APR 30 - Rascher and Schwarz issue detailed review of UAB Athletics

EMERYVILLE, April 30, 2015 – OSKR partners Dan Rascher and Andy Schwarz released a detailed analysis of the incremental benefits and costs of football, bowling, and rifle at the University of Alabama at Birmingham (UAB). They conclude that three sports were effectively break-even. The key drivers of this conclusion are: Athletic Scholarships cost UAB far less than their listed prices. Conference USA membership is far superior, financially, to any alternative non-FBS conference. C-USA membership almost certainly hinges on UAB fielding an FBS football team. With anticipated improvement in ticket sales from 2013-14 levels and new College Football Playoff revenues that will outpace new expenses from Cost of Attendance (COA) stipends and unlimited food allowances, the aggregate annual surplus from football, bowling, and rifle is projected to exceed $400,000, even without including the anticipated but hard-to-quantify benefits to admissions and enrollment, donations, and media exposure. Because of the causal link between FBS membership and these key sources of revenue, Rascher and Schwarz conclude the university will be worse off on a pure dollars and cents basis without these three sports than with them, even after accounting for offsetting (downward) cost effects. The report is available here: Rascher & Schwarz: UAB Analysis Rascher & Schwarz: UAB Analysis Appendices