50.5%menand49.5%women(323menand316women)

Theseratioswouldindicatesubstantialcompliancewiththefirstprongofthethree-prongtestrelativetoparticipation.


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Astofinancialaid,thenumbersallocatedtomenandwomenstudent-athleteswereasfollows:

• 2014-15:52%menand48%women($5.92Mmenand$5.39Mwomen)• 2015-16:53%menand47%women($6.78Mmenand$6.11Mwomen)• 2016-17:51%menand49%women($6.51Mmenand$6.37Mwomen)

Theseratios,atleastastothelatestyear(2016-17),wouldalsoindicatesubstantialcompliance.IfRutgersmakesanyfuturedecisionsregardingsportssponsorship,itwillneedtodosowithcarefulconsiderationofandaccountingfortheeffectofsuchdecisionsontheseparticipationratios.

AstotheadditionalmetricstypicallyreviewedinrelationtoTitleIXcompliance,wewouldnotethatitappearsRutgershasmadeandcontinuestomakestrongeffortstoprovideallstudent-athleteswithacomparableexperienceinallareas.

Wedonotethattheremaybeinequitiesinareassuchaslockerrooms,teamrooms,andpracticeareas/times,butitappearsthosepossibleinequitiesarenottheresultofpolicies,processes,orproceduresthatareinherentlyorbydesignunequal.Rather,mostofthosereflectspaceissuesthatareclearlypresent,especiallywiththoseteamsthatarehousedinsomemannerintheRAC.Thereisanongoingplantoremedythosepossibleinequities,andtheopeningofthenewRodkinLearningCenterandRJWBarnabasHealthAthleticPerformanceCenterwillbemuch-neededadditionstoaddressmanyoftheseissues.


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Research on the Ef fect of Ath let ics on Un ivers i t ies

Decadesofresearchhaveshownthatathleticprogramsimpactuniversitiesbeyondathleticdepartmentbalancesheets,particularlywhenfootballandmen’sbasketballprogramsachievelevelsofsuccessattheconferenceornationallevel.Fromincreasingapplicationsandenrollmenttotheadvertisingeffectofgamesonlocalandnationaltelevision,thequalitativefactorsarenumerousalbeitdifficulttoquantify.Weprovidehereinasummaryoftheresearchthatdoesexistinthisareaandthelong-termimpactthatsuccessfulprogramscanhaveatRutgers.

AdmissionsandEnrollmentThe“FlutieEffect”isperhapsthemostwidelyknownpositiveimpactfootballcanhaveonauniversity.In1984,BostonCollege’sDougFlutiethrewa48-yardtouchdownpassastimeexpiredtodefeatthenfootballpowerhouseUniversityofMiami.Thegamewasnationallytelevisedandthepassreceivedextendednationalcoverage.FlutiewentontowintheHeismanTrophyandBostonCollegeexperienceda30%increaseinapplications(McEvoy2006).

Sincethen,theFlutieEffecthasbeenobservedatnumerousuniversitiesfollowingawinningseason,particularlyonethatculminatesinapostseasongame.Forexample,in1995Northwesternhadaten-winseasonandappearedintheRoseBowl,andthefollowingyearapplicationsroseby21%.Thepreviousyear,PennStateexperienceda15%increaseinapplicationsfollowingitsRoseBowlappearance.

Inmorerecentyears,BoiseStateandTCUhavebothexperiencedtheafterglowoffootballsuccess.FromSaturdayMillionaires:HowWinningFootballBuildsWinningColleges(authorKristiDoshispartoftheCSSteam):

BoiseStateexperiencedspikesinapplicationsfollowingbothits2007and2010FiestaBowlappearanceswhichledtoincreasedenrollment.A9.1percentincreaseinapplicationsafterthe2007bowlgameresultedina4percentincreaseinenrollmentthefollowingfall,thefirsttimeenrollmenthadeverexceeded19,000students.

ThestorywassimilarafterBoiseState’s2010FiestaBowlwin.A5.6percentincreaseinenrollmentledtothelargestenrollmentinschoolhistory.

AstudybyChungin2013detailedTCU’sexperience,findingapplicationsdoubledfrom2000to2008,followingincreasedsuccessbythefootballteam.Chungconcluded,“whenaschoolgoesfrombeingmediocretobeinggreatonthefootballfield,applicationsincreaseby18.7percent.Toattainsimilareffects,aschoolhastoeitherdecreaseitstuitionby3.8percentorincreasethequalityofitseducationbyrecruitinghigher-qualityfacultywhoarepaidfivepercentmoreintheacademiclabormarket.”

Nodoubt,oneofthebestcasestudiesinrecentyearswithregardstotheimpactoffootballsuccessisAlabama.WhenNickSabanarrivedinTuscaloosatobecometheheadcoachofthefootballprogram,Alabama’senrollmentwas25,580.Bythefallof2017,thatnumberwas38,563.


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Theuniversityputoutastatementin2017,tenyearsafterSaban'sarrivaloncampusapplaudinghiscontributions:

TheUniversity’stremendousgrowthbeganabout14yearsago.Sincethattime,wehavealmostdoubledenrollment,whilealsoincreasingthequalityofourstudentbody.Thisyearmorethan40percentofour7,559freshmenscoreda30orhigherontheACT,placingtheminthetopfivepercentinthecountry.ThepublicityandexcitementgeneratedbythelegendaryperformanceofCoachSabanandhisteamsoverthelast10yearshascertainlyenhancedoureffortstorecruitoutstandingstudentsbyshowcasingourcommitmenttoexcellenceandouremphasisonsuccess,bothonandoffthefield.(Sharp,2017)

AppearancesintheNCAADivisionIMen’sBasketballTournament,particularlydeeprunsandnationalchampionships,havesimilarpositiveimpactsonuniversitiesintermsofadmissionsandenrollment.

