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

“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.

Do The Math: HBCUs Owning Their Own Tournaments Can Pay Better Than Hoping To Be Cinderellas Against PWIs In Theirs

“Take the fast road and get robbed then. Do you want to be famous or do you want to be rich? Because there is a likeliness that you might not be able to be both in this game. At a certain point you have to decide, do you want to be seen and known and look like you got bread and have everybody assume you got bread? Or do you really want to have bread and have people just assume you broke and not really getting it?” – Bun B

Jackie Robinson’s foray into Major League Baseball. Sam “Bam” Cunningham’s foray into PWI football. Texas Western’s championship in 1966 in PWI basketball. These are pivotal moments when an individual’s action would start the demolition of the institutions of African American institutional athletic power along with collapse of the infrastructure and ecosystems that made them such valuable assets to the African American community. In both instances, it would precipitate a talent and economic drain of African American institutions. 

The Negro Leagues would ultimately fold, ownership, executives, managers, hundreds if not thousands of jobs that were the byproduct of the Negro League wiped away to the sands of time. In 1947, there were zero African American owners in Major League Baseball. In 2023, there are zero African American owners in Major League Baseball. “Virtually all of the initial (Negro League) ownership was Black”, says Garrick Kebede, a Houston-based financial adviser and Negro League Baseball historian. In fact, across all major professional sports leagues (121 teams), there is only one African American principal owner – Michael Jordan, owner of the Charlotte Hornets and rumors are he is on the verge of selling the team almost eight decades after Branch Rickey poached Jackie Robinson. On the labor side, Major League Baseball reached its African American apex of players in 1981 with 18.7 percent of the players being African American. In 2023, that number has seen a precipitous decline down to 6.7 percent – a number not seen since 1957, a decade after Jackie Robinson entered the majors. Jackie Robinson’s move to the MLB did not just set the stage for the demise of the Negro Leagues, it would set the seed for HBCUs athletic demise just a few decades later.

A little over two decades later in 1966, Texas Western University (now, University of Texas El-Paso) would win the NCAA basketball championship with the first all-black starting lineup at a PWI and a few years later in 1970, Sam “Bam” Cunningham would take USC’s offense and run all over the all-white University of Alabama. Jerry Claiborne, an assistant to Head Coach Bear Bryant at the University of Alabama, famously said, “Sam Cunningham did more to integrate Alabama in 60 minutes than Martin Luther King Jr. did in 20 years.” But he did not integrate anything. Both instances simply convinced PWIs that Black athletes were the future of their programs and taking that talent from HBCUs could financially benefit them immensely among their STILL predominantly white fan bases and boosters. The fans and boosters just want to win. And while a decrease in European American players happened, the coaches, boosters, trustees, school bodies, and ownership in all the places that matter would still be what it has always been. Before enslaved Africans were brought to America, indentured servants who were the poor of Europe would be the labor pool of early America. This was to be no different of a transition. And ownership is ultimately the rub of where all of this lies for African America and HBCUs. 

The money behind the playoffs for football, the NCAA and NIT tournament for basketball, and the World Series for baseball and softball is dare we say – complicated. This in part is due to the way payouts are structured for each playoff/tournament and how schools and conferences choose to deal with the funds they receive for participating. For instance, in the NCAA tournament, “The NCAA urges the conference to distribute the earnings equally to the schools, but it is not a requirement. Typically, the bigger conferences will divide the money and send it to its member schools. The smaller ones, however, need the money to cover their own expenses, and then will send what’s left to its member schools.”, according to AS’s Jennifer Bubel. On the other hand, the NCAA’s ownership of the NIT operates a bit differently. “The NCAA has a complex way of rewarding teams for participating in March Madness. For the NIT, it’s much simpler. In addition to having travel, hotel and other expenses comped, each school in the NIT is given $4,000 for every game it plays. It’s a total payout pool of $128,000 this year.” says Sportico’s Eben Nvoy-Williams. Yet, Nvoy-Williams also points out that the NIT’s profitability to the NCAA while being lesser known is extremely profitable, “Though it’s nowhere near the commercial entity of March Madness, the National Invitation Tournament, or NIT, is a very profitable business for the NCAA. In 2019, the last year the event was held, it turned a $2.1 million profit on $3.3 million in expenses, according to financial documents. In 2018, the numbers were similar.” For football, “Each conference receives $6 million from the College Football Playoff for each team selected for a semifinal game and $4 million for each team that plays in a non-playoff bowl under the College Football Playoff.” reports Business of College Sports. Last but not least there is baseball, “In 2011, the NCAA included the College World Series as part of a $500 million television deal with ESPN for 24 sports championships through 2023-2024.” according to Huddle Up’s Joe Pompliano. Have we lost everyone yet? To sum it up, the finances of college athletics are extremely complicated. Adding to that complication is the fact that these playoffs and tournaments are all owned by the NCAA. But that ownership is now under threat as the Power 5 members realizing their own outsized power within the NCAA are vying to form their own entity. CBS Sports reports, “Majority of Power Five schools favor breaking away” and they primarily are looking to do so because they recognize they are a disproportionate contributor to NCAA events and more ownership would allow to share less and keep more within their conferences. Whether or not they determine that ownership is within the NCAA or a separate athletic association of their own is to be determined. Given their outsize influence in the NCAA though it may end up being a debate over how you pronounce tomato or potato. 

