Tag Archives: HBCU

Balancing the Ledger: A Comprehensive Analysis of Athletics vs. Research Spending (MEAC/SWAC vs. SEC/Big 10)

Posted on July 29, 2025 by | Leave a comment

“Since new developments are the products of a creative mind, we must therefore stimulate and encourage that type of mind in every way possible.” – George Washington Carver

In the financially stratified ecosystem of American higher education, institutions are increasingly confronted with a binary tension: to invest in athletic visibility or academic viability. For universities across the NCAA spectrum, especially those in the MEAC and SWAC conferences compared to their counterparts in the SEC and Big Ten, this decision is less about preference and more about resource constraints and strategic direction. Yet, data reveals a persistent imbalance in how these priorities manifest, and more critically, the long-term costs of these choices.

Conference Dynamics: Institutional Identity and Capital Exposure

The MEAC and SWAC are defined by institutions that are predominantly Historically Black Colleges and Universities (HBCUs). These universities have traditionally operated under capital scarcity, navigating chronic underfunding while serving as incubators of social mobility for African American communities. Their mission, often grounded in equity and community uplift, limits their ability to generate large commercial revenues through athletics. This is not due to a lack of talent or audience, but because media deals, booster contributions, and government funding disproportionately favor PWI institutions.

By contrast, the SEC and Big Ten represent the economic elite of collegiate athletics and academia. With flagship state universities at their helm, these conferences are buttressed by multi-billion-dollar endowments, large donor bases, and lucrative broadcast contracts. Their budgets allow for investments in both athletics and research without having to cannibalize one to fund the other. In essence, they play the game with more capital and fewer trade-offs.

Athletics Budgets: Symbolism vs. Strategy

MEAC and SWAC institutions report average athletics expenditures between $11 million and $12 million annually. Notable programs like North Carolina A&T and Prairie View A&M may hover slightly higher, but Mississippi Valley State and others operate on budgets as low as $3.9 million. These figures pale in comparison to SEC schools like Alabama or Texas A&M, where athletic spending exceeds $150 million. The Big Ten’s Ohio State leads all with $215 million dedicated to athletics alone.

While athletic programs at HBCUs serve as cultural centers and enrollment drivers, their limited revenue-generating capacity renders them economically unsustainable without substantial subsidization. Many are forced to divert institutional funds, raise student fees, or solicit local donations just to keep programs afloat. In contrast, SEC and Big Ten programs function as media properties, brand engines, and financial assets, often contributing revenue back to their academic institutions.

Athletics at HBCUs carry significant intangible value, cultural pride, alumni engagement, community identity, but these cannot substitute for financial sustainability. The opportunity cost of maintaining expensive athletic programs without equivalent return on investment demands strategic scrutiny.

Research Spending: The Forgotten Core

Where the real divergence occurs is in research investment. MEAC and SWAC research expenditures are overwhelmingly modest. With the exceptions of Howard University ($122 million) and Florida A&M ($41 million), most institutions sit between $2 million and $25 million in annual research activity. These figures reflect decades of underinvestment and insufficient infrastructure, not a lack of capacity or talent.

Meanwhile, SEC and Big Ten institutions routinely surpass $500 million in annual research outlays. Schools like Michigan ($1.67 billion), Wisconsin ($1.36 billion), and Penn State ($996 million) operate on a scale comparable to government agencies and national labs. They attract large NIH, NSF, and Department of Defense grants. They lead clinical trials, generate patents, and build interdisciplinary research parks.

This disparity is not simply numerical; it is strategic. Research drives federal grants, patents, corporate partnerships, and endowment growth. It also attracts high-performing faculty and students, serving as the foundation of institutional longevity and economic influence.

The Ratio That Tells the Future

The athletics-to-research spending ratio offers a lens into institutional philosophy:

  • Norfolk State: 2:1 athletics to research
  • Jackson State: 0.7:1
  • Mississippi Valley State: 6:1
  • Alabama: 0.15:1
  • Michigan: 0.11:1
  • Wisconsin: 0.11:1

While SEC and Big Ten schools spend more on athletics than HBCUs, they also spend exponentially more on research. The imbalance within HBCUs is a reflection not of poor prioritization, but of systemic capital deprivation. These ratios also underscore how HBCUs are often forced to choose between visibility and viability, between entertainment and innovation, because they lack the financial bandwidth to pursue both.