Anumberofschoolshaveseentheimpactfirsthandinrecentyears,includingButler,FloridaGulfCoast,GeorgeMason,Loyola,VCUandVillanova.

Butlerexperiencedanincreaseinapplicationsof41%followingitsruntothe2010titlegame.GeorgeMasonsawa54%increaseinout-of-stateapplicationsfollowingits2006FinalFourappearance.EvenCentralConnecticut,whomadeitonlytothefirstroundofthe2000tournamentexperienceda12%increaseinapplications.

Morerecently,Loyola,whichdefeatedKansasStatetoadvancetotheFinalFourin2018,onlytheschool’ssecondFinalFourappearanceinhistory,sawanimmediateimpactonmultiplefronts.Requestsforinformationfrompotentialstudentsrose31%fromMarch1–April2comparedtothesametimeperiodin2017.Loyolaalsosawahugeimpactonitswebtraffic,with91%ofvisitorstothesitebeingfirst-timevisitors.Donationstoathleticsincreased660%duringthattimeperiod,andsocialmediafollowersincreasedby34%withanengagementincreaseof1,676%.

Villanova,whichwonitssecondchampionshipinthreeyears,alsosawhugeincreasesininterestintheschoolandathletics.Webtrafficontheuniversitywebsitewasup108%fromMarch11–April5,2018comparedtotheprioryear.AsofJune2018,Villanova.eduwasaveraging40,000visitsperday,whichroseto175,000duringthetitlegame.

Nodoubt,theincreasedtrafficthesedeeptournamentrunsandchampionshipsproducesdirectlyimpactsadmissions.FortheFall2016incomingclass,Villanovareceived17,266applications,whichrose21%forthefollowingfallafteritschampionshipto21,095.

Asisoutlinedfurtherbelow,studiesshowathleticsuccesscanhavethelargestimpactonout-of-statestudentcandidates.Additionalimpactsofthissuccessthatextendbeyondadmissionstodonationsandgeneralawarenessoftheuniversityarealsoexploredfurtherbelow.

Smallermeasuresofsuccessstillproduceresults


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Althoughpostseasonplayhistoricallyhasthelargestimpact(andwedetailthosestudiesherein),thereisalsoresearchtosupporttherearepositiveimpactsthatcanbemorereasonablyobtainedonaconsistentbasis.

A2005studyfoundthatnumbertobelargerwhenin-conferencewinningpercentageincreased.A.250increaseinconferencewinningpercentagewasassociatedwitha6.1%gaininapplicationsthefollowingyear.Adecreaseinwinningpercentagewasfoundtoproducea0.4%decreaseinapplications(McEvoy2005).

Astudyreleasedinmid-2012foundthatalargeincreaseinwins(ie.,threewinstoeight),wasfollowedbya5%increaseinapplications(Anderson2012).

McCormickandTinsley(1987)hypothesizedthatschoolswithathleticsuccessmayreceivemoreapplications,therebyallowingtheschooltobemoreselectiveinthequalityofstudentstheyadmit.TheyuseddataonaverageSATscoresandin-conferencefootballwinningpercentagesfor44schoolsfortheyears1981-1984andfoundevidencethatfootballsuccesscanincreaseaverageincomingstudentquality.

InDevinG.PopeandJarenC.Pope’s2009studytheysummarizedthepreviousresearchinatwo-pagechartattachedasAppendixA.Inshort,thePope’sconcludedthatwithregardstobasketball:

…schoolswhichdowellinbasketballareabletorecruitanincomingclasswith1to4percentmorestudentsscoringabove500onthemathandverbalSAT.Similarly,theseschoolscouldexpect1to4percentmoreoftheirincomingstudentstoscoreabovea600onthemathandverbalSAT.

Studentsurveys

Someofthemostinterestingresearchcomesfromstudentsurveys.TheCarnegieFoundationcompletedextensivepollingofcollegeapplicantsinthelate1980sandfoundprospectivestudentsweregreatlyinfluencedbytheathleticreputationofuniversities.OnequestionaskedofstudentsenrolledatDivisionIschoolswas,“Whenapplyingtocollegesforadmissions,howwellinformedwereyouabouttheintercollegiatefootballand/ormen’sbasketballteamsoftheschoolstowhichyouapplied?”Eighty-eightpercentofmalesand51percentoffemalesansweredeither“verywellinformed”or“moderatelywellinformed.”

Incontrast,whenasked,“Whenapplyingtocollegesforadmission,howwellinformedwereyouabouttheundergraduateeducationprogramsoftheschooltowhichyouapplied?”only39percentofmalesand42percentoffemaleschosetheaffirmativeanswers(Sperber,2000).

Impactonout-of-statestudents


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Someofthelargestimpactsfoundbymanyresearcherswereinrelationtoout-of-statestudents.A2014studybyDevinandJarenPopeconcludes,“Whileasportsvictoryforagivenschoolmaynotchangetheawarenessofin-statestudentsregardingitsexistence,thesportsvictorymaypresentasignificantshockinattention/awarenessforout-of-statestudents.”

FloridaGulfCoast,whichbecamethefirstNo.15seedtomaketheSweetSixteenin2013,sawitsapplicationsincreaseby39%followingitsrun,withapplicationsfromout-of-statestudentsincreasingby68%.

VCUexperiencedasimilarimpactfollowingaFinalFourappearancein2011andarunintothethirdroundin2012.The2008freshmanclassatVCUwascomprisedof92%in-statestudents.However,bythefallof2012,thatnumberfellto85%hasout-of-stateapplicationsandenrollmentgrew.Thepracticaleffectofthiswas$3.4millioninadditionaltuitionrevenuein2012,whichwouldcontinuetomountovertheyearsasthosestudentscontinuedatVCU(assumingtheydidn’testablishresidency).

