A way for NCAA Universities to recover from COVID-19

Overview

In this piece, Conor McGrath examines how COVID-19 has exasperated financial challenges faced by the athletic departments of universities in the U.S and proposes a solution for the NCAA going forward.

COVID-19 – The financial threat to American college sports.

COVID-19 has directly damaged universities financially due to cancelled games, limited ticket revenue, and increased costs to institute public health procedures. Some athletic departments are facing over $100 million in budget shortfalls, many have implemented hiring freezes and across the country universities have already eliminated some of their sports programs to reduce costs.

However, COVID-19 has also highlighted that many athletic departments were struggling financially even before the pandemic hit. In 2014, over half of Power 5 athletic departments operated at a loss. Spending has spiralled out of control as universities spend hundreds of millions of dollars on coaching contracts, facilities upgrades, and travel expenses under what is, for the overwhelming majority of schools, a false hope that they can compete with the titans for national championships.

This collegiate arms race is coming at the expense of not only student-athletes in non-revenue generating sports but the overall student body who is being asked to pay athletic fees on top of exploding tuition costs while academic programs are being sacrificed through slashed funding.

Alabama Crimson Tide take on Justin Fields and the Ohio State Buckeyes in the 2021 College Football Playoff National Championship Game.

The Solution

Conference realignment has partially created this mess, but it can also be a part of the solution. By creating conferences with schools that are more aligned in their vision, are more geographically proximate, and are more equally competitive athletically, universities can cut spending, rather than sports, and offer a more entertaining product on the field.

A Common Vision:

When the Ivy League announced the cancellation of all fall sports this past July, there was no backlash among its member institutions. After all, the Ivy League offers no athletic scholarships and most athletes play in this league solely to secure a world-class education. Conversely, when the Big Ten announced the cancellation, there was immediate backlash from some of its members, especially those with rich football histories such as Nebraska and Ohio State.

The Big Ten eventually reversed course but was ultimately forced to play a shortened season because of the late decision. The dichotomy between the two conferences exemplifies how a conference lacking a common vision amongst its members can lead to chaos.

The importance of cohesion extends to decisions beyond COVID-19 such as the allocation of resources between athletics and academics.

The Big 10 Conference : They weren’t all happy with Covid cancellations

The Same Geographic Region:

In 2012, conferences turned toward expansion in an effort to tap into larger tv-markets. What started as a rational approach to increase revenues led to a disastrous domino effect leaving smaller revenue schools with opponents scattered across the country.

For example, Seattle University sends its teams over 2,000 miles to face conference opponents such as Chicago State and Texas Rio Grande Valley in the questionably named Western Athletic Conference. However, it is not just smaller schools struggling with travel expenses. Even larger more successful programs such as Stanford, Iowa, and Clemson have permanently cut some of their sports as a result of COVID-19 induced budget shortfalls exasperated by the costs of competing in conferences with geographically disparate opponents.

Playing nearby schools can also reinvigorate rivalries which will lead to increased viewership and attendance.

An Equal Level of Athletic Performance:

As new additions to the football-centric Big Ten conference in 2012, Rutgers and Maryland have invested millions of dollars in their football programs without any success to show for it.

Rutgers reported a budget deficit of over $45 million in pre-pandemic 2019 and has borrowed extensively, charged students athletic fees, and slashed academic programs to subsidize the spending. All this investment has culminated in an abysmal 10-51 football conference record since joining the Big Ten.

College teams in similar situations would be better served in conferences where they can compete without the need for exorbitant spending. In doing so, schools can experience more on the field victories leading to increased revenue from attendance.

Here you can find my ideal alignment for every conference or try your luck creating your own.