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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.

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A Patent Created Is A Million Earned: HBCUs Are Not Keeping Pace In The Intellectual Property Arms Race Among American Colleges

Posted on December 5, 2018 by | 5 comments

“Necessity…the mother of invention.” – Plato

How did David beat Goliath, then go on to become a “Goliath” himself? With a rock, pebble, or stone depending on who is telling the story. However, it is truly what that piece of Earth hurling towards his enemy from his cache represented that is often most lost in the story. After all, most stories in the Bible are parables and in this case, while David gets all of the glory, it was truly the slingshot that was the star. The slingshot represented an idea, ingenuity, and research all at the same time. It was a representation of how even the smallest solutions can tackle the biggest problems and for David, the riches represent what is awarded to those who dare go after them.

What is a patent? According to the definition provided by the World Intellectual Property Organization, “A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.”

From 1969 to 2012, the U.S. Patent & Trademark Office granted 75,353 to America’s colleges and universities. However, during that same period HBCUs were granted an apathetic 101 patents, an amount less than one percent (0.13% to be exact) is a telling story of just one of the factors that hold back HBCUs financial sustainability. In the past twenty years alone since the turn of the 21st century, patents to colleges and universities have increased from 1,307 to 5,898, an almost five fold increase. In the same time period, the value of the revenue from those patents has also seen a meteoric rise to the tune of a 1,700 percent increase in value from $130 million annually to a staggering $2.2 billion annually. This does not even factor in the societal relevance that these institutions beget as a result. Can you imagine the financial and social impact that comes with being the college who invented the seat belt (Cornell University) or an even more well known invention, Gatorade (University of Florida)? The latter has earned the University of Florida over $1 billion in royalties alone. Even more to the point of colleges and universities profiting handsomely from intellectual property, according to an article in IP Watchdog in 2017, “a judge ordered Apple to pay the University of Wisconsin $506 million for infringing one of its tech patents. Last year, Carnegie-Mellon University won $750 million in a patent infringement lawsuit against Marvell Technology Group.” Those two settlements alone are worth fifty percent of all HBCU endowments combined. Needless to say, this is an arena that HBCUs need to make inroads into if survival and sustainability are long-term goals for our institutions.

PATENTS BY HBCU (1969-2012)

  1. Howard University – 18
  2. Morehouse School of Medicine – 17
  3. Florida A&M University – 16
  4. North Carolina A&T State University – 12
  5. Hampton University – 10
  6. Spelman College – 6
  7. Jackson State University – 4
  8. North Carolina Central University – 4
  9. Meharry Medical College – 3
  10. Tuskegee University – 2
  11. Alabama A&M University – 1
  12. Alabama A&M University Institute – 1
  13. Alcorn State University – 1
  14. Charles R. Drew University of Medicine – 1
  15. Claflin University – 1
  16. Delaware State University Foundation – 1
  17. Fort Valley State College – 1
  18. Shaw University – 1
  19. Virginia State University – 1
  20. Bowie State University – 1*

For all of the creativity that our culture has and exist on our campuses from faculty to students and more, there is little if any at times from administrations and alumni when it comes to finding creative solutions to our financial issues. Since desegregation took root in our institutions and began to gut them, a financial crisis has been brewing and its presence shows up every time we see another HBCU close its doors and even more starkly today in the amount of student loan debt HBCU graduates finish with as a result of poor endowments. HBCUs have taken on a what has seemingly become a check to check mentality in dealing with its financial viability. Instead of investments in R&D and entrepreneurship (Can HBCUs Produce Billionaires?), which is where the nation’s wealth has truly been generated for colleges and their alumni, we have seen far too many HBCUs and their alumni seemingly double down on being dependent on tuition revenue, make poor investments in athletics with no real return possible, focusing their students on getting jobs not creating them, and at times a feeling of lip service in relation to developing stronger pre-alumni and alumni programs that would strengthen giving.