Alabamahasseenoneofthemostdramaticimpactsofathleticsuccessonout-of-stateinterestandenrollment.In2014,out-of-statestudentsoutnumberedin-statestudentsforthefirsttimeinuniversityhistory.AccordingtoAlabama’sCommonDataSetreportfor2017-18,67.3%ofthefreshmanclassconsistedofout-of-statestudents,and59.5%ofallundergraduateswereout-of-stateresidents.Comparethatto2007-8,Saban’sfirstyearasheadcoach,whenonly33%offreshmanwereout-of-stateresidents,andonly23%ofallundergraduatestudentshailedfromout-of-state.

Giventhatout-of-statestudentsatAlabamapaynearly$20,000moreannuallyintuitionthanin-statestudents,andthatsignificantincreaseinout-of-statestudentsquicklyequalshundredsofmillionsinadditionalrevenue.

Thepotentialtoreachout-of-statestudentshassignificantvalueforapublicinstitutionsuchasRutgerswhereout-of-statetuitioniscurrently$8,154-$9,060morepersemesterforout-of-statestudent,dependingonthestudent’sacademicconcentration.

TheseexamplesareparticularlyrelevanttotheUniversitysince,accordingtoUniversity’sownstrategicplan,“AStrategicPlanfortheNewRutgers”(2014),“Rutgersattractssignificantlyfewertopout-of-stateapplicantsthanitspeersandaspirationalpeers.Rutgersneedstobalanceitscommitmenttomaintainingaccessforallqualifiedstudentswithenhancingitsabilitytoattractandretainthehighest-achievingstudentsfromNewJerseyandacrossthenation.Ultimately,improvingtheexperienceforallstudentsoncetheyenrollattheUniversityiscriticalforretainingstudentsandenhancingtheirprogressthroughgraduationaswellasforimprovingalumniengagement.”


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TheStrategicPlanstatesfurther:“Tomanageourreputation,Rutgersmustconveyitsmessageclearlybytargetingspecific,prioritizedaudienceswithadisciplined,consistent,andongoingcommunicationsprogram.Bypromotingachievementsfromacrossourcommunities,Rutgers’reputationandstaturewillimproveregionally,nationally,andinternationally.RutgersUniversity–NewBrunswick’sentranceintotheBigTenwillimprovethevisibilityofourathleticprograms,andourmembershipintheBigTen’sacademiccounterpart,theCommitteeonInstitutionalCooperation—aconsortiumof15top-tieruniversities—willenhanceourresearchandeducationalopportunities,furtherincreasingtheUniversity’sprominence.”

DonationsMultiplestudieshavefoundalinkbetweenathleticsuccessandanincreaseingivingtoboththeathleticdepartmentandtheuniversity.Aswithadmissions/enrollment,themoresuccessaprogramseesonthefield,thegreatertheimpact.

BoiseStateexperiencedasignificantimpactafteritsfirstBCSbowlappearanceintheFiestaBowlin2007.Theuniversityannounceditsfirstcomprehensivefundraisingcampaignshortlyaftertheappearanceandexceededits$175milliongoalby$10millionbytheendofthe2011fiscalyear(Dosh2013).

TheuniversityusedcoverageofitsFiestaBowlwininUSATODAYindirectmailingeffortstosupportanewbusinessbuilding(MicronBusinessandEconomicsBuilding).Thatmaileralsodirectlyresultedina$250,000giftfromanalumnusinCalifornia.Inaddition,then-headfootballcoachChrisPetersonmadeagiftof$150,000tosupportthenewbuilding,inspiringadonorinSaltLakeCitytomatchhisdonation(Dosh2013).

Theimpactongivingofawinningrecord,abowlgameoraplayoffappearancehasbeenanalyzedinseveralpublishedstudies.Aparticularstudyanalyzedgeneralgivingat167institutionsfrom1973to1990andfoundabowlappearanceledtogivingincreasesof40-54%(BaadeandSundberg1996).

Asubsequentstudylookedat87universitiesfieldingDivisionIfootballandbasketballteamsandconcludedalumnicontributionsperstudentrose7.3%whenthefootballteamwonabowlgame.(RhoadsandGerking2000).

Arelationshiphasbeenfoundtoexistabsentbowlvictoriesandnationalchampionshipsaswell.Astudyin2012founddonationsincreasesignificantlyfollowingasharpincreaseinwins.Improvingfromthreewinstoeightwinscorrelatedwitha28%increaseindonations(Anderson2012).

StateAppropriations

Beyonddonations,studieshavealsofoundapositivecorrelationbetweencollegefootballandstateappropriationsforstateuniversities.A2003studybyHumphreysanalyzeddatafrom570publicuniversitiesfrom1976to1996andfoundsimplyfieldinganFBSfootballteamproducedlargerappropriations.Theauthorpositedthiscouldbebecause“…abig-timefootballprogramallowsauniversities’administration,alumniandathleticboosterstoproducepoliticalpressuremoreefficiently,becauseofthevisibilityoftheteamandthelobbyingopportunitiesgeneratedbyhomefootballgames.”


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Thefollowingchart,fromHumphreys’study,illustratestherelationshipbetweentotalwins,bowlgameappearancesand“biggamewins,”withantotalpossibleincreaseof9.5%instateappropriations.

Itisclearthatwinsalonearenotenoughtoachievemaximumresults,butcanimprovethoseresults.

AdvertisingEffectThe“advertisingeffect”describestheimpactrepeatedadvertisingmessageshaveonconsumerbehavior.Severalstudieshavelookedattheadvertisingeffecttelevisedgames,mediamentionsandmorehaveonauniversityfromabroaderperspective(e.g.impactingapplications,enrollment,etc.).Inaddition,ButlerUniversityhascommissionedtwostudiesonthepublicityvalueofitsMarchMadnessrunsin2010and2011,andVillanovahasprovidedotheranecdotalevidenceontherecordrelatedtoitsrecentbasketballsuccess.

