University of Akron: Suggested change in division status could prove expensive proposition - Akron Beacon Journal

Data suggest a move by the University of Akron from Division I status to Division II would be complicated and, ultimately, expensive.

The Akron chapter of American Association of University Professors (Akron-AAUP) requested UA officials entertain such a proposition in a position paper released last week.

As $65 million is culled from a budget of $325 million in the coming days, the professors union recommended that UA pursue more cuts to the athletics department, including moving to Division II or cutting football altogether.

UA’s athletic operating revenue totals more than $37 million, according to its annual report to the NCAA. Overall expenses for the year were $37 million, which included $26 million in direct institutional aid.

Much of the $11 million in revenue generated from actual sports teams comes courtesy of the football team through income from payments from away games and media rights from the Mid-American Conference’s broadcast contract with ESPN ($1 million, according to reports) and its family of networks and the school’s multimedia rights from Learfield IMG locally ($500,000).

The athletics department already knows it will take a $4.4 million cut to its direct institutional aid, which contributed to the loss of three teams. The department is due to take more hits with the next round of cuts, which will be announced in the coming days.

However, a move to change UA’s division status could result in more financial strain because of existing contracts.

Maintaining Division I status benefits the university, Director of Athletics Larry Williams said.

"For one, it provides a financial return that can't be found outside of the Power 5 [conferences]," Williams said. "And then two, when you look at the value proposition, it provides us exposure that likewise can't be found outside of the Power 5."

Crunching the numbers

To extricate itself from the MAC with the necessary two years’ notice, UA would be required to pay a $2.5 million exit fee. In the second year of that notification period, the university would not maintain eligibility for the annual conference distribution payment, which totaled more than $2 million in 2019, according to UA’s annual NCAA finance report.

If less than two years’ notice is given, UA would be required to pay an additional $50,000 per month remaining to the planned departure.

If the football team were to dissolve or change status, the penalties could be more severe as that sport, along with men’s and women’s basketball and volleyball, are required for MAC membership.

Crunching the numbers Part II

Those prospects aside, future contractual obligations would represent a significant financial liability. Game against the likes of Clemson, Ohio State and other Power 5 schools can be a financial boon for an athletics department or, if canceled, can sink a budget. Through 2027, UA would be responsible for $12.7 million if contracts are broken, according to the university.

For example, games against those high-profile teams guarantee huge paydays and they are often scheduled years in advance. UA is already scheduled to play the University of Kentucky in the 2026 season.

"There is an assurance by both sides that they will be full members of Division I," Williams said "If we dropped out … you're going to be in violation of that contract, and there's very specific damage clauses in there. So, we faced that, but aside from that, we're walking away from cash that you can't get anywhere else. Next year, we play Auburn and Ohio State for $2.6 million," Williams said.

Additionally, in dropping down, UA would lose NCAA and media rights payouts — money that’s likely upward of $5 million per year.

Akron-AAUP was aware of that, said Kate Budd a UA professor who is a member of the unit’s negotiating committee. She said their proposal, sent to the university last week, took the numbers related to game guarantees into consideration and doesn’t call for the moves immediately.

"I can tell you that we've lost 151 faculty since 2016, and as our academic programs are the reason students come here, and are the revenue-generating side of the university, we believe that the university should be fighting to protect them — not athletics," she said in an email.

Williams argues that such changes present more of a financial problem and burden to the university.

If you build it …

UA ticket revenue and football contributions totaled $322,893 in 2019, as InfoCision Stadium hasn’t held the field of dreams sway on fans that many hoped or expected.

According to the NCAA bylaws, teams must "average at least 15,000 in actual or paid attendance for all home football contests over a rolling two-year period."

Anyone who has attended Zips games can attest to the fact that UA has not come close to that number for most home games.

The problem isn’t unique to UA. Its home conference joined with the other "G5" Group of 5 schools — American Athletic Conference, Mountain West Conference, Sun Belt Conference and Conference USA — in petitioning for relief from a variety of requirements, including attendance.

Some of UA’s attendance issues stem from scheduling midweek games in November to satisfy the obligations of their television contract. Most of it comes from consistently fielding a losing football team, with the notable exception of the team that played in the Famous Idaho Potato Bowl in 2015.

Football, in particular, powers the rest of the athletic department economically. A consistently successful team with a reliable attendance that could generate the ancillary income — concessions, parking, merchandise sales — could represent a boost overall to the athletic program.

Is it a be-all? Probably not, considering NCAA data. In 2018, there were just 29 self-sufficient athletic programs nationwide. Direct institutional aid for athletics programs represent the rule, not the exception.

It should be noted that the use of InfoCision Stadium isn’t exclusively for football, Williams said. The school’s esports team, which is not under the purview of the athletics department, and assorted classroom space operate in its halls. Additionally, intramural and club teams use the facility.

It’s an asset, as is offering Division I sports — especially football, according to some fans.

Prestige factor

Ed Dumire, 71, is a season-ticket holder for UA athletics who lives on the West Coast and travels to attend games a couple of times a year.

"There is a prestige thing, but I think it's kind of an unrealistic prestige thing because in the case of Akron right now, there's no prestige in going 0-11 [actually 1-11] for three years in a row," said Dumire, who is retired. "So, I don't know. But I suppose you could say it's fair to go 0-11 and be Division I, than it is to go 10-2 or something in Division II. So, yep, I think there is some prestige factor."

Dumire said the best avenue for G5 schools might be to form their own league.

Tom Kozma, a 61-year-old season-ticket holder and UA alum with ties to the university dating back to the 1960s, said he’d feel as if he lost the program if it were to go down a division.

"I [would’ve] lost the program that I've watched build up over the years. I was a fan back in the late ’60s, early ’70s when they were Division II, if you will, I guess they were considered college division then versus university division," Kozma said. "It was neat being in basketball, being in the Mideast Regional, being in the national championship game. But it was still small time."

Other head winds

The coronavirus pandemic is driving some of these problems. However, UA has lost about 30% of its overall attendance from its apex of 29,251 students in 2010. Last fall, there were 19,217 students, a downward trend that’s likely to continue given the current situation.

Athletics, however, will take another hit courtesy of the virus if fall sports — particularly football — cannot be played. A huge payday of $1.1 million for taking on Clemson looms on Sept. 19. Losing the revenue would blow another hole through the athletics department budget — one for which there currently are no answers.

George M. Thomas can be reached at gthomas@thebeaconjournal.com. Read more about the Zips at https://ift.tt/2BwfjNV. Follow him on Twitter at http://www.twitter.com/ByGeorgeThomas.

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