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The Financial Impact of No Season for College Football

The Financial Impact of No Season for College Football

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With all of the news about the college athletic conferences (Ivy League and Patriot League) cancelling the fall sports schedule or limiting it to conference opponents only (Pac-12 and Big 10), I remembered a USA Today article I read this spring that discussed the financial impact to colleges if the football season was cancelled.

In this article published on April 14, reporter Steve Berkowitz wrote that the revenue impact for the 50-plus public schools in the Power Five conferences will be at least $4.1 billion if the 2020 football season was cancelled. Not included in the calculation was the impact to the local economies if those games were cancelled, but Berkowitz stated that it would be billions more.

Berkowitz also cited a study by the Center for Business and Economic Research at the University of Alabama, noting that an Alabama home football game has a visitor expenditure impact of $19.6 million in the Tuscaloosa area. Athletic departments would save money in areas specific to football such as the cost of staging games, paying guarantees to certain opponents, travel, meals, and snacks for athletes beyond basic board plans, equipment, medical services, and bonuses to coaches.

Similarly, Syracuse University’s S.I. Newhouse School of Public Communications worked with USA TODAY Sports to calculate the expense savings, which are approximately $520 million. After providing details regarding assumptions for ticket sales and the allocation of media rights, Mr. Berkowitz concluded that the net loss of revenue (after deducting expenses saved) would approximate $3.3 billion for the public universities alone.

It’s no wonder that the Power 5 conferences are waiting until the last minute to announce changes in the fall football schedule. In a more skeptical article written by Pete Thamel for Yahoo Sports, Thamel writes that the entirety of the plan to return to football this fall was based on a strategy of hope and that hope isn’t much of a strategy when you’re dealing with a pandemic virus with no cure in sight.

One college official in Thamel’s article is quoted as stating that as soon as one of the Power Five conferences cancels the fall football season, the rest will follow suit. Thamel writes that there is no way that 13,000 college football players can be put in a bubble similar to the NBA players and the NBA’s experiment will cost $150 million, money that is not available to most colleges.

The only optimistic note was a quote from a television executive who stated that it’s not an all-or-nothing situation: “If four or six games can be played in the fall, then maybe another six can be played in the spring.”

Based on the current situation, I’m betting few schools will play more than two games in the fall before the season is cancelled. And as Mr. Berkowitz reported, the financial impact is huge.

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Wally Boston Dr. Wallace E. Boston was appointed President and Chief Executive Officer of American Public University System (APUS) and its parent company, American Public Education, Inc. (APEI) in July 2004. He joined APUS as its Executive Vice President and Chief Financial Officer in 2002. In September 2019, Dr. Boston retired as CEO of APEI and retired as APUS President in August 2020. Dr. Boston guided APUS through its successful initial accreditation with the Higher Learning Commission of the North Central Association in 2006 and ten-year reaccreditation in 2011. In November 2007, he led APEI to an initial public offering on the NASDAQ Exchange. For four years from 2009 through 2012, APEI was ranked in Forbes' Top 10 list of America's Best Small Public Companies. During his tenure as president, APUS grew to over 85,000 students, 200 degree and certificate programs, and approximately 100,000 alumni. While serving as APEI CEO and APUS President, Dr. Boston was a board member of APEI, APUS, Hondros College of Nursing, and Fidelis, Inc. Dr. Boston continues to serve as a member of the Board of Advisors of the National Institute for Learning Outcomes Assessment (NILOA), a member of the Board of Overseers of the University of Pennsylvania’s Graduate School of Education, and as a member of the board of New Horizons Worldwide. He has authored and co-authored papers on the topic of online post-secondary student retention, and is a frequent speaker on the impact of technology on higher education. Dr. Boston is a past Treasurer of the Board of Trustees of the McDonogh School, a private K-12 school in Baltimore. In his career prior to APEI and APUS, Dr. Boston served as either CFO, COO, or CEO of Meridian Healthcare, Manor Healthcare, Neighborcare Pharmacies, and Sun Healthcare Group. Dr. Boston is a Certified Public Accountant, Certified Management Accountant, and Chartered Global Management Accountant. He earned an A.B. degree in History from Duke University, an MBA in Marketing and Accounting from Tulane University’s Freeman School of Business Administration, and a Doctorate in Higher Education Management from the University of Pennsylvania’s Graduate School of Education. In 2008, the Board of Trustees of APUS awarded him a Doctorate in Business Administration, honoris causa, and, in April 2017, also bestowed him with the title President Emeritus. In August 2020, the Board of Trustees of APUS appointed him Trustee Emeritus. In November 2020, the Board of Trustees announced that the APUS School of Business would be renamed the Dr. Wallace E Boston School of Business in recognition of Dr. Boston's service to the university. Dr. Boston lives with his family in Austin, Texas.

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