Research as Revenue: Commercialization and the Innovation Economy

University research is not merely an academic endeavor it is a gateway to commercialization. Inventions born in labs often become patents. Patents become licensing agreements. Licensing revenue, in turn, flows back into the institution. The University of Florida’s development and commercialization of Gatorade yielded more than $280 million over time. Stanford’s involvement in launching Google and Hewlett-Packard has helped fuel its $36 billion endowment. Wisconsin’s WARF fund manages $4 billion in research-derived assets.

This model is not just aspirational; it is replicable. But replication requires infrastructure, policy, and intention.

Building the Infrastructure: A Two-Track Strategy for HBCUs

Campus Infrastructure

  1. Strengthen Technology Transfer Offices (TTOs): These serve as the conversion points from research to revenue. TTOs are responsible for managing patents, evaluating commercial potential, and negotiating licensing agreements.
  2. Invest in Innovation Facilities: Makerspaces, incubators, wet labs, and data science centers can all be built in underused buildings or retrofitted spaces.
  3. Embed Commercialization in Curriculum: Courses in IP law, venture creation, product development, and ethics should be available to both undergraduates and graduate students.
  4. Create Campus Accelerators: Provide seed funding, pitch competitions, and alumni mentorship. These accelerators can be industry-specific (e.g., AgTech at Tuskegee, FinTech at Howard).
  5. Celebrate Wins: Every patent, startup, or licensing deal should be internally recognized and externally marketed. Visibility breeds validation and investment.

Capital Infrastructure

  1. Black-Owned Banks: Offer startup lines of credit and financial education embedded in innovation ecosystems. These institutions can also hold endowment funds or manage cash flow from royalty revenues.
  2. Diaspora Sovereign Wealth Funds: Channel African and Caribbean capital into HBCU startups and joint ventures. Funds like Nigeria’s NSIA or Pan-African VC firms could provide growth capital.
  3. HBCU Venture & Endowment Funds: Seeded by Black VC firms, family offices, and institutional investors. These funds can create co-investment syndicates for promising faculty or student ventures.
  4. Donor-Advised Funds (DAFs): Enable alumni to contribute to IP pipelines through tax-efficient giving. DAFs could also be matched by corporate sponsors or philanthropic partners.

Building Strategic Partnerships for Scale

HBCUs need not operate in silos. Strategic collaboration can accelerate commercialization and R&D outcomes:

  • Inter-HBCU R&D Collaboratives: Morgan State and FAMU could co-sponsor patent consortiums.
  • Cross-registration commercialization programs with PWIs like Johns Hopkins or Emory.
  • Statewide HBCU innovation districts tied to workforce pipelines and rural development.

From the Lab to the Ledger: Case Studies in ROI

  1. University of Florida – Gatorade: In the 1960s, UF researchers developed a hydration drink to help football players endure Florida’s brutal heat. The result, Gatorade, has yielded over $280 million in licensing revenue. These funds helped UF build research infrastructure, attract top scientists, and grow its endowment.
  2. Stanford University – Silicon Valley: Stanford was not always wealthy. Its proximity to innovation and its open policies toward student and faculty entrepreneurship led to the creation of Google, Cisco, and more. Today, Stanford’s alumni-founded companies generate trillions in global market value.
  3. University of Wisconsin – WARF: Established in 1925, the Wisconsin Alumni Research Foundation has monetized research in Vitamin D, stem cells, and imaging. With over $4 billion in assets, WARF reinvests in faculty, students, and commercialization pipelines.
  4. MIT – Ecosystem Builders: MIT’s Deshpande Center and The Engine Fund act as innovation pipelines that commercialize tough tech. MIT startups have created over 4.6 million jobs globally.

What HBCUs Must Avoid: Dependency Without Ownership

Too often, HBCUs have served as intellectual suppliers while other institutions and corporations reap the financial rewards. Faculty develop ideas, only for those patents to be captured by universities with larger TTOs. Students build prototypes, only to license them under incubators unaffiliated with their home campus.

To shift this paradigm, ownership must be embedded from the start. That means building institutional IP portfolios and teaching students the economics of invention.

A Circular Ecosystem Rooted in Culture and Capital

StakeholderRole in the Pipeline
Black-Owned BanksStartup capital, credit access, and embedded finance literacy
Diaspora Wealth FundsStrategic investment, global partnerships, and joint IP deals
African American NPOsStakeholder investors, endowment builders, and R&D supporters
Black Media & AlumniNarrative shaping, promotional power, and advocacy
HBCU TTOs & LeadershipPatent management, research development, and startup formation

Final Calculations: Wealth Is Institutional, Not Individual

The data from MEAC, SWAC, SEC, and Big Ten schools paints a vivid picture of the financial landscape of higher education. While SEC and Big Ten schools show that it is possible to be excellent in both athletics and academics, MEAC and SWAC institutions face tougher choices due to structural inequalities and historical underfunding.