It begs the question where do we go from here? How do we get administrations to ensure that intellectual property & patent development is a stronger part of its focus and how do we get alumni to give their time and money in a way that compliments and assist HBCUs in the infrastructure needed for said development? And ultimately, how do we turn our campuses into intellectual property machines? Let us examine, just a few points (but certainly not limited too) what HBCUs and their alumni could do to unleash its intellectual prowess:

First and foremost, we have to look at our research, patent development, and the like from a holistic viewpoint, meaning that anyone and any department on campus can be engaged in this process. That means everyone from the traditional route of professors and researchers to students to staff to cafeteria workers or lawn and building maintenance. Everyone must be part of this and everyone must be mentally engaged and present. A patent can come from anywhere and for us it needs too. For example, Paul Quinn a few years ago eliminated salt and pork from its campus, but what if a cafeteria worker created a way to still “salt” a product or their farm created a method by which you could raise a pig that does not adversely impact a human’s health. This would become an extremely valuable intellectual property that could be commercialized into a company that the school had an ownership stake in or licensing it out to major food companies and receiving royalties the way the University of Florida does with Gatorade to this very day.

Second, campuses need an intellectual property czar and department. Yes, create a position whose only job it is to promote, oversee, and help develop intellectual property. Their job would be to help ease the process, especially for the likes of students and staff who may not be as familiar with the process as professors, but even with professors helping ease the burden of the process would go a long way. The czar and department would be charged with identifying potential customers and creating commercial relationships where the intellectual property maybe of value. They would also assist in bringing in intellectual help if an idea is being developed but the technology or expertise to bring it to bear is not available on the campus. Perhaps, a relationship with a local software company or factory lends itself to the completion of the patent or intellectual property. Also finding opportunities where intellectual focus can financially benefit the school. An example of this would be the X Prize Foundation, where in 1996 for instance a businessman and entrepreneur offered a $10 million prize to the first privately financed team that could build and fly a three-passenger vehicle 100 kilometers into space twice within two weeks. Participating in these not only has potential financial benefits, but also raises the profile of the institution.

Thirdly, community and alumni access. Allowing the use of this broadens the probability that ideas and opportunities will come to the schools themselves and serve as a potential repository. Imagine for instance had Tuskegee been setup in such a way that when Lonnie Johnson, the Tuskegee alum who invented the Super Soaker, was able to come back to the school, use some of its resources, get assistance, etc. in exchange for a percentage of future or potential royalties. In 2013, he was awarded almost $75 million alone in royalties from Hasbro. An amount that is well over half of Tuskegee’s assumed endowment. Community access would also include summer camps to engage K-12 children in thinking as problem solvers. In other words, also developing the pipeline of intellectual property creators of tomorrow is integral.

Lastly, alumni must donate to create time for this all to be possible. How many HBCU professors can sit on campus for a semester, not teach, and simply focus on research? Very few, if any. How many students could stay on campus over the summer and experiment? Again, very few, if any. In fact, one of the primary problems that HBCU campuses have over summers is shutting down facilities in an effort to save money instead of opening them up for use to their professors, staff, students, and even the community. Those summer camps for K-12, which can lead to future HBCU students. Again, they need support and funds. Alumni must supply the funds to keep the lights on. Summertime is not a time to shutdown, but a time to have an opportunity to do the out of the box things that perhaps the semester schedules bog down. That can not happen without a targeted focus and strategic giving by alumni.

Patents, intellectual property, and the financial benefits that come with them currently are largely aligned with some of the nation’s largest endowments should come to no surprise to anyone who follows higher education finance. The top five producing patent colleges and universities between 1969-2012 (2018 endowment rank in parentheses), University of California (12) has 7,488 patents, MIT (6) has 4,017 patents, Stanford University (4) has 2,403 patents, CIT (34) has 2,365 patents, and the University of Texas (3) has 2,321 patents. In fact, these five schools have a combined endowment value of $51.5 billion as of 2018. Is there primary revenue from patents? Certainly not, but is the money insignificant? Also, certainly not. For HBCUs though, it could be life saving.

Even the way we engage this process may need to be outside of the normal box. For a lot of schools, even with alumni support, it maybe difficult to implement a program like this. However, one solution could be that the five HBCU conferences take the lead to allow for scale and best use of resources or HBCUs partner with other HBCUs and create a IP consortium and they profit-share. Stronger together. However it has to come together, it must. The financial future of HBCUs is rooted in becoming the problem solvers of today and tomorrow. It is time we focus, harness, and unleash the brilliant minds that constitute our institutions. Our bodies were used to build wealth for others for centuries, it is time to let our minds be the slingshot to our own (financial) freedom.

*Bowie State University was awarded its first patent in 2018.

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