Texas took in $87 million in revenue and had a profit of $65 million after reported expenses, both well ahead of any school
–(www.FinancialNewsUSA.com)– 01/02/2010 – Business Services industry news provided by Financial News USA. The University of Alabama’s Crimson Tide may be the top ranked team heading into college football’s national championship game on January 7. But in one key measure, the team clearly trails the No. 2 University of Texas: money.
Texas has no peer when it comes to both revenue and profits, according to figures from the nation’s colleges. During the 2008 season, the most recent for which figures are available, Texas took in $87 million in revenue and had a profit of $65 million after reported expenses, both well ahead of any school.
This is the fifth time in the last six seasons that Texas topped the revenue and profit ranks, a dynasty that would make not only other schools but most professional teams envious.
No. 2 in revenue in 2008 was Ohio State, which took in $68 million, while No. 2 in profits was the University of Georgia, which earned $45 million after expenses.
Alabama’s $65 million in revenue is the fifth-highest, but its $38 million in earnings was only good enough for a No. 8 seed in the profit rankings, just behind Notre Dame, whose on-field performance this year left the Fighting Irish at home during bowl season and its coach looking for a new job.
The revenue and profit figures, which CNNMoney analyzed, are filed by each school to the Department of Education. It shows that the major Division 1-A college football programs seem to have escaped relatively unscathed from the financial crisis that hit the rest of the nation, including many professional sports teams, in the fall of 2008.
Revenues increased 5% at the schools in the six big-dollar conferences that together host the Bowl Championship Series. On average, the 66 schools took in just over $31 million each. Total revenue at those schools topped $2 billion for the first time.
0:00 /3:24Big tests, big profits
Profits were essentially flat for these big dollar schools, but nearly half of their revenues flowed to the bottom line. That’s a profit margin which any sports team owner and most Fortune 500 CEOs would kill to achieve.
Only four of the big dollar schools lost money from their college football teams last season — Duke, Wake Forest, Syracuse and Connecticut.
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