Tag Archives: southern university

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

How the Government Helped White Americans Steal Black Farmland – And Why 1890 HBCUs Are Partially To Blame

Every good citizen makes his country’s honor his own, and cherishes it not only as precious but as sacred. He is willing to risk his life in its defense and is conscious that he gains protection while he gives it. – Andrew Jackson

Ukraine has been preparing for years for the eventual invasion that would come from Russia. It has been so even prior to Russia’s invasion and capture of Crimea in 2014. Why? Ukraine’s intelligence for one, President Vladamir Putin’s writings that expressed sentiment that the breakup of the Soviet Union was a great tragedy of the 20th century, Russia’s 2008 invasion of Georgia, and because well that is WHO Russia is and has shown itself to be. It would have been more of a shock were Ukraine to act shocked at Russia invading more than Russia invading. Put another way, if Ike Turner slapped someone and they were surprised, who is crazier – them or Ike Turner?

This seems to be African America always when it comes to European America though. Constantly surprised by consistent behavior. Harlem, Houston’s Third Ward, New Orleans, Compton, Roxbury, so on and so forth. What do all of these have in common? They were once thriving African American strongholds until gentrification. Each time the gentrification wave came, African Americans in those communities were caught off guard, unable and unprepared to launch a counterattack (or offensive).

In a recent article by The New Republic titled, “How the Government Helped White Americans Steal Black Farmland”, in detailed fashion we learned about one of the most vital departments of any country, agriculture, which impacts land, development, life expectancy, water and mineral rights, and so much more was used by the U.S. government through the USDA to spearhead the wealth transfer of African American farmland into European America’s hands. “Black farmers not only lost out on these massive subsidies—they have been effectively disenfranchised within the modern agricultural system. Under conditions of savage oppression, Black families emerged in the early 1900s with almost 20 million acres of farmland and “the largest amount of property they would ever own within the United States,” according to the historian Manning Marable. Since then, they have lost roughly 90 percent of that acreage” says New Republic. According to New Republic, there will be a study put out soon by the American Economic Association’s Papers and Proceedings journal that will value the land lost between 1920 and 1997 at approximately $326 billion. An amount that is equal to over 20 percent of African America’s $1.6 trillion buying power. The $326 billion valuation excludes the 160 million acres that Africa Americans who were enslaved were owed post Civil War from Special Order No. 15 that guaranteed the former enslaved population of around 4 million 40 acres apiece, but was reneged upon by the U.S. government ultimately making the loss arguably worth trillions today. Yes, trillions. The economic loss has had catastrophic social, economic, and political echoing impacts for generations. “Revolution is based on land. Land is the basis of all independence. Land is the basis of freedom, justice, and equality”, Malcolm X said. This alluded to the belief that every revolution was and is about land given that it impacts everything that lays to bear on any group, community, country, and diaspora. African American institutions, especially those focused on agriculture, should have made the protection of African American land a strategic priority.

Enter the 1890 HBCUs, which were created with the Second Morrill Act of 1890. There were 19 HBCUs created under this act (and two HBCUs which were created under the First Morrill Act of 1862, which primarily created HWCU agriculturally focused colleges and universities). For all intents and purpose, 1862 and 1890 colleges and universities were created with an emphasis on agriculture. Tuskegee, through the political clout of Booker T. Washington, is the only private HBCU that has land-grant status. The other two private universities that are land-grant institutions are Cornell and MIT. Among the 1890 HBCUs, they have three of the six HBCU law schools housed at Florida A&M University, Southern University System, and University of the District of the Columbia. Despite this, based on their websites none of three have any focus/concentration on agricultural law. This means that more than likely African American farmers and landowners are in the hands of lawyers who are both non-African American and trained at an HWCU/PWI institution. Given historical behavior, it is not hard to assume that those lawyers do not work in the best interest of our community. It also once again poses the question of the lack of strategy among African America at using its institutions to protect its social, economic, and political interest. Stemming the tide requires a change in HBCU strategy and realizing the purpose of our institutions is to serve and protect the other parts of the African American ecosystem.

There are a few pointed pivots that 1890 HBCUs can do to serve and protect the agricultural interest of African America. First, the three 1890 law schools (FAMU, SUS, and UDC) can create an African American agriculture concentration in their law schools. Again, to be clear, an African American agriculture concentration is not the same as general agriculture, which tends to be from a Eurocentric perspective. Focusing on agricultural law from the African American agricultural perspective and interest is paramount. Secondly, the three 1890 law schools can create a joint organization for African American Agriculture Defense Fund that will serve as a means to fund law defense for African American farmers, lobbying efforts towards African American agriculture, and regional African American agriculture legal research. Thirdly, all of the 1890 HBCUs needs to create master’s programs in agricultural law and policy focused on their respective local, state, and regional geographies. They can then push for alumni to create scholarships that will allow for a pipeline of agriculture majors to pursue law degrees at the three 1890 HBCU law schools. Lastly (but not all), a concerted emphasis on offering courses, lectures, and seminars on the purchase and maintenance of African American land ownership emphasized to students and alumni and available to our entire community.

