Future of Division III

[Kuiper]

Great article from Jim Abbott, a consultant for small college athletics.

Small college athletic leaders should be contemplating this scenario now. What would happen if the funding from the NCAA stopped or was dramatically reduced when the NCAA's current television agreement expires in 2032? For Division 2 and 3 schools this would likely require an increase in the amount of conference dues paid (or a decrease in services provided for the conference) and additional budget dollars available for post-season travel. In short, the cost of doing business would increase significantly for schools that are already facing enrollment drops and budget cuts. For the most successful schools, post-season travel alone could become a $500,000 or more annual expense.



Many small college athletic departments are already underfunded. It's not uncommon for a coach to face the reality of having to raise funds (in some cases 50%-60%) just to cover the operating costs of their program. Even the best funded programs face the challenge of maintaining their current operating levels while trying to figure out how to recruit student-athletes in the "pay for play" era. Something has to give.



Imagine sitting at the table for your annual budget committee meeting and telling the CFO (who has already asked you to cut 8% from your budget) that you need an increase of $10,000-$20,000 for conference and national dues and $300,000 for post-season travel. You'll find out very quickly how much importance your institution places on competitive success because the reality is that virtually none of our institutions is prepared or even able to fork over that kind of money.

Whether there is a precipitous drop in the NCAA funding model or not there is no denying that significant changes are on the horizon for small college athletics. The question is, should you wait until your circumstances force you to address this or should you be planning for this eventuality now?

As we look to determine the future of small college athletics, the only certainty is that there will continue to be changes. Much like we have continued to see again this year, colleges and universities will continue to close, enrollment is predicted to continue to drop, and the financial pressures will continue to mount. The future for those schools that survive and the ones that thrive most likely will have very little to do with athletics. Here's hoping that small college leaders come together now with some of their peers in Division 1 to start envisioning a strategy that helps as many schools navigate the coming storm as safely and proactively as possible.

[Ron Boerger]

While this was not the point of the post:

According to that audit, Averett's endowment was worth $24.7 million. Of that, $24 million was restricted to certain purposes based on the instructions of donors, while just $637,000 did not have such restrictions.


I know most of the money in all endowments is restricted, but I've seen like 75% to 80%, not 97%. That seems like a big time failure of the philanthropy people to generate gifts for the general fund.

Agreed; however, equally (possibly more) likely is that they already spent all the unrestricted money because they could do so.

[jknezek]

While this was not the point of the post:

According to that audit, Averett's endowment was worth $24.7 million. Of that, $24 million was restricted to certain purposes based on the instructions of donors, while just $637,000 did not have such restrictions.


I know most of the money in all endowments is restricted, but I've seen like 75% to 80%, not 97%. That seems like a big time failure of the philanthropy people to generate gifts for the general fund.

Agreed; however, equally (possibly more) likely is that they already spent all the unrestricted money because they could do so.

This has got to be the most likely case. Every year W&L, and every other D3 school my family has undergrad or grad degrees from, calls looking for money from alumni. Those donations are always for the general fund.

You can't tell me that Averett essentially raises nothing every year and always has. They must have spent it. Likely the crux of the legal filing.

[y_jack_lok]

ODAC has some problem children between Averett and Guilford. There are a few others that I would look real closely at before writing a check for my kid.

It was this past fall, I think, that there were some posts on the ODAC boards about financial issues and personnel discontent at Lynchburg. Are you thinking of any others?

[jknezek]

ODAC has some problem children between Averett and Guilford. There are a few others that I would look real closely at before writing a check for my kid.

It was this past fall, I think, that there were some posts on the ODAC boards about financial issues and personnel discontent at Lynchburg. Are you thinking of any others?

I think Lynchburg will be ok. Thinking more of Sweet Briar or EMU. Schools very dependent on tuition and relatively small endowments.

[Hawks88]

Great article from Jim Abbott, a consultant for small college athletics.

Good article. That name is familiar so with a little googling I see that this Jim Abbott is the one I know. He's a Huntingdon graduate and was a baseball teammate of mine in the '80's. He was a long-time AD at Oklahoma City University before retiring several years ago.

[CNU85]

ODAC has some problem children between Averett and Guilford. There are a few others that I would look real closely at before writing a check for my kid.

It was this past fall, I think, that there were some posts on the ODAC boards about financial issues and personnel discontent at Lynchburg. Are you thinking of any others?

I think Lynchburg will be ok. Thinking more of Sweet Briar or EMU. Schools very dependent on tuition and relatively small endowments.

I found some info on EMU. In this report is a graph that provides a Financial Strength Score from the Council of Independent Colleges. Based on that one metric, they seem to be stable.

EMU President's Report 2024