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March Madness Is a Moneymaker. Most Schools Still Operate in Red.

Summary:
College athletic departments run an average deficit of around million, according to one sports economist  By Jo Craven McGinty of The Wall Street Journal. Excerpts:"fewer than 10% of Division I athletic departments . . . generated enough revenue to cover the expenses of their sports programs.""in 2019, just 68 of 351 Division I men’s basketball programs generated more revenue than expenses. And in 2016 . . . 73 of 252 Division I teams earned more than they spent.""In 2019, athletic departments across all three NCAA divisions generated .6 billion in revenue from all sports and spent more than .9 billion. The two biggest costs were financial aid for athletes (.6 billion) and coaches’ compensation (.7 billion).""only 25 of the 351 Division I athletic departments that

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College athletic departments run an average deficit of around $16 million, according to one sports economist 

By Jo Craven McGinty of The Wall Street Journal. Excerpts:

"fewer than 10% of Division I athletic departments.generated enough revenue to cover the expenses of their sports programs."

"in 2019, just 68 of 351 Division I men’s basketball programs generated more revenue than expenses. And in 2016.73 of 252 Division I teams earned more than they spent."

"In 2019, athletic departments across all three NCAA divisions generated $10.6 billion in revenue from all sports and spent more than $18.9 billion. The two biggest costs were financial aid for athletes ($3.6 billion) and coaches’ compensation ($3.7 billion)."

"only 25 of the 351 Division I athletic departments that provided data to the NCAA for 2019 generated more revenue than they spent.

“The average deficit is around $16 million in the athletic departments,” said Andrew Zimbalist, a sports economist at Smith College.

All 25 moneymakers were part of the Football Bowl Subdivision, one of three Division I subcategories. FBS schools, such as the University of Alabama, participate in bowl games"

"The NCAA’s biggest source of income is March Madness, which produces 75% or more of the organization’s annual revenue, Mr. Fulks said. (The NCAA doesn’t control football broadcast rights.)"

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