Many HBCU athletic supporters believe it is better that HBCUs fight for the respect and equality of their PWI counterparts in the NCAA as opposed to taking ownership of the HBCU Power Five (SWAC, MEAC, SIAC, CIAA, and GCAC) and forming the HBCU Athletic Association. This despite not having the alumni bases, boosters, or economic weight to be anything more than what we are in the NCAA’s ecosystem. In some respects, it harkens to the playing field of hip-hop where many artists finally started realizing that it was far better financially to be an independent artist than sign to a major label where an advance (also known as a loan) would keep the artist indebted to the label forever. A continued belief is that all we need to do is get the best athletes to come back to HBCUs and that resolves everything. Something no one seems to actually have an answer on how to accomplish or recognition in just how much that would cost – again, while not having the financial resources to accomplish it. Many think abandoning HBCU conferences and moving into PWI conferences is the answer despite multiple schools having tried and failing. HBCUs weakening HBCU conferences for PWI conferences is no different than African American athletes abandoning HBCUs for PWIs. It does not help us scale institutional power or circulate institutional capital. 

As it stands right now, the NCAA tournament is worth approximately $340,000 per win and with only the SWAC and MEAC participating (FBS schools only), even with a miraculous run it would workout to only $220,250 per school between the two conferences should they BOTH make it all the way to the Final Four. The secret to a conference actually making a lot of money in the NCAA tournament is having multiple teams from the conference get into the tournament. The SWAC/MEAC always only get one each and that is the automatic bid from winning their conference tournament. Money that a team earns in the tournament is usually (not required) split evenly among all of the members of the conference. Not always the case with smaller schools like HBCUs whose individual programs usually need every single penny. Given that every SWAC/MEAC athletic programs runs in the red and their 2019-2020 combined losses were to the tune of $161M it is hard to say whether the basketball programs that make it will share or can even afford to share.

The harsh reality of the probability for a deep run for HBCU men’s basketball is reflected in the SWAC/MEAC’s win-loss record in the tournament. Without comment, it is 4-55 all-time and we think that speaks for itself. It means that the SWAC/MEAC earned usually earn no more than the one unit times two teams for making it and this year that works out to a total of approximately $680,000 combined and $34,000 per school in the conferences if it is evenly divided. Can HBCUs create their own HBCU basketball tournament that would earn each school more than $34,000 per year? That is essentially the question that must be answered in considering creating our own tournament versus continuing to play in the NCAA tournament. If you included all 57 members of the HBCU Five, then that would need to be a tournament that produced a profit of $1.94M. Based on the NIT’s numbers, that would mean expenses of $3.1M or $55,000 per school approximately and revenues of approximately $5M or $87,700 per school. Again, this is a profit of almost $2M for the HBCU Five. The difference in this case is that of course the conferences would have an asset they could actually put on their financial statements that would be held in trust among their member institutions. Quite an enticing carrot in trying to recruit independent HBCUs to join the conference like Tennessee State University or PBIs like Chicago State University. The HBCU Five should be able to leverage a television contract for at least the cost of the tournament with everything else being profit thereafter. This could be repeated with football, baseball, and other sports.