If HBCUs are not going to be part of the institutional ecosystem built to serve and protect African American interest, then what is their purpose? Without protecting African American land, what little is left of it, then what is to come of African America? Protecting African American land takes more than just HBCUs, it also requires African American owned financial institutions, real estate organizations, families, communities, and more. However, 1890 HBCUs must take the vanguard and protect what we have so that we can start to stem the tide and move the trend upward again. The notion that land theft and assaults have been happening to African America for 100 years and we still have yet to respond with a counterattack or an offensive of our own is telling. HBCUs also are becoming more and more vulnerable to their land and the communities they are in, which are typically African American, being gentrified and the use of predatory land theft and assaults heightened. Howard University, Prairie View A&M University, and Texas Southern University all are witnessing land theft and assaults on the land surrounding their institutions. Unfortunately, there was and continues to be no unified strategic planning to protect them. In Howard University’s case, white residents have even been so gall as to suggest that the school be moved. This is just one example of over a century of attitudes that have helped lead to others justifying land assaults on African American landownership. We know who are our enemies are, we have the intelligence and tools, now is the time to start urgently preparing our troops to defend our lands.

Internet Services Startup Launched By Three HBCUpreneurs – Who Have Never Met

“Great things in business are never done by one person. They’re done by a team of people.” – Steve Jobs

It is a business story worthy of Hollywood. Mainly because it seems to be a storyline that you only find in movies. However, the story is very real and very powerful. Not only because of its potential, but also because of the possibilities that it presents. Three HBCUpreneurs from three different HBCUs start a business, but have never actually met each other in person. The power of the internet, the power of Twitter and most importantly, the power of the HBCU community.

The company, HBCU Real Estate, is an internet services company that seeks to help the HBCU community (but not limited too) find and use HBCU real estate service providers. Everything from real estate agents, mortgage brokers, interior designers, and more. The founders hope that it will even lead to business creation in the spaces of real estate that the HBCU community may have little to no presence. HBCU Money is aware of only one title company* owned by an HBCU alumnus. HBCU Real Estate’s mission is to help facilitate circulation of the HBCU community’s dollars and keep them in the HBCU community. If successful, it could potentially keep tens of billions of dollars within the HBCU community. The fact that none of the founders have ever met in person makes what they are trying to accomplish even more astounding.

For two years it sat on the proverbial shelf according to organizer, cofounder, and HBCU Real Estate’s Director of Product Development, William A. Foster, IV, a Livingstone College, Virginia State University, and Prairie View A&M University alumnus. “I am a multipreneur and have learned that more hands and brains on deck is almost always a good thing. I needed to meet and find the right people who could understand, compliment, add value, and who could see the potential just as much as I could. Also, I promised myself no more solo projects. When you are involved in as many businesses and organizations as I am, being able to spread the load is vital to success – and sanity.”

Enter Christen Turner, Spelman College and Southern University alumnus, and Marcus King, an alumnus of Prairie View A&M University, both HBCUpreneurs themselves. Ms. Turner, HBCU Real Estate’s Chief Technology Officer, also owns Janelle T. Designs, a graphic designs firm, as well as Forever Femme, an accessories company. Mr. King, HBCU Real Estate’s Chief Marketing Officer, owns Hardly Home, a clothing line that is catered towards travel that was featured on HBCU Money’s The HBCUpreneur Corner in 2015. What does it say to you (King) about the potential of collaboration for HBCUpreneurs that 5 different HBCUs are represented among the 3 cofounders? King answered, “The motto at my alma maters is that “PV produces productive people” and I think that can be said about HBCUs across the board. For years HBCUs have been producing top talent and should continue to do so as we seek to move forward and provide solutions to the problems our community faces.”

The three have followed each other on Twitter for years, although no one can remember for how long. It was towards the end of 2020 that Foster said he approached Turner and King about doing a collaboration or tweeted at them rather. “I sent out a tweet and tagged both of them saying that I need to cofound something with the two of them. Having watched them over the years I knew we would click and have the same kind of work ethic. I just needed to find out if they thought the idea had any legs. If it was not this, it was going to be something else.” The work ethic was confirmed when he said he got an email from Turner on Thanksgiving while he himself was working. Turner further drove the point home of the potential of the moment, “This business will be successful because of two reasons, respect and trust. Despite not having met in an ‘official’ capacity, our partnership seems to have a natural fit to it; almost like pieces of a puzzle. With William’s intuition, he was able to unknowingly add the right people to his team who would each be able to add something different. Whether from a professional standpoint or specific personality traits, we all came in with an immediate respect for each other’s talents and skills. This is why the business will be successful. There’s no questioning; there’s only action, openness, and honesty.” Usually in Hollywood the movie ends with and they lived happily ever after – The End, but in this case it is clear that this is just The Beginning.