Whyistheadvertisingeffectimportant?

AstudybyGoffin2000examinedtheadvertisingeffectwithregardstoNorthwesternUniversityandWesternKentuckyUniversityduringthetimeperiodof1991to1996.DuringthistimeNorthwesternmadeaRoseBowlappearance,WKUmen’sbasketballmadetheSweetSixteenandWKUwomen’sbasketballmadetheFinalFour.Thestudyfocusedoncoverageforbothuniversitiesineightleadingnewspapers:TheNewYorkTimes,WallStreetJournal,WashingtonPost,BostonGlobe,AtlantaConstitution,LosAngelesTimes,ChicagoTribuneandTheChristianScienceMonitor.

GofffoundthatarticlesaboutNorthwesternincreasedby185percentin1995,theRoseBowlyear.Similarly,articlesaboutWKUjumpedfrom“2or3intypicalyearsto13and30in1992and1993whenthemen’sandwomen’sbasketballprogramsenjoyedatypicalsuccesses.”

Thestudyfounditwasn’tmerelyathleticsuccessdrivingthecoverage-itwasathleticsingeneral.In1992,70percentofallarticleswrittenaboutNorthwesterninthestudiedpublicationswereaboutathletics.Incontrast,just5%ofarticlesduringthatsametimeperiodwererelatedtouniversityresearch,despiteNorthwestern’sstellaracademicreputation.


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Goffunderscorestheimportanceoftheadvertisingeffectbyconcluding,“Athleticsisanintegralsourceofnameexposureforalmosteveryuniversityandoftentheonlyfrequentsourceofexposureforschoolspossessinglittleinthewayofacademicreputation.”

FollowingButler’srunstothemen’sbasketballtitlegamein2010and2011,theuniversitycommissionedmediafirmsBorshoffandMeltwatertomeasurethemediavalueofitsruns.ThestudiesfoundButler’s2010runresultedin$639.3millioninpublicityvalue,including$100millionalonefortheCBSbroadcastofthenationaltitlegame.Butler’s2011runtothetitlegamewasvaluedat$512million.Bothcomputationsfocusedontelevision,printandonlinenewscoveragebutfailedtomeasurethevalueofradiobroadcastsortalkshows,whichwouldhavedriventhenumbersevenhigher.

Sources:

Dosh,K.A.(2013).SaturdayMillionaires:HowWinningFootballBuildsWinningColleges.Nashville,TNandNewYork,NY:TurnerPublishingCompany/WileyGeneralTrade.

Anderson,M.L.(2012).TheBenefitsofCollegeAthleticSuccess:AnApplicationofthePropensityScoreDesignwithInstrumentalVariables.NationalBureauofEconomicResearchWorkingPaperNo.18196.

Pope,D.G.andPope,J.C.(2009).TheImpactofCollegeSportsSuccessontheQuantityandQualityofStudentApplications.SouthernEconomicJournal,75(3),750-780.

Goff,B.(2000).EffectsofUniversityAthleticsontheUniversity:AReviewandExtensionofEmpiricalAssessment.JournalofSportManagement,96-97.

Pope,D.G.andPope,J.C.(2014).UnderstandingCollegeApplicationDecisions:WhyCollegeSportsSuccessMatters.JournalofSportsEconomics,15(2),107-131.

Rutgers.Rutgers,TheStateUniversityofNewJersey,2018-2019TuitionandFeesbySemester,UndergraduateSchools–NewBrunswickCampus.RetrievedSeptember2018,fromhttps://studentabc.rutgers.edu/sites/default/files/2017-2018%20Term%20Bill%20Rates%20-%20NB%20UG.pdf


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Conc lus ion

TheinvitationtojointheBigTenConferencewasonetheinstitutioncouldnotrefuse.Thelong-termbenefitsofBigTenmembershipfortheUniversityasawholearesignificantandimmeasurable.RutgersisanoutstandingacademicinstitutiontakingitsplaceamongaprestigiousgroupofConferenceinstitutions.

IntermsofacademicsRutgerswaswellprepared.However,itsathleticsprogramswereillpreparedforBigTencompetition.Nofeasibilitystudyorgapanalysiswasperformed.Theschool’sathleticfacilitieswerewellbehindthoseofotherBigTenschools,anditsbudgetforathleticswassubstantiallybelowtheconferenceaverage.

Inalmosteveryimportantmeasure,RutgersranksnearthebottomoftheConference.Thatincludesgeneratedrevenue.Inaddition,thefinancialagreementnegotiatedwiththeBigTenleftRutgerswithsixyearsofconferencerevenuedistributionsthatwereinessencethesameasthosereceivedbyRutgersinitslastyearintheAmericanConference.Inshort,RutgerswasfacingasubstantialperiodoftimewhereitwouldbecompetingintheBigTenwithsignificantlyfewerresourcesthanitsconferencecompetitors.

Thefirstfouryearsofcompetitiveresultshaveshownthefollowing:

• Rutgerslikelydidnoteffectivelyaccommodate,anddidnotprepareitsfaculty,students,alumni,stategovernment,andvariousconstituenciesforthefiscalandcompetitiverealitiesofjoiningtheBigTen,particularlyinitsfirstsixyearsofmembership.

• TherewaslikelyunderestimationoftheextraordinaryinitialexpensesconnectedtoBigTenmembershipandthelong-termdeficitspendingplanneededtoreachcompetitiveparity.Thisisevensowithfullvestingofmembershipin2021,which,althoughsubstantialandatthehighestlevelsofsuchFBSpayouts,istemperedbythereductionsnotedherein,andwillnotimmediatelyremedyallfinancialissues.

