A.D. Report - Oregon State University Athletics

Here in the Oregon State Athletic Department, we value the relationship and the synergy that our student-athletes and their pursuits bring to the university. The broadcast of a three-hour football game on TV does more than just showcase the athletic program on a Saturday afternoon. It provides a highly visible portal to the university as a whole.

There’s little doubt that OSU athletics play a starring role in public perception and exposure to the entire university. Given this reality, it’s important to take a holistic view of the financial dynamics that exist between the university and the athletic department. I’d like to take this opportunity to share some important—and, I hope, illuminating—information about the topic of institutional support for athletics.

This year, the athletic department will receive a $3.7 million subsidy from the university. This year’s subsidy is down from $4 million in 2004-2005 and will decrease again to $2.5 million next year. But for every scholarship athlete we support, the athletic department pays the university back for its services--$15,000 for every in-state athlete and $25,000 for those who come from out of state. This year alone, the OSU Athletic Department will be the “surrogate parent” of nearly 350 student-athletes and pay the university $7.7 million for their tuition, fees, room, board and books. In addition to these scholarship athletes, our sports programs bring in another 150 walk-on participants, who pay their own way and bring an additional $3 million annually to university coffers.

Athletics also open the doors to the entire university in terms of donations. Between 2002 and 2005, the athletic department raised $67.7 million for sports programs and student-athletes. Members of that same donor base gave an additional $76 million to other university programs during that time period, according to the OSU Foundation.

Additionally, Oregon State athletics have a major economic impact on the greater Corvallis area. Using methodology provided by Corvallis Tourism, we determined that our events generated a $19.5 million economic impact for the local community last year. John Hope-Johnstone, CEO of Corvallis Tourism, points out that OSU sporting events are “undeniably an important part of our visitor industry and economy.” Since the Beaver football team started its resurgence, student enrollment has increased—from 13,000 in 1998 to more than 19,000 today. Additional students mean additional dollars for both the university and the local economy.

When the discussion of the institutional subsidy comes up, I sincerely hope everyone interested in this topic—from taxpayers to ticket buyers—will have a better understanding of the tangible as well as intangible benefits derived from OSU athletics. From exposure and visibility on TV to increased donations to the university and economic impact on our community, the value is truly immense with a modest investment. I would be remiss if I did not tout the invaluable opportunities our sports programs give to our 500 student-athletes each year. These students have a chance to earn their college degrees and learn leadership and life skills that will enable them take on important roles in their communities one day. I’m proud and honored that our student-athletes and their pursuits present such a positive portal to Oregon State University.