A-State joins a growing list of universities with low profits and high expectations when it comes to bankrolling athletics

Editor’s Note: These stories were written after reviewing the 2015 revenues and expenditures of the A-State Athletic Department posted in the NCAA Membership Financial Reporting System.

Even though the athletic department at Arkansas State University turned a small profit in 2015, every sport spent more money than they made.

It’s no secret that college football is the current king amongst college athletics and often is proven in the annual NCAA (National Collegiate Athletic Association) when all affiliated colleges submit a financial report to the NCAA.

The 65-page report details every dollar made or spent within the athletic department. A-State’s 2015 (the latest available) report shows the athletic department’s revenues were $28,054,250. The department’s expenditures were $28,011,819. In all, the department’s profit was $42,431.

A-State’s football program made the most money but it also spent the most. According to page 59 of the report, the football program made

$11,448,863. The cost of running the program, (page 60), was $14,280,007. In all, the program spent $2,831,144 more than it made.

The men’s basketball program expenses were $1,396,490. Its total revenue was $950,933. The women’s basketball expenses were $1,322,237. Its total revenue was $511,485.

Collectively, baseball, bowling, golf, soccer, tennis, track and field and cross-country, and volleyball spent $4,749,579. The revenues totaled $2,645,272.When examining the numbers, one question arises: How does the department turn a profit when every program spends more than it makes?

A-State Athletic Director Terry Mohajir said the answer is simple.

“We raised it. It’s all private dollars,” he said.

The Red Wolf Foundation, an organization that raises money through donations, is responsible for much of the financial success of the department.

Mohajir added that the foundation helps the department turn a profit. The donors also are responsible for new buildings on campus including the Student Activity Center.

“The university should be proud that we have a bunch of committed alumni that were willing to step up to help us build new facilities,” Mohajir said. “We should really thank our alumni and donors for helping us. No state money was used in the building of the Student Activity Center.”

In similar fashion, USA Today published a story containing the financial report of every NCAA division-I athletic department.

The highest-ranking schools, in terms of revenue, are Oregon at $196 million, Texas at $161 million, Michigan at $157 million and Alabama at $153 million.

However, for schools like A-State, it may seem unfair to compare finances to powerhouses like Texas and Alabama, the athletic director said. It is more reasonable to bring comparisons between local, smaller universities.

“You have to compare us to the schools our size, like Memphis, Tulsa, Tulane, SMU, Lafayette and how we compare to them budget-wise is very low,” Mohajir said.

In fact, in terms of spending to winning based on a school’s football program, SB Nation ranks A-State fourth nationally. Boise State tops the list as they have had unprecedented success over the last decade.

The same can be said for Brigham Young University and Bowling Green University. A-State falls below all three.

Even though the football program and the athletic department were in the red in terms of revenue, Mohajir said intercollegiate athletics at A-State and across the country are a necessity.

“Athletics are a way to help enrollment, boost spirit, bring revenue to the city and it provides a brand boost for the institution,” Mohajir said. “Athletics are the university’s No.1 marketing tool.”