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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.
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
Allocated and Generated Revenues 2008-09
Source: 2008-09 NCAA Financial Report
Generated Revenue
20,718,244 72.12%
Allocated Revenue 5,377,776
18.72%
Deficit 2,632,411
9.16%
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.
Efforts to Generate Additional Revenue
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 SeatAllocation Allocation
Aloha Stadium 1,500 5,000
Stan Sheriff 124 500
Les Murakami 200 225
The proposal remains under consideration.
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
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.
Efforts to Reduce Expenses
6,000,000
6,500,000
7,000,000
7,500,000
8,000,000
8,500,000
9,000,000
Total Ticket Sales 7,914,352 8,546,113 7,181,990 6,630,071
2006-07 2007-08 2008-09 2009-10
UH Mānoa Ticket Revenue2006-10
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
Ticket Sales 2006-07 2007-08 2008-09 2009-10Football 5,089,042 6,086,438 4,823,715 4,391,683Women's Volleyball 1,007,338 811,752 760,533 835,388Men's Basketball 1,189,826 1,141,146 1,075,387 785,000Women's Basketball 40,531 32,947 21,496 43,000Baseball 277,223 236,200 309,154 300,000Men's Volleyball 310,392 237,630 191,705 275,000
(3,000,000)
(2,500,000)
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
0
500,000
1,000,000
Surplus/Deficit (940,464) 721,752 177,650 (1,527,856) (2,161,331) (1,944,012) (641,355) (90,887) (579,653) 295,243 (2,632,408) (2,103,429)
W/O Sugar Bowl (2,359,544)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 *2010
Annual Surplus/Deficit 1999-2009
Notes: 2008 has two bars2008 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.
(14,000,000)
(12,000,000)
(10,000,000)
(8,000,000)
(6,000,000)
(4,000,000)
(2,000,000)
0
2,000,000
4,000,000
Net Assest 1,269,802 1,991,554 2,169,204 (296,719) (2,458,050) (4,402,062) (5,043,418) (5,134,305) (5,713,958) (5,418,715) (8,018,715) (10,122,144)
W/O Sugar Bowl (5,713,958) (8,073,502) (10,705,910) (12,809,339)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 *2010
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.
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.
Additional Revenue Contribution to UH Mānoa
0
2,000,000
4,000,000
6,000,000
8,000,000
State Support 2,256,873 0 0 2,874,015 0 6,483,775 382,190 0 0
Institutional Support 2,857,562 4,462,096 5,244,088 2,470,452 5,922,923 699,999 7,168,758 6,409,385 6,246,633
Total 5,114,435 4,462,096 5,244,088 5,344,467 5,922,923 7,183,774 7,550,948 6,409,385 6,246,633
Boise State
Fresno State
Hawaii Idaho La Tech NevadaNew
Mexico State
San Jose State
Utah State
WAC Comparative DataDirect State and Institutional Support (Revenue)
2007-08
Source: NCAA Financial Reports as Reported by USA Today
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Ticket Revenue 6,237,477 9,139,442 8,553,500 480,816 865,028 3,776,684 1,793,167 894,143 1,346,676
Boise State
Fresno State
Hawaii Idaho La Tech NevadaNew
Mexico State
San Jose State
Utah State
WAC Comparative DataTicket Revenue 2007-08
Source: NCAA Financial Reports as Reported by USA Today
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Contributions 2,884,410 5,365,866 5,221,950 2,712,059 1,421,036 5,082,555 2,964,509 2,087,983 1,075,074
Boise State
Fresno State
Hawaii Idaho La Tech NevadaNew
Mexico State
San Jose State
Utah State
WAC Comparative Data Contributions (Fundraising) 2007-08
Source: NCAA Financial Reports as Reported by USA Today
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Contributions 16,428,290 21,098,122 23,218,737 7,535,171 6,542,943 14,904,805 9,276,357 6,885,216 5,683,426
Boise State Fresno State Hawaii* Idaho La Tech NevadaNew Mexico
StateSan Jose
StateUtah State
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
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Contributions 23,218,737 14,024,651 No Report 13,864,947 19,333,623 23,969,953 15,243,959 No Report 20,334,623 11,314,270
Hawaii* Air Force BYUColorado
StateNevada-Las
VegasNew Mexico
San Diego State
TCU Utah Wyoming
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
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Team Travel Expense 1,227,003 2,130,656 2,786,909 1,470,544 1,870,308 1,810,988 2,493,061 1,973,256 1,846,995
Boise State*Fresno State*
Hawaii** Idaho La Tech NevadaNew Mexico
StateSan Jose
State*Utah State
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
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Guarentee Expense 640,449 890,236 1,304,774 288,486 121,500 382,452 953,345 105,000 310,000
Boise State Fresno State Hawaii Idaho La Tech NevadaNew Mexico
StateSan Jose
StateUtah State
WAC Comparative Data Guarantee Expense 2007-08
Source: NCAA Financial Reports as Reported by USA Today
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Student Aid Expense 4,785,755 3,462,544 5,507,609 4,224,747 2,778,328 4,669,070 5,115,846 3,069,637 3,473,759
Boise State Fresno State Hawaii Idaho La Tech NevadaNew Mexico
StateSan Jose
