One of my summer reads included Billion Dollar Ball, kind of a literary expose on the money involved in college football. Because we live in a state with one of the most prestigious football programs in the country, the economics of said programs are fascinating to me. We also happen to have a football program that was recently dismantled, became the subject of much controversy/debate and is slated to return in the future. Pulitzer Price winner Gilbert Gaul explores the economic realities of both the underperforming programs as well as the powerhouse, elite programs.
In addition to just the sheer amount of money made and reinvested in the athletics department, Gaul explores how all of the profits remain tax-free. The tax policies were put into place decades ago, when very little money was involved. Since then, television deals have been made, merchandising has exploded and stadiums have expanded, commanding four digit donations for the honor of being placed on a waitlist. These policies are not likely to change any time soon. If you think about it, how popular would elected lawmakers be if they challenged the system and suggested that athletic departments pay taxes on their profits... say in Texas, Oregon or Alabama?
Speaking of waitlists, get your donations in early.
For my friends who are on the waitlist for season tickets for the Alabama Crimson Tide? There is a wait list of 26,000, and only 40 tickets become available each year.
I talked with Besanceney [who oversees the season-ticket plan at the University of Alabama] in 2013. That season just forty football tickets turned over at Alabama, usually after someone died or moved away. Forty works out to 0.0004 percent of all the seats in 101,000-seat Bryant-Denny stadium. "To put it in perspective," Besanceney explained, "we have a waiting list of 26,000. Those are the fans waiting to get a season ticket at Bryant-Denny."
Be patient, friends.
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