Gamecocks cash machine about to take the field

This is the time of year in Columbia when Xs and Os mix with dollars and cents.

As a business, the USC Gamecock football team is quite successful.

The program’s projected revenues this year of more than $47 million would have made Gamecock football the state’s 19th-largest publicly traded company last year, according to calculations by cbj based on USC athletic department budget data.

And in a period lasting a little longer than a typical quarter for a publicly traded company, the team is forecast to post profits of more than $35 million.

That’s more than what S.C.-based restaurant chain Denny’s netted all of last year.

And that’s good for USC athletes because money made from USC’s football program (and to a lesser extent its men’s basketball program) helps pay the expenses for the other 17 varsity sports — none of which make money, said John Humphries, budget director for USC’s athletic department.

Everyone from track sprinters to golfers to swimmers to soccer goalkeepers are relying on the tickets, parking spots, and colas and hot dogs sold during home games at Williams-Brice Stadium.

They also count on other cash that Gamecock football attracts each year: booster club memberships (needed to buy season football tickets); corporate sponsorships; and media rights.

The handsome profit from the quarterbacks and cornerbacks should cover two-thirds of all nonfootball related athletics spending at USC.

The number do not take into account the estimated $50 million-plus into the area economy each season

Here’s cbj’s look behind Columbia’s most-popular autumn business:

PROGRAM EXPENSES

The football program is estimated to spend $12.1 million this year, Humphries said.

Here’s the breakdown:

• $3.3 million for scholarships

• $2.8 million for salaries of 17 program employees, which includes coaches, secretaries and training staff.

(Note: Just $275,500 of head coach Steve Spurrier’s annual $1.75 million salary comes from the athletic department. The rest comes from proceeds of USC’s agreements with apparel provider Under Armour and broadcast rights holder ISP Sports.)

• $1.5 million for gameday operations — including security, ticketing, janitorial, equipment rental, doctors and nurses to run aid stations, technicians to run the video scoreboard.

• $1.2 million to pay fees to three non-Southeastern conference teams to visit Columbia. (See box for details.)

• $836,000 for travel to games.

• $678,000 for football equipment and supplies.

• $615,000 for a donation to the USC’s general scholarship fund from proceeds of the Georgia game.

• $275,000 for recruiting

• $150,000 for game officials.

• $700,000 for miscellaneous expenses that includes telecommunications, tickets for families of players for away games and travel for team personnel to conferences and speaking engagements.

GAMEDAY REVENUES

Still, the revenues from the Saturdays (and a Thursday night) at Williams-Brice alone easily offset those costs.

The seven home games from the Aug. 28 match-up with N.C. State to the Nov. 8 contest against Arkansas are projected to earn:

• $18.5 million in ticket sales after taxes and fees. (Note: This figure also includes $250,000 from Clemson to play this year’s game at Death Valley.)

• $2.2 million for seating premiums for club level suites.

• $1.4 million in fees for parking around the stadium, on the State Fairgrounds and at ETV and National Guard Armory.

• $760,000 in concession sales.

From gamedays alone, Gamecock football generates $22.9 million in revenue.

After expenses, the garnet gang is in the black with a profit of $10.8 million.

That’s more than enough to buy a Sandy’s hot dog with chili for every South Carolinian.

Looked at another way: Each home game this year is forecast to genrate a profit of $1.5 million.

ADDITIONAL REVENUE

That’s not all. Time to tack on revenue for football from a variety of sources, some of which are bolstered by USC’s other varsity squads:

• $12.9 million from the Gamecock Club booster organization. (The football program generates 88 percent of the club’s $14.7 million in total funding, Humphries said.)

• $7.3 million from the SEC’s revenue sharing, in which money made from television deals, bowl games and conference championships is divvied up among conference members. (Football makes up 68 percent of the $10.7 million total USC receives.)

• $3 million from ISP Sports for multimedia rights, which includes radio, stadium signs and program ads. (Football accounts for nearly 70 percent of the total $4.4 million agreement.)

• $1.2 million from corporate sponsor and sports apparel maker Under Armour in a deal made with the school for the football program.

• $75,000 from Barnes & Noble to run a store at Williams-Brice to sell Gamecock gear.

That’s nearly another $24.5 million generated by the linebackers and receivers.

THE FINAL SCORE....

So this season, Gamecock football

... will generate revenues of $47.4 million

... while spending about $12.1 million

... for a profit of $35.3 million.

That’s a winning score by any business measure.