Has college football become a campus commodity?

Summary

This '60 Minutes' segment explores the immense popularity and financial impact of college football, focusing on its role in boosting university profiles and funding entire athletic departments. Michigan's athletic director, Dave Brandon, shares insights on the sport's influence, while highlighting the arms race for better facilities, coaching salaries, and TV contracts. Interviews with Michigan coach Brady Hoke and Alabama's Nick Saban reveal the high pressure on coaches and players alike. The story also touches on how even smaller schools use football to elevate their national visibility, underscoring the sport's far-reaching implications.

Takeaways

• 📺 College football has become a massive industry, driving popularity and visibility for universities across the country.
• 🏟️ Michigan Stadium, known as 'The Big House,' is home to the University of Michigan's football team, the winningest program in college football history.
• 💰 Football revenue is crucial for many universities, with Michigan's athletic budget of $133 million relying on football for about 75% of its revenue.
• 🏈 There's an 'arms race' in college football as universities invest heavily in facilities and programs to remain competitive and attract top talent.
• 💵 Coaching salaries are skyrocketing, with Alabama’s Nick Saban earning over $5 million annually due to the team's success and the profits it brings to the university.
• 🎯 Guarantee games, like Towson University's matchup against LSU, offer smaller schools national exposure and significant payouts, even if they are expected to lose.
• 📈 Successful football programs can increase the university's overall brand, with games like Alabama vs. Michigan generating $10 million for each school from ticket sales and TV rights.
• 🏫 Football serves as the 'front porch' of universities, driving donations and attention to the entire institution, with up to 70% of donations occurring during football season.
• ⏳ The pressure on coaches and student-athletes is immense, with long hours, year-round training, and high expectations placed on young players.
• 🎓 Despite the intense demands of football, student-athletes like Michigan's Denard Robinson are still expected to manage their academic responsibilities, often with little time for rest.

Q & A

Why is college football becoming more popular and important in recent years?

College football's popularity and importance have increased because success on the field helps raise the overall profile of universities, leading to more exposure and revenue for the schools.

What is the 'arms race' in college football referring to?

The 'arms race' refers to universities investing heavily in their football programs to remain competitive, often by upgrading facilities, hiring high-paid coaches, and creating an immersive game-day experience to attract fans and top talent.

How much of Michigan's athletic department budget relies on football revenue?

Michigan's athletic department budget heavily relies on football revenue, with approximately 75% of its $133 million budget, or over $90 million, coming from football.

Why does Michigan Athletic Director Dave Brandon focus on enhancing the game-day experience?

Dave Brandon focuses on enhancing the game-day experience to ensure fans attend in person instead of watching at home. He believes that creating a unique, exciting environment will keep fans engaged and coming to the stadium.

What are the financial challenges faced by most college athletic programs?

Most college athletic programs face financial challenges because they do not generate enough revenue to cover rising costs. Only 22 out of 125 programs are cash flow positive or break even, making the current business model unsustainable for many schools.

How does Alabama’s football program set an example for other universities?

Alabama’s football program is a prime example of success, having won multiple national titles under coach Nick Saban. The program has generated significant profits, nearly tripling since Saban’s arrival, and is a model for how investing in coaching and facilities can lead to both athletic and financial success.

What are 'guarantee games,' and why do smaller schools participate in them?

‘Guarantee games’ are matchups where smaller schools are paid large sums of money to play against powerhouse teams. These games provide exposure and financial benefits for smaller schools, even though they are usually expected to lose.

How does college football impact university donations?

College football has a significant impact on university donations, with 60% to 70% of donations occurring during football season. This highlights the strong connection between football success and alumni giving, which supports the entire university.

What pressures do college football coaches and players face in today’s environment?

Coaches and players face immense pressure to succeed, with coaches working long hours and constantly preparing for the next challenge. Players, often still young adults, juggle the demands of football with academics, feeling the pressure to perform in front of large audiences and for the success of the entire program.

How does the physical and emotional toll of college football affect players like Michigan’s Denard Robinson?

College football takes a significant physical and emotional toll on players like Denard Robinson. They face a grueling schedule of practices, games, and weight training, making it a full-time commitment. Players must stay resilient to perform well in high-stakes games, while also managing their academic responsibilities.