StateUtah State
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
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Coaching Expense 5,369,233 6,747,113 5,647,822 2,531,937 2,891,167 4,577,875 3,548,860 4,164,330 3,304,448
Boise State Fresno State Hawaii Idaho La Tech NevadaNew Mexico
StateSan Jose
StateUtah State
WAC Comparative Data Coaching Salaries, Benefits, and Bonus Expense
2007-08
Source: NCAA Financial Reports as Reported by USA Today
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Staff/Adm. Expense 3,800,656 5,064,625 5,135,126 1,957,087 1,429,397 2,744,510 3,361,753 3,603,360 1,890,215
Boise State Fresno State Hawaii* Idaho La Tech NevadaNew Mexico
StateSan Jose
StateUtah State
WAC Comparative Data Staff/Administrative Salaries, Benefits, and Bonus Expense
2007-08
Number of Positions 71 88 64 34 48 64 57 52 39Cost 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
(2,500,000)(2,250,000)
(2,000,000)(1,750,000)(1,500,000)
(1,250,000)(1,000,000)
(750,000)(500,000)
(250,000)0
Net Income (2,045,342) (2,045,342) (2,045,342) (2,114,358) (2,218,179) (1,918,595) (2,212,160) (2,103,429)
July 1 2009 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb
Monthly Projections for Year End Net Income FY 2010
NCAA Division I-A (FBS) Comparative DataAnnual Generated Net Income/(Loss)
(Difference between generated revenues and total expense)
*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
2006 2007 2008All 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)*
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, Hawaii Salaries 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
NCAA Division I-A (FBS) Comparative Data
Allocated 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
2005 EADA Report 2008 EADA Report Direct Institutional Support 1,862,355 5,244,088 Indirect Facilities and Administrative Support 4,578,883 Total "Allocated Revenue" 1,862,355 9,822,971
Total Revenue 19,878,946.00 37,427,263.00
Percent of "Allocated Revenue" of Total Revenue 9.4% 26.3%
The USA Today reported that the University of Hawaii at Manoa had the largest increase percentage of athletics revenue from subsidies (State support, intuitional support, and student fees) from 2005 to 2008 of NCAA Division I (Football Bowl Sub-Division) universities. The USA Today used data from a public records request for our 2005-08 NCAA Financial Reports. Here is the data as reported by the USA Today:
USA Today ArticleJanuary 14, 2010
An Explanation of the Data…Here is an explanation and clarification for the data:
Detail of Direct Institutional Support 2005 EADA Report 2008 EADA Report General funds including benefits 1,862,355 2,207,891 Tuition reimbursement 0 3,036,276 Total Direct Institutional Support 1,862,355 5,244,167
Detail of Indirect Facilities and Administrative Support
2005 EADA Report 2008 EADA Report Utilities, repairs and maintenance, and security* 0 2,095,760 Depreciation 0 2,120,872 General Administrative allocation** 0 362,251 Total Indirect Facilities and Administrative Support 0 4,578,883
* Allocation based on square footage.** Allocation based on F&A cost proposal ratios
Prior to FY 2006, indirect facilities and administrative support was not included in the UH Manoa report as the information was not readily available. Indirect facilities and administrative support is an estimated non cash value. The directions per the NCAA report states "Include value of facilities and services provided by the institution not charged to athletics. This support may include an allocation for institutional administrative cost, facilities and maintenance, grounds and field maintenance, security, risk management, utilities, depreciation and debt service. If your institution does not currently track indirect institutional support, consult your business office for a reasonable allocation."
The true percent of allocated revenue of total revenue can be found by including tuition reimbursement and excluding indirect facilities and administrative support. If you add tuition reimbursement to 2005 and take out indirect facilities and administrative support in 2008, the percent of true allocated revenues of total revenues would have been 18.4% in 2005 and 16.0% in 2008 (a decrease of 2.4%).
In 2005, the athletics department did not include "tuition waivers" in the NCAA EADA report because it was not monetized. Prior to the monetarization of the tuition waivers in FY 2006, the Athletics Department received 320 tuition waivers to be used for either resident, non-resident or WUE. We estimate the 320 tuition waivers equated to $2.2 million in tuition dollars in 2005.
Information (data) provided by the Cost Studies Manager of the Office of Research Services for University of Hawaii.
If tuition was monetized in 2005, the percent of "allocated revenue" of total revenue would have been 18.4% (and not 9.4% as reported by the USA Today).
If indirect facilities and administrative support was not included in the 2008 report, the percent of "allocated revenue" of total revenue would have been 16.0% (and not 26.3% as reported by the USA Today).