As conversations around equity, student success, and public accountability continue, this kind of comparative data is essential. Whether aiming for a championship or a Nobel Prize, universities must remember that their ultimate mission is to educate, innovate, and uplift communities.

University research isn’t just about publications and academic prestige it’s a launchpad for innovation, economic growth, and financial sustainability. When strategically supported, it becomes a core driver of commercialization, entrepreneurship, and long-term prosperity through patents and endowment growth.

Many HBCUs and smaller institutions already are incubators of brilliance but they’ve been left out of the research-to-wealth pipeline due to underfunding and limited infrastructure. With targeted investments and smart policy, they can flip the script and become not just engines of education, but engines of innovation and wealth creation.

Disclaimer: This article was assisted by ChatGPT.

Leave a comment

Posted in Editorial

Tagged , , , , , , , , , , ,

Where Is The African American MBA At HBCUs?

Posted on May 20, 2025 by | 1 comment

“I built a conglomerate and emerged the richest black man in the world in 2008 but it didn’t happen overnight. It took me 30 years to get to where I am today. Youths of today aspire to be like me but they want to achieve it overnight. It’s not going to work. To build a successful business, you must start small and dream big. In the journey of entrepreneurship, tenacity of purpose is supreme.” — Aliko Dangote

It could be argued that many HBCUs do not see themselves as African American institutions. They just happen to be a college where African American students are the predominant student population – for now. A place where you may happen to find more African American professors than you would elsewhere. But in terms of intentionally being a place looking to serve the social, economic, and political interests of African America and the African Diaspora as a whole not so much. Schools like Harvard and the Ivy League in general seek to serve WASP interests, BYU and Utah universities serve Mormon interests, there is a litany of Catholic universities led by the flagship the University of Notre Dame serving Catholic interests, and around 30-40 women’s colleges serving women’s interests. Arguably, none are more intentional though than Jewish universities who seek to serve Jewish Diasporic interests. They do so intentionally and unapologetically. It is highlighted in two prominent dual programs.

Brandeis University, “founded in the year of Israel’s independence, Brandeis is a secular, research-intensive university that is built on the foundation of Jewish history and experience and dedicated to Jewish values such as a respect for scholarship, critical thinking and making a positive difference in the world.”

Master of Arts in Jewish Professional Leadership and Social Impact MBA In partnership with the Heller School for Social Policy and Management: “If you want to become a Jewish community executive, this program will give you the skills and expertise you need: a strong foundation in both management and nonprofit practices, as well as a deep knowledge of Judaica and contemporary Jewish life. You’ll take courses taught by scholars across the university, including management courses focused on nonprofit organizations and courses specific to the Jewish community.”

Master of Arts in Jewish Professional Leadership and Master in Public Policy: “If you want to become a professional leader who can effect positive change for the Jewish community at the policy level, you’ll need policy analysis and development skills as well as knowledge of Judaic studies and contemporary Jewish life — all of which our MA-MPP track is designed to impart. This track will teach you how to both assess policy and practice and design and implement strategic solutions.”

In the United States, the racial wealth gap remains stubbornly wide. For every dollar of wealth held by the average white household, the average Black household holds just 14 cents, according to the Federal Reserve. While policy debates rage on, a quieter revolution could be ignited in the lecture halls and boardrooms of Historically Black Colleges and Universities (HBCUs). It is time for these institutions to take the lead in launching a new kind of MBA—one rooted in African American entrepreneurship.

This would not be a symbolic gesture of representation. Rather, it would be a radical recalibration of business education in service of economic sovereignty. The proposed African American MBA, anchored at HBCUs, would fuse conventional business acumen with a deep focus on building and scaling Black-owned enterprises—injecting capital, credibility, and cultural context into the fight for economic justice.

A Different Kind of MBA

Traditional MBA programs—whether in Boston, Palo Alto, or London—have long celebrated entrepreneurship, but they rarely address the distinct structural barriers faced by African American founders: racialized lending, limited intergenerational capital, and investor bias, among others. An African American MBA would tackle these head-on.

Students would learn to navigate venture capital ecosystems that have historically excluded them, build business models designed for resource-scarce environments, and craft growth strategies anchored in community reinvestment. The curriculum would include case studies of Black-owned business successes and failures, from the Johnson Publishing Company to the modern fintech startup Greenwood Bank.

Such a program would not just train entrepreneurs; it would cultivate what economist Jessica Gordon Nembhard refers to as “economic democracy”—an ownership-driven economy where Black communities produce and own the value they generate.

