Thursday, April 28, 2016

First Hints at Sharapova's Meldonium Concentration

Monday, April 25, 2016

Three Excellent Articles on the Current State of College Sports

Recently I have come across several really excellent articles on the current state of college sports.

First, John Gasaway (@JohnGasaway), who analyzes college basketball for ESPN, writes a thoughtful piece on why college sports are not facing an existential crisis, though the NCAA may be:
Far from being an “unstable situation,” college sports in general, college basketball more especially, and the NCAA tournament in particular instead present a series of successively smaller and progressively more advantageously situated concentric circles characterized by an unusual degree of hardiness solely as media properties. There are variables in play, naturally, and it’s not too much to term the threat of legal exposure “existential” — with regard to the NCAA. I don’t know who or what will be governing the sport in 2032, and I do trust that by then the players will have long since been receiving their fair share of the resulting revenues.

But if we view the essentials of the tournament as nothing more or less than 68 college teams playing 67 games of win-or-go-home basketball over three weeks from mid-March to early April, I’m yet to see anything even remotely persuasive in the way of a Book of Revelation. The essentials are eyeballs and basketballs, and if a tournament that earned record-setting revenues for a decade before, during and after the largest economic calamity since the Great Depression constitutes a bubble, well, put me down as bullish on this particular bubble. 
Second, Andy Schwarz (@andyhre), a sports economist, takes a good hard look at the economic realities of college sports, and makes a similar case backed by ample data. He explains:
Once or twice a year, as predictably as the launch of college football season or March Madness, we’re treated to the “everyone’s broke” meme in college sports. Sometimes it’s pegged to the football season. Sometimes we hear about it in the context of a new TV deal worth billions. And sometimes it’s tied to the release of new numbers, as was the case last week when USA Today released its trove of college sports accounting data as a resource for researchers everywhere. Along with the data they compiled, Erik Brady, Steve Berkowitz and Jodi Upton put out a companion piece addressing the familiar claim that college sports are reaching a crisis point where they will begin to crumble under their own cost. As economics professor Andrew Zimbalist says in the article, “It’s an unstable situation.” . . .

A sober reading of the history of these claims of unsustainable spending leads to a very different conclusion — specifically: NCAA expenses track with revenue and have done so for decades. But rather than hand-wringers learning from the past and ferreting out Occam’s ledger — the accounting isn’t telling the whole story — decade after decade we see similar fretting over schools losing money on college sports yet spending more and more, surely building to a “bubble” that has to burst. “This time it’s real” has been part of this sky-is-falling rhetoric for over a century.
Third, Dan Wetzel (@DanWetzel), of Yahoo Sports, looks at the dynamics underlying the flood of revenue that is coming to college sports and the political realities that result. He writes:
On Tuesday, SportsBusinessDaily reported the Big Ten is close to agreeing to a six-year deal with Fox Sports for half its television rights. It would pay about $250 million per year, or $17.9 million per school. And that's just half the deal. CBS and ESPN will pay handsomely to split the rest.

This report comes a little over a week after the NCAA agreed to an eight-year, $8.8 billion extension with CBS and Turner to broadcast the men's basketball tournament. It brings the annual value of the event from $786 million to $1.1 billion, an increase of $314 million per year.

That's new money. That's found money. That's money that has yet to be used or allocated.

It's the same as the college football playoff generating about $470 million in revenue that didn't exist three years ago. Or conference-owned cable television channels hauling in hundreds of millions. The SEC Network, which launched in August 2014, doled out $455.8 million in fiscal 2015, $31.2 million per school. The New York Times predicted last year that Big Ten Network revenue would soon exceed $40 million per school, per year.

All of this money – namely all of this brand-new money that isn't even needed – ratchets up cries to share it with the student-athletes.
 Read all three, in full. You'll be smarter for it.

Tuesday, April 19, 2016

Science and the Upcoming Rehm Ruling

German long jumper Markus Rehm wants to represent Germany in Rio this summer. He is the Paralympic champion and jumps off of a prosthetic leg (pictured above).  IAAF rules allow prosthetics in only if they are judged to provide no additional benefit to the athlete over an athlete who is not using a prosthetic.