Itis,however,CSS’sbeliefthat,despiteunderstandableapprehension,thiscontinuedextraordinaryinvestmentinathleticswillresultinasubstantial,game-changingupsideforthefutureofRutgersathleticsandtheuniversityasawhole,asignificantstepinraisingawarenessofRutgersandenhancingtheschool’simage,whileatthesametimereducingathletics’dependenceonUniversityfinancialsupport.

ThisgoalisconsistentwiththeUniversity’s“AStrategicPlanforaNewRutgers,”statedinitiativeto:“TransitionDivision1IntercollegiateAthleticsintotheBigTenConference.IntercollegiateathleticsformasignificantcomponentoftheRutgersundergraduateexperienceonallofourcampuses.Rutgerswillremaincommittedtoethicalathleticprogramsthatsustainacademicprogressalongsidecompetitiveathleticperformanceforstudent-athletes.Basedonamultiyearfinancialplan,AthleticswillmovetowardfinancialindependencefromtheUniversity’sgeneralfund.”


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PotentialFunding/BudgetOpportunities

CSSbelievestherearesubstantialopportunitiesforRutgersathleticstopartnerwiththeUniversitytobothgrowitsrevenueanddevelopacomprehensiveenhancedfundingplanforthefuture.OtherFBSinstitutionsacrossthecountryhaveutilizedanumberofwaystoassisttheirathleticdepartmentsincreatingmeaningful,responsible,andcompetitivebudgets.

RevenueProduction

CSSbelievesthatrevenueproductioncanbemeaningfullyenhancedinanumberofareas.Theseinclude,butarenotlimitedtothefollowinginitiatives:

1. Seeknewnamingrightsopportunitiesinconjunctionwithexistingandnew/renovatedfacilitiesandtheircomponents.

2. Improvemulti-mediarightscontractsthroughre-negotiation,takingtherightsinhouse,ortakingtherightstothemarketplace.a. ConsiderpartneringwiththeUniversitytomaximizemulti-mediarightsrevenuefor

bothAthleticsandtheUniversity.3. Improveequipmentandapparelcontractswheneverpossible.4. Considerthesaleofalcoholatcompetitivevenues.5. Increaserevenueatbasketballgamesthroughtherenovationofallpotentialrevenue-

producingareasoftheRAC,includingtheadditionofpremiumseatingandsuites.Budgetproformascanshowthelong-termfinancialbenefitsofsuchinvestment.

6. Increaserevenueatfootballgamesthroughtherenovationofallpotentialrevenue-producingareasofthefootballstadium,includingtheadditionofpremiumseatingandsuitesbeyondtheAudiClub.Again,budgetproformaswilllikelyshowthatsuchaninvestmentwillproduceasubstantivepositivereturn.

7. Increaseticketsalesintherevenue-producingsportssuchasfootballandbasketballwithanewthirdpartycontractorbytakingtheoperationinhouse.Theseeffortsmustincludeamajorfocusonoutboundticketsales,withcommissionedsalesstaff.

8. IncreaseannualdonationstoRutgersathleticsthrougharevampedannualfundprogramaimedatbringingthatprogramtoacompetitiveBigTenlevel.

9. Continuethemajorgiftcampaigntoaccomplishthefollowing:a. Improveexistingfacilities,andbuildnewones.b. Growendowmentstoprovideanadditionalannualfundingmechanism.

10. Considerbookingmoreoutsideevents,includingE-sports,intheRAConcetheRJWBarnabasHealthAthleticPerformanceCenter,withitsbasketballpracticefacility,comesonline.

11. ConsidercollaborationwiththeUniversityonmarketinginitiativeswithUniversityvendors.12. Inquireofopportunitiesforathleticsrevenuegenerationfromlegalizedsportswagering.


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ExpenditureReduction:

1. Seekforgivenessorreductionoftheprincipaland/orinterestofcurrentuniversityloanstoAthletics.

2. ContinuetolookforwaystoincorporateongoingathleticexpensesintotheUniversitybudget,thusprovidingnon-cashsupporttoathletics.Possibilitiesinclude:a. Academicsb. Compliancec. Fundraisingd. MedicalandTrainingServicese. FacilitiesMaintenancef. TicketingandSalesg. MarketingandPromotions

3. Improvethefunctionoftheorganizationthroughadjustmentsinreportinglinesandfunctionsasdiscussedherein.

4. Seekadditionaltuitionabatementforstudent-athletes.5. SeekreductionofDevelopmentOfficefeeformajorathleticdepartmentgifts.6. Solicitstatelegislatureand/ortheUniversityforsupportsuchastuitionabatementfor

athleticsscholarshipsand/orTitleIXEquityassistance.7. Seekincreaseinthecurrentstudentfeetosupportathletics.8. Reducethenumberofsportofferings.9. ConsiderfurthernegotiationswiththeBigTenConferencerelativetocurrentandfuture

advances.

ItisunderstoodthroughoutthisprocessthatAthleticsmustcontinuetodemonstrategoodfaithtotheuniversitybydesigningandadheringtocost-consciousbudgetingprinciples.


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Case Stud ies

Un ivers i ty of Ca l i forn ia , Berke ley

UCBerkeleyasaninstitutionhasfacedsignificantstructuraldeficit.Fundingfortheinstitutionhasdecreasedsignificantlyatthestatelevel–from33%oftheuniversitybudgettoonly12%.Atuitionfreezeandincreasedexpenseshavealsocontributedtothedeficit.InFY16,theinstitutionaldeficitreached$150M.ChancellorCarolChrist,whobeganherterminJuly2017,madeoneofhertopprioritiesareductioninthatinstitutionaldeficit.Sincethen,thedeficithasbeenreducedto$56MinFY18,withagoalofbalancingthebudgetbyFY20.

