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UT's Pigskin Profiteer

Most valuable team: Mack Brown's Longhorns profit by half-a-billion

Golden Hat Texas OU game
The Longhorns have raked in nearly $800 million in revenue in the last 10 years. Photo courtesy of UT Athletics
Mack Brown Jackson Jeffcoat West Virginia game
Mack Brown should be given credit for his victories both on the field and in the bank.  Photo courtesy of UT Athletics

You might call Mack Brown the master of pigskin profit.

In just his past 10 years as head coach, Brown’s University of Texas football program has raked in nearly $788.9 million in revenue — with profit topping half a billion dollars. Brown’s time at the team’s helm ends Dec. 30 with the Longhorns’ appearance in the Alamo Bowl.

To be sure, Brown isn’t solely responsible for generating that pile of cash. But when you’re essentially the CEO of a multimillion-dollar business, you deserve more than a pat on the back if you achieve success. (Undoubtedly, a more than $5 million annual salary is a rich reward.)

 In just his past 10 years as head coach, Brown’s University of Texas football program has raked in nearly $788.9 million in revenue — with profit topping half a billion dollars. 

A CultureMap review of UT and U.S. Department of Education records shows that football revenue at Texas shot up 130 percent from $47.6 million in the 2003-04 school year to $109.4 million in 2012-13. Football profit in 2012-13 totaled $81.7 million — up 136 percent from $34.6 million in 2012-13. During that span, the Longhorns clinched the 2005 national football championship and played for 2009 national championship.

(Figures for the previous years of Brown’s 16-season coaching tenure weren’t available online.)

Given those numbers, it’s no surprise that Forbes magazine just anointed the Longhorns as college football’s most valuable team, worth an estimated $139 million.

“The team’s unprecedented value is built on the back of the nation’s most dedicated fan base, which has helped Texas lead all schools in merchandise sales, secure the most lucrative school-specific TV deal and become the only college football team in history to cross $100 million in revenue, which the Longhorns have done for the last two seasons,” Forbes said.

To determine college football’s most valuable teams, Forbes weighed each team’s value to its athletic department, its university’s academic endeavors, its athletic conference and its school’s local economy.

As outlined by Forbes, the Longhorns picked up $34.5 million from ticket sales in 2012-13. Most of the team’s remaining revenue came from contributions ($30 million), royalties and sponsorships ($26 million) and distributions from the NCAA and Big 12 ($15 million).

“If you were ever looking for a recession-proof business, you wouldn’t need a college degree to see that football is a no-brainer,” according to Businessweek.

It’s also a no-brainer that Brown has played a pivotal role in ratcheting up the business of football at Texas.

UT grad John Vrooman, a professor at Vanderbilt University who specializes in sports economics, said Brown restored stability to the Longhorn football program and “reconnected” the Bevo brand to the glory years of the revered Darrell K. Royal.

“Mack Brown generated revenues by glad-handing boosters and playing for national championships,” Vrooman said, “but his major contribution was to slam shut the revolving coaching carousel that followed DKR.”

 “Texas football more than pays for itself, and even if the new coach’s salary approaches the $7 million to $8 million Nick Saban range, it will still be less than my rule of thumb of 5 percent of the Texas football budget.” — sports economist John Vrooman

 Vrooman said it’s vital for UT to keep pace with “fads” in college football coaching, but it’s even more important to protect the long-term value of the Longhorns brand.

“Texas football more than pays for itself, and even if the new coach’s salary approaches the $7 million to $8 million Nick Saban range, it will still be less than my rule of thumb of 5 percent of the Texas football budget,” Vrooman said. “The Longhorn brand is all about winning, and short-term winning becomes a long-term tradition of winning that sells itself.”

On Forbes.com, sports economist Patrick Rishe wrote that it’s hard to overlook the “financial bump” that the UT athletics program has enjoyed during Brown’s tenure, and the outgoing coach deserves some of the credit.

Brown’s successor obviously will feel pressure to notch on-the-field victories, along with financial ones. However, Rishe, assistant professor of economics at Webster University near St. Louis, told CultureMap that he doesn’t think the Longhorns’ revenue-producing prowess will be in jeopardy in the post-Brown era.

“Obviously, winning more generates more revenue,” Rishe said, “but UT fans and followers are such diehards that even playing at a level consistent with the last few years won’t seriously destroy ticket or alumni revenue.”

John Solow, an economics professor at the University of Iowa, said the next Texas coach and his staff would be wise to concentrate on recruiting talented players, cultivating the players’ abilities and making smart tactical decisions during games.

“Win, go to major bowl games and get players drafted by the NFL,” Solow said, “and the revenue will take care of itself.”

Here’s the football revenue scoreboard for the past 10 years of the Mack Brown era:

2003-04: $47,556,281

2004-05: $53,204,171

2005-06: $60,880,069

2006-07: $63,798,068

2007-08: $72,952,397

2008-09: $87,583,986

2009-10: $93,942,815

2010-11: $95,749,684

2011-12: $103,813,684

2012-13: $109,400,688

Total: $788,881,843

Here are the expenses that the football program racked up during the past 10 years of Mack Brown’s stint:

2003-04: $12,948,131

2004-05: $14,489,472

2005-06: $18,425,454

2006-07: $17,565,006

2007-08: $20,049,651

2008-09: $22,569,086

2009-10: $25,112,331

2010-11: $24,507,352

2011-12: $25,896,203

2012-13: $27,675,403

Total: $209,238,089

Here’s the profit (revenue minus expenses) that the football program rang up during the past 10 years of Mack Brown’s tenure:

2003-04: $34,608,150

2004-05: $38,714,699

2005-06: $42,454,615

2006-07: $46,233,062

2007-08: $52,902,746

2008-09: $65,014,900

2009-10: $68,830,484

2010-11: $71,242,332

2011-12: $77,917,481

2012-13: $81,725,285

Total: $579,643,754

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