football and basketball at the IA level, in 2006 combined was $2,829,199,372.
less than $200 million of the nearly $3 billion dollars is profit because of the
$2,643,104,626 in total expenses (“Equity in Athletics 1).
Each athletic department
averaged just over $1 million dollars profit.
This is not enough money to divide amongst
Tallying the highest profit of any athletic department in 2006, $23.9 million, was
the University of Georgia (Tucker 1).
With the profits, Damon Evans, the athletic
director, paid off existing debts and used the “unallocated funds,” as Evans calls them, to
upgrade facilities (Tucker 1).
Georgia or any other athletic department does not make
these profits every year.
Schools have to prepare for years of loss and cannot afford to
not be prudent.
"We are very careful in how we build budgets,’ Evans said, ‘We have a
practice of zero-based budgeting, building our budget from zero every year, justifying
every dollar each year." (Tucker 1)
In fact, most Division 1 athletic departments lose money.
In 2001 77 of 117
division 1 programs returned losses.
Indiana University, which lost over $2 million
dollars in 2006 is a recent example (Equity in Athletics 1).
A school such as Indiana, if
forced to pay athletes, would have to cut programs, going against the interest of the
A prime example of a school forced to cut programs because of budgeting is