From Theory to Practice

For this model to work, HBCUs must go beyond coursework. They must build ecosystems.

At the core of the program would be university-based business incubators providing capital, mentorship, and workspace. Students could launch ventures with real funding—from alumni-backed angel networks or Black-owned community development financial institutions (CDFIs). Annual pitch competitions would create visibility and momentum, offering grants, equity investment, or convertible notes to top-performing student ventures.

A tight integration with Black-owned businesses, supply chains, and financial institutions would form the scaffolding. Students might spend time embedded in legacy enterprises like McKissack & McKissack, or cutting-edge startups in healthtech, agritech, and media.

These ecosystems would provide fertile ground for venture creation while catalyzing local job growth. In doing so, they would re-anchor HBCUs as engines of regional economic development, not just academic training grounds.

The HBCU Edge

HBCUs are uniquely positioned to own this space. They already produce 80% of the nation’s Black judges, half of its Black doctors, and a third of its Black STEM graduates. Yet despite this outsized impact, their business schools have yet to consolidate around a unifying purpose.

By championing entrepreneurship explicitly tailored to African American realities, HBCUs could claim a domain left underserved by Ivy League and flagship public institutions.

Moreover, HBCUs benefit from strong community credibility, a network of engaged alumni, and access to philanthropic capital increasingly earmarked for racial equity. With ESG mandates guiding corporate philanthropy and DEI budgets under scrutiny, there is untapped potential for long-term partnerships with companies seeking measurable social impact through supplier diversity, mentorship, or procurement commitments.

Risks and Realities

Skeptics will ask: Will such a degree be taken seriously in the broader market? Will it pigeonhole students into “Black businesses” instead of the Fortune 500? The answer lies in the performance of the ventures it produces. Success, not symbolism, will be the ultimate validator.

Indeed, many of the world’s most transformative businesses have emerged from institutions that bet on community-specific models. Consider how Stanford’s proximity to Silicon Valley allowed it to incubate global tech companies—or how Israel’s Technion helped power a startup nation.

An African American MBA need not limit its graduates to one demographic. Rather, it provides a launchpad from which Black entrepreneurs can build scalable, inclusive ventures rooted in lived experience. And in doing so, change the face of entrepreneurship itself.

The Road Ahead

If a handful of HBCUs lead the way—Howard, Spelman, North Carolina A&T, and Texas Southern come to mind—they could collectively establish a national center of excellence for African American entrepreneurship. Over time, this could grow into a consortium offering joint degrees, online programming, and cross-campus business accelerators.

The long-term vision? A Black entrepreneurial ecosystem rivaling that of Cambridge or Palo Alto, but infused with the resilience, cultural currency, and social mission uniquely forged by African American history.

This would not merely be an academic experiment. It would be a new chapter in a centuries-old story—one where the descendants of slaves become the architects of capital.

Focusing an African American MBA program offered by HBCUs on entrepreneurship could be transformative for fostering economic growth and self-sufficiency within the Black community. Here’s how such a program might look:

Program Vision and Goals

  • Empower Black Entrepreneurs: Equip students with the tools and networks to build successful businesses that create wealth and opportunities within African American communities.
  • Address Systemic Barriers: Focus on overcoming challenges like access to capital, discriminatory practices, and underrepresentation in high-growth industries.
  • Build Community Wealth: Promote entrepreneurship as a pathway to closing the racial wealth gap and revitalizing underserved areas.

Curriculum Highlights

Core MBA Foundations:

  • Finance for Entrepreneurs: Teach how to secure funding, manage cash flow, and create financial models tailored to African American small and medium enterprises (SMEs).
  • Marketing and Branding: Strategies for building culturally relevant brands that resonate with diverse audiences.
  • Operations and Scaling: Guidance on running efficient operations and scaling businesses sustainably.

Specialized Courses:

  • Tomorrow’s Entrepreneurship: Building ventures with dual goals of profit, community impact, and focus on industries of the future.
  • Navigating VC and Angel Investments: Training on pitching to investors, negotiating terms, and understanding equity structures.
  • Black-Owned Business Case Studies: Analyze successes and failures of prominent African American entrepreneurs. Much like the Harvard Business Review that sells case studies there would be an opportunity for HBCU business schools to create a joint venture for the HBCU Business Review and sell case studies relating to African American entrepreneurship.

Hands-On Experiences

Business Incubator:

  • A dedicated incubator at the HBCU to provide seed funding, mentorship, and workspace for students to develop their ventures.