Here is the relevant IAAF rule in full (Rule 144.3 at p. 153 in the IAAF Rules):
The German Disabled Sports Association is sponsoring a study to determine whether Rehm does or does not receive a "competitive advantage" through the use the prosthetic. The study is being conducted by the German Sports University Cologne, National Institute of Advanced Industrial Science and Technology/Human Informatics Research Institute in Tokyo and the University of Colorado-Boulder (where I am a professor). The results are expected to be reported in June.

In parallel the IAAF has created an internal Working Group to clarify Rule 144.3 which is "to bring clarity to what is a complex question of technical eligibility as soon as possible so athletes wishing to compete at the European Championships in Amsterdam and at Olympics in Rio are aware of eligibility." This Working Group is expected to report in June. It is unclear if the Group is to consider the just-commissioned study - they do state that they "will draw upon extensive knowledge from across disability and able-bodied athletics."

As we learned in the case of Oscar Pistorius, science does not always speak with one voice. In fact, the science of competitive advantage using prosthetics is like many other areas of science where a range of legitimate views are possible, based on valid assumptions and methods. Perhaps Rehm's case will be more clear cut than Pistoirus' case was - but maybe not. Rehm has already hinted at legal action if he is not allowed to jump in Rio.

Pistorius case was easier in an important respect because he was not a threat to medal in the Olympics. So his participation was framed as a feel-good story, not a story of epic achievement. Rehm is different. He threatens to medal if he is allowed to participate, and maybe even break the world record. That makes the decision to include or exclude him far more significant.

Sport turns to science to answer difficult questions with some risk, because science doesn't always have a single answer. This one may get interesting, stay tuned.

Monday, April 18, 2016

Lots of Items in the News Today

Lots of interesting stuff in the news to start the week. I'm making a list, mainly for my own benefit, but sharing it here. Please feel free to add anything else interesting in the comments.

Tuesday, April 12, 2016

University Transfers to Big Time Athletic Departments: Subsidy or Investment?

As promised, here are the NCAA Division 1 schools (from the database of athletics department budgets for 201 schools provided by The Chronicle of Higher Education) with the lowest reported subsidies to athletics.

The table includes all schools with a reported subsidy (defined as the sum of student fees and institutional transfers) of less than 20% of the athletics department's revenues. There are 45 schools that make the cut. Of these, 9 have a reported subsidy of less than $1 million (which translates to less than 1% of total athletics revenues) and 16 others are less than 5%.

Almost all of these schools are part of the so-called Power 5 conferences where there is big time athletics and big time money.

If you want to redefine what The Chronicle calls a "subsidy" intro what might otherwise be called an "investment," then each of these schools show a return of at least 500% ($5 for every $1 invested) on funds invested into athletics. At the top end of schools that receive such "investments" the return is 500 to 1 (Michigan). In any department on campus such ROI numbers would cause administrators to smile.