Outlines

00:00

📺 The Popularity of College Football and Michigan's Strategy

In this opening segment, the video highlights the massive popularity of college football, particularly at the University of Michigan. The sport's success is linked to the university’s profile, creating an 'arms race' among schools. Michigan's 'Big House' stadium is showcased, along with the traditions and fan enthusiasm that fuel the school's athletic department. Athletic Director Dave Brandon discusses the efforts to keep fans engaged, such as using a stealth bomber for game-day events, and how 75% of Michigan's $133 million athletic budget comes from football revenue.

05:01

🏟️ The Arms Race in College Football

This section delves deeper into the intense competition among universities to upgrade their football programs. Brandon emphasizes the importance of staying competitive to attract fans, recruits, and TV coverage. The rising costs of maintaining top-tier facilities, like Michigan's indoor practice center, are explored, along with the influence of high-profile coaches like Alabama's Nick Saban, who is paid over $5 million annually. Saban discusses the return on investment he brings to Alabama, where football revenue has tripled since his arrival.

10:01

⚡ The Financial Stakes for Smaller Schools

This part highlights how smaller schools like Towson University use football as a way to gain national exposure. Towson's athletic director explains that their team playing against LSU, despite the anticipated loss, guarantees visibility for the university. The video then shifts back to Michigan, where football not only supports the athletic department but also boosts donations to the entire school, with 60-70% of contributions coming during football season.

🏈 The Life of a College Football Coach and Player

The final segment focuses on the immense pressure faced by both coaches and players in college football. Michigan's head coach Brady Hoke shares details of his demanding schedule, while Alabama’s Nick Saban talks about the brief satisfaction of winning before focusing on the next season. The segment also touches on the players' grueling schedules, which include year-round training and balancing academics. Michigan star Denard Robinson acknowledges the physical and mental toll of the game, as players are under constant pressure to perform.

Keywords

💡College Football

College football refers to the highly popular and competitive sport played at the collegiate level in the United States. It is central to the video's theme as the sport drives much of the financial revenue and attention for universities like Michigan and Alabama. Football games serve as a magnet for alumni donations, increase the university’s visibility, and contribute to its overall branding.

💡Revenue

Revenue in the context of the video refers to the significant income generated by college football programs, which funds athletic departments and other school activities. For example, Michigan’s football team alone is responsible for generating over $90 million of its $133 million athletic budget, showing how central the sport is to a university's finances.

💡Arms Race

The 'arms race' in college football describes the competition between universities to invest in better facilities, hire top-tier coaches, and create a more marketable football program. This race is motivated by the desire to attract top athletes, win championships, and increase national visibility. Examples include Michigan investing in a $226 million stadium upgrade and Alabama paying Nick Saban over $5 million annually.

💡Facilities

Facilities refer to the advanced and often expensive buildings and resources that universities provide to their athletic programs. In the video, Michigan's indoor practice facility is described as being of a quality that even NFL teams would envy. These facilities are crucial for attracting top recruits and ensuring success on the field, making them a key part of the 'arms race.'

💡Branding

Branding is the process of creating a distinct identity for the university through its football program. The video emphasizes how football helps elevate the profile of schools like Michigan and Towson, serving as a 'front porch' to attract donors, students, and media attention. Even a losing effort by Towson against a powerhouse like LSU can boost the school's brand on a national level.

💡Coaching Salaries

Coaching salaries in college football have skyrocketed, as demonstrated by Nick Saban’s $5 million annual salary at Alabama. The video connects these high salaries to the coaches’ ability to generate revenue and success for the university, with Saban's leadership resulting in tripled profits for Alabama. These salaries illustrate the financial stakes involved in modern college football.

💡Donations

Donations refer to the financial contributions made by alumni and other supporters of the university, often influenced by the success of the football program. At Michigan, between 60% and 70% of donations to the university occur during the football season, showing the direct link between athletic success and broader institutional fundraising.

💡Guarantee Game

A guarantee game is when a smaller, less prominent football program is paid by a larger school to compete in a game that they are almost guaranteed to lose. Towson’s game against LSU, where they were paid $500,000 to appear, is an example. Such games provide exposure and funding for smaller schools while ensuring a likely win for the larger program.