Intercollegiateathletics,liketheinstitution,hasalsohadamajorbudgetdeficit.Thedepartmentcarriesoneofthehighestdebtloadsinthenationatapproximately$400M.Asignificantportionofthedebtisattributabletothe2012renovationofMemorialStadium.That$321MprojectincludedseismicupgradesasthestadiumsitsontheHaywardFault.Currently,Calhasanannualinterest-onlydebtservicepaymentontheMemorialStadiumandSimpsonStudent-AthleteHigh-PerformanceCenterprojectsofapproximately$18M.Principalrepaymentwillbeginin2023-24.Annualpaymentswillincreasefrom$26MinFY32to$35MinFY39.Inaddition,capitalmaintenancecostsareestimatedatmorethan$50Moverthenextfiveyears.Overalltheathleticdepartmenthashadoperatingdeficitsof$22MinFY16and$16MinFY17.

InJune2016,ChancellorNicholasDirks,Christ’spredecessor,chargedtheTaskForceonIntercollegiateAthletics(TFIA)withassessingthecostsandbenefits,aswellasthescaleandscopeoftheintercollegiateathleticsprogram.Theresultingreport(http://chancellor.berkeley.edu/sites/default/files/tfia_report_june_2017.pdf)wasreleasedinJune2017.

InNovemberof2017,theChancellorChristannouncedthattheuniversitywillassumeaportion(54%)ofthe$18M+debtrelatedtoseismicretrofittingcostsofthe2012renovationofMemorialStadium.

ThechancellorhasalsonotedthatCalwillInstituterostermanagementtocomplywithTitleIXandwillstopthepracticeofaddingwomen’steamswheneverthereisinterest,astheinstitutionnowhas30sports.Atthispoint,noformalplanshavebeenmadetoreducethenumberofsports.

InherMarch2018lettertotheCalBerkeleycommunity,ChancellorChristoutlinedfivestrategiesforathleticstoreachitsbalancedbudgetgoalby2020:

(https://news.berkeley.edu/wp-content/uploads/2018/03/Chancellors-Message-on-Cal-Athletics-2018.pdf)

1. CampusassumingaportionofthedebtforMemorialStadium.2. Reviewhowfundstransferbetweenintercollegiateathleticsandthecentralcampusledgerwith

agoalofsimplifyingtheprocess.3. Developaplantosignificantlyincreaserevenuesinintercollegiateathletics.4. Increasephilanthropicsupport.


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5. Reviewtheathleticdepartmentssizeandscope,withtheunderstandingthatcuttingsportswouldbealastresort.**Note:In2010Calcutfivesportswithanestimatedsavingsof$4Mannually.However,thosesportswerelaterreinstatedfollowingfundraisinginitiatives.

Sources:

• http://www.dailycal.org/2017/10/19/impossible-situation-cal-athletics-gets-20m-bailout-chancellors-office/

• UniversityofCalifornia–IA-ConsultingRFP(August2017)• http://www.dailycal.org/2017/11/02/uc-berkeley-chancellor-proposes-assuming-portion-cal-

athletics-debt-exchange-developing-edwards-stadium/• https://www.californiagoldenblogs.com/2017/1/5/14172010/california-golden-bears-athletics-

debt-service-finances-revenue• https://www.berkeleyside.com/2012/08/27/cal-memorial-stadium-unveiled-after-21-month-

renovation• https://www.sfchronicle.com/bayarea/article/Optimism-at-UC-Berkeley-as-new-chancellor-

13164858.php• https://news.berkeley.edu/wp-content/uploads/2018/03/Chancellors-Message-on-Cal-

Athletics-2018.pdf• https://www.nytimes.com/2010/09/29/sports/29cal.html• https://bleacherreport.com/articles/660800-cal-bears-raise-over-9-million-to-reinstate-

baseball-program-in-berkeley• https://www.si.com/more-sports/2011/02/11/cal-athleticcuts• https://campaign.berkeley.edu/


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Un ivers i ty of Wash ington

InFY14-15,UniversityofWashingtonAthleticssawadeficitof$856K.Thatyear,theinstitutionreceivedaone-timeadvanceof$7.3MfromthePac-12forfutureMMRrights(July1,2025).

Thefollowingyear,thedepartmenthadaFSPprojectionofa$14.8Mdeficit.TheactualFY16deficitwas$5.8M.AtthesametimetheinstitutionannouncedthehiringofJenniferCohenasitsnewathleticdirector.Atthattime,shenotedthreemajorareascontributingtothefinancialdecline:

• Addedstudent-athletewelfarecosts• A15%,two-yeardeclineinticketsales• $17.5millionindebtpaymentsfornewfacilities

AttheJune2016boardofregentsmeeting,thedepartmentsubmittedathree-yearplantoaddressthedeficit.Thedepartmentprojectedadeficitfor2017and2019,withanexpectedsurplusin2018.Atthetimethereservefundwasat$30M.

Theathleticdepartment“athleticfinancialstabilityplan,”whichbeganinFY16-17,focusedonrevenueenhancements,expensereductions,anddebtrestructuring,withthedepartmentreportingbackontheplanonasemi-annualbasis.Theplanincludedthefollowing:

• Thedepartmentdeficitswouldbefullycoveredfromtheathleticdepartmentreservefund.• ICAwouldreduceexpensesby$2millioninFY17andexploreadditionalfuturerevenue

opportunitiesbeforemakinganycutsthatwouldnegativelyimpactstudent-athletewelfare,competiveness,andequity.

• TherewouldbeatemporarymodificationoftheILPloancovenantthroughFY19.Debtservicepaymentsatthattimewere$17.5million,asHuskyStadiumandHuskyBallparkloansbegantoamortize.Thatmodificationincluded:

o $10millionminimumonthebalanceintheunrestrictedreservefundbalanceatalltimes

o ReductionintheILPinterestratewhichloweredannualdebtservicepaymentsto$16.2M.

o RevisitingofthecovenantinFY19• Plannedrevenueenhancementsincluded:

o Launchanewfundraisingcampaignwithagoalofraisinganadditional$1.7millionannually.

o IncreasedhospitalityopportunitiesinHuskyStadium(expandbeer/winebeergardens)o Futureappareldealo Increasedticketsalesthroughavarietyofnewpackagesandoutboundefforts.