A decision to call such funds "subsidies" or "investments" is probably based on how one views the overall worth of college athletes beyond just dollars and cents.  Here are the numbers:
institution subsidy as % of athletics spending external revenue subsidy
156 Oregon State University 19.4% $51,016,341 $12,285,453
157 University of Colorado Boulder 19.0% $52,017,285 $12,209,473
158 Washington State University 18.6% $44,322,180 $10,104,638
159 University of Utah 17.5% $46,608,204 $9,862,106
160 University of Virginia-Main Campus 15.8% $70,462,157 $13,235,814
161 Arizona State University-Tempe 13.5% $64,656,064 $10,073,205
162 Virginia Polytechnic Institute and State University 11.1% $64,954,358 $8,110,828
163 University of North Carolina at Chapel Hill 10.8% $74,693,320 $9,078,593
164 Georgia Institute of Technology-Main Campus 10.4% $61,361,761 $7,107,777
165 North Carolina State University at Raleigh 9.5% $63,792,160 $6,708,651
166 University of Louisville 8.8% $80,976,749 $7,768,599
167 University of Arizona 7.9% $92,009,900 $7,901,134
168 Florida State University 7.6% $96,794,108 $7,980,366
169 University of Minnesota-Twin Cities 6.6% $99,165,090 $7,011,066
170 Oklahoma State University-Main Campus 6.4% $110,281,827 $7,521,475
171 University of Wisconsin-Madison 6.3% $119,837,558 $8,073,360
172 Clemson University 5.9% $70,417,577 $4,375,745
173 University of South Carolina-Columbia 5.7% $92,987,503 $5,631,976
174 University of California-Berkeley 5.5% $85,279,969 $4,982,173
175 Texas Tech University 5.3% $72,636,657 $4,086,756
176 University of Mississippi 5.1% $71,962,577 $3,886,423
177 University of Illinois at Urbana-Champaign 4.9% $76,921,197 $3,927,372
178 Mississippi State University 4.3% $59,625,111 $2,650,000
179 The University of Alabama 3.9% $147,237,173 $5,997,100
180 Auburn University 3.9% $109,331,204 $4,384,800
181 Indiana University-Bloomington 3.6% $81,660,417 $3,008,362
182 University of Washington-Seattle Campus 3.5% $96,725,508 $3,549,679
183 University of Florida 3.5% $120,302,863 $4,308,442
184 University of Georgia 3.2% $100,220,875 $3,274,712
185 University of California-Los Angeles 3.1% $83,715,508 $2,711,272
186 Iowa State University 2.9% $66,212,985 $1,957,396
187 University of Kansas 2.6% $95,116,692 $2,564,374
188 University of Arkansas 2.0% $94,857,567 $1,936,405
189 University of Missouri-Columbia 1.8% $82,203,587 $1,515,000
190 University of Oregon 1.1% $193,875,299 $2,155,099
191 Michigan State University 1.0% $103,582,498 $1,094,958
192 Texas A & M University-College Station 1.0% $118,234,414 $1,241,457
193 University of Kentucky 0.9% $95,823,941 $861,548
194 University of Iowa 0.6% $105,275,037 $683,917
195 University of Michigan-Ann Arbor 0.2% $157,643,504 $256,316
196 Louisiana State University and Agricultural & Mechanical College 0.0% $133,679,256 $0
196 Ohio State University-Main Campus 0.0% $145,232,681 $0
196 Purdue University-Main Campus 0.0% $71,372,206 $0
196 University of Nebraska-Lincoln 0.0% $94,797,692 $0
196 University of Oklahoma-Norman Campus 0.0% $129,226,692 $0
196 The University of Texas at Austin 0.0% $161,035,182 $0

Thursday, April 7, 2016

Which NCAA D1 Schools Have the Highest Reported Subsidies?

Almost all athletic departments of NCAA D1 schools receive reported subsidies from the university outside athletics. I say "reported" because the budget of NCAA schools sometimes is questioned or debated. Based on official reports (courtesy of The Chronicle of Higher Education) here are the top 25 schools (of 201 in the database of public schools) in terms of the subsidy that they receive from the broader university, where "subsidy" is defined as the sum of student fees and institutional transfers. The ranking is by proportion of the subsidy in the athletics department revenues.
institution subsidy as % of athletics spending external revenue subsidy
1 New Jersey Institute of Technology 90.6% $1,237,517 $11,899,220
2 University of California-Riverside 89.0% $1,696,085 $13,788,851
3 Central Connecticut State University 88.0% $1,771,635 $12,959,383
4 Indiana University-Purdue University-Indianapolis 87.8% $994,818 $7,184,587
5 Morehead State University 86.2% $1,491,916 $9,341,671
6 The University of Texas at Arlington 86.2% $1,628,784 $10,152,846
7 Longwood University 86.1% $1,358,361 $8,416,143
8 Winthrop University 85.9% $1,773,621 $10,775,669
9 Utah Valley University 85.8% $1,590,150 $9,601,419
10 Radford University 85.8% $1,863,266 $11,237,598
11 Stephen F Austin State University 85.1% $2,332,368 $13,364,737
12 Kennesaw State University 85.1% $2,608,908 $14,907,125
13 University of Maryland Eastern Shore 84.8% $846,088 $4,708,513
14 Stony Brook University 84.7% $4,206,726 $23,298,044
15 Northern Kentucky University 84.6% $1,837,533 $10,113,985
16 Cleveland State University 84.1% $1,818,928 $9,627,983
17 Alcorn State University 84.1% $1,010,423 $5,329,700
18 University of Missouri-Kansas City 83.6% $1,875,601 $9,592,075
19 Morgan State University 83.6% $1,522,142 $7,753,009
20 Eastern Michigan University 83.4% $4,997,815 $25,083,708
21 East Tennessee State University 82.3% $3,017,680 $14,071,113
22 George Mason University 81.9% $3,807,345 $17,207,352
23 University of South Carolina-Upstate 81.7% $1,304,471 $5,834,118
24 James Madison University 81.6% $8,042,437 $35,725,049
25 Texas A & M University-Corpus Christi 81.6% $1,940,154 $8,600,266
You'll note that all of of these schools are small, and are not what people traditionally think of when they think of big-time college athletics.  Of the 201 schools, 130 receive more than a 50% subsidy, so it is common and the numbers are significant. The median subsidy of these 130 schools is $11 million.