💡Pressure

Pressure refers to the immense stress placed on both coaches and players to succeed in college football. Coaches like Nick Saban and Brady Hoke work long hours, and players like Michigan’s Denard Robinson balance the physical demands of the sport with their academic responsibilities. This pressure is intensified by the expectations from fans, alumni, and university leadership.

💡National Playoff

The national playoff system, introduced in 2015, refers to the new structure for determining the college football champion through a series of postseason games. The video notes that this has further accelerated the 'arms race,' as schools compete to be part of this lucrative and prestigious playoff, which offers significant financial rewards and boosts a university’s profile.

Highlights

The popularity of college football is at an all-time high, and success in the sport significantly boosts a university's profile.

Michigan’s athletic director Dave Brandon emphasizes the importance of creating an in-stadium experience that keeps fans coming, using attractions like stealth bombers and special deliveries of game balls.

Football revenue is crucial to Michigan’s athletic department, accounting for about 75% of the department's $133 million budget.

The business model of big-time college athletics is 'broken,' with only 22 of 125 programs being cash flow positive, according to Dave Brandon.

Universities are in an 'arms race,' spending vast sums on sports facilities to stay competitive, like Michigan's $226 million Big House upgrade and Cal Berkeley's $321 million stadium renovation.

Michigan coach Brady Hoke admits that top-tier facilities are essential for recruiting, although he emphasizes that people matter as well.

Alabama’s football program, led by Nick Saban, is a model of success, with Saban’s $5 million salary justified by the tripling of Alabama's athletic profits since he became coach.

In 2012, Michigan and Alabama played a high-profile game at Cowboys Stadium, earning each school $10 million in revenue from ticket sales and TV rights.

Smaller universities, like Towson, participate in 'guarantee games,' playing powerhouse teams like LSU for a guaranteed payout, with Towson earning $500,000 in a high-profile loss.

Football serves as the 'front porch' of a university, attracting donations that account for 60-70% of overall contributions to schools like Michigan during the football season.

Head football coaches are the most important hires for universities, with their success directly impacting the school’s revenue, brand, and national visibility.

Brady Hoke, Michigan’s football coach, works from 5:45 AM until late in the evening, reflecting the immense pressure on coaches to succeed.

College football players face year-round demands, including practices, weightlifting, and off-season workouts, making the sport a full-time job.

Despite the intense schedules, players like Michigan’s star quarterback Denard Robinson are expected to attend class and maintain academic standards.

Football has evolved into a high-stakes game for universities, with the unscripted drama, passion, and nail-biting finishes captivating fans and fueling the sport’s growth.

Transcripts

Now, armen keteyian on assignment for "60 minutes". Keteyian: Turn

on the television almost any day this week and you'll

find a college football game. And there's a good reason

why-- the popularity and importance of the sport is at

an all-time high. That's because, for more and more universities

across the country, success on the football field now equals

a higher profile for the entire school. This has fueled

an arms race in the college game, the likes of

which the sport has never seen. And with a lucrative

national playoff beginning in 2015, that race will only accelerate.

Just how essential is college football these days? Well, judge

for yourself, as we take you on the road and

behind the scenes, beginning in michigan stadium, in a place

they call "the big house." A fall saturday in ann

arbor, michigan, and players from the winningest program in the

history of college football burst onto the field. It's one

of the timeless traditions that define the game, the michigan

wolverines slapping a banner in the country's biggest stadium as

the band blares the school's famous fight song. ♪ ♪

♪ Keteyian:112,000 fans roaring as one, exactly how michigan athletic

director dave brandon wants it. Dave Brandon: We want people

to never even think about staying home and watching this

in 3d on their flat screen television. That's unacceptable. We

want things to be going on here that are not 25 00:01:56,673 --> 00:01:56,449 going to get covered, and not going to be a

part of their living room experience. Keteyian: That's why, for

michigan's home opener, brandon brought in a stealth bomber to

help kick off the game, and two seasons ago, had

the game ball special-delivered right out of the sky. Brandon:

