Most ducks today don’t have feathers, flat beaks or the gift of flight, but they sure are good at sports. These days, Ducks stand for the University of Oregon and its 17 talented Division-I programs, including an undefeated football team bound for the BCS National Championship Game.
The latest accomplishments of Oregon teams correspond with the astonishing gains of the athletic department itself, which in the last 10 years saw its operating budget increase by 250 percent to over $75 million. Experts say that the investment in athletics has aimed to help fund the University’s academic mission by attracting prospective students and generating large revenues for the institution.
“The exposure that the University’s athletics provides is just enormous,” said Dennis Howard, University sports business professor. “Whether it’s the increased notoriety or just the cool uniforms, it’s translating into more interest for the school.”
But the exposure brought about by this emerging enterprise comes at a time when the University, and indeed all of Oregon, is facing serious economic challenges. The state is in a budget crisis and earlier this year cut $160 million from education funding. As another $3.3 billion in state deficits is projected over the next two years, the funding model at the University, even with athletics, has been put under increasing pressure.
“We’re all in the same boat,” said Susanne Smith, a representative from the Oregon Education Department. “We have been asked to reduce the K-12 budget by 25 percent, and state universities have been asked to make large cuts as well. It is particularly bleak, and it doesn’t look like its getting any better.”
The state of Oregon already ranks 46th nationally in higher education funding per student. At the University, the expected state funding for 2010 is $60 million; by comparison, Auburn University, the Ducks’ opponent in the BCS title game, receives $300 million with only 3,000 additional students. When adjusted for inflation, the University’s funding is half what it received 20 years ago.
State funding now accounts for less than eight percent of the $660 million the University needs to operate. The steady decline in government support since the 1990s forced the University to create new sources of revenue. Many experts argue that the immense growth of the athletics program in the last decade has enabled the University to survive as an institution.
“There is no doubt that the University is facing challenges,” Howard said, “but the fact that the University has succeeded in attracting more students through athletics has been hugely important for maintaining its financial solvency.”
However, the growth of University enrollment in recent years can hardly be linked to athletics. Enrollment rose by 4.5 percent last year, but the average rise throughout Oregon was 5.9 percent, and a state study cites the overcrowding of California universities as the main reason. Moreover, increases in tuition rates, not enrollment, contribute the most to University funding. For the last 38 years, these costs have risen by an average of 7.5 percent each year, and at times by as much as 20 percent.
And despite the recent success of the athletic department, University President Richard Lariviere still expressed worries about the school’s fiscal situation. In a recent Wall Street Journal article, he argued for $800 million in state bonds as part of a unique plan to restructure the University’s funding model.
As the state reviews Lariviere’s proposal, many at the University ponder the ongoing investment in the athletics program despite its ineffectiveness at providing funding for the school. The question denotes a deeper concern for the school’s academic integrity.
“The argument for a big athletic department is that they are a front porch for the University,” said Nathan Tublitz, a professor of neurobiology and the president of the University Senate. “But we have to be asking is, ‘what about the rest of the house?’ If we don’t have anything to offer, we are failing as an academic institution.”
The athletic department continues to receive donations and ticket revenue that equal around $49 million a year and has obtained financial support for several multi-million dollar projects. With Matthew Knight Arena and the John E. Jaqua Academic Center for Student Athletes already firmly established, the athletic department will have received three state-of-the-art buildings in a span of 16 months once the Ford Alumni Center opens in May.
Even so, the athletic department plans to begin construction this term on yet another project, this one to further improve the Casanova Center. Once completed, the center will boast a six-story structure complete with two practice fields, a 25,000-square-foot weight room and a new nearby stadium for soccer and lacrosse teams.
The continued growth of the athletic department also reflects a remarkable increase in coaching salaries. The department will use nearly $21 million this year to pay the salaries of about 160 employees. Among them is football head coach Chip Kelly, who earlier this year signed a $20.5 million contract for six years, an average of $3.4 million per season. Ten years ago, coaching salaries totaled $8 million annually.
As the Ducks prepare to take the field this Monday to play for the national championship, many Oregon fans are already anticipating future successful seasons in the NCAA. For others though, the price of continued success is a growing concern in the face of poor academic funding.
Nevertheless, the athletic department insists that it is a price worth paying.
“Having a strong athletics program raises the profile of the entire University,” said Greg Walker, an athletic department spokesperson. “So far we’ve been able to capitalize on our success and keep building our program, and we intend to sustain that growth.”
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