No matter how you do the budget accounting, it seems safe to conclude that for the majority of D1 schools, athletics is not a money-making activity. In that sense, D1 college sports is more like schools of music than the NBA or NFL.

In an upcoming post I'll take a look at the other end of the rankings where the numbers look distinctly different.

Wednesday, April 6, 2016

Meldonium: WADA, Science and Due Process

I have a piece up in Newsweek today on the Meldonium mess in sport. Here is how it starts:
The tally of athletes who have tested positive for meldonium in 2016 continues to grow, now well over 100 athletes across multiple sports. None are more prominent than Maria Sharapova, whose announcement of a positive test last month sent shockwaves through the sporting world. The issues raised by the slew of positive tests offer an opportunity to improve anti-doping regulations and to further democratize sports governance.
The argument is a preview of what I'll argue in greater depth in The Edge. Comments welcomed.

Tuesday, April 5, 2016

US Soccer MNT Elo Ratings by Coach 1990-2016

As promised a while back, US Soccer MNT Elo ratings 1990 to present, with Elo as of June of each year. Right now, the US MNT is just about where it was, relative to competition, when Bruce Arena became coach and Klinsmann as well.

Source: Elo Ratings and the ratings explained.

Verbruggen Files an IOC Ethics Complaint Against WADA and USADA

Hein Verbruggen, the former head of the UCI which oversees cycling, has filed an ethics complaint against WADA and USADA. He specifically names Dick Pound and David Howman at WADA and Travis Tygart and Bill Bock at USADA.

The basis for Verbruggen's complaint is found here, and he highlights Pound's continued claims that he helped to cover up Lance Armstrong's doping as a motivation for his complaint.  Verbruggen writes: "I would also like other people’s misdeeds to be judged objectively. It is for this reason that I have lodged a complaint against Pound, Howman, Tygart and Bock with the Ethics Commission of the IOC, a body that I trust to remain fully objective!"

However, the most serious charge appears to be this one against WADA and USADA:
Verbruggen says of WADA and USADA: " In short, their political agenda was more important to them than the fight against doping itself– and as a result the real fight against doping was abused for their political purposes."

Will this complaint go anywhere or have any significance? It is hard to tell, though the accusations levied by Verbruggen against WADA and USADA are pretty serious. We shall see what happens with the IOC..

Monday, April 4, 2016

How Much do State Universities Subsidize Athletics? Part 1 - Aggregate

Late last year, the Chronicle of Higher Education provided reported budget data for the period 2011 to 2014 more than 200 state universities which compete under the NCAA's Division 1. That data allows for some interesting analyses.

The graph at the top of this post shows how subsidies for athletics changed from 2011 to 2014 as a proportion of total state higher educational revenues (black line). The total state higher educational revenues come from data collected by the State Higher Educational Officers Association (specifically, Table 3 in this PDF, note 2010 is extrapolated).  The graph also shows how external funding of athletics across all of these 201 schools as a proportion of total state higher educational revenues.

The data shows that external funding of athletics in 2014 i\was about 4% of total state school educational revenue and the state subsidy was about 1.6%. Following the Chronicle, the "subsidy" is defined as the sum of institutional transfers to athletics plus student fees for athletics. If you add the two numbers together you'll get the total revenue for athletics. You can divide that by total state higher educational revenues across the 206 schools to get a sense of the comparative size of athletics of that total, which was about 5% in 2010 and about 5.6% in 2014.

Some additional data for 2014:
  • Total educational revenue = $136.7 billion
  • Total athletics spending = $7.5 billion
  • Subsidy of athletics = $2.2 billion
  • External funding of athletics = $5.5 billion
In a follow up post I will look at individual schools.

Saturday, April 2, 2016

How Much Do FBS Schools Spend on Coaches, Part 2?

This post dives a bit deeper (part 1 is here) into the salaries of coaches at FBS universities (the highest level of college football program schools) based on updated data from the Knight Commission.

The graph above shows how much three different schools spend on coaches: Ohio State, which tops the table, spends over $26 million. At the bottom of the 106-school table is the University of Louisiana-Monroe at $2.6 million, about 10% of that spent by OSU.  Somewhere in the middle (#43) in my employer, the University of Colorado-Boulder at $12.6 million, just about half of OSU.

Let's compare these expenditures to total university budgets.
The graph above shows no surprises. OSU has a $5.5 billion budget (source), which is larger that Colorado-Boulder at $1.3 billion (source) and absolutely dwarfs ULM at $75 million (source).

When we look at coaches salaries as a percentage of total campus budgets things get considerably more interesting.
The graph above shows that ULM spends five times as much as Ohio State when spending is measured as a proportion of the total university budget. This suggests that coaching salaries might be a rounding error in the total OSU budget, but are much more significant at a small school like ULM.

What can we say about the total spending on coaches salaries across all 106 FBS schools?

A full accounting would require going into the budgets of each of the 106 schools, but we can do a quick back of the envelope calculation. The midpoint between OSU and ULM for total campus budgets is about $2.8 billion. Across 106 schools that suggests almost $300 billion in budgets. If you want a conservative lower bound we can cut that in half and use $150 billion.

The Knight Commission database tells us that the 106 schools collectively spend about $1.2 billion on coaches salaries - about the size of the total campus budget for the University of Colorado-Boulder.

So the total expenditure on coaches salaries across the 106 FBS schools, as a proportion of total university budgets,  is $1.2 billion divided by $150 billion at the low end and $300 billion at the upper end. This is about 0.8% to 1.6% of total university spending or about 1% in a round number. Overall athletics spending across these programs is more like 5% of the total budgets.

Is 1% of university spending on coaches a lot? A little?  Top line numbers like those at Ohio State capture most of the discussion, but the impact on the university may be far greater in places like Louisiana-Monroe.

This data does not answer questions at the heart of debates over college sports, but they should inform that discussion.

Friday, April 1, 2016

How Much Do FBS Schools Spend on Coaches?

Above is the spending that 106 FBS tracked by the Knight Commission spent on coaching in 2014, the most recent year in its database (click to embiggen).

The total expenditure is just about $1.2 billion, which is about the size of a a major research university like the University of Colorado, where I am a faculty member.  In other words, the nation's top 106 athletic programs spend about 1 research university-worth of dollars on athletics coaches.

Here is a table of the top 50:

