MSU’s Success in Football Crucial for Funding Entire Athletic Department

Michigan State University’s last athletic director who took its football team to the prestigious Rose Bowl Stadium was Doug Weaver who in Jan 1988 fulfilled this dream with George Perles, MSU’s football coach that year.

Mark Hollis, MSU’s present athletic director is working towards achieving the same after 20years. "The goal is that going into every year, we have that legitimate anticipation that the year could end in the Rose Bowl," Hollis remarked.

While the MSU Spartans have not had consecutive winnings since then, latest federal reports state that it was the fourth-most-profitable football program at Big Ten's in 2006-07 with a profit of $18.3 million. The first three included Michigan that made profits of $36.1 million while Penn State made $29.4 million and Ohio State made $26.6 million.

"We're all in this," said present football coach Mark Dantonio who raised everyone’s expectations with a 7-6 debut season in 2007. "It's not just the football coaches, its marketing, it's everything that goes into it. I've said from day one, it's not about one coach, one player. It's about everyone, and if we're all going in one direction, we can be ultra-successful," Dantonio added.

Though in last fall Hollis openly expressed his plans to give football priority over others, it cannot be denied that the men’s basketball team which made a profit of $6.8 million in 2006-07 under Tom Izzo’s coaching also contributed to the athletic department and as well as the university.
But with the escalating athletic budgets, it is not an exaggerated conclusion that not only MSU but other universities also need strong football programs and are therefore also investing more towards the same.

"You can't be successful anymore without football," commented Tome Izzo. "It's the only thing that gives you a chance. Indiana needs football to come around. Duke's been (OK without it), but look at Kentucky, even they've had to get football going," Izzo added.

While Duke in its efforts to transform its bad football program pays David Cutcliffe $1.5 million a year, $400,000 more than Dantonio’s annual earnings; Indiana has so far survived on its storied basketball program making more profits than football in 2006-07.

While former head coach Terry Hoeppner made $550,000 a year, IU added luxury seating to the Memorial Stadium. However with his death in death in June 2007 due to brain cancer, IU athletic director Rick Greenspan recently emphasized on football. “We need it more now than ever for a lot of reasons. There's the money requirement, and there's the cultural requirement for all our programs, it affects how donors and others feel about the school. It's too big and too important to be bad," Greenspan concluded.

While Spartan Stadium's capacity is 75,005, it is well behind Ohio State’s capacity of 102,329 and Penn State’s capacity of 107,282 clearly pointing to the cause for the differences in their profits.

While MSU’s expected season-ticket sales are surprisingly 1,000 short of its last season’s despite the team’s victory in the 2007 season; Hollis reasons that it is due to most people moving out from the state for better economic conditions.

While 19 of the 24 suites that range from $35,000 to $80,000 have already been sold for the coming season, MSU is still working towards selling all the luxury seating that was a part of the $64 million Spartan Stadium expansion in 2005.

"Am I happy with where we are? No. With the club seats revenue-wise, we're OK, as far as making our ($3.2 million annual debt) payments for the building. But you don't want to look up and see a half-full building. That's a negative,” commented Hollis.

With just 496 out of the 838 club seats sold, outer-most club seats are now available at discounted rates dropping from $4,500 to $3,000 a year due to slow openings.
"We've invested a lot into football, and when you're investing like us, it's critical that your program is successful," Hollis added.

If MSU consistently wins under Dantonio’s coaching, there is a possibility of high ticket demands that may help face tough economic conditions.

"If they max out, then at least for five or 10 years, there should be no real issues with their budget," remarked Richard Sheehan, a Notre Dame finance professor who specializes in college sports finance.