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Funding Athletics at UH Mānoa

Funding Athletics at UH Mānoa. Internal vs. External Funding. Internal (allocated) funding is the sum of State support, institutional support, and student fees.

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Funding Athletics at UH Mānoa

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  1. Funding Athletics at UH Mānoa

  2. Internal vs. External Funding Internal (allocated) funding is the sum of State support, institutional support, and student fees. External (generated) funding is the sum of all other sources (i.e., ticket sales, fund-raising, NCAA/WAC, TV, radio, concessions, etc.) Mānoa Athletics generated 81% of its own revenue from external funding for fiscal year 2008. The NCAA Dashboard Indicators (data is from NCAA Financial Reports) shows that for fiscal year 2008 the members of the Western Athletic Conference (WAC) and the Mountain West Conference (MWC) generated, on average, 50% of their revenue. Source: NCAA Dashboard Indicators

  3. Allocated and Generated Revenues 2008-09 Source: 2008-09 NCAA Financial Report

  4. Efforts to Generate Additional Revenue • Renegotiated Television Agreement with annual guarantee moving from $1,750,00 to $2,300,000 and an increase in annual revenue of approximately $150,000. • Renegotiated Radio Agreement with annual revenue increasing from $325,000 to $367,000 • New Concessions Agreement is projected to enhance annual revenue by more than $300,000 • Negotiated Apparel and Marketing Agreements with Under Armour resulting in more than $460,000 annually for rights fee, apparel, and marketing support. • Generated an additional $209,000 in parking revenue at Aloha Stadium this year with 1,000 additional spaces allocated to us. • Reviewed ticket prices to respond to the economic challenges of our customers and price elasticity issues with the goal of maximizing revenue by achieving the price point that fills the most seats and results in the greatest revenue.

  5. Student Fee Proposal This past fiscal year, Mānoa Athletics proposed a new mandatory $50 per semester Student Athletic Fee that would generate approximately $2,000,000 annually and offer students a similar value in tickets to home athletic contests. Current Proposed Seat Seat Allocation Allocation Aloha Stadium 1,500 5,000 Stan Sheriff 124 500 Les Murakami 200 225 The proposal remains under consideration.

  6. WAC Student Athletic Fees 2009-10 Fee Per Estimated Institution Student Annual Revenue Notes Boise State $101.00 $1,905,466 Per FT student per semester $ 9.65 $1,052,072 Per credit hour for PT students Fresno State $ 39.00 $1,429,521 Per semester Hawaii - - Idaho $124.12 $2,220,000 Per FT student per semester La Tech $ 10.00 $ 232,549 Per quarter; prorated for <8 credits Nevada $ 2.00 $ 600,000 Per credit New Mexico State $ 74.12 $2,613,320 Per semester San Jose State $ 77.50 $4,714,849 Per semester for all students >6 credits Utah State $123.22 $3,700,000 Per semester for all students >13 credits Source: WAC Office

  7. Efforts to Reduce Expenses Personnel • When administrative and support staff positions have become vacant through resignations or retirement we have either left the positions vacant or have abolished them. This has resulted in 17 positions that are either not being funded or have been abolished. • Of 48 staff positions 6 are currently vacant…12.5 % • Estimated savings of more than $580,000 annually. Operations • Administration and support services budget allocations were reduced $359,750 (14.3 %) from FY 2009 to FY 2010. • Initiated an agreement with ESPN to administer our annual eight-team men’s basketball tournament. This resulted in an annual savings of between $100,000 and $200,000. • Parking at Ford Island for football games was discontinued providing an annual savings of $52,000. • Collaborated with Aloha Stadium to reduce game expenses by approximately $80,000.

  8. UH Mānoa Ticket Revenue 2006-10 Notes: 2009-10 are estimates and unaudited. *Men’s Basketball ticket revenue is reduced approximately $185,000 in 2009-10 due to ESPN agreement to host the Diamond Head Classic Source: NCAA Financial Reports

  9. Annual Surplus/Deficit 1999-2009 Notes: 2008 has two bars 2008 Black Line (actual) includes Sugar Bowl net revenue of $2,654,787. 2008 Red Line (estimated) excludes Sugar Bowl net revenue and shows what the deficit would have been without the Sugar Bowl revenue *2010 is estimated.

  10. Total Net Assets/Deficit 1999-2009 Notes: Red Line is actual cumulative net deficit. Yellow line excludes Sugar Bowl net revenue and shows how cumulative deficit would have increased without Sugar Bowl revenue. *2010 is estimated.