1 THE OHIO STATE UNIVERSITY $26,460,182
2 THE UNIVERSITY OF TEXAS AT AUSTIN $25,375,094
3 THE UNIVERSITY OF ALABAMA $23,159,068
4 PENNSYLVANIA STATE UNIVERSITY $22,746,542
5 UNIVERSITY OF OKLAHOMA $21,918,720
6 UNIVERSITY OF MICHIGAN $21,683,893
7 LOUISIANA STATE UNIVERSITY AND AGRICULTURAL & MECHANICAL COLLEGE $21,139,585
8 UNIVERSITY OF LOUISVILLE $20,884,261
9 MICHIGAN STATE UNIVERSITY $20,884,258
10 AUBURN UNIVERSITY $20,371,279
11 UNIVERSITY OF KENTUCKY $20,257,669
12 UNIVERSITY OF FLORIDA $20,206,975
13 UNIVERSITY OF CALIFORNIA-LOS ANGELES $18,764,600
14 TEXAS A & M UNIVERSITY $18,409,833
15 UNIVERSITY OF SOUTH CAROLINA $18,277,553
16 UNIVERSITY OF VIRGINIA $18,089,569
17 UNIVERSITY OF IOWA $17,404,934
18 UNIVERSITY OF ARKANSAS $17,137,702
19 FLORIDA STATE UNIVERSITY $17,020,714
20 THE UNIVERSITY OF TENNESSEE $16,933,891
21 UNIVERSITY OF GEORGIA $16,847,388
22 UNIVERSITY OF WASHINGTON $16,812,513
23 ARIZONA STATE UNIVERSITY $16,713,127
24 UNIVERSITY OF OREGON $16,283,951
25 UNIVERSITY OF MISSOURI-COLUMBIA $16,211,134
26 UNIVERSITY OF CONNECTICUT $16,197,062
27 UNIVERSITY OF WISCONSIN-MADISON $15,931,618
28 UNIVERSITY OF NEBRASKA-LINCOLN $15,589,712
29 INDIANA UNIVERSITY-BLOOMINGTON $15,569,609
30 CLEMSON UNIVERSITY $15,474,254
31 OKLAHOMA STATE UNIVERSITY $15,291,172
32 UNIVERSITY OF ARIZONA $15,267,187
33 UNIVERSITY OF CALIFORNIA-BERKELEY $14,669,054
34 WEST VIRGINIA UNIVERSITY $14,588,974
35 NORTH CAROLINA STATE UNIVERSITY AT RALEIGH $14,395,344
36 UNIVERSITY OF MARYLAND-COLLEGE PARK $14,162,812
37 UNIVERSITY OF MISSISSIPPI $13,729,892
38 UNIVERSITY OF CINCINNATI $13,707,453
39 UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL $13,642,676
40 UNIVERSITY OF KANSAS $13,359,816
41 KANSAS STATE UNIVERSITY $12,947,255
42 VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY $12,765,778
43 UNIVERSITY OF COLORADO BOULDER $12,605,932
44 PURDUE UNIVERSITY $12,532,279
45 UNIVERSITY OF MINNESOTA-TWIN CITIES $12,137,176
46 GEORGIA INSTITUTE OF TECHNOLOGY $11,855,296
47 MISSISSIPPI STATE UNIVERSITY $11,825,452
48 OREGON STATE UNIVERSITY $11,776,500
49 TEXAS TECH UNIVERSITY $11,661,855
50 IOWA STATE UNIVERSITY $11,519,206

No April Fools: Can You Beat this Bracket?

Via the NCAA, the bracket above was filled out by an Indiana high school student. It serves a a nice parable on expertise. The student, Rebecca Gentry worried: "I thought I was already failing with two mistakes."

She was asked about the source of her prognosticative ability:
“I am not really a sports person,” she said over the phone Thursday night.

For instance, does she know anything about seedings? Syracuse at No. 10? “Nope.”

Can she name one player in the Final Four? “Uhhhh …. no. I know faces and stuff. I really don’t know much beyond that.”

She’s not a Final Four expert, then? “I didn’t know there were levels. I didn’t know there was best eight, or whatever. Or Final Four. I didn’t realize there was any of that. I thought they just kind of played basketball.”

For that matter, has she ever seen a basketball game in person in her life?

“I think I might have went to one in middle school, if that counts. Actually I have been to one in high school. The Globetrotters were there. I think that’s what they were called. And I worked the concession stand once, but I didn’t get to see any of the game because I was mostly handing out nachos.”

But she did fill out a bracket because it was for bonus points. “When he first handed the assignment out, I thought I’m not doing this, I don’t know what any of this means, maybe I’ll copy somebody’s."
Meantime, my naive-bracket based on higher seeds is beating 75% of ESPN entries.