Go Lehigh TU Owl
June 15th, 2024, 03:12 PM
I put this together as a final paper for my "Issues in College Athletics" Class at K-State with well-regarded Dr. Lisa Rubin. It obviously has its limitations as the paper is confined by its academic purpose. I think I got it formatted right....
Exploring Four Elite FCS Programs’ Next Move: A Financial and Geographical Perspