NCAA Case Study
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UniversityofHartsvilleCaseStudy11.docx
University of Hartsville Tigers Case Study
The University of Hartsville is a fictional institution used for the purpose of this class. No numbers reflect any institution within NCAA Division II. The information contained in this case study, along with the Revenue and Expenses, 2004-2015 NCAA Division II Athletic Programs Report, will be used each week in the assignment due on Sundays. I recommend you print this information so that you can reference it each week. The two reports listed below and uploaded in the class are the reference points you will use when conducting the assignments each week.
According to the two reports, Revenue and Expenses, 2004-2015, NCAA Division II Athletic Programs Report (http://www.ncaapublications.com/productdownloads/D2REVEXP2015.pdf) [also found in the Syllabus Link as a .pdf] and NCAA Sports Sponsorship and Participation Rates (http://www.ncaapublications.com/productdownloads/PR1516.pdf) in 2015 and the National Collegiate Athletic Association (NCAA) Division II is comprised of 306 institutions, both public and private with 49% being public and 51% being private or 156 privates and 150 publics. For this case study during the six weeks of class we will only use 2015 data. Using the 2015 data, Division II schools with football had on average 278 male student-athletes and 167 female student-athletes. Those without football had 146 male student-athletes and 139 female student-athletes. Therefore the average school with football had approximately 445 student-athletes and those without football had 285 student-athletes. The average NCAA Division II institution sponsors 17 sports, eight for men and nine for women (NCAA Sports Sponsorship and Participation Rates, 2015, p. 7).
Total revenue in 2015 for NCAA Division II programs offering football was an average of $6,522,300 and for those without football $4,582,900. The expenses for a program with football were $6,538,500 and without football were $4,689,200 (Revenue and Expenses, 2004-2015, NCAA Division II Athletic Programs Report, 2015).
Revenue can be broken down into allocated revenue, generated revenue, student fees, and contributions (donation). Expenses can be broken down into athletic aid, coach’s compensation, administrative staff compensation, travel, medical, insurance, utilities, information technology, television and radio coverage, and operational expenditures.
History of the University of Hartsville
The University of Hartsville is a private 4-year co educational institution that was founded in 1898. The campus is located in a rural community and includes a number of athletic fields, a gym, tennis courts, a pool, and athletic offices. The gym houses volleyball, wrestling, men’s basketball and women’s basketball and will accommodate 1800 fans. It has an equipment room, laundry room, athletic training room, two weight rooms, twelve locker rooms, and two classrooms. Tuition at the institution for 2015-16 was $26,000 and room and board averaged $12,000 per year. Each student is charged a technology fee, but none of that fee goes towards athletics. The university has been generous in funding the athletics department using tuition and room as well as other sources since all money goes into the same revenue pool to run the institution.
Athletics at UoH started in 1930. For years U o H played in the NCAA Division III and in 1996 transitioned to Division II. The institution competes in the Southern Coast Conference with ten other private intuitions, 6 of which play football. Football is a popular sports in the geographic footprint of the Southern Coast Conference. The institution sponsors 15 sports, 7 for men and 8 for women. The institution allocates 115.9 full athletic grants for the sports teams at a cost of $4,404,200. In addition, another $2,008,000 is given to athletes in academic aid.
Sports Sponsored
The sports currently offered by the school are listed in the table below. The number of roster spots is included in (). The scholarships totals are listed as well. The total number of athletes is 251 with 140 male athletes and 111 female athletes.
|
Men’s Sports |
Women’s Sports |
|
Basketball (12) 10 scholarships |
Basketball (12) 10 scholarships |
|
Baseball (30) 9 scholarships |
Softball (18) 7.2 scholarships |
|
Wrestling (30) 9 scholarships |
Field Hockey (15) 6.3 scholarships |
|
Golf (10) 3.6 scholarships |
Golf (8) 5.4 scholarships |
|
Tennis (8) 4.5 scholarships |
Tennis (8) 6 scholarships |
|
Lacrosse (27) 10.8 scholarships |
Lacrosse (18) 9.9 scholarships |
|
Soccer (23) 9 scholarships |
Soccer (20) 9.9 scholarships |
|
|
Volleyball (12) 8 scholarships |
5-year strategic plan
In order to sustain athletics, the president hired a consultant to examine the 1-year and 5-year goals for the university.
1-year goals
1. Reallocate funding so that there are tiers of teams and their funding.
3. Review sports and determine if others should be added or if current programs should be eliminated.
5-year goals
1. Generate 5 sold out basketball games per season.
2. Have 50% of teams break even in covering their expenses.
3. By year 5, reduce the athletic departments reliance on direct intuitional support by 15%.
4. Reduce coaches and administrative expenses by 10% over the next three years.
5. Increase fundraising by 25%.
Revenue and Expenses for the University of Hartsville
The following tables contain information to be used in the case study. This information is for the University of Hartsville and you will need compare this to the general NCAA data provided.
