FanPost

Why Mack Brown's Not Getting Fired


I have to say I hate the business side of sports. I've stopped listening to sports radio because it seems like most conversations about pro teams revolve around salary caps, signing bonuses and veteran's exceptions. I have always enjoyed the college game more because of my emotional attachment to the Longhorns.

But I am a business person, and it has occurred to me (and probably many of you) that the FMB crowd is looking at the wrong metric. I would bet that the real measure against which Deloss Dodds (and Mack) are measured is the athletic department's profitability. Yes, wins are important and failure to win harms our long term profitability, but here are the numbers for Texas for 2006-2011:

Year Ticket Sales Contributions Licensing Rights Other Revenue Total Revenue Total Expenses Total Profit Expense Ratio Net Margin
2011 $61,196,689 $37,337,126 $42,235,860 $9,526,251 $150,295,926 $133,686,815 $16,609,111 88.9% 11.1%
2010 $56,741,662 $37,110,292 $40,852,523 $8,850,877 $143,555,354 $130,436,534 $13,118,820 90.9% 9.1%
2009 $55,394,209 $37,291,370 $36,599,167 $9,174,403 $138,459,149 $127,651,428 $10,807,721 92.2% 7.8%
2008 $44,691,119 $35,057,421 $31,474,843 $7,232,758 $120,288,370 $110,996,365 $9,292,005 92.3% 7.7%
2007 $44,562,934 $27,190,731 $23,707,231 $7,703,591 $105,048,632 $97,235,567 $7,813,065 92.6% 7.4%
2006 $34,280,260 $26,507,774 $26,138,688 $9,139,199 $97,756,776 $90,738,962 $7,017,814 92.8% 7.2%
Growth 79% 41% 62% 4% 54% 47% 137%

It's not a true financial statement, but as athletic departments go, it's not bad. Ticket sales, licensing rights and revenue have gone up every year, and almost 80% since 2006 -- with only about a 20% increase in seating capacity. Even after the disaster of 2010 ticket sales and licensing revenue increased. Contributions have leveled off, which could be an indicator of fan dissatisfaction but could also be a function of the economy.

I haven't looked at all the years, but for 2011 only 22 programs were in the black. For Texas, the headline number is the 137%+ increase in "profit" (revenue less all expenses) since 2006. The way Texas runs its department has allowed them to decrease its expenses as a proportion of revenue (by about 20%) and consequently double its profit. I don't see how that could be seen as anything but a win.

Everybody knows Mack is the highest paid coach in football, but we also make a lot more money than anyone else. Ranking the 99 programs for which the data is available, Mack's salary as a percentage of program revenue ranks #21 (and #7 for profitable programs), behind Ole Miss, North Texas, Utah, Georgia Tech, Mississippi State, Mizzou, Boise State, Iowa, South Florida, Arkansas, Oklahoma, Alabama, Rutgers, NC State, LSU, Cal, FSU, Va Tech, Houston and Texas Tech. So as a percentage of revenue, we're getting a lot better deal than a lot of schools -- I would bet you would not want a coach from half those programs.

Here are the numbers from profitable schools for 2011:

School Conference Total Revenue Total Expenses Profit/Loss Less Subsidy Coach Salary Salary/Revenue Salary/Profit Profit Rank
Penn State* Big Ten $116,118,025 $101,336,483 $14,781,542 $ 1,022,794 0.88% 6.9% 1
Kansas State Big 12 $69,947,834 $46,549,248 $20,106,935 $ 1,925,000 2.75% 9.6% 2
Ohio State Big Ten $131,815,821 $122,286,869 $9,528,952 $ 1,172,000 0.89% 12.3% 3
Purdue Big Ten $66,202,493 $59,429,383 $6,773,110 $ 925,000 1.40% 13.7% 4
Oklahoma State Big 12 $82,631,915 $66,937,207 $9,507,375 $ 2,100,000 2.54% 22.1% 5
Texas A&M* Big 12 $87,296,532 $78,310,805 $8,975,871 $ 2,201,000 2.52% 24.5% 6
LSU SEC $107,259,352 $91,796,925 $15,462,427 $ 3,856,417 3.60% 24.9% 7
Florida SEC $123,514,257 $107,157,831 $11,989,355 $ 3,221,000 2.61% 26.9% 8
Michigan Big Ten $122,739,052 $111,844,553 $10,621,815 $ 3,254,000 2.65% 30.6% 9
Texas Big 12 $150,295,926 $133,686,815 $16,609,111 $ 5,193,500 3.46% 31.3% 10
Alabama SEC $124,498,616 $105,068,152 $14,195,164 $ 4,833,333 3.88% 34.0% 11
Arkansas* SEC $91,768,112 $79,392,988 $10,524,624 $ 3,638,000 3.96% 34.6% 12
Georgia SEC $92,341,067 $80,759,498 $8,384,182 $ 2,939,800 3.18% 35.1% 13
Oregon PAC-12 $85,819,699 $76,274,142 $7,125,702 $ 2,800,000 3.26% 39.3% 14
Tennessee SEC $104,368,992 $97,580,406 $5,788,586 $ 2,330,591 2.23% 40.3% 15
Oklahoma Big 12 $104,338,844 $94,363,928 $9,974,916 $ 4,075,000 3.91% 40.9% 16
Iowa Big Ten $93,353,561 $88,057,486 $4,731,395 $ 3,785,000 4.05% 80.0% 17
Mississippi State SEC $58,981,769 $51,588,743 $2,573,373 $ 2,500,000 4.24% 97.1% 18
Kentucky SEC $84,878,311 $82,840,006 $1,219,181 $ 1,702,489 2.01% 139.6% 19
Nebraska Big Ten $83,679,756 $81,916,484 $1,763,272 $ 2,775,000 3.32% 157.4% 20
South Carolina SEC $83,813,226 $80,525,711 $1,039,240 $ 2,828,000 3.37% 272.1% 21
Illinois Big Ten $77,863,883 $73,476,818 $403,425 $ 1,753,500 2.25% 434.7% 22

*replaced coaches this year

Obviously, Penn State will be falling off this list, moving everyone up one spot. Here, we're ranked #10 - and in the neighborhood of Florida, MIchigan and Alabama and substantially ahead of Georgia, Oregon, Oklahoma, and Nebraska. I'd say on these metrics, we're getting a pretty good deal. Would I love to be Alabama or Oregon? Sure. But don't let the perfect be the enemy of the good -- there are a lot of schools that do a lot worse than we do.

All comments, FanPosts, and FanShots are the views of the reader-authors who create them.

X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to SB Nation going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to SB Nation going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join Burnt Orange Nation

You must be a member of Burnt Orange Nation to participate.

We have our own Community Guidelines at Burnt Orange Nation. You should read them.

Join Burnt Orange Nation

You must be a member of Burnt Orange Nation to participate.

We have our own Community Guidelines at Burnt Orange Nation. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9347_tracker