From the Coloradan
More than half of CSU athletics revenue is subsidized
Matt L. Stephens,
matthewstephens@coloradoan.comPublished 11:02 a.m. MT May 27, 2015 | Updated 11:52 p.m. MT May 27, 2015
More than half of the revenue claimed by CSU athletics in 2014 was subsidized by student fees and university sources.
According to the NCAA membership financial report filed by Colorado State University, 51.7 percent of its $38.7 million in revenue came from financial streams not generated by the department's athletic functions. "Athletics functions" includes ticket sales, concessions, donations, rights and licensing and bowl revenue.
The 51.7 percent is based on the NCAA's definition of self-sufficiency, meaning a university's athletic department's generated operating revenues are at least equal to its operating expenses. USA TODAY Sports reported Tuesday that only 24 of 230 Division I public schools are self sufficient.
Of the $20 million in total subsidies, $5.26 million was from student fees, $12.3 million from direct institutional support (e.g. state funds, tuition, tuition waivers) and $2.4 million from indirect facilities and administrative support (value of facilities and services provided by the institution not charged to athletics). CSU's percentage is the fourth-highest in the Mountain West behind Utah State (56.37 percent), San Jose State (61.61 percent) and Air Force (66.3 percent), but does fair better than 64 percent of Division I schools.
CSU athletic director Joe Parker said Wednesday that built in to the fees are student tickets. Instead of CSU charging students individually for tickets to football, volleyball and men's and women's basketball games like some schools do — which would show up as ticket revenue — fees cover student entry to home athletic events, appearing as a subsidy.
In addition, scholarships are shown on the financial report as an expense opposed to revenue, despite most of the financial support student-athletes receive being paid back to the university. Steve Cottingham, chief financial officer for CSU athletics, said more than $6.58 million of the $7.58 the school spent on scholarships will be returned, with the leftover paid out to student-athletes as housing stipends.
Note that the NCAA doesn't count returned scholarship money as revenue and all universities are subject to the same issue when working toward self-sufficiency.
Only 19.01 percent of the University of Colorado's athletic revenues were subsidized in 2014, according to USA TODAY. The University of Northern Colorado was subsidized at a rate of 72.63 percent. Maryland was the lone Power 5 conference member institution with more than 20 percent of its athletics revenue subsidized (24.68).
Success at CSU athletics is at an all-time high and so is the rate the department is subsidized.
The percentage of revenue from subsidies has steadily increased over the past decade. In 2005, student fees and school funds made up less than a third of the department's $19 million in total revenue. Within four years, 45.7 percent of revenue came from subsidies. CSU reached 50 percent in 2010, dipped to 48 percent in 2011 and 2012 and has since been at 51.7 percent.