Continued delusion around HBCU athletics competing with PWI athletic programs that have budgets ten times their size, a roster of boosters who write million dollar checks annually, corporate relationships with executives who also are PWI alumni and owned by PWI shareholders is a one-way train ticket to Diasasterville with the brake lines cut. You can not do what your competitor is doing when your resources socially, economically, and politically are as obtuse as HBCU reality. There are no HBCU boosters writing million dollar checks annually, there are no companies with HBCU executives and owned by HBCU shareholders who can provide multimillion corporate sponsorships, and there are reasons we all know and only say in private about why many African American high school athletes and their families overwhelmingly choose PWIs. We have to do different, think different, be creative, and solve the Rubik’s Cube that is not only the athletic conundrum we are facing but the lack of ownership crisis that continues to have a chokehold on African American institutionalism since 1947.

How Much Would The SWAC/MEAC Earn If Texas Southern University & Howard University Made The Final Four?

How Much is 1 Unit Worth?

“The value of one unit changes each year, and in 2022, it is estimated to be $338,887. That’s up a little bit from 2021, when a unit was worth $337,141.” according to Boardroom.

Here’s how it all plays out:

  • The SWAC/MEAC sent two teams to the NCAA Tournament: Texas Southern University and Howard University.
  • The two teams have earned one ECF unit for the SWAC/MEAC by making it to the tournament ($338,887 x 2 = $677,774).
  • Let’s say Texas Southern University wins the 16/16 play in game in the First Four. By then playing the traditional 16/1 (the First Round), Texas Southern gets another unit for the SWAC and gives it the possibility of earning seven units versus Howard University being able to earn a maximum of six units due to not having to play in a play-in game.*
  • Let’s say Texas Southern and Howard both lose their 16/1 games. Texas Southern University would have earned two units and Howard University would have earned one unit.*
  • Should both win and then have a Second Round loss. That’s one more unit for both and nothing more.
  • Now, let’s say both go on a miracle run to the national championship game. They would earn an additional unit for playing in the Second Round, Sweet 16, Elite Eight, and National Semifinal, for a total of thirteen units.
  • In total, this gives the SWAC/MEAC 13 units from this tournament, to be paid each year for the next six years, resulting in a total of $4.41M annually given to the SWAC/MEAC. That’s $26.43M total, which the conference will pay out to each of its 20 teams. If distributed equally, that’s $220,250 per school, per year, for a total of $1.32M.**

*HBCU Money was not able to confirm that the play-in game is worth an additional unit but serves as one in our example.

**Wins in the semifinals or final don’t count for units.

The 2019-2020 SWAC/MEAC Athletic Financial Review

In the fourth HBCU Money report on the SWAC/MEAC’s athletic finances, there has been one trend that is consistent – an acute amount of red on the balance sheet of each respective HBCU as it pertains to their athletic departments and it continues to grow redder and redder. Since HBCU Money first began reporting the SWAC/MEAC Athletic Financial Review, there have been losses of $128.6 million (2014-2015), $147.1 million (2016-2017), $150.7 million (2017-2018), and this year they continue their trend of the athletic black hole with losses over $161 million through athletics with no correction in sight. Not exactly the cash generating juggernauts that HBCU alumni have in mind when it comes to how deeply many believe that athletics can be the financial savior to HBCU financial prosperity. Instead, athletics seems to be potentially at the crux of many HBCU financial woes. Almost unfathomable is that many in the SWAC/MEAC have athletic budgets higher than their research budgets.

The harsh reality is that even with all the popularity buzz generated by Jackson State University’s head football coach, Deion Sanders, the factors working against HBCU athletics ever achieving real profitability remains a pipe dream at best. To land a major television contract, which is the only reason on mass that the SEC and Big 10 are the profitable athletic programs they are requires something that HBCU alumni bases severely lack. Large fan bases that have high incomes and an affluence. The harsh reality that HBCUs have small alumni bases, a reality that has been exacerbated post-desegregation where now HBCUs only get 9 percent of African Americans in college, combined with African America having both the lowest median income and wealth do not make for a recipe for advertisers to pay top dollar to television stations who would then healthily compensate HBCU institutions. HBCU athletics can be profitable, but it requires a completely different business model than our PWI counterparts. See, “The 5 Steps To HBCU Athletic Profitability”.