For more information, visit http://www.hbcurealestate.com

Donate To Every School In The SWAC/MEAC Challenge

How many HBCUs have you donated money too? Below are the jump pages for every SWAC/MEAC school and/or foundation’s giving page. We challenge HBCU alumni to give to their own and as many HBCUs as possible.

There are 21 HBCUs between the SWAC/MEAC. That means there are 21 opportunities to give that stretch from Texas to Maryland and impact the institutional opportunities of tens of thousands of African American students, their families, and our communities. How many will you impact?

Alabama A&M University Give now

Alabama A&M University Foundation

 

Alabama State University give now

Alabama state university foundation

 

alcorn state university give now

alcorn state university foundation

 

University of Arkansas Pine Bluff give now

 

Bethune Cookman University Give Now

Mary McLeod Bethune Foundation

 

coppin state university give now

CSU Development Foundation

 

Delaware State University give now

Delaware state university foundation

 

florida a&m university give now

Florida A&M University Foundation

 

Grambling State University Give Now

Grambling University Foundation

 

Howard University Give Now

 

Jackson State University Give Now

Jackson State Development Foundation

 

University of Maryland Eastern Shore Give Now

 

Mississippi Valley State University Give Now

Mississippi Valley State University Foundation

 

Morgan State University Give Now

Morgan State University Foundation

 

Norfolk State University Give Now

NSU Foundation

 

North Carolina A&T State University Give Now

North Carolina A&T Real Estate Foundation

 

North Carolina Central University Give Now

NCCU Foundation

 

Prairie View A&M University Give Now

Prairie View A&M Foundation

 

South Carolina State University Give now

South Carolina State University Foundation

 

Southern University and A&M College Give Now

Southern University System Foundation

 

Texas Southern University Give Now

 

 

 

 

 

 

 

 

 

 

 

HBCU Money™ Presents: 2018’s HBCU Alumni NFL Players’ & Salaries

In our 5th annual installment of tracking the earnings of HBCU alumni who are NFL players, the University of Arkansas-Pine Bluff’s Terron Armstead takes the crown.

HBCU Money™ FACTS:

  • HBCU NFL players combine for $38.7 million, an almost 32 percent decline from our last list in 2016, when HBCU NFL players earned $56.4 million.
  • South Carolina State University leads the way with 4 NFL players.
  • 16 HBCUs are represented in the NFL. Up from 15 in 2016.
  • Average salary for HBCU NFL players is $1.8 million, a sharp decrease from $2.1 million in 2016.
  • Median salary for HBCU NFL players is $630,000, down 35 percent from 2016.
  • HBCU players account for 1.3 percent of the NFL’s 32 team active roster spots.
  1. Terron Armstead /University Arkansas-Pine Bluff / Saints / $10.3 million
  2. Antoine Bethea / Howard University / Cardinals / $4.48 million
  3. William Hayes / Winston-Salem State University / Dolphins / $4.05 million
  4. Isaiah Crowell / Alabama State University / Jets / $4 million
  5. Rafael Bush / South Carolina State University / Bills / $2 million
  6. Joe Thomas / South Carolina Sate University / Cowboys / $1.575 million
  7. Brandon Parker / North Carolina A&T State Univ. / Raiders / $1.538 million
  8. Anthony Levine / Tennessee State University / Ravens / $1.4 million
  9. Rodney Gunter / Delaware State University / Cardinals / $705,000
  10. Javon Hargrave / South Carolina State Univ. / Steelers / $691,000
  11. Antonio Hamilton / South Carolina State University / Giants / $630,000 (Tied)
  12. Chester Rogers / Grambling State University / Colts / $630,000 (Tied)
  13. Ryan Smith / North Carolina Central University / Buccaneers / $630,000 (Tied)
  14. Trenton Cannon / Virginia State University / Jets / $619,224
  15. Chad Williams / Grambling State University / Cardinals / $581,500
  16. Tarik Cohen / North Carolina A&T State Univ. / Bears / $555,000 (Tied)
  17. Tony McRae / North Carolina A&T State Univ. / Bengals / $555,000 (Tied)
  18. Michael Ola / Hampton University / Saints / $511,181
  19. Danny Johnson / Southern University / Redskins / $490,000
  20. Trent Scott / Grambling State University / Chargers / $451,674
  21. KhaDarel Hodge / Prairie View A&M University / Rams / $423,529
  22. Jawill Davis / Bethune-Cookman University / Giants / $395,294