Thursday, January 7, 2010

Coaches Play for Titles, Bonuses

Texas and Alabama will compete for the college football national championship on Thursday night. Where the winning coach will hoist the crystal trophy over their head after the game, they stand to gain a title and then some with a victory.

Mack Brown of Texas stands to make $450,000 if his Longhorns win the BCS Championship Game. Alabama's Nick Saban would get $200,000 on top of the $200,000 he's already earned by making it to the national title game.

Those incentives are on top of the salaries of two of the highest-paid coaches in college athletics. Brown recently had his salary increased to $5.1 million a year. Saban signed an extension that makes his deal worth $4.7 million annually.

Eddie Pells of the Associated Press writes about how both coaches have earned their staggering salaries by significantly increasing revenue on their college campuses.

"In an era of budget cuts in higher education across the country, I am one of very few presidents who does not also have to bail out athletics with subsidies and loans," UT president Bill Powers recently wrote in his blog on the school Web site, justifying Brown's raise.

The statement speaks to truths on both sides of the debate.

It's true that, under Brown, Texas football revenues have increased from $21 million to $87.5 million in 12 years and that the program is not only self-sustaining, but has given $6.6 million back to the academic arm of the school in the past four years.

It's also true that the football program's contribution is only a tiny fraction of Texas' approximately $1.3 billion academic operating budget, and that the country's economic crisis has caused almost every UT department to cut costs.

Accounting professor Michael Granof, a member of the faculty council that recently passed a nonbinding resolution calling Brown's salary "unseemly and inappropriate," says the UT speech communications department recently had to cut $100,000 from its budget and the business department has laid off 16 staff employees.

"I think it's criminal to have a university paying $5 million for a non-academic endeavor," said Nathan Tublitz, an Oregon professor who leads the reform-minded Coalition on Intercollegiate Athletics, "especially when universities are cutting classes, putting faculty on furloughs, making life harder for students all across the board. It makes no sense."

According to an NCAA study, 100 of the 119 athletic programs with Division I football lost money in fiscal 2006. Texas and Alabama are among the few who turned a profit.

Asked if a football coach is worth $5 million, Texas athletic director DeLoss Dodds said: "Probably not, but it's the marketplace." He said the salary helps eliminate the risk of Brown leaving for a TV job or the NFL.

"I've been in the business for 32 years and I've been through good times, bad times, horrendous times," Dodds said. "These are good times and $5 million is worth it."

That's also the general feeling at Alabama, where memories of coach Bear Bryant's glory days endure and the faithful have been starving for a national title since 1992. In Tuscaloosa, Saban's hiring and the subsequent raises in the past three years are widely seen as a good investment.

In the 12 months ending June 30 - before this championship season even began - the Tide football program brought in $38.2 million. That was a 40 percent increase over the year before Saban was hired, and compares favorably to the 27 percent decrease in corporate profits in the United States since 2006.

"That makes it pretty much an open-and-shut case," James Cover, an economics professor at the university, said in a recent interview.


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