  11. Additional Revenue Contribution to UH Mānoa • On average, the equivalent of 200 student-athletes participate in the athletics program annually without receiving any aid. At 2009-10 tuition rates and assuming that 70 percent of these students are not from Hawai’i, that amounts to more than $2.4 million in tuition revenue that the athletics program brings into the University. These collegiate-level elite athletics would very likely attend another FBS institution if UH Mānoa did not offer their sport of choice. • The athletics program provides revenue of approximately $735,000 annually for student housing by paying for room and board when included in a student-athletes scholarship. • Gross revenue from parking for athletic events on campus is collected by Auxiliary Services. This is estimated to be approximately $400,000 annually. • Rainbowtique and the bookstore receive revenues generated by selling apparel and merchandise using the licensed marks of UH Athletics.

  12. WAC Comparative Data Direct State and Institutional Support (Revenue) 2007-08 Source: NCAA Financial Reports as Reported by USA Today

  13. WAC Comparative Data Ticket Revenue 2007-08 Source: NCAA Financial Reports as Reported by USA Today

  14. WAC Comparative Data Contributions (Fundraising) 2007-08 Source: NCAA Financial Reports as Reported by USA Today

  15. WAC Comparative Data Total (Self) Generated Revenue 2007-08 *Does not include income of $4,385,555 related to the Sugar Bowl Source: NCAA Financial Reports as Reported by USA Today

  16. Mountain West Conference Comparative Data Total (Self) Generated Revenue 2007-08 *Does not include income of $4,385,555 related to the Sugar Bowl Source: NCAA Financial Reports as Reported by USA Today

  17. WAC Comparative Data Team Travel Expense 2007-08 *Football bowl game travel stipends have been subtracted out (Boise State $399,209, Fresno State $320,861 and Nevada $392,631) **Hawaii number does not include $1,441,368 in Sugar Bowl Travel Source: NCAA Financial Reports as Reported by USA Today and WAC Estimated

  18. WAC Comparative Data Guarantee Expense 2007-08 Source: NCAA Financial Reports as Reported by USA Today

  19. WAC Comparative Data Athletic Student Aid Expense 2007-08 # of Sports Sponsored 19 20 20 16 16 18 17 16 16 Source: NCAA Financial Reports as Reported by USA Today

  20. WAC Comparative Data Coaching Salaries, Benefits, and Bonus Expense 2007-08 Source: NCAA Financial Reports as Reported by USA Today

  21. WAC Comparative Data Staff/Administrative Salaries, Benefits, and Bonus Expense 2007-08 Number of Positions 71 88 64 34 48 64 57 52 39 Cost per Position 53,530 57,553 80,236 57,561 29,779 42,883 58,978 69,295 48,467 *Hawaii number does not include $1,185,142 for employees unrelated to athletics and $605,267 for student employees. Source: NCAA Financial Reports as Reported by USA Today

  22. Monthly Projections for Year End Net Income FY 2010

  23. NCAA Division I-A (FBS) Comparative DataAnnual Generated Net Income/(Loss)(Difference between generated revenues and total expense) 2006 2007 2008 All Programs ($7,265,000) ($7,529,000) ($8,089,000) Average Gain for Profitable Programs (25) $3,867,000 Average Loss for Non-Profitable Programs (95) ($9,870,000) ------------------------------------------------------------------------------------------------- Hawaii ($4,125,751) ($4,736,693) ($5,605,410)* *Does not include net revenue of $2,654,787 from the Sugar Bowl Source: 2004-08 NCAA Revenues and Expenses of Division I Intercollegiate Athletics Programs Report

  24. NCAA Division I-A (FBS) Comparative DateSignificant Expense Items • In 2007-08, two line items make up 50% of total expenses for Division I-A • programs. • Salaries and Benefits at 33% • Grants-in-Aid at 17%. • -------------------------------------------------------------------------------------------- • Currently, HawaiiSalaries and Benefits are 39.6% and Grants-in-Aid are • 24% of total expenses respectively for FY 2010. • In 2008, Hawaii Salaries and Benefits were 40.5% and Grants-in-Aid were • 17.5% of total expenses. Source: 2004-08 NCAA Revenues and Expenses of Division I Intercollegiate Athletics Programs Report

  25. NCAA Division I-A (FBS) Comparative DataAllocated Revenues as a Percentage of Budget For all Division I-A programs allocated revenues (those provided by the institution or state government) rose from 20 percent of total revenues in 2006 to 30 percent in 2008. -------------------------------------------------------------------------------------------- Hawaii allocated revenues were 18.2% in 2007 and rose to 18.7% percent in 2009. Source: 2004-08 NCAA Revenues and Expenses of Division I Intercollegiate Athletics Programs Report

  26. USA Today ArticleJanuary 14, 2010

  27. An Explanation of the Data…

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