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VOL. 96
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Listening Ear Crisis Center and the art of Greek paddles
Wednesday, feb. 25, 2014 | MOUNT PLEASANT, MICH. | ISSUE NO. 62 VOL. 96
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Vigil led By Erick Staff
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CMED dean will plan fourth year curriculum By Zahra Ahmad News Editor
Photo Illustration by Day to
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expense Spending in NCAA Division I athletics programs grows exponentially as universities compete By Malachi Barrett News Editor
Funding for collegiate athletic programs has been increasing for decades. Today, six-figure coaching contracts, a demand by fans and boosters for state-of-the-art facilities and increased scholarship commitments clash with declining state funding for higher education. Because it is rare for all but the largest universities to balance athletics budgets on revenue alone, schools like Central Michigan University have had to compensate by using subsidies from the general fund — money created by academic programs and tuition dollars. “We are challenged in how we are doing our business; where we fit in right now because of this mad rush going forward,” said Director of Athletics Dave Heeke. “We want to be successful and stay in the game. We need to do that responsibly. We know we can’t do what other schools, with tremendous resources, can do.” A 2013 report by the American Institutes for Research, which included CMU and other MidAmerican Conference schools, found the athletics departments of most Division I universities spend three to six times more per student-athlete as smaller institutions spend per student. According to the report, MAC schools spent $13,069 per student in 2010, while spending $52,537 per athlete that same year. While perhaps not as drastic at the mid-major level, MAC teams also face pressure to stay competitive with their peers. CMU does not benefit from the massive revenue generated by teams in conferences like the Big Ten or SEC create. “Big universities can generate all of their revenue separate from the general fund,” said Vice President of Finance and Administrative Services Barrie Wilkes. “The challenge is restraining costs. I think
Like it or not, athletics plays a prominent role in helping position your university. - Dave Heeke, Director of Athletics
there are a lot of challenges with college athletics financially. It’s not a CMU issue, it’s a national issue.” To help try to secure new revenue, the university partnered with IMG College in 2012, a marketing, broadcasting and brand development company that helps negotiate sponsorships for schools. The revenue is split, with 45 percent going directly to CMU athletics and 55 percent going to IMG. IMG revenue totaled $508,000 in 2014-15, up from $450,000 in 2013-14. Athletics currently employs one full-time marketing employee, and two IMG employees.
Subsidies and competition
CMU’s Athletics Department receives $18.5 million in subsidies from the university’s general fund. Revenue from the academic colleges, which is primarily tuition dollars, accounts for 72 percent of the Athletics Department budget. In 2005-06, subsidies accounted close to threequarters of the total athletics budget. Proportionally that is still true today. Measured in actual dollars, the amount of subsidies has increased from $12.25 million to $18.5 million.
“Generally, institutions like ours have been around that 65 to 70 percent (budget subsidy),” Heeke said. “The large portion of that is salary, benefits and scholarship costs. Everything else is self-generated to run those programs.” Subsidized “auxiliary centers” like the Athletics Department are paid for through the general fund. The university allocates $34.9 million in subsidies to these centers, including the Athletics Department, Computing Support, Public Broadcasting, Telecom, the College of Medicine and University Recreation. The Athletics Department receives 52 percent of funds designated to all of the auxiliary centers. “More often than not, colleges and universities are subsidizing athletics, not the other way around,” the AIR report reads. “Student fees or institutional subsidies (coming from tuition, state appropriations, endowments, or other revenue generating activities on campus) often support even the largest NCAA Division I college sports programs.” Revenue generated by athletics programs only covers 28 percent of the department’s budget. The department’s revenue for 2014-15 is projected to be $7.1 million, with major contributions coming from the MAC, $1.3 million, and football revenue, $2.1 million. Men’s basketball is the second-most successful sport, bringing in $375,000 in revenue. Projected expenses for 2014-15 total $25.5 million. “We are very challenged on the revenue side,” Wilkes said. “U-M charges $75 for the cheap (tickets to football) games, we can’t sell them at $22. Part of that is our demographic, we don’t have a lot (of alumni) living close, and some of that is a different economic demographic (of Mount Pleasant).” U-M announced student ticket prices for the 2015-16 school year Monday — $185 for football, $210 for men’s basketball and $160 for hockey. Student tickets at CMU are free. w spending | 6a
