What's the Cost of not Playing? Financial Impact of College Football Revenue at Big Ten Schools

If you want to know someone’s motivation, ask how they get paid.

Likewise, if you’re looking for a better understanding of why NCAA Division I athletic departments around the country have been exhausting all options to play college football this season, look no further than the university’s budget and revenue flow.

Programs are currently exploring every avenue with hopes of still conducting a football season despite ongoing obstacles related to the COVID-19 pandemic. However, multiple leagues across America have already pulled the plug on, what appears to be, a very challenging fall and have turned sights on a potential spring season. That includes a pair of Power Five conferences (Big Ten and Pac-12) already conceding while the SEC, ACC and Big 12 are still pushing forward.

Massive dollars are at stake for the Big Ten, spearheaded by revenue giants Ohio State and Michigan, if football cannot take place at some point before next summer. Here is a look at the 2018-19 NCAA Finances (last fully-completed fiscal year that didn’t entail a government shutdown) for major programs provided by the USA TODAY annual report.

Additionally, view the far-right column focusing on revenue generated from just football (for most of the Big Ten’s top-half) from the U.S. Department of Education as required by the Equity in Athletics Disclosure Act, per a March piece by Football Scoop and through other research.

Ranked by total revenue among all NCAA FBS programs, with all categories listed in millions.

<strong>Rank</strong>	<strong>School</strong>	<strong>Total Revenue</strong>	<strong>Total Expenses</strong>	<strong>Football Revenue</strong>
3	Ohio State	$210	$220	$115
4	Michigan	$197	$190	$122
6	Penn State	$164	$160	$100
11	Wisconsin	$157	$154	$90
14	Iowa	$151	$146	---
18	Michigan State	$140	$135	$80
21	Nebraska	$136	$124	$94
24	Minnesota	$130	$129	---
25	Indiana	$127	$114	---
29	Illinois	$118	$120	---
31	Purdue	$110	$102	---
33	Maryland	$108	$108	---
39	Rutgers	$103	$103	$27

* Data not provided for Northwestern

ANALYSIS:

It’s first important to note that calculations at the college level can sometimes be tricky since accounting practices are not always standard throughout the industry. Additionally, the above graph does not necessarily mean Ohio State lost $10 million in that fiscal year, as options like previous fundraising or reserve accounts can help offset such deficits. Buckeye athletic director Gene Smith confirmed that dynamic back in February to the Columbus Dispatch.

With that said…

Michigan (3), Ohio State (5), Penn State (6), Nebraska (10) and Wisconsin (13) all rank top-15 nationally in highest football revenue. Texas, at $156 million, and Georgia, $123 million, topped the list just ahead of the Wolverines. Rutgers, meanwhile, was ranked second-lowest among all Power Five schools.

According to annual tax returns also obtained by USA TODAY, the Big Ten led all Power Five conferences in revenue for fiscal year 2019 at $781.5 million. For those wondering, the SEC was second at $720.6 million while others lagged way behind.

As a result, each Big Ten institution receives north of $50 million in distributions primarily thanks to TV/media rights contracts broadcasting football (and men’s basketball). Furthermore, on average, roughly 20 percent of department revenue for Big Ten schools stems from ticket sales across all sports. Ohio State leads that category on the high end at 28 percent… and we’ll let you guess which sport sells the most tickets.

So, when trying to dissect why a school such as Nebraska was perhaps the most adamant and outspoken about playing football however necessary, look no further than football representing 69 percent of its total revenue ($94 million of $136 million)

The near future will be a critical time financially for many athletic departments if football either cannot be played, or even played in a diminished capacity. This May article by ESPN referenced an alarming spring survey through the LEAD1 Association, which represents athletic directors at the NCAA’s 130 FBS schools. Even in a multi-billion dollar industry, it showed that 54 of 95 respondents said their departments do not have reserve funds.

Those that can will likely tap into reserve accounts. Others might need to obtain serious loans and many, regardless, will have no choice but to endure significant blows.

If you want to know someone’s motivation, ask how they get paid.