HBCU athletic revenues went down while expenses and subsidies went up in 2019-2020. That is usually a trend all would prefer be flipped. Students continue to bear the brunt of generating HBCU athletic revenues. This year’s review shows that approximately 73 percent of HBCU athletic revenues are generated through subsidies, up from 70 percent the year prior. Something to consider when 90 percent of HBCU students graduate with student loan debt.

REVENUES (in millions)

Total: $200.4 (down 1.2% from 2017-2018)

Median: $10.3 (down 4.6% from 2017-2018)

Average: $10.6  (up 5.0% from 2017-2018)

Highest revenue: Prairie View A&M University  $18.7 million

Lowest revenue: Coppin State University  $2.8 million

EXPENSES (in millions)

Total: $213.0 (up 0.5% from 2017-2018)

Median: $12.5 (up 15.7% from 2017-2018)

Average: $11.2 (up 5.7% from 2017-2018)

Highest expenses: Prairie View A&M University  $18.7 million

Lowest expenses: Mississippi Valley State University  $3.9 million

SUBSIDY

Total: $148.4 (up 4.9% from 2017-2018)

Median: $6.4 (down 18.4% from 2017-2018)

Average: $7.1 (unchanged from 2017-2018)

Highest subsidy: Prairie View A&M University $15.5 million

Lowest subsidy: Coppin State University $1.7 million

Highest % of revenues: Delaware State University: 92.0%

Lowest % of revenues: Florida A&M University: 37.0%

PROFIT/LOSS (W/ SUBSIDY)

Total: $-12.7 million (down 40.0% from 2017-2018)

Median: $0 (up 100.0% from 2017-2018)

Average: $-666,295 (down 46.3% from 2017-2018)

Highest profit/loss: North Carolina A&T State University  $615,094

Lowest profit/loss: North Carolina Central University  $-6,264,082

PROFIT/LOSS (W/O SUBSIDY)

Total: $-161.0 million (down 6.8% from 2017-2018)

Median: $-9.8 million (down 40.0% from 2017-2018)

Average: $-8.5 million (down 13.3% from 2017-2018)

Highest profit/loss: Mississippi Valley State University  $-2,177,123

Lowest profit/loss: Prairie View A&M University  $-15,417,471

CONCLUSION: At current, it would take an approximately $4.3 billion endowment dedicated to athletics to ween the SWAC/MEAC off of these subsidies onto a sustainable path. A sum greater than all HBCU endowments combined. Perhaps through merchandise sales, Jackson State could see its way to profitability without subsidies. Perhaps, but as former HBCU alumnus and NFL Hall of Famer Shannon Sharpe recently said, “There is only one Deion Sanders”. One thing is for certain, HBCUs have not done a proper cost-benefit analysis for the money they spend and subsidize to their athletic departments nor have they explored potential alternative models.

Editor’s Note: Howard and Bethune-Cookman are excluded in this report because they are private institutions and their athletic finances were not included in this report.

Source: USA Today

The Case For Mergers: Marrying The Big Four HBCU Conferences Into Two

“The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” – Babe Ruth

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Many years ago, HBCU Money called for the creation of HBCU super conferences. It is time we revisit that conversation. This time we hope to give more scenarios and a clearer picture of what we now believe is the right course of strategic action. We will simply focus on the schools currently within the conferences as opposed to previously making an argument for expanding beyond the current five HBCU conferences, the Gulf Coast Athletic Conference is the only HBCU athletic conference in the NAIA. This conversation will focus again solely on the SWAC, MEAC, CIAA, and SIAC, all are whom a part of the NCAA. Whether that should continue to be the case will be a conversation for another time – one we hope HBCU athletic alumni and administrations are less afraid to have, but that is likely not the case as far too many still desire to chase the dreams of competing against their PWI counterparts for “their” championship.

Between the four HBCU conferences in the NCAA, there are 46 HBCUs and 2 PWIs that make up the four conferences. The CIAA and SIAC both having non-HBCU members who have joined their ranks. More pointedly, the SWAC/MEAC have 21 member schools in their conference, while the CIAA/SIAC have 27 member schools. Most know that the SWAC/MEAC and CIAA/SIAC play in the same divisions with the former being FCS and latter being Division II programs. Geographically though, the SWAC/SIAC and MEAC/CIAA share more accommodating footprints.

