NYTimes: MU spends more than any other BE institution

[NYWarrior]

on hoops --

http://www.nytimes.com/2010/03/09/sports/ncaabasketball/09bigeast.html?ref=ncaabasketball

Perhaps not coincidentally, those three also spend the most on basketball among the non-F.B.S. universities. (Marquette’s expense listing in the latest available data from the United States Department of Education reveals that it spends more money — $10.3 million — than any other men’s basketball team in the league.)

“I think there’s no mystery to why Georgetown, Villanova and Marquette have had success,” said Dan Gavitt, the Big East associate commissioner for basketball. “Part is investment. The other part is an institutionwide commitment to being good in men’s basketball.”

Also, read the article by Don Walker from earlier this year on the same topic -- much more local detail

http://www.jsonline.com/blogs/sports/82158962.html

[GGGG]

on hoops --

http://www.nytimes.com/2010/03/09/sports/ncaabasketball/09bigeast.html?ref=ncaabasketball

Perhaps not coincidentally, those three also spend the most on basketball among the non-F.B.S. universities. (Marquette’s expense listing in the latest available data from the United States Department of Education reveals that it spends more money — $10.3 million — than any other men’s basketball team in the league.)

“I think there’s no mystery to why Georgetown, Villanova and Marquette have had success,” said Dan Gavitt, the Big East associate commissioner for basketball. “Part is investment. The other part is an institutionwide commitment to being good in men’s basketball.”

Also, read the article by Don Walker from earlier this year on the same topic -- much more local detail

http://www.jsonline.com/blogs/sports/82158962.html

98% of the athletic department's revenue is generated by men's basketball.  Wow....

[Ready2Fly]

Doesn't some of this have to do with how overhead expenses are allocated?  For example, at some schools, isn't it allocated based on revenue?  So football would get 50%+ of that cost hitting their "P&L" whereas at MU it would be 98% under the same methodology?  Or am I wrong?

Either way, I really hope we keep pumping money into the program.  It's the only way to stay relevant.

[GGGG]

Doesn't some of this have to do with how overhead expenses are allocated?  For example, at some schools, isn't it allocated based on revenue?  So football would get 50%+ of that cost hitting their "P&L" whereas at MU it would be 98% under the same methodology?  Or am I wrong?

Yes, you are exactly correct.  That means that 98% of the athletic department's general expenses are considered expenses by men's basketball.

[goodgreatgrand]

These numbers illustrate how success breeds success. It's interesting that SU and UConn don't spend a lot of money because their brands are such great assets. Everybody else in the league should take note of that and spend to build the brand so that programs can get to that point.

[pillardean]

I think it is a good thing that we spend money on BBall and Athletics-not only Varsity athletics but also intramural and club teams. 

It allows another medium for education of young men and women as well as freedom's from those rigors.  I don't see too much wrong (I'm sure someone could crunch the numbers and find a better way to do things) with what MU does to support it's Men's BBall program-it's flagship program.

In fact i say Good Job. 

[Ready2Fly]

These numbers illustrate how success breeds success. It's interesting that SU and UConn don't spend a lot of money because their brands are such great assets. Everybody else in the league should take note of that and spend to build the brand so that programs can get to that point.

They have football programs that a lot of costs are allocated to that all fall to basketball at MU.  See my post above.  I doubt the disparity is as wide after taking that into account, but I hope MU continues outspending these teams, because I agree with your general premise.

[goodgreatgrand]

A bit off the topic here:

For those of you from the East Coast, you understand the huge popularity in lacrosse. With the new BE conference and Syracuse joining (from independent status), are there any plans to make it a conference sport? I just read that a Syracuse-Virginia contest brought 7k fans in. Not bad. LAX is growing in popularity every year and is expanding outside of the Northeast and ACC country.

[damuts222]

 

A bit off the topic here:

For those of you from the East Coast, you understand the huge popularity in lacrosse. With the new BE conference and Syracuse joining (from independent status), are there any plans to make it a conference sport? I just read that a Syracuse-Virginia contest brought 7k fans in. Not bad. LAX is growing in popularity every year and is expanding outside of the Northeast and ACC country.

 Doubtful given the past of Marquette's Lacrosse teams parties and other happenings several years ago. I went to school when it all happened but I don't remember it exactly.

[Niv Berkowitz]

You know, I've always thought why MU won't offer up lacrosse. There aren't a ton of midwest powers so travel would probably be high I'm assuming. But the cost to field a team can't be that bad. I mean, it's nothing near hockey or football. And with the new soccier stadium/field, that's another tennant they could get there.

[pillardean]

You know, I've always thought why MU won't offer up lacrosse. There aren't a ton of midwest powers so travel would probably be high I'm assuming. But the cost to field a team can't be that bad. I mean, it's nothing near hockey or football. And with the new soccier stadium/field, that's another tennant they could get there.

It's still relatively unknown as a sport in the Midwest.  The only people that play it are wealthy suburban high schools in Chicago area.  No one outside Suburbs really cares about LaCrosse in the Midwest.  Just won't get the draw.  Sure you might get a few hundred crazy fans but that doesn't help the bottom line.

[GGGG]

You know, I've always thought why MU won't offer up lacrosse. There aren't a ton of midwest powers so travel would probably be high I'm assuming. But the cost to field a team can't be that bad. I mean, it's nothing near hockey or football. And with the new soccier stadium/field, that's another tennant they could get there.