Real-World Projects:

  • Partner students with local Black-owned businesses to solve real business challenges.

Annual Pitch Competitions:

  • A platform for students to showcase business ideas to potential investors, with prizes and funding opportunities.

Partnerships and Networks

Corporate and Community Collaborations:

  • Partnerships with companies that prioritize supplier diversity programs to provide procurement opportunities for graduates.
  • Collaborations with established Black entrepreneurs for mentorship and guest lectures.

Access to Capital:

  • Establish a dedicated fund or partnership with Black-owned financial institutions to provide startup capital.

Measurable Outcomes

  • Startups Launched: Track the number of new businesses started by graduates.
  • Jobs Created: Measure the economic impact of those businesses in local communities.
  • Community Investment: Monitor how much revenue is reinvested into underserved neighborhoods.

In contrast to institutions that intentionally serve specific cultural, religious, or ideological communities, many HBCUs appear to operate as predominantly African American in demographic composition rather than as institutions deeply invested and intentional in advancing the collective social, economic, and political interests of African Americans and the African Diaspora. While other universities—whether Ivy League institutions catering to elite WASP traditions, religious universities fostering faith-based leadership, or Jewish universities purposefully cultivating Jewish communal leadership—explicitly align their missions with the advancement of their respective communities, HBCUs often lack this same level of strategic intent. If HBCUs wish to remain vital and relevant in the future, they may need to more deliberately embrace their role as institutions committed to the upliftment of African American communities, not just as spaces where Black students and faculty are well-represented, but as powerful engines of social transformation.

1 Comment

Posted in Entrepreneurs

Tagged , , , , , , , , , ,

It’s Complicated: The 2019-2020 HBCU Graduate Student Loan Debt Report

Posted on April 25, 2025 by | Leave a comment
Chart: Where U.S. Student Debt Is Highest & Lowest | Statista

The most recent student loan data is an extremely hard gauge to use given its lag time. This data is the latest data available by ICAS, but also is pre-COVID and pre-George Floyd. The latter in that situation potentially produced a significant increase in student loan debt by students as many sought to help themselves and their families through financial aid refunds. COVID exposed African America’s acute financial fragility through poor health insurance, jobs with high exposure to COVID risk, and more. To the latter, in the post-George Floyd that also occurred where hundreds of millions poured into HBCU coffers led by MacKenzie Scott in levels never seen before and COVID relief funding through the CARES Act to colleges and universities witnessed HBCUs providing an immense amount of financial relief to its students to try and stem the debt tide.

HBCU graduates actually have some good news in that their median debt dropped approximately 8 percent from our last report while their PWI counterparts at major endowed institutions remained virtually unchanged. The bad news is that the percentage of HBCU graduates with debt remains unchanged while their PWI counterparts at major endowed institutions graduating with debt dropped almost 20 percent. This expands the gap of HBCU/PWI students graduating with debt from a previous 46 percentage points difference to now 52 percentage points in this latest report.

Numbers in parentheses shows the comparative results from the universities of the 30 largest endowments:

Median Total Debt of HBCU Graduates – $31,422 ($24,479)

Proportion of HBCU Graduates with debt – 85% (33%)

Median Private Debt of HBCU Graduates – $17,386 ($44,622)

Proportion of HBCU Graduates with private debt – 7% (5%)

Source: The Institute for College Access & Success

Looking at the numbers even further shows that HBCU Graduates debt is almost 30 percent higher than their PWI major endowed counterparts. This despite HBCUs being significantly cheaper, HBCU Graduates suffer from a student body that acutely comes from families that lack family assets and stability to assist. It is highlighted in the private debt component where PWI counterparts have significantly higher amounts of private debt. Potentially speaking to the borrowing power of those PWI families beyond federal financial aid.

It may be a few years before updated data from within the COVID era is available, but basic extrapolation suggest that even with the donations received after George Floyd and the CARES Act that HBCUs simply still lack the endowments to make up for the acute lack of African American household wealth combined with less than 10 percent of African Americans choosing HBCUs. The latter means that HBCUs operate with smaller alumni pools. These smaller pools means a smaller nominal giving of the alumni who do give and a significantly smaller probability that the HBCU can create a percentage of alumni who go onto become wealthy donors.

In the end, HBCU alumni who care about this must make available scholarship to a wider net of HBCU students while in school. Focusing on creating scholarship that is available to every student who is academically eligible and giving less emphasis to GPA. The large majority of any HBCU graduation class has GPAs between 2.0 and 3.0 and are the ones most likely to be left out of having any ability to decrease their student loan burdens making them almost never to be in a position to become donors.

