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Funny chart, but based on real data, unfortunately.


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This is the expense side of ROI. What about the revenue side? I grabbed data on 25 college football programs revenue and expenses (and computed the net) -- -- and matched these to the list referenced in the source of the data. Only 24 matched (Stanford was in the Forbes list but not in the list of 120 or so head coach salaries. (I assume the green bar is the head coach salary; I can't believe that the salaries of offensive line coaches and all the other assistant coaches wouldn't bring the this down so the median would be below at least the Dean level)

Median net revenue of the college football program: $25M

Median ratio of net revenue to head coach salary: 7.6

In other words, the salaries of head coaches, while he, are associated with a 7.6x multiplier on net revenue. This seems a bit small to me, actually, but not awful.

So now compare this to say a regular Sociology professor. How much revenue is that professor generating? To compete with the football coach, they need to generating $500K, presumably from students attending the university because of them. I doubt that is the case.

So while it seems high, it can be justified from an ROI perspective. You may not like that football programs generating this kind of revenue, but it isn't absurd. 

Just food for thought! :)


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