Why are both of these things something too heavily consider? First, the divisions that the schools play in is vital to understanding the cost difference associated with different divisions. FCS schools spend more, are expected to spend more, and do spend more than Division II and Division III schools. The fact that HBCUs largely lack the booster power to maintain their FCS infrastructure, largely leaning on the backs of their students to drive revenues through student fees has always been a matter of concern and why some advocates have called for them to drop down to Division II where sports are significantly more affordable. However, in fairness to the SWAC/MEAC, the numbers for the CIAA/SIAC in their own right as it relates to revenues, expenses, and student fee subsidies has not been compiled and scrutinized as it has with the FCS HBCUs. On a percentage basis things could look eerily the same. The NCAA reported in 2011-2012 that Division II member schools with football incurred a net loss of $4.5 million per year, while schools without football incurred a net loss of $3.6 million. While $900,000 does not seem like a huge difference, in the world of HBCUs where every dollar is dire it is worth noting in the conversation. This means if the CIAA/SIAC held the median, then the two conferences combined for an annual loss of $112.5 million as it pertains to the HBCUs in the two conferences. The SWAC/MEAC in 2017-2018 were losing a combined $150 million annually (without student subsidies). Also, a key factor to take note of is the cost between FCS and Division II conferences by the NCAA, “Division II institutions contemplating a move to the Division I Football Championship Subdivision (FCS) will likely be spending significantly more money as the median net expense was over $10 million in Division I FCS versus $4.5 million for Division II programs with football.” A factor of 2.2 between the two divisions.

Second in the conversation is the geography. A major factor in expenses for institutions. Travel costs alone can tear into a school’s athletic budget and the greater the distance the more the cost, obviously. Instead of buses, now it is planes. Instead of a one night in the hotel, now you need two. The cost can escalate quickly, which is why many colleges try to maintain their non-conference schedules close to home. This by its very nature means that a natural merger between the SIAC/SWAC and the CIAA/MEAC would make the most geographic sense. It would provide ample opponents in proximity and in-state greatly reducing costs across athletic departments. The linchpin is of course what division would the member schools play in. Do the Division II schools take on more cost to go up a level and hope they can increased revenues can support this? Winston-Salem State University tried it and quickly realized, not likely. What exactly FCS HBCUs are holding onto of not dropping down to Division II seems to be anyone’s guess at this point other than the belief that eventually they will rise to the FBS, join a Power 5 conference, make millions upon millions, and compete for a national championship against Alabama. A perfectly sensible (delusional) strategy somewhere. The path of least resistance says though that the divisions trump geography.

Lastly, the mergers would give something that small schools like HBCUs need – scale and cooperative ventures. Power 5 conferences are profitable because of three simple factors and the athletes on the field (albeit a nice piece) have little to nothing to do with it: 1) being able to put 100,000 people in the stands, 2) television contracts because of the alumni base size, and 3) boosters who shell out annually more money than most HBCU athletic budgets have. For HBCU conferences, the scale that doubling in size would bring along with the cost savings would be immeasurable regardless of the pairing structure from four to two. This could be magnified even greater if the five HBCU conferences would agree to form the HBCU Athletic Association, but for now, baby steps.

There is no denying that what HBCU athletics need most – like the schools themselves – is ways to drive revenue that do not rely on the backs of their students. HBCUs themselves rely heavily on tuition revenue to keep the doors open and HBCU athletics rely heavily on the students fees that most students and parents do not even know are in the small print being used to fund said athletic programs.

 

HBCU athletics is still an oversized concern for HBCU alumni who should be focused more on things like research, endowments, graduation rates, student loan debts, and the like. The notion that sports will bring in financial sustainability to HBCUs is wishful thinking on the best days. However, how a school manages its athletics and athletic budgets can make or break institutions if done so poorly. If we are insistent on sports, then it should be done so in a way that allows for the institutions to run those departments in a fiscally responsible way. and is far less reliant on students having to assume student fees that are being paid for with student loans. Scale in business is a prime way to cut expenses, increase revenues, and ultimately (hopefully) find a potential path to profitability or at the very least not have to rely on student fees being 75 percent of athletic revenues. To achieve scale, institutions or organizations often either merge or acquire and HBCU conferences should undoubtedly consider the same.