We want our fans to be wowed. Keteyian: Dave brandon

was hired as athletic director here two years ago, a

former michigan football player and c.E.O. Of domino's pizza, schooled

in the ingredients of marketing success. Brandon: Good morning. Are

we ready to go? Keteyian: On game day, he never

stops moving, arriving five hours early, double checking on everything

from the expensive suites to the concession stands... Brandon: Hi,

I'm with the quality control department... Keteyian: ...To the freshness

of the cookies. Truth is, he simply can't afford not

to be obsessed with the tiniest details. Because like virtually

every other college in the country, michigan's entire athletic department

budget-- this year, all $133 million supporting 29 sports-- is

built on the back of one thing, football revenue. How

much of that $133 million is your football team responsible

for? Brandon: About 75%. Keteyian: So I'm doing the math,

that's north of $90 million. Es that number keep you

at night? Brandon: Well, I think it was mark twain

who said, "if you put all your eggs in one

basket, you better watch your basket." I watch my basket

pretty carefully when it comes to football. Keteyian: Michigan has

the nation's largest alumni group, and a zealous fan base

that gobbles up millions of dollars in merchandise. Even so,

brandon taps into that fervor any way he can. Yes,

for $6,000 a pop, the big house can occasionally be

turned into the chapel of love. With revenue streams flowing

from every direction, michigan's athletic department turns a profit, but

it is the exception in college sports. Brandon: The business

model of big-time college athletics is primarily broken. It's a

horrible business model. Keteyian: Broken. Brandon: Broken. You've got 125

of these programs. Out of 125, 22 of them were

cash flow even or cash flow positive. Now, thankfully, we're

one of those. What that means is you've got a

model that's not sustainable, in most cases. You just don't

have enough revenues to support the costs. And the costs

continue to go up. Keteyian: Why? A big reason is

universities are in the midst of a sports building binge.

Cal berkeley, for example, renovated its stadium to the tune

of $321 million. The list is endless. Michigan's athletic department

floated $226 million in bonds to upgrade the big house.

What are you chasing? Brandon: We want to win championships.

Keteyian: You're going to get a big payout. Brandon: We're

going to have excited fans, we're going to fill stadiums,

we're going to be on tv, we're going to accomplish

all of the goals that we need to accomplish to

keep this department moving ahead. Keteyian: And that's where the

phrase "arms race" comes up. Brandon: If you don't keep

pace, if you don't stay competitive, you're going to have

a problem. Keteyian: Inside a recently built indoor practice facility

that many an nfl team would envy, we spoke to

michigan's head coach brady hoke. Can you recruit a top

player without facilities like this? Brady Hoke: You know, it

matters. I'd be sitting here lying if i didn't think

it mattered. I think the other part of it, though,

the people have to matter, too. Keteyian: The program every

school has been chasing is alabama. The crimson tide have

rolled to two national titles in the last three years.

The architect of that success is nick saban, as innovative

a coach as there is in the game, and the

leader of another escalating trend in college football-- skyroing coaching

salaries. Saban is paid over $5 million a year, more

than alabama's chancellor. Are you worth it? Nick Saban: Probably

not. Probably not. But I think the other side of

that is you almost have to look at what return

has there been on that investment? Keteyian: Since saban took

over in 2007, alabama's profits have nearly tripled, a rare

athletic department not drowning in red ink. Saban's championship ways

have not only earned him a place in alabama lore;

today, he and his school are such a valued commodity,

they were handpicked for the showcase game in prime time

the first saturday of this season, a match-up engineered by

espn-- alabama against michigan inside sold-out cowboys stadium in dallas

in front of 90,000 diehard fans. Each school took home

a record $10 million from ticket sales and television rights,

an athletic director's dream. Brandon: This game will sell merchandise.

It will create interest for tickets back home. It'll hopefully

get other networks bidding for these opportunities for us. Keteyian:

For schools without the pedigree of michigan or alabama, football

has become the fastest way to put their universities on

the map. This was unhd towson university, preparing in baton

rouge, louisiana, to play powerhouse lsu in what is known

as a "guarantee" game. Towson was guaranteed a half million

dollars to show up, and also guaranteed to lose, on

national tv, no less. Before the game, we spoke to

towson athletic director mike waddell. Why subject your team to

this? Mike Waddell: There'll be more people watching this game

tonight than perhaps have ever watched anything to do with

towson university in our history, going back 146 years. Keteyian:

