Self-funded UW Athletics a Boom for Economy
A legislative column by Senator Mary Lazich (R-New Berlin)
 
It is a good time to be a Wisconsin Badgers fan.  The Wisconsin football team won its second consecutive Big Ten Conference championship in a thrilling game against Michigan State earlier this month.  January 2, 2012, the tenth-ranked Badgers will play the Rose Bowl, one of the most prestigious college football bowl games in the country, for the second straight year and the fourth time since 1999.

The Wisconsin men’s cross country team recently won its fifth NCAA national championship with an unbelievable streak of 13 consecutive conference championships.
 
The women’s hockey team won four NCAA national championships during the last five seasons, and is ranked number one in the country.
 
All told, the University of Wisconsin fields 23 teams, 11 men’s and 12 women’s, in NCAA intercollegiate athletics.  The business of intercollegiate athletics is just that, a business.  A big business.
 
Saturdays during fall, 80,000 fans fill Camp Randall Stadium to watch the University of Wisconsin football team.  At an average ticket price of $46 dollars, it is $3.68 million in ticket sales alone each game. 
 
According to its 2010-2011 annual report, the University of Wisconsin Athletic Department has a $88 million budget for the 2011-2012 academic year.  The budget is larger than the budgets of the State Public Service Commission and the State Building Commission, and about the same as the statewide District Attorney budget.  At first glance, it might seem a bit incongruous.  With budgets shrinking statewide, should intercollegiate athletics at a state university spend so much money?
 
The UW athletic department is self-funded.  The athletic department operating budget does not receive state aid.  During the 2010-2011 academic year, the athletic department revenues were $81.7 million, the largest chunk, $27.3 million was ticket sales, and its share of Big Ten Conference revenue was $23.3 million.  Other revenue is derived from private and corporate gifts, $13.8 million, and concessions, $6.8 million.  The athletic department’s revenue covers salaries, operating expenses, and athlete scholarships.
 
During recent years, returns on investments have been twofold.  UW teams have been very successful on the field.  On-field success leads to more merchandise sales, more paid attendance, and more television and post-season revenue.  Businesses throughout the state, including bars, restaurants, and clothing stores, benefit from UW athletics.  According to an April, 2011, study by NorthStar Economics, Inc., the UW Athletic Department has a total economic impact of nearly one billion dollars on the state of Wisconsin.  The NorthStar study revealed 8,853 jobs were created and supported, and nearly $53 million of tax revenue was generated by the Athletic Department.
 
The last line of a popular song played at UW sports games is, “When you say Wisconsin, you’ve said it all.”  The self-funded athletic department might not literally do it all; however, it has a significant impact on the state’s economy, without costing taxpayers a dime.
 
If you have comments on this or any other issue, please contact me at Sen.Lazich@legis.wisconsin.gov, www.senatorlazich.com, Senator Mary Lazich, State Capitol, P.O. Box 7882 Madison, WI 53707 or 1-800-334-1442.