Tuesday, September 1, 2009
The economic downturn has affected every business including football.
The Big 12 Conference and its member schools trying to adjust to unfavorable economic conditions this season.
Earlier this month the Bureau of Economic Analysis released the Personal Savings rate for June 2009. Overall, Americans saved $504.8 billion in June, or 4.6 percent of disposable income. Compare this to 6.2 percent in May 2009, 4.9 percent in June 2008, 0.6 percent in 2007, and a negative — Americans spent more than they earned — 1.5 percent in June 2006.
In May, the conference gave back a record $130 million of revenue from bowl games and sponsorships in an effort to help its schools’ athletic programs. However, Big 12 Commissioner Dan Beebe still asked teams to cut back. Beebe said that the conference hoped to save money by not producing printed media guides, by cutting non-traditional and exhibition games from the season and by limiting foreign travel and all–star teams.
“We need to be cognizant of returning revenue to our schools so they can support their programs,” Beebe said. “The conference itself is going to be stable, but we are trying to help schools make up for any losses.”
Oklahoma State is one Big 12 university that has dealt with economic losses. The university stopped plans for its new stadium after its endowment lost $288 million in the stock market crash. According to the Oklahoma State football media guide, the endowment was worth $407 million when businessman T. Boone Pickens originally donated it to the school. The stadium is usable but plans for the rest of the stadium and an athletic village were put on hold.
On the flip side, Texas’s football program is still making money. Texas Athletics took its money and invested it in its football stadium instead of a traditional endowment. According to Texas Athletics Web site, Texas took in $25 million from season tickets and seating at its stadiums but spent only $14 million of that on construction.
Kansas Athletics is also experiencing growth despite the poor economy. Fans bought record numbers of tickets this season. As of last week, Kansas had sold out of its popular Family Zone season ticket package and had introduced several new ticket packages to entice fans. Coach Mark Mangino said that fan support was very important to the success of the program. He said he recognized the commitment and economic sacrifice that fans made.
“I appreciate it,” Mangino said. “Especially if you cut back on your beer just so you can come to a game.”
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— — Edited by Nick Gerik
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