Table 1: University of Hartsville 2015 Revenue
|
Category |
Revenue |
|
Total Ticket Sales |
$14,500 (see information below) |
|
NCAA and conference distributions |
$15,000 |
|
Game Guarantees |
$15,000 |
|
Tiger Club Membership (fundraising) |
$10,000 |
|
Seat Sales (fundraising) |
$30,000 |
|
Sponsorships (fundraising) |
$40,000 |
|
3 Specific Fundraising events |
$35,000 |
|
Field and Gym Rental (fundraising) |
$20,000 |
|
Sport Camps |
$40,000 |
|
Generated Income |
$219,500 |
|
Allocated Revenue |
|
|
Direct Institutional Support |
$5,400,000 |
|
Indirect Institutional Support |
$50,000 |
|
Student Fees |
$0 |
|
Total Allocated Revenue |
$5,450,000 |
|
Total all Revenue |
$5,669,500 |
|
|
|
Ticket sales : 12 basketball games- average 75 tickets per game x $5.00= $4,500
Other sports: 50 tickets x 5 x 40 games = $10,000
Alumni give to many aspects of the university. Unless it is specifically earmarked for athletics it could be absorbed in other areas.
Concessions: Currently the institution does not receive a portion of the concessions. It does manage the pouring rights for the events and receives $10,000 recorded in sponsorships for this.
Direct Institutional Support: The institution has committed to decrease the support to a to $5,500,000 over the next three years. After that, support will decrease to $5,250,000 over the next two-year period.
Expenses
Table 2- University of Hartsville 2015 Expenses
|
Category |
Men |
Women |
Admin |
Total |
|
Grant in aid |
$2,093,800 |
$2,310,400 |
$0 |
$4,404,200 |
|
Salaries and Benefits |
$560,070 |
$534,870 |
$535,500 |
$1,630,440 |
|
Team Travel |
150,000 |
142,000 |
0 |
$292,000 |
|
Recruiting |
$30,000 |
$20,000 |
$5,000 |
$55,000 |
|
Equipment |
$125,000 |
$105,000 |
$1,500 |
$231,500 |
|
Fundraising |
0 |
0 |
$10,000 |
$10,000 |
|
Officials/security |
$75,000 |
$85,000 |
$5,000 |
$165,000 |
|
Medical (insurance and supplies) |
0 |
0 |
$175,000 |
$200,000 |
|
Memberships |
$10,000 |
$10,000 |
$45,000 |
$65,000 |
|
Spirit |
|
|
$7,200 |
$7,200 |
|
Sport Camps |
$1,000 |
$1,000 |
0 |
$2,000 |
|
Other |
0 |
0 |
$85,000 |
$185,000 |
|
Total |
|
|
|
$7,247,340 |
|
|
|
|
|
|
Salaries :
Director of Athletics $90,000
2 Associate AD $50,000 each
Administrative Assistant: $30,000
Director of Sports Medicine $50,000
Assistant Sports Medicine $30,000 each and have three
Athletics Media Relations Director $45,000
Assistant Media Relations $10,000 part time x 2
Baseball staff (3) $85,000
Men’s basketball staff (2) $110,000
Women’s basketball staff (2) $110,000
Women’s Volleyball staff (3) $60,000
Women’s soccer staff (2) $60,000
Men’s soccer staff (2) $60,000
Field hockey Staff (2) $60,000
Women’s lacrosse staff (2) $62,000
Men’s lacrosse staff (2) $62,000
Mens and women’s golf staff (2) $50,000
Men’s and women’s tennis staff (2) $60,000
Softball staff (2) $61,000
Wrestling staff (2) $55,000
Strength and conditioning coach (1) $35,000
Facilities
The University of Hartsville Tigers have athletics facilities that vary in age. Below are the facilities owned and maintained by the school:
Duke Energy Arena
The Duke Energy Arena was built in 1998 and houses all coaches offices and is home to the men’s and women’s basketball team, volleyball team, wrestling team, and spirit team. The arena seats 2,000 spectators for athletic events but can be configured to host multiple events. The total square footage of the facility is 98,000 square feet. The facility has four public restrooms (eight toilets and sinks per restroom), sports medicine room, 12 locker rooms, an auxiliary gym, a 10,000 square foot wrestling room, two weight rooms, equipment room, laundry room, and storage areas.
Sonoco Baseball Field
The baseball field was built in 1990 and has seating for 200 with a press box. The field does not have lights preventing night contests. The dugouts and fences are original to the facility and the facility is Bermuda grass.
State Farm Softball Field
The softball field was built in 1997 and brick enclosed dug outs were added in 2001. Seating is bleacher type and is not permanent. There is a press box and a basic scoreboard. The field does have lights allowing for night games.
Allstate Tennis Courts
The tennis courts were resurfaced seven years ago and are the US Open type court. There are lighted and allow for night matches. There are moveable bleachers with seating for 60. There are eight courts.
Geico Athletic Field
Geico athletic field is home for the soccer, lacrosse, and field hockey team. It is a turf surface, installed in 2013, and has permanent seating for 2000 people. There is a press box and lights on the field. Restrooms are in a central location and serve all fields. Adjacent to the Geico Field is a natural turf, 50 yard by 50-yard practice field that is enclosed.
The facilities staff at the institution and the athletics department staff jointly maintain the athletics facilities.
Administrative Resources
Many of the resources used to run the athletics department come from the institution. Electricity is provided by and paid by the general fund of the institution as is housekeeping and all housekeeping supplies. The value of these services is estimated to be $750,000.