By expanding eligibility requirements, scholarships can provide financial relief to those who need it most—students who are often balancing academics with work, family responsibilities, and other challenges. Many of these students demonstrate resilience, dedication, and a commitment to completing their education, yet traditional scholarship models disproportionately favor high achievers with GPAs above 3.5. While academic excellence should be celebrated, financial aid should not solely be reserved for the top percentage of students.

A broader approach to scholarships will help create a stronger alumni network in the long run, as more graduates will leave school with reduced debt, making them more likely to support their alma mater financially and contribute to future scholarship funds.

Previous HBCU Graduate Student Loan Reports

The 2016-2017 HBCU Graduate Student Loan Report

Good News/Bad News: Percentage Of HBCU Graduates With Debt Drops But Debt Loads Increase

90 Percent of HBCU Graduates Have Student Loan Debt


Leave a comment

Posted in Personal Finance

Tagged , , , , , , , ,

Could You Spend $30 Million In 30 Days on Us? How Monty Brewster Could Have Spent $30 Million with African American Businesses

Posted on April 18, 2025 by | Leave a comment

“And we’re in the business of being in business, and we’re doin’ business.” – “Monty” Brewster

The 1985 film Brewster’s Millions, starring Richard Pryor as Montgomery “Monty” Brewster, tells the story of a man who must spend $30 million in 30 days without accumulating assets or informing anyone of his goal in order to inherit $300 million. Adjusted for inflation, Brewster’s $30 million would be approximately $85 million in today’s dollars, while the $300 million inheritance would be worth over $850 million. While Monty’s spending spree involved extravagant parties, failed investments, and creative tactics to burn through cash, the film missed an opportunity to showcase meaningful economic empowerment strategies. By directing his wealth toward African American businesses, Monty could have positively impacted communities while still meeting the conditions of the challenge. This article outlines how Brewster could have spent his fortune effectively within the African American business ecosystem.

  1. Investing in Education, Arts, and Wellness for African American Communities ($1.5 million or $4.25 million in today’s dollars)

Monty Brewster could have channeled a portion of his funds toward HBCUs, African American arts organizations, and health initiatives. These institutions play a vital role in developing African American leadership, entrepreneurship, and cultural advancement. Brewster could have funded scholarships, financed infrastructure improvements, or supported specialized academic programs such as business incubation centers. Additionally, Brewster could have become a major patron of African American artists, musicians, and cultural organizations. Funding live performances, commissioning murals and sculptures, or sponsoring large-scale cultural events would have allowed him to inject cash into the creative sector while meeting the requirement to spend without accumulating lasting assets.

Health disparities have historically affected African American communities. Brewster could have supported Black-owned health clinics, funded wellness programs, or launched temporary mental health outreach initiatives. Sponsoring community health fairs and free medical check-up events could have aligned with his spending goals. To adhere to his challenge’s constraints, Brewster is limited charitable giving to $1.5 million. Within that budget, he could have made substantial contributions to civil rights organizations such as the National Center for Black Family Life, Black Teacher Project, and African American Credit Union Coalition. Funding advocacy campaigns, legal defense funds, and educational outreach programs would have ensured his spending aligned with causes that strengthen social equity. By underwriting public awareness campaigns or supporting temporary voter registration drives, he could have spent large sums while advancing civil rights initiatives.

  1. Supporting African American Media Companies ($4 million or $11.3 million in today’s dollars)

The media landscape has historically marginalized African American voices. Brewster could have spend money in Black-owned newspapers, radio stations, and production companies. By purchasing advertising space, sponsoring TV segments, or funding film productions that amplify African American stories, he could have spent millions while strengthening the narrative control of the community. This would have been especially true when he ran for mayor of New York City with his “None Of The Above” campaign which allows him to burn through millions.

  1. Empowering African American-Owned Interior Designers ($3 million or $8.5 million in today’s dollars)

Instead of investing in real estate projects with limited long-term impact, Brewster could have hired African American-owned interior design firms to revamp commercial spaces, restaurants, and event venues. Funding redesigns for offices, galleries, or retail spaces would have allowed him to spend significant amounts quickly while showcasing Black creative talent. Partnering with these designers to create temporary installations, pop-up exhibits, or themed public events would further align with Brewster’s spending objectives.

  1. Supporting Black-Owned Restaurants and Hospitality ($5 million or $14.2 million in today’s dollars)

Instead of squandering money on excessive parties with little social value, Brewster could have organized lavish gatherings catered exclusively by Black-owned restaurants, breweries, and event-planning companies. Hosting galas, networking events, or concerts powered by African American businesses would have rapidly spent millions while empowering these enterprises. Additionally, Brewster could have pre-paid months of reservations at Black-owned hotels for conferences, weddings, and events that celebrate Black culture.