TheBoardapprovedtheplanandreducedtheunrestrictedreservefundbalancerequirementto$10M.

InitsApril2017update,thedepartmentreportedfavorablerevenueinformationbeyonditsprojectedfigures,including:


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• Gaterevenueforfootballandwomen’sbasketballprojectionswereexceededby$2.8Mand$150K,respectively.Thiswassomewhatoffsetbymen’sbasketballgaterevenue,whichwas$600Kbelowprojections,anda5%cityadmissiontaxpaidonincreasedticketsales.

• Thedepartment’sfundraisingteamsurpasseditsyear1campaigngoalsforannualgivingandteamsupportby$3.0M.

• Thedepartmentreceived$2.6MinadditionalrevenuefromthePac-12relatedtothePeachBowlandexpandednetworkdeals.

• DonJamesCenterrenewalswere$1.5Mhigherthaninitiallyanticipated.However,thisDJCrenewalrevenuewouldbe$1.5MlowerinFY18.

Expensesforthesameperiodwereoverbudgetby$4.9M.Theseadditionalcostswereattributedtosalaries,incentivesandcostsrelatedtothePeachBowlaswellascostsrelatedtothecoachingchangeforMen’sBasketball.

TheApril2018updateagainshowedpositiveresultsastorevenueproduction,$2.87Mmorethanprojected.Thiswashighlightedby:

• Increasedfootballticketsales.• Singlegameticketsalesinmen’sbasketball.• Significantyear-endcharitablegiving,whichmorethanoffsetthe$3Mimpactofeliminating

BuildingforExcellencefootballdonation(furtherdescribedbelow).• IncreasedconferencerevenuerelatedtoFiestaBowlexpensereimbursementandticket

subsidy,plus$250KinrevenueshareforhavingasecondschoolinaNewYear’s6bowlgame.• Endowmentinterestrevenuethattrackedhigherthanbudgetedfigures.

InFY18thedepartmentalsosaw$3.1Minadditionalexpensesrelatedto(1)performancebonusesforfootball,(2)Fiestabowlcosts,and(3)approximately$900KincapitalprojectsmovedfromFY19toFY18.Overallthedepartmentprojecteda$1.4MsurplusforthefiscalyearandwillbefinalizedfollowingtheauditinOctober2018.

Thedepartmentalsonotedchangesrelatedtothetaxcodewhichhadfinancialimpactsincluding:

• Previouslyfootballseasonticketholderspaida$75“BuildingforExcellence”donationwiththepurchaseoftickets.PertheUWTaxDirector,thedepartmentrolledthedonationintotheticketpricewhichwillmakethosepreviouslydonatedfundssubjecttofeesandtaxesanticipatedtoresultina$450Kdecreaseinrevenueannually.Thosetaxesandfeesinclude:

o Universityoverhead(9%)o CityAdmissionsTax(5%)o 2-3%creditcardfees(asapplicable)

• Excisetaxon5highestpaidemployees(21%oncompensationabove$1M)o Basedonexistingcoachingcontracts,thecostofthistaxwillbeatleast$750KinFY19

andincreasetoover$1MbyFY23.o Thetaxwouldapplytoincentivebonusesaswell,whicharedifficulttopredict.


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InApril2018,thedepartmentannounceda10-year$120McontractwithAddidasforshoeandapparelsponsorship.Theresultingagreement,andprojectionswiththenewcontract,showedthedepartmentreturningtotheirprevious$30MinsurplusbyFY22.

Sources:

• https://www.seattletimes.com/sports/uw-huskies/uw-athletic-department-projects-budget-deficit-of-14-million-for-2016-fiscal-year/

• https://www.washington.edu/regents/files/2016/06/2016-06-F-3.pdf• https://www.washington.edu/regents/files/2017/04/2017-04-F-6.pdf• https://www.washington.edu/regents/files/2018/04/2018-04-F-3.pdf• https://www.uwdawgpound.com/2018/4/10/17220376/university-of-washington-adidas-10-

year-sponsorship-agreement


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Un ivers i ty of Mary land

TheUniversityofMarylandathleticdepartment,overmultipleyearsintheAtlanticCoastConference(ACC),hadutilizedathleticdepartment(ICA)reservefundstobalancethebudgetwhenfacedwithanannualoperatingdeficit.InFY11thedepartmentwithdrewthelastofthatreserve(approximately$1M)toapplytothatyear’sdeficit.InJuly2011,PresidentLohappointeda17-membercommissiontoreviewtheathleticsdepartmentfinancialhealth.Thatcommissionwaschargedto:

1. ReviewthefinancesandoperationsofICAandmakerecommendationsto(a)securegreaterexcellenceinacademicsandathleticsand(b)attainfinancialsustainability;

2. Makerecommendations,consideringofalloptions,onwaystoincreaseICArevenuesanddecreasecosts,recognizingthatlongstandingbudgetissuesmayrequireamulti-yearplantoimplementchangesandrestorebudgetarystability;

3. BeguidedbytheparamountcommitmentofICAtothesuccessofthestudent-athletes,toinsurethat(a)theyarewell-supportedtosucceedacademicallyandintheircareersaftergraduation,andthat(b)theyandeverysponsoredteamaresupportedwellenoughtobeconsistentlycompetitiveatthehighestDivisionIlevel;

4. Performitsworkasstrategically,transparently,andconsultativelyaspossible;5. SubmititsreportandrecommendationstothePresidentbyNovember15,2011.

