<p>I don't know the specifics about how JMU manages to lose so much money, whether it be yearly cost control, carring too much debt, or not generating adequate revenue streams.</p>
<p>However, I'd venture a guess that somebody in the administration there is probably juggling the accounting numbers to make the athletic department look bad so they can hack at the sports expenses.</p>
<p>I think the secret to success of the major programs is product licensing. At Tennessee and most of the other major (profit making) university athletic programs, the athletic department owns the rights to the popularized logos and trade marks that most people associate with the university. So every time a fan buys a trinket or flag or whatever, a percentage of the wholesale price of that item goes to the athletic department.</p>
<p>And because the athletic department owns the intellectual rights to that stuff and receive the revenue from that stuff, they work awfully hard to sell a lot of that stuff. And lets face it, most non-students buy university affiliated appearal to show support of the athletic teams, so this is probably a justified ownership of these logos, etc. that the schools create. </p>
<p>Now just because you field a good team, even a national championship team, doesn't guarantee that revenue stream. You've gotta have a catchy product and get the fans to identify the product with the success of the team (and that positive feeling people get from being affiliated with a champion). I'd guess this is where JMU probably dropped the ball.</p>
<p>I don't know if the athletic department at JMU has any control or gets any revenue from licensing and perhaps that is the reason they can't balance their budget.</p>
<p>Look at Green Bay Wisconsin - a town probably about as big as the area around JMU. They win a superbowl, somebody starts wearing a cheesehead and it becomes seen everywhere. Not that the Packers get revenue from that (I believe somebody else owns those rights), but everyone associates cheesehead and wearing a Packers jersey, so of course those people buying cheeseheads buy Packers jerseys and other stuff. Now the Packers get some money.</p>
<p>And I'm sure there are plenty of people in that part of Virginia with money to buys stuff. Last time I drove that way, gas was a good 10 cents a gallon cheaper than anything for 300 miles in any direction.</p>
<p>Fix the revenue problem and JMU and the athletics problem will go away. Perhaps their business students could work on this?</p>