Athletics looks for revenue generators; may charge students for sporting events
CMU’s Athletics Department will face the same reductions as the rest of the university as it faces rising operating costs and the necessity to maintain NCAA standards.
Athletics Director Dave Heeke said the department is looking at new ways to bring in money — including charging students who attend games or athletic events.
“We are trying to find new revenue streams to support our budget ... with a challenging economy, it’s probably something that will be considered,” he said.
Like Charles V. Park Library and the Student Activity Center, athletic events are free for full-time students and have preparation and cleaning costs, among others.
The new revenue streams will help the department enhance facilities for student-athletes and cope with rising costs, Heeke said.
“We are very prudent with our dollars,” he said.
Money management
The athletics department operates off a $21,907,364 budget — a $1,696,661 increase from 2008-09.
It is supported by a $15,996,661 subsidy from the university’s general fund. The department is projected to earn $6,051,103 from ticket sales, game guarantees and fundraising, according to the 2009-10 Operating Budget.
Salaries, benefits and compensation for administrative and clerical staff and coaches make up the biggest cost for the department at $5,875,725, or 38 percent of the total budget.
Scholarships for student athletes total $4,872,357, or 22 percent of the budget. According to the 2009-10 Operating Budget, the department distributes the money through 210 full and partial awards.
Total costs for attending the GMAC Bowl earlier this month have not been finalized yet, said Sports Information Director Jason Kaufman in an e-mail.
Revenue
The largest source of revenue for the department is football — $1.5 million through ticket sales at games and through game guarantees.
Fundraising is another source of income for the department, and it brings in about $1 million annually. Each sport also has its own fundraising program, Heeke said.
Summer sports camps earn about $1 million, but much of the money goes back to the university to pay for food and housing costs, said Associate Athletics Director Derek van der Merwe said.
Marketing and advertising generates about $700,000 annually, Heeke said.
Budget cuts
The Athletic Department also will be looking at cuts, as a part of the 3, 6 or 9 percent base budget cuts Interim President Kathy Wilbur has asked every department to make.
He said the process is challenging because the department has to maintain minimum parameters to have a Division-I football team. As per the NCAA, universities must have 16 Division-I sports teams, which CMU has.