For Title IX purposes, they would have to then offer women's lacrosse or something similar.  The woman's lax power, Northwestern, doesn't even offer a men's team.

[goodgreatgrand]

They have football programs that a lot of costs are allocated to that all fall to basketball at MU.  See my post above.  I doubt the disparity is as wide after taking that into account, but I hope MU continues outspending these teams, because I agree with your general premise.

That's a BIG assumption. Accrual accounting would separate the sports a bit.

[MarquetteDano]

I find it hilarious that the top three spenders are private.  Please.   

As I mentioned in a previous thread, I have had accountants in the know tell me straight up that public institutions do everything they can to move expenses off of their athletic P&L.

[JWags85]

It's still relatively unknown as a sport in the Midwest.  The only people that play it are wealthy suburban high schools in Chicago area.  No one outside Suburbs really cares about LaCrosse in the Midwest.  Just won't get the draw.  Sure you might get a few hundred crazy fans but that doesn't help the bottom line.

Its pretty big in Ohio, notably Columbus and Cleveland.  I know Ohio State has a good program.  I think Notre Dame is pretty good as well. Its getting bigger in Chicago and its pretty big in the Minneapolis area.  I think a decent amount play it in Michigan.  The point is, if Marquette were to get a team, there would still be a limited amount of competition for some of the more underrated good Midwest kids.  So they could still be competitive before other people take notice.  I think LAX is the next sport to explode in the Midwest.

[GGGG]

I find it hilarious that the top three spenders are private.  Please.   

As I mentioned in a previous thread, I have had accountants in the know tell me straight up that public institutions do everything they can to move expenses off of their athletic P&L.

The top three spenders aren't private.  Louisville is #2 and they are a public institution.  Furthrmore, since all of the BE schools that don't play football are private, it is hard to get apples to apples numbers because of the way they allocate costs.

[Fightin 411]

It's still relatively unknown as a sport in the Midwest.  The only people that play it are wealthy suburban high schools in Chicago area.  No one outside Suburbs really cares about LaCrosse in the Midwest.  Just won't get the draw.  Sure you might get a few hundred crazy fans but that doesn't help the bottom line.

Not true...Northwestern's women's lax team has won at least 4 national championships in the last 5 or 6 years.

[Tugg Speedman]

These numbers illustrate how success breeds success. It's interesting that SU and UConn don't spend a lot of money because their brands are such great assets. Everybody else in the league should take note of that and spend to build the brand so that programs can get to that point.

Disagree.  It's not about Brand.  Its about allocating expenses.  SU and Uconn have great facilities and those expenses are "charged" to the football team.  So it looks like they don't spend money on Bball.  Don'e be fooled. they spend as much as anyone else.

Related, what is MU's biggest expense?  Is it team travel, renting the BC for 16 homes games or something else?

[Ready2Fly]

That's a BIG assumption. Accrual accounting would separate the sports a bit.

Not THAT BIG an assumption

http://www.answers.com/topic/cost-allocation

"If two or more cost objects share a common facility or program, the cost pool of the shared unit is a common cost to the users and must be divided or allocated to them. Bases of allocation typically are based on one of the following criteria: cause-and-effect, benefits derived, fairness, or ability to bear. The selection of a criterion can affect the selection of a basis. For example, the allocation of the costs of a common service activity across product lines or programs based on relative amounts of revenue is an ability to bear basis"

I bet 90%+ of the Al gets pushed out to the men's hoops team, even though other teams use it.  If we had a football team, a much larger portion of the shared space would go to them, and a much smaller portion would go to the hoops team.  There are other things that make a comparison between schools difficult as well, such as differing deprectiation schedules.

Again, I agree with your premise, but I'm guessing the disparity isn't as wide as it seems for a number of reasons.  Either way, I hope MU continues to spend a buttload on hoops.

[Tom Crean's Tanning Bed]

I'll wager the biggest expense drivers (in order) are probably:

1) Coaching/support staff salaries
2) Bradley Center rental costs
3) Player scholarships/housing
4) Recruiting budget
5) Team travel
6) McGuire Center operating expenses
7) Marketing/promotional expenses

[goodgreatgrand]

Disagree.  It's not about Brand.  Its about allocating expenses.  SU and Uconn have great facilities and those expenses are "charged" to the football team.  So it looks like they don't spend money on Bball.  Don'e be fooled. they spend as much as anyone else.

Related, what is MU's biggest expense?  Is it team travel, renting the BC for 16 homes games or something else?

Not sure what UConn has but Syracuse's Melo Center is a basketball-only facility. 

[ChicosBailBonds]

I find it hilarious that the top three spenders are private.  Please.   

As I mentioned in a previous thread, I have had accountants in the know tell me straight up that public institutions do everything they can to move expenses off of their athletic P&L.

DING DING DING....we have a winner

[SaintPaulWarrior]

Its getting bigger in Chicago and its pretty big in the Minneapolis area.  I think LAX is the next sport to explode in the Midwest.

LAX is becoming bigger and bigger as a high school sport in the Twin Cities...Many hockey players, both male and female, play the sport because it is fun and for an off season conditioning sport.

[GoldenWarrior]

I feel like I've seen this post a thousand times