In 2007, Indiana University was still generating profits but not as much as it is making today. Then, its operating revenues stood at $46 million, but in 2017, it made history by reaching over $100 million for the first time when it earned over $106 million. Of this figure, the men's basketball team contributed $ 23,469,814. Unfortunately, as the revenues grew, so did the expenses and while the total sports expenses were $66,834,200, the men's basketball expenses during the 2015-16 fiscal year were $12,272, 275. In 2017, although the revenues grew from $57 million about ten years ago to reach over $106 million, the expenses were $106, 131,819 leaving a net of a little more than $7000.
With such growing expenses, it is crucial the school comes up with ways to generate more revenues through its various sources. So, are you wondering how much does Indiana basketball bring in annually to create such a historical record? Here is a sneak peek to get you a clear picture.
Apparel contract with Adidas
- Indiana University (IU) began its relationship with Adidas in 2004, and since then their partnership has proved more profitable for the school. In 2008, the school extended its contract to have Adidas pay $21 million over an eight-year lifespan.
- During the 2013-14 season, Indiana University pulled in a little less than $3.8 million. The men's basketball team is the main reason why the school benefits from the contracts since it is high-profile; thus a very attractive way for apparel sponsors to do some branding.
- In 2015, the university negotiated an extension with Adidas which was one of the biggest in college athletics. The school obtained an 81% rise from the previous deal, bringing their annual pay to $6.7 million or $53.6 million through 2024, up from $3.7 million per year.
- The terms of the contract include new uniforms to the men's basketball and school's football teams every year and an audit to ensure that the colors, cream and crimson, remain uniform across the entire 24 varsity athletic teams.
- In 2013, Cindy Simon Skjodt, an alumnus of Indiana University, and the Samerian Foundation donated $40 million to the IU athletics department. The funds were to renovate the basketball arena which was by then 42 years old.
- The renovations included a restroom, new atrium in the lobby and luxury seating additions. Besides the Assembly hall repairs, the funds were for student-athlete scholarships and to support endowments.
- In 2018, Victor Oladipo and Cody Zeller gifted the school with an unspecified amount of money but which was termed as a "major gift." The donation was for renovating the locker room area in Assembly Hall.
- Also in the remodel was Oladipo Zeller Legacy Lounge, complete with chairs, tables, a television, and high-back loungers to act as gathering space for the team. The gifts were toward a $3 billion campaign dubbed "For All: The Indiana University Bicentennial Campaign."
Media rights have continued to be a primary source of revenue for many basketball teams, and Indiana University has also benefitted from them. For instance, in 2018, the school reported almost $41 million in media rights. This amount was nearly double what they had managed to bring in in 2017 when they generated $21.7 million for the athletics department.
Royalties and licensing
Indiana University has the Office of Sponsorships, Licensing & Trademarks which serves the school by protecting and promoting its colors, marks, identifiable property and name. IU has licensing deals with over 400 companies, and since the program's inception in 1986, it has raised above $43 million in revenue. In 2018, the athletics department raised nearly $10 million in royalties and licensing, and with such funds, the school was able to hire another coach, Archie Miller for the men's basketball team.
NCAA distributions and conference distributions
The NCAA Division 1 men's basketball tourney is very profitable and could be the only thing that generates lots of money for the non-profit organization. NCAA has a basketball fund which represents about 40% of the revenue which NCAA distributes each year.
The basketball fund provides money to be allocated to Division 1 conferences depending on the performance in the Division 1 men's basketball championship over a rolling period of six years. The funds are presented to individual institutions and conferences in mid-April every year. Indiana University received $5 million in NCAA distributions as well as $12.62 million in conference distributions, in 2018.
Written by Garrett Parker
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