Bonamego deal reflects growing salaries in NCAA By Malachi Barrett News Editor
Central Michigan University’s Head Football Coach John Bonamego will earn $475,000 a year for five seasons, which puts his salary in the upper half of Mid-American Conference coaches and a higher base salary than President George Ross. Bonamego’s base pay is $350,000 per year, with $125,000 guaranteed for media and promotional appearances. Former Head Coach Dan Enos’ $360,000 salary was among the lowest in the conference last year. “We need to be competitive, otherwise you won’t attract the type of candidate you want for the positions you have,” said Director of Athletics Dave Heeke. Vice President of Finance and Administrative Services Barrie Wilkes said competition among teams in the
same conference drives up the cost of coaches salaries. “My opinion is we get pushed on the expenditure side,” Wilkes said. “Say we’re spending $400,000 on our coach, and Western goes out and pays theirs $800,000. Now the market is $800,000.” Second-year Western Michigan University football coach P.J. Fleck became the highest-paid coach in the conference December, with a guaranteed annual salary of $800,000 per year. Fleck’s base salary, $225,000 comes from university funds, while the other $575,000 guaranteed annual pay comes from private donors. He also has bonus incentives. According to data compiled by USA Today, the highest-paid coach in the MAC was Ohio University’s Frank Solich, who was guaranteed $554,500 per year in his 16th year at the school. The next closest was fifth-year Ball State
Head Coach Pete Lembo, who makes $500,000 per year. Decisions about bonuses and guaranteed salary in Bonamego’s contract were made to make CMU more competitive with John Bonamego MAC schools, Heeke said. Decisions about compensation package amounts were not compared to Enos’ contract. Bonamego’s contract includes yearly retention payments, a feature also added to President George Ross’ salary adjustment during winter break. Heeke said the retention payment was added as a way to provide an incentive to build the program up consistently year by year and keep his salary competitive as the market changes. “Those salary levels will continue
to rise through the years,” Heeke said. “We want our football program to be successful. We want people to understand that we invest in the program to be successful. We don’t have a choice. Those are the costs of doing business.” Bonamego will make an additional $25,000 if coaching through Feb. 15, 2016, $30,000 if coaching through Feb. 15, 2017 and $50,000 if coaching through Feb. 15, 2018. Voluntary termination by Bonamego or CMU will bring about buy-out damages. If the buy-out occurs before the last regular season game of 2016, it is $1 million. For 2017, it is $575,000, 2018 is $400,000 and 2019 is $200,000. “We’re not saying if we don’t have more we can never beat someone in our league,” Heeke said. “We know who we are. We’re not throwing money down a hole here, we’re investing and we are doing it very strategically.”
GRAND FUNK RAILROAD & THE GUESS WHO | APRIL 4 • STEVE MARTIN & MARTIN SHORT | APRIL 25 TONY TONI TONE | MAY 9 • LORETTA LYNN | MAY 16 KEITH URBAN WITH SPECIAL GUEST DAN+SHAY | JUNE 25 • DEF LEPPARD & TESLA | JULY 21
George Kikano will be leading the College of Medicine starting part time at Central Michigan University on April 1 and full time on July 1 with an annual salary of $500,000. Kikano was one of four candidates interviewed to replace founding dean Ernest Yoder as leader of Central Michigan University’s College of Medicine. CMED has inducted two classes and will accept its third class after April 30. Kikano will finish the curriculum for fourth year students as well as develop George Kikano and maintain relationships with medical practices in Michigan. Kikano graduated from Case Western Reserve School of Medicine in Cleveland in 1988. He w dean | 6a
New master’s degree in engineering available in fall By Emily DeRuiter Staff Reporter
A new Master of Science degree in engineering will be implemented by Central Michigan University’s school of engineering and technology next fall. The two-year program is research based. Requirements are six credit-hours of research, 24 credit-hours of coursework and a concluding thesis. Engineering and Technology Chair Mohamad Qatu said the masters program is being added to offer opportunities for students and staff. “We want to give additional opportunities to our students (so they can) advance in their academics and prepare for either industry or w degree | 6a
CORRECTIONS In the Feb. 23 edition, The Communications Act of 1934 was referenced in a story about police being able to access GPS information from mobile phones. The act was replaced by the Telecommunications Act of 1996. This bill would create a new state statute. In the Feb. 22 edition, Central Michigan Life misquoted Laura Coffee saying “a share is $30 a month” a share at Green Tree Grocery is actually $30 per year. In the Feb. 20 edition, Senator Tonya Schuitmaker’s name was spelled incorrectly. Central Michigan Life regrets these errors.
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