In the third report over the past five years since HBCU Money first began reporting the SWAC/MEAC Athletic Financial Review, there have been losses of $130 million, then $147 million, this year they continue their trend of the athletic black hole of almost $151 million loss through athletics with no correction in sight. Almost unfathomable is that nine of the twenty-one schools* in the SWAC/MEAC have athletic budgets higher than their research budgets. It is disheartening at best that these two HBCU conferences can justify their member institutions athletic spending increasing at a faster rate than college inflation for tuition is in America.
If there is a canary in the coal mine, it is that the amount of subsidies put on the back of students this year overall, median, and average decreased for the first time, albeit by a negligible amount. But that canary is barely seen when no matter how you cut it, students are bearing the brunt of generating HBCU athletic revenues. This year’s review shows that approximately 70 percent of HBCU athletic revenues are generated through subsidies. Something to consider when 90 percent of HBCU students graduate with student loan debt.
REVENUES (in millions)
Total: $202.9 (up 7.1% from 2015-2016)
Median: $10.8 (up 6.1% from 2015-2016)
Average: $10.1 (up 6.8% from 2015-2016)
Highest revenue: Prairie View A&M University $18.6 million
Lowest revenue: Coppin State University $3.6 million
EXPENSES (in millions)
Total: $212.0 (up 9.2% from 2015-2016)
Median: $10.8 (up 7.1% from 2015-2016)
Average: $10.6 (up 9.3% from 2015-2016)
Highest expenses: Prairie View A&M University $18.6 million
Lowest expenses: Mississippi Valley State University $4.1 million
SUBSIDY
Total: $141.5 (unchanged from 2015-2016)
Median: $6.4 (down 18.4% from 2015-2016)
Average: $7.1 (unchanged from 2015-2016)
Highest subsidy: Prairie View A&M University $15.5 million
Lowest subsidy: Mississippi Valley State University $2.0 million
Highest % of revenues: Prairie View A&M University: 83.7%
Lowest % of revenues: Florida A&M University: 34.2%
PROFIT/LOSS (W/ SUBSIDY)
Total: $-9.1 million (down 97.9% from 2015-2016)
Median: $-26,890 (down 1,244.5% from 2015-2016)
Average: $-455,318 (down 97.9% from 2015-2016)
Highest profit/loss: North Carolina A&T State University $573,062
Lowest profit/loss: South Carolina State University $-3,560,974
PROFIT/LOSS (W/O SUBSIDY)
Total: $-150.7 million (down 2.4% from 2015-2016)
Median: $-7.0 million (up 10.0% from 2015-2016)
Average: $-7.5 million (down 1.8% from 2015-2016)
Highest profit/loss: Mississippi Valley State University $-2,041,761
Lowest profit/loss: Prairie View A&M University $-15,586,904
CONCLUSION: Older alumni’s desire for athletic glory without assessing the cost to obtain it is going to set younger alumni back decades from becoming contributing alumni – if they are ever able to. This shortsighted vision may have ripple effects far beyond the athletic realm. At current, it would take approximately a $3 billion endowment dedicated to athletics to ween the SWAC/MEAC off of these subsidies onto a sustainable path. Steph Curry’s adoption of Howard’s golf team is clearly a step in the right direction of trying to solve this puzzle without burdening students of today and tomorrow. In fact, the top 10 paid NBA players salary for 2019 is a combined $372 million or $160 million above what all of the SWAC/MEAC expenses are combined. Of course these players by no means can or should fund all of HBCU athletics, but it does show that if we can begin to think outside of the box about how to solve this crisis we must do so before it spirals beyond our reach.
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 or the 2015-2016 review.
HBCU Money 