From the basketballs bouncing off the floors of gleaming courts to the footballs sailing across the end zones, sports are an important and invigorating part of the college experience at Miami University. In 2010, the Strategic Priorities Task Force (SPTF) recommended the Division of Intercollegiate Athletics (ICA) reduce its dependence on funds provided by the university either through increasing its revenues outside of university support or by cutting its budget.
The recommendation specifically said ICA should reduce its dependence on university financial support by 3 percent each year until 2015.
According to Josh Fenton, senior associate athletic director of administration and finance, Miami receives about 72 percent of its athletic budget from university funds. Research done by the SPTF showed Miami and the rest of the Mid-American Conference (MAC) receive a greater proportion of their athletic budget from university funds. According to the findings, this is because Miami and the MAC participate in Division IA sports, which include costs required by the National Collegiate Athletic Association (NCAA).
Fenton said ICA is in a more unique position than other departments on campus to generate its own revenue.
"We have multiple areas to generate revenue," Fenton said. "We have the ability to sell more tickets, the ability to increase our donations and a little bit of ability to increase sponsorship revenue. Then we have some opportunities to increase parking revenue streams, concession revenue streams and licensing and merchandising royalty revenue streams."
Fenton said ICA has been successful in generating revenue outside of the university.
"Over the past five years, three of those five have been our highest annual giving years," Fenton said. "Our ticket revenues for the three primary sports (football, ice hockey and men's basketball) remain at an all-time high. Over the past 10 years we've been able to generate revenue."
He said the goal has been to decrease the percent of subsidy, or university funds, that athletics receives from Miami. Fenton also said ICA is on track to meet the budget reductions recommended by the SPTF by fiscal year 2015.
David Creamer, vice president for Finance and Business Services, said the final report of the SPTF called for ICA to reduce its budget, and therefore support from university funds, by $750,000 by fiscal year 2014 and another $750,000 by fiscal year 2015 for a total of $1.5 million in reductions.
The portion of the ICA budget that comes from student general fees is $15 million for fiscal year 2011-2012, according to the 2011-2012 Miami University Operating Budget. An individual student this year pays $917 to support ICA out of his or her general fees.
Creamer said over time, there may be slower growth of student fees as ICA and other areas on campus reduce their budgets, but for the present, student fees will remain the same and go toward other priorities on campus.
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Creamer said the report did not dictate how the reductions should occur, but simply indicated the amount. According to Creamer, there were discussions about decreasing the number of sports offerings or withdrawing participation in Division I in order to reduce ICA's costs long-term, but these possibilities were turned down.
Creamer said another committee was formed this fall to look at the athletics budget.
"Earlier this fall, [Miami University President David Hodge] formed a committee to look at how to bring about reductions in funding," Creamer said.
The report issued by the SPTF also said if the desired revenue growth was not possible, Miami should seriously reconsider its membership in the MAC. However, Fenton said Miami is committed to the MAC.
"Our commitment is to the Mid -American Conference at this time. We are proud members of the MAC with a membership that goes back almost 50 years," Fenton said.
Fenton also said reductions in the athletics budget should not impact the over 500 athletes in the department.
"The one thing that we've tried to do is minimize the impact on the student athlete experience. We hope to at least have the same level of experience of three to five years ago, or even an enhanced level of experience," Fenton said.
Sophomore Jen Stewart, a skater for Miami, said that she does think Miami provides a great experience for student athletes. She said Miami strives to cultivate a "culture of champions."
"Our coaches and our staff try to develop you as a champion in life, not just in your sport," Stewart said.
Ian Joyce, a swimmer for Miami, also said what makes Miami's athletic program strong is its focus on the growth of its athletes inside and outside of their sports.
"As a whole, it's a very strong program because it's a very holistic program," Joyce said.
Both Stewart and Joyce said their athletic experiences at Miami have been incredible.
"[Athletics] teach you how to face failures, face challenges and take risks," Joyce said.
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