The University of Memphis men’s basketball program raises 20 percent of the entire athletic department budget, according to the 2002-2003 U of M budget.
The document notes that the basketball program brings $4 million into the school’s coffers. Student fees account for $1.8 million and the football team is the second highest producing program bringing in approximately $1,518,000.
The basketball program’s figure does not include income from sources like television income, conference guarantees and game guarantees.
Television money is generated largely by the basketball team’s appearances on ESPN, ESPN2 and other network appearances. Conference USA gives The U of M $800,000 in revenue from NCAA tournament appearances by conference members, football bowl agreements and television deals.
The school has also budgeted $800,000 in game appearance which is money received for games played.
The men’s basketball team expects to operate on a budget of $2,857,837 for a net profit of $1,142,163.
Women’s athletics are expected to have a large deficit margin. Their projected budget to field teams in basketball, volleyball, tennis, golf, track and soccer is $2,880,637. The expected incoming revenues are only $73,630.
It is not unusual for one part of an athletic program to carry the financial burden for a university.
Tigers head basketball coach John Calipari understands that.
“At most schools, football carries the bulk of the load because football has bigger arenas,” Calipari said. “But it has been basketball at Memphis for a long time.”
Calipari said he believes The U of M football program will become successful and that in turn will increase revenues.
The U of M generates cash from a type of seat license similar to that of NFL teams. Season ticket buyers get priority based on the amount of their donations.
For example, someone who donates $25,000 to The U of M will receive preference on where their season seats are located such in the lower bowl of the Pyramid or box seats at the Liberty Bowl.
A point system is also in place that credits potential season ticket holders based on several factors. If fans buy season tickets for football, they receive points towards their status on other season ticket purchases.
According to the Tigers athletic Web site, points are awarded for continuous season ticket purchases in each sport, Tiger Clubs donations, continuous years of Tiger Clubs membership and points per $100 donation. Points are also awarded for membership in groups like the Highland Hundred and The Rebounders, alumnus/alumna and U of M faculty or staff.
There are seven levels of Tiger Club memberships that raise money to supplement the budget. People who buy basketball and football season tickets are given priority on their tickets using this system.
The lowest level is the “Tiger Associate” earned by making a $50 annual donation. The highest level is Platinum Tiger, which requires a $25,000 annual donation.
Kevin Grothe is the Assistant Athletic Director for External Affairs and coordinates the Tiger Clubs fundraising. This year his staff raised a record $4.3 million in Tiger Clubs donations.
“We are very happy with what we’ve done this year,” Grothe said. “But we also know that we’ve got to keep cultivating our donor base.”
The additional money comes from other sources including the Ambassador program. Ambassadors donate $500,000.
The money raised goes directly into the athletic budget as part of the gifts section of the athletic department’s budget, which is $6,618,500 for the 2002-2003 fiscal year.