But then a funny thing happened on the way to

the slaughter. The sacrificial lambs didn't lie down. With five

minutes to go in the first half, the nobodies from

north baltimore led mighty lsu, 9-7. But at halftime, towson

head coach rob ambrose wasn't gloating. Rob Ambrose: Any of

you sons of bitches that are smiling because you think

we did something, I'm going to kill you. It's a

15-round fight, not five. You got it? Yes, sir! Ambrose:

What the hell are we waiting for? Let's go! Keteyian:

Lsu's talent would eventually prove too much. But towson never

stopped fighting, right to the end. An eventual 38-22 loss

on the scoreboard, but a win for the towson university

brand. Waddell: Way to go, buddy! You couldn't buy this

type of an advertisement nationally. Keteyian: Even at a place

like michigan, one of the top academic institutions in the

country, football is the front porch to the school and

a magnet for donations to the entire university. Brandon: This

is a huge giving season. Our development folks have actually

done statistical research on how much of the giving takes

place during the football season, and it's a disproportionate amount.

Keteyian: Disproportionate. How much? Brandon: I think the number is

somewhere between 60% and 70%, and that's why, in many

cases, you see universities who drop football bringing it back,

because that magnet works. Hoke: Everybody got that? That was

a good win. Keteyian: With all this on the line,

believe it or not, there is no more important hire

a university can make these days than its head football

coach. Hoke: This is michigan, for god's sake. Keteyian: In

michigan's case, last year, it was little-known brady hoke, a

"character counts" coach who has revitalized this storied program. Hoke

is the last to admit to the pressure he's under

to win. But like most coaches, his life speaks for

him. Average day, when do you get in here? Hoke:5:45.

Keteyian: An average day, when do you leave? Hoke: Oh,

9:30, 10:00, 10:30 sometimes. Keteyian: The alabama game started around

7:15 texas time. How much did you eat that day?

Hoke: I didn't. Keteyian: Why? Hoke: That's a good question.

Probably a little bit of antsiness, nerves, whatever. Keteyian: Alabama's

nick saban knows that feeling all too well. How long

will you let yourself savor a win like that win

over michigan? Saban: Well, when we won the national championship,

about two hours after the game, somebody said, "you don't

seem very happy." And I said, "well, I'm just worried

about what the issues are going to be for next

year," because something's happening. Keteyian: So you allowed yourself a

whole 120 minutes of pure pleasure. Saban: Not very long.

Keteyian: Like an inverted pyramid, the constant pressure funnels down,

from the coaches to the players, almost all of whom

are between 18 and 23 years old. Take a look

and listen to an average michigan practice in august, a

week before school even started. It resembled a ten-ring circus.

When it was over, ice baths provided a welcome, if

brief, relief. The truth is, being a college football player

these days means a year-round cycle of practice, weightlifting, and

off-season workouts. Here were michigan players last may, training with

navy seals out in san diego. Denard robinson, the team's

star quarterback, led the charge. These are full-time jobs. Fair

to say? Denard Robinson: Oh, yeah. Keteyian: Full-time? Robinson: Oh,

yeah, it is. It is a full-time job. It's a

grind. And it's... It's a grind because you have to

do this. Because those games that you are going to

face, it's going to take a toll on you. Keteyian:

And you know the other reason is because the guys

across from you are doing the same damn thing. Robinson:

The same thing. Oh, yeah. Keteyian: Remember that michigan-alabama game

in dallas? After a dispiriting loss, the wolverines didn't return

to ann arbor until 5:00 in the morning, the end

of a 40-hour weekend. On top of it all, the

players still had to be in class on monday morning.

That means even robinson, the unquestioned big man on campus.

His number 16 jersey is the hottest property in town.

When he's healthy, robinson's dynamic play has determined michigan's fate.

And when he gets hurt, the entire michigan family holds

its collective breath. There's a lot at stake here. Do

you worry that it's just too much pressure on these

student athletes? Brandon: Yes, I do worry. I see kids.

I see 18-, 19-, 20-year-old kids who are still trying

to figure out life and figure what they're about. Most

rabid fans don't see any of that. Keteyian: No, what

they're seeing more and more of is this... Nail-biting finishes...

Unscripted drama... How about that! Keteyian: ...Unbridled passion. More than

ever, schools going all in on the high-stakes game called

college football. GO TO 60minutesovertime.com For a star quarterback's perspective

on football as a full-time job. Sponsored by pfizer.