Initsreport,thecommissionreportedthatMarylandanticipatedadeficitof$4MFY2012andmorethan$17Mby2017.Contributorstothedeficitincludeddecreasedrevenueinmajorrevenuegeneratingsports,towit:

• Footballgenerated$1.8MinFY11,approximately50%ofwhatithadgeneratedjustfiveyearsearlier.

• Men’sbasketballgenerated$4.5MinFY11comparedto$6.8Mfiveyearsprior.

Thecommissionmadeseveralrecommendationsonwaystobalancethebudget,including:

• Increasedfundraising• Minimizationofadministrativecosts• Eliminationof8oftheinstitution’s27sports,effectiveJuly2012.Thesportsidentifiedwere

men’scrosscountry,indoorandoutdoortrack,men’sandwomen’sswimminganddiving,men’stennis,women’sacrobaticsandtumbling,andwomen’swaterpolo.

Sportswereidentifiedforeliminationbasedon:ticketsales/revenueproduction,competitivesuccess,sponsorshipatotherinstitutions,and“historyofthesport”attheuniversity.Allathleticscholarshipsandcoachingcontractsweretobehonoredthroughterminationdate.Thecommission’sanalysissuggestedthesecutswouldsave$5Mperyear.

InJuly2012,Marylandformallyannouncedthecuttingof7sports.Men’strackandfieldwasspared,basedonthefactthat$888,000ofanestablished$940,000goalhadbeenraised.Theteamwouldneed


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tocontinuetoraisemoney–atotalof$1.88millionbyDec.31,2012.However,thesquadsizewasreducedtoonly14student-athletes,roughlyhalfofitspreviousrostersize.

FromFY12toFY17Marylandtotalrevenuesrosefrom$68Mto$94MaccordingtotheUSAToday’sCollegeFinancialdatabasebasedontherevenueandexpensereportscollectedfrompublicNCAADivisionIschools.ThisincludedasignificantincreaseintheRights/Licensingcategoryofapproximately$25M.

Duringthatsametimethedependenceonallocatedrevenuefromtheinstitutionthroughschoolfundsorstudentfeesdecreasedby$3M.In2017,theathleticdepartmentreceived$14Mfromthosesources.Duetothesechanges,thedepartmenthasbecomelessreliantontheinstitutionforrevenue,asshowninthechartbelow.Schoolfunds,asnotedbyUSAToday,includedirectandindirectsupportfromtheuniversity,statefunds,tuition,tuitionwaivers,aswellasfederalWorkStudyamountsforstudentworkersemployedbyathleticsdepartment.Italsoincludesthevalueofuniversity-providedsupportsuchasadministrativeservices,facilitiesandgroundsmaintenance,security,riskmanagement,utilities,depreciationanddebtservicenotchargedtotheathleticsdepartment.

Expensesduringthistimeperiodrosefrom$68Mto$94M.In2014,theUniversityofMarylandmovedtotheBigTenConference,resultingintheAtlanticCoastConference(ACC)withholding$15millionofMaryland’srevenuedistribution.TherelatedlawsuitfiledbytheACCtoenforcea$52millionexitfeewassettledforapproximately$31million.Theinstitutionprovideda$31millionloantoAthleticstocoverthatsettlement.Thedepartmenthasaplantobecomeself-sufficientby2020andtopaybacktheloan.

Year TicketSales ContributionsRights/Licensing

StudentFees

SchoolFunds

OtherTotal

Revenues

2017 $15,291,690 $12,281,532 $48,250,773 $12,036,503 $2,547,156 $4,473,703 $94,881,3572016 $16,493,833 $13,676,004 $46,175,076 $11,630,126 $3,789,312 $2,337,346 $94,101,6972015 $16,010,850 $11,077,557 $47,325,265 $11,632,008 $2,914,403 $3,726,045 $92,686,1282014 $13,442,584 $11,225,922 $29,425,211 $11,315,001 $6,806,112 $1,220,039 $73,434,8692013 $11,838,389 $10,730,829 $23,822,031 $11,181,286 $4,287,999 $1,853,936 $63,714,4702012 $13,516,377 $11,530,343 $23,778,567 $11,064,475 $6,179,609 $2,073,289 $68,142,660

YearTotalSchoolFunds+

StudentFees

%ofRevenues

2017 $14,583,659 15%2016 $15,419,438 16%2015 $14,546,411 16%2014 $18,121,113 25%2013 $15,469,285 24%2012 $17,244,084 25%


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InJune2018,PresidentLohnotedmultiplefinancialachievements,including:

• A$72Mmultimediarightsagreement.• Revampedtheathleticsbudgetandfinancialoperations,resultinginanoperatingsurplus.• FundingandconstructionstrategyforthenewColeFieldhouse.

Sources:

• https://www.insidehighered.com/news/2011/11/22/maryland-will-cut-eight-teams-mitigate-athletic-budget-deficit

• https://www.washingtonpost.com/sports/colleges/maryland-unveils-commission-to-help-terps-increase-revenue-cut-costs/2011/07/19/gIQAZRTmOI_story.html?utm_term=.60270420dc65

• https://www.si.com/si-wire/2012/07/03/university-of-maryland-cuts-sports-teams• https://thequad.blogs.nytimes.com/2012/07/03/seven-sports-are-eliminated-at-maryland/• https://president.umd.edu/communications/statements/intercollegiate-athletic-budget• https://president.umd.edu/communications/statements/presidents-response-commission-ica• https://president.umd.edu/communications/statements/commission-big-tencic-integration-

formed• https://www.bizjournals.com/washington/blog/2015/01/umd-athletic-department-red-ink-

nearly-tripled-in.html• http://mgaleg.maryland.gov/pubs/budgetfiscal/2016fy-budget-docs-operating-r30b00-

university-system-of-maryland-overview.pdf• http://sports.usatoday.com/ncaa/finances/


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