Archive for Thursday, March 19, 2009

KU men’s basketball team ranks as fifth most valuable on Forbes list

Kansas head coach Bill Self signs autographs for kids as the Jayhawks leave the court following practice Thursday, March 19, 2009 at the Metrodome in Minneapolis.

Kansas head coach Bill Self signs autographs for kids as the Jayhawks leave the court following practice Thursday, March 19, 2009 at the Metrodome in Minneapolis.

March 19, 2009

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KU basketball ranked fifth-most valuable by Forbes

Forbes ranked KU's men's basketball program the fifth-most valuable in the nation. Enlarge video

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Having a good basketball team isn’t just good fun. It pays good money, too.

Riding the wave of a National Championship, Kansas University’s men’s basketball team has been ranked the fifth most valuable in the nation by Forbes magazine.

The magazine placed a value of $21.7 million on the team this year, and said the team moved up three spots from last year in the magazine’s annual rankings.

Only four programs were ranked more valuable than the Jayhawks.

The University of North Carolina topped the list, at a worth of $25.9 million. Other teams in front of KU in the rankings were the University of Kentucky, $25.4 million; the University of Louisville, $24.1 million; and Indiana University, $22.3 million.

The magazine pointed to ticket sales, merchandise revenue and a financial television windfall for winning the national title in 2008 as elements that raised revenue for the Jayhawks.

“We’re obviously pleased, as are the fans, with the success of the team,” said Jim Marchiony, a KU athletics department spokesman.

He said he had not seen the rankings, and could not address the specific figures outlined in the magazine.

Those figures included:

• $10 million in gate receipts from home games, and an overall operating income (meaning revenues minus operating expenses) of $12.9 million.

• $2 million for basketball-related merchandise royalties, including Final Four and National Championship wares.

• $1 million more in television revenue than a typical conference member for winning the national title.

The University of Missouri fell off the magazine’s top 20 this year after its operating income fell 17 percent, to $8.1 million, when the team failed to qualify last spring for the NCAA Tournament.

The magazine reported income from ticket and concession sales, basketball broadcasting and sponsorship agreements, scheduling guarantees, money generated from hosting pre-season tournaments and donations required to purchase season tickets.

Most expenses came from coaches’ compensation, travel expenses and game day costs.

KU was the only Big 12 Conference school in the Forbes list of the top 20 programs.

“The state of Kansas basketball is good, and has been good for decades,” Marchiony said.

Comments

hawkman8950 6 years, 1 month ago

Wow way to do the math there buddy. Ranked 5th, it would go without saying there are 4 more teams ranked ahead of KU in worth

booze_buds_03 6 years, 1 month ago

This comment was removed by the site staff for violation of the usage agreement.

TopJayhawk 6 years, 1 month ago

Again, the team is a money maker, not a money taker.

63BC 6 years, 1 month ago

Good point, TopJayhawk.

Folks need to remember that. Winners---Self, Mangino, Perkins---are worth every penny and more.

If anything, on a strictly economic basis, each of those guys can be said to be underpaid.

hawkman8950 6 years, 1 month ago

Kinda already knew that there Troogrit. Pretty sure my message also didn't convey anything else bad about the listing of KU basketball as 5th on the list. It is the columnists redundancy and obviousness that i am picking on. I can understand dumbing it down but there are some of us that can figure it out on our own. Like, currently KU is at least in one poll 13th. I wouldn't go off and say, "KU is ranked 13th with 12 teams ranked ahead of them", now would I?

Richard Heckler 6 years, 1 month ago

The question: why is Lawrence needing to raise property and other taxes and user fees so often?

USD 497 teachers could use a bonus.

There are $16 million in repairs due to our elementary schools.... come on KU help out a little bit.

Where is the money?

Chris Ogle 6 years, 1 month ago

Wow, I had no idea KU Basketball could bring in that kind of money... $21,700,001.00..... (dropped a dollar last month on a bet)

yourworstnightmare 6 years, 1 month ago

KU sports is a very professional, successful organization geared toward excellence and success. If only the rest of KU could follow their lead.

Let's not forget that the sports teams still use many KU resources, including the stadiums and the practice facilities. These are subsidized by the university.

I agree that KU sports is likely a money-maker, but less clear is where that money goes. My suspicion is that KUAC keeps most of the money and very little goes back to the university for use of facilities, land, HVAC, etc.

repaste 6 years, 1 month ago

don't think that includes state buildings, Allen, parrot center, etc. What is athletic dept.budget? How much Allen rehab? New building to the west? Does that include Self's $2,500 hr recruiting trips? How about city cost's, traffic etc?

Michael Stanclift 6 years, 1 month ago

@merrill So KUAC should be giving money to USD 497 from the basketball program? That is a stretch, even for you.

kujayhawk 6 years, 1 month ago

Pretty impressive Indiana is on that list. Out of all the teams, they are the only one that sucks.

repaste 6 years, 1 month ago

I think a little sharing between athletic department is not crazy, The $10,000 the guy pays to sit at Allen comes right out of my tax pool, we pay more to make up.

kujayhawk 6 years, 1 month ago

They do give back, in terms of paying for scholarships and free advertising for the university. Plus, It's not a coincidence that enrollment increases the more success the basketball and football teams have.

Confrontation 6 years, 1 month ago

KU gets the publicity from the Athletics Department. That is more valuable than any other marketing project.

bangaranggerg 6 years, 1 month ago

We could have been fourth, but everyone bought unlicensed Muck Fizzou shirts from Joe College, way to go guys... I'm pretty shocked Indiana is there ahead of us. They haven't been good in so long, it must be that they make more money by paying their players less.

flux 6 years, 1 month ago

Lawrence is the home to Ku. Ku is not the home of Lawrence. Its time to put things in perspective.

Sharon Aikins 6 years, 1 month ago

I'm still trying to figure out what an individual pays for tickets or whatever comes out of the tax pool for us to make up? He buys the tickets, the merchandise, makes the donation, etc. out of his pocket. I'm guessing he also pays property taxes on his home that are unrelated to anything he gives or buys from KU.

KUAC makes a lot of revenue and even if they don't give a penny back to the community, it comes back to us in other ways. People come to town, eat, shop, stay in motels, buy gas, etc. Then all those students we attract spend a lot of money in Lawrence. No, they don't pay property taxes, excepting those who pay it in rent, but they do put a lot of money into the local economy.

I usually don't defend sports programs but we have to look at it as a business. The last I heard, businesses weren't responsible for funding our local school distrct. Maybe the city and the county should conduct their business more like KUAC and be more accountable to those of us who make our yearly "donations" to them.

lovenhaight 6 years, 1 month ago

Why do some of you feel that Kansas Athletics owes you something? Lawrence wouldn't be all that spectacular without KU, and a big part of KU's draw is the amazing history behind our basketball program.

EasilyAmused 6 years, 1 month ago

Actually NCAA regulations prohibit college sports programs from giving high schools money (could be used as a recruiting ploy). Besides, KU is supported by state tax revenues, not by local taxes. So, if KU were to (and could) give back, they should technically give money to all the 1421 public schools (and maybe the 213 private - those parents pay state taxes too). Besides, they did boost Lawrence economy and Lawrence City Government coffers last year through sales tax through beer, liquor and food sales, as well as increased sales of commemorating merchandise and increased tourism commerce.

Linda Aikins 6 years, 1 month ago

geez redmoon, as I read your posts, I believe the athletic department paid for your spouse's college, didn't it? You should defend it because it allowed him an education which otherwise he woudn't have been able to afford, right?

repaste 6 years, 1 month ago

Athletic dept. deductions are tax deductible, that means less revenue. Ku's enrollment increase had nothing to do with national championship - look up the numbers, most of increase came from doubling the nursing school size, been awhile but i believe freshmen enrollment was flat, or dropped.

repaste 6 years, 1 month ago

It is not a knock on athletic dept. - I like KU ball - I just don't think we should kiss their rear.

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