The fact that an organization like Alabama Athletics can make that much of a profit is the problem. It drives a HUGE gap between those select 25 schools that turn a "profit" versus the rest of the FBS schools. This imbalance ends up taking resources AWAY from academics across the country.
For example, the Northeast Ohio Media Group reported that the state's six Mid-American Conference schools student athletic fee is up 24 percent in five years, almost double the increase in the cost of tuition, books, room and board at the same schools. At each school, more is spent on coaching and staff salaries than on athletic scholarships.
At the six Ohio MAC schools, pay and benefits for men's basketball coaches increased 58 percent over the last 5 years to an average of $502,000 a year, and football coaches 34 percent to an average of $560,000. The MAC isn't alone. Between 2005-2006 and 2011-2012 Division I basketball coaches’ median pay more than doubled, even after inflation is taken into account and football coaches’ earnings rose 93 percent.
According to the Knight Commission, schools outside the P5 spend, on average, 3X to 4X more on individual athletes (includes coaching salaries) than regular students. This is coming straight out of the university coffers. By the way, the trends suggest the disparity is growing. From 2005 to 2015, spending on general students increased 40% while university "general funds" spending on athletes rose 141%...roughly 3.5X the rate. Same schools, but looking at 2012 to 2015, spending on general students is up 9% while university "general funds" spending on athletes rose 35%, about 3.9X increase.
It's a simple domino effect. Those schools that generate "profit" can "afford and justify" salary increases, but when they do so, it creates a demanding culture. Can't win? No problem, we will go hire the next great coach. To combat that, schools that are not generating a profit, try to create a compensation package that is "market friendly" and looks to students to foot the bill. It's the complete opposite of the mission of higher learning.