  1. Promoting and Empowering African American Entrepreneurs in Technology ($4 million or $11.3 million in today’s dollars)

During the 1980s, technology was emerging as a transformative industry. Brewster could have directed funds to African American inventors, tech startups, and computer training programs. Sponsoring computer literacy drives in underserved neighborhoods, purchasing computers for community centers, or funding coding boot camps would have injected significant capital into this sector without violating the “no assets” condition. Additionally, Brewster could have launched a series of pitch competitions or startup grant programs to fund Black entrepreneurs. By awarding no-strings-attached grants to aspiring business owners, Brewster could have circulated his funds directly into the hands of innovative minds in the community. Creating a “Brewster’s Millionaire Fund” for new ventures would have established a lasting narrative of empowerment.

  1. Financing Black-Owned Transportation Companies ($4 million or $11.3 million in today’s dollars)

Brewster’s challenge required rapid cash outflows. He could have achieved this by chartering fleets of Black-owned transportation services, including buses, limousines, and taxis. Organizing free ride programs, senior citizen transport services, or back-to-school bus initiatives would have ensured meaningful community impact while fulfilling the spending requirements.

  1. Sponsoring Sports Teams in the African American Community ($4.5 million or $12.7 million in today’s dollars)

In the film, Brewster splurged on funding a struggling baseball team. He could have expanded this vision by sponsoring youth sports leagues, purchasing uniforms from Black-owned apparel companies, and financing travel expenses for underserved teams. By supporting athletics in underserved communities, he would have combined financial impact with social good.

  1. Creating Pop-Up Markets and Retail Experiences ($4 million or $11.3 million in today’s dollars)

To rapidly circulate cash, Brewster could have sponsored temporary markets that featured Black-owned businesses. By covering booth fees, marketing costs, and other overhead expenses, he could have injected cash into dozens of retail entrepreneurs. Such events would celebrate local artisans, designers, and vendors while creating a meaningful economic impact.

Monty Brewster’s dilemma of spending $30 million in 30 days presented a unique opportunity to create lasting change. By investing heavily in African American businesses, nonprofits, and community initiatives, Brewster could have met his goal while strengthening economic power in marginalized communities. Such a storyline would not only have showcased Brewster’s ingenuity but also highlighted the immense potential of targeted investment to uplift communities. If Hollywood ever revisits Brewster’s Millions, perhaps they will reimagine his spending spree as a transformative journey of economic empowerment.

Leave a comment

Posted in Philanthropy

Tagged , , , , , , , , , , ,

Would The Ivy League Athletic Model Work For HBCUs?

Posted on March 25, 2025 by | Leave a comment

“Challenges make you discover things about yourself that you never really knew.” — Cicely Tyson

When you encounter most HBCU alumni regarding their athletic programs they all desire to be a football powerhouse. They believe that this will lead to a land of riches and honey. At the core of this delusion though is that the wealth gap between P5 athletics boosters and HBCU boosters larger than the wealth gap between is greater than the southern most tip of Florida to upstate New York. Phil Knight, University of Oregon booster and Nike owner, has a net worth of $35 billion. Oprah Winfrey is the wealthiest African American HBCU alumni with a net worth of $3 billion and the last we checked does not act as a booster to her alma mater. Meanwhile, Phil Knight in 2012 alone built the University of Oregon football team a facility to the tune of almost $70 million – and got the state legislature to amend a law to make the building legal since it ran afoul of code. But many HBCU alumni believe that if we get the “talent” to come “home” it will level the playing field. It will not. It is exhausting even explaining that the wealthy of many major athletic programs has more to do with the PWI developing and graduating entrepreneurs like Phil Knight who go on to create multibillion firms and therefore have millions to give back than whatever latest 18 year old recruit they have snagged. For greater context, Phil Knight’s building donation is almost 4X Prairie View A&M University’s athletic budget, the highest among all HBCUs.

In our last SWAC/MEAC Financial Review, the two conferences combined for a loss of over $160 million in 2019-2020 if you took away their subsidies (and even with subsidies the two conferences were in the red). These $150 million in subsidies largely coming in the form of student loan fees which for most HBCUs means students packing on student loans for the sake of athletics. Something infuriating when you consider over 90 percent of HBCU students finish with student loan debt versus less than half that amount at Top 50 endowed schools, many who play DIII football or have no football program at all. That is $150 million in subsidies that could be going to scholarships, research, investments, and so many more things that produce an actual return on investment is an understatement. The idea though that HBCUs could try an athletic model that does not aspire to be P5 (no major television contracts are coming either) seems to be lost on all HBCU athletic leadership and alumni. But what if instead of focusing on the P5 schools, we instead focused on the Ivy League’s athletic model.

The Ivy League athletic model is characterized by its emphasis on academic excellence, limited athletic scholarships, and a focus on holistic student development. As historically Black colleges and universities (HBCUs) contemplate their athletic strategies, the potential adaptation of the Ivy League model raises important questions, especially concerning financial resources, alumni support, and institutional missions. Here’s a closer look at several key factors:

Financial Context: Endowments and Alumni Giving

HBCU Endowments: HBCUs generally have lower endowments compared to their Ivy League counterparts. For example, the average endowment for an HBCU is around $100 million, while top Ivy League schools like Harvard have endowments exceeding $50 billion. This significant disparity in financial resources impacts the ability of HBCUs to fund athletic programs and support student-athlete scholarships.

Ivy League Endowments: The Ivy League’s strong financial standing allows for extensive investments in athletics, facilities, and academic resources. Schools like Yale and Princeton have endowments of over $25 billion, which provide them with a substantial financial cushion to support a holistic student-athlete experience.

Alumni Giving Rates: HBCUs face challenges with alumni giving. For instance, HBCUs have an average alumni giving rate of about 15-20%, whereas Ivy League schools boast rates often exceeding 50%. This higher giving rate in the Ivy League reflects a stronger tradition of alumni engagement and philanthropic support, which is critical for sustaining athletic and academic programs.

Research Budgets and Institutional Support

HBCU Research Budgets: Research funding at HBCUs is generally lower than that of Ivy League institutions. While some HBCUs, like Howard University, receive substantial federal research grants, many others struggle to secure consistent funding. For instance, HBCUs collectively received approximately $1.5 billion in research funding in 2019, a fraction of what Ivy League schools secure annually.

Ivy League Research Funding: In contrast, Ivy League institutions benefit from robust research budgets, with individual schools like Johns Hopkins receiving over $2 billion in annual research funding. This financial backing enhances their ability to integrate athletics with academic resources, providing student-athletes with more comprehensive support.

Holistic Development and Community Engagement

The Ivy League model emphasizes the development of well-rounded individuals. HBCUs share a similar mission of producing leaders who are socially conscious and community-oriented. Adopting the Ivy model’s focus on holistic development could resonate well with HBCUs’ core values. This approach can enhance student engagement and create a strong support system for athletes.

Influence of Ivy League Billionaires

The presence of wealthy alumni, often referred to as “Ivy League billionaires,” contributes significantly to the financial health of Ivy institutions. Notable alumni from Ivy League schools frequently engage in philanthropy, enhancing the schools’ resources for academics and athletics. HBCUs lack a comparable number of affluent alumni, which affects their fundraising potential and overall financial sustainability.

Potential Challenges and Considerations

Implementing the Ivy League model in HBCUs presents both opportunities and challenges:

  • Funding Limitations: The financial constraints of HBCUs compared to Ivy League schools necessitate a tailored approach. Without significant endowment and alumni support, fully adopting a no-athletic-scholarship model could limit HBCUs’ competitiveness in attracting top athletic talent.
  • Cultural Fit: The cultural and historical contexts of HBCUs differ significantly from those of Ivy League schools. Any model adopted must align with the unique missions and student populations of HBCUs.

While the Ivy League athletic model offers valuable insights into promoting academic achievement and holistic development, its application in HBCUs would require careful adaptation. Financial disparities in endowments, alumni giving, and research funding pose significant challenges. However, by focusing on the integration of academic and athletic excellence while fostering community engagement and support, HBCUs can create a unique model that reflects their values and enhances student success both on and off the field.

In the end, HBCUs have to accept the realities on the ground. We have tried chasing the golden ticket of athletics only to find out time and time again it is fool’s gold. It is not the thing that will alter the financial realities of our institutions. If anything it may be the thing that causes their failure as a looming admissions’ crisis is looming across all of American higher education and without a lot of dry powder on hand many institutions will easily go the way of the Dodo bird. It is time to think differently, think acutely, and chart a path that maybe uncomfortable or not what we originally imagined but will ensure the existence, sustainability, and success for future HBCU generations.

Disclosure: This was written with the assistance of ChatGPT.

Leave a comment

Posted in Moneyball

Tagged , , , , , , , , , , ,