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NCAA Sanctions Could Sting In More Ways Than One

Alexandra Tilsley |
June 28, 2010 | 11:19 a.m. PDT

Staff Reporter

USC Trojan Football flag.
USC Trojan Football flag.
It’s no secret that the recently announced NCAA sanctions are a huge blow to USC’s football program – but chances are there are a few people outside the athletics department that are concerned, as well.

USC prides itself on being more than just a football school, but that doesn’t mean that problems in the athletics department are limited to the athletics department. Here are a few consequences of the NCAA sanctions beyond the immediate effects on football players and Trojan fans.

-    Fund raising: Fund raising is a critical component of USC’s operating budget. In 2009, USC ranked 7th in the country in fund raising, bringing in $368.98 million. And this money is critical – without gift revenue, USC’s operating income (the money left after expenses) would be negative. There’s no guarantee that the sanctions will mean a drop in giving, but it’s a definite possibility. There’s a whole lot of uncertainty right now: the football team is coming off a rough season, Lane Kiffin, the new coach, is a bit of a question mark, players are transferring, recruits are reconsidering and the program will be in the midst of appealing the NCAA’s ruling. Throw in the fact that support for Mike Garrett, the University’s athletics director, is waning, and it wouldn’t be surprising to see some donors step back for a year or so as they wait to see how things shake out.

-    Pac-10 payout: Simply put, teams that win get more money. According to IRS forms, USC received $11.4 million from the Pac-10 in 2007. It’s unclear how much of that $11.4 million is bowl-related, but it is clear that USC received more money than any other team in the conference. UCLA received the second-highest payout - $9.2 million. It’s also worth noting that the Pac-10 could ask USC to return its $3 million in bowl payouts from 2004 and 2005, the seasons in which the violations occurred.

-    Sales: The immediately obvious consequence here is ticket sales – who’s going to want to buy tickets to see a team with no shot at a bowl appearance? This won’t matter much this year, since most students and season ticket holders are already locked in. But if the sanctions hold and USC has to endure a second bowl-less year, a drop in ticket sales wouldn’t be unfathomable.

There are other sources of revenue that could take immediate hits. First off, don’t expect the No. 5 jerseys to continue selling quite as quickly as they have in previous years. (Granted, there might be some jump in revenue if disappointed fans are looking to replace their Reggie Bush gear.) But in general, sales of Trojan gear jump when the team is good and drop when things aren’t going so well. Plus, with no bowl appearance, the University won’t have a chance to market its special bowl gear, which is bound to hurt a bit.



 

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