<p>According to a report prepared for the NCAA by an accounting professor at Transylvania University in 2007, 67 of 119 FBS (formerly Div. IA) football programs operated in the black in 2006. The average margin by which football-generated revenues exceeded expenses at those 67 financially successful programs was $8.7 million. On the other side of the ledger, the remaining 52 FBS football programs lost an average of $2,520,000 (measuring football-generated revenues against football-related expenditures, and not including student fees or other forms of subsidy from external sources). On balance, then, FBS-level college football is financially successful at a majority of FBS schools, but financial success is not spread evenly.</p>
<p>It’s another story at FCS and Division III schools, where football almost universally loses money and, like other intercollegiate sports, must be heavily subsidized. The difference is that FBS-level schools, especially those in BCS conferences (and Notre Dame, an independent) have lucrative television contracts, as well as larger stadiums, higher ticket prices, more revenue from things like concessions, parking, corporate sponsorships, and product licensing agreements, and bowl revenue (most of which is pooled within the conference and distributed to all member schools).</p>
<p>There’s a lot of confusion about this owing to failure to make these distinctions. Football is a money-maker, but pretty much only at FBS-level schools in BCS conferences (and Notre Dame). Everywhere else it’s a losing proposition financially—just like virtually all other intercollegiate sports. Only at a small handful of schools–19, I believe, at last count—is football profitable enough to pay the expenses of all intercollegiate sports, and thereby make intercollegiate athletics as a whole self-sustaining. But that’s a very different question. Men’s basketball is the only other NCAA intercollegiate sport that pretty consistently produces positive net revenue, though the revenue and profit margins are much smaller there than in football. Ice hockey is also a money-maker at a few schools, but on average is a net loser.</p>
<p>Women’s basketball is the biggest financial drain, with an average net loss of $1.3 million/yr. Other big money-losers include women’s ice hockey, crew, swimming, field hockey, lacrosse, soccer, track & field, cross-country, volleyball, gymnastics, equestrian, wrestling, baseball, and softball. Golf, fencing, rifle, tennis, and water polo lose smaller amounts.</p>
<p>source: NCAA, Revenues/Expenses 2004-2006: 2004-2006 Revenues and Expenses of Division I Intercollegiate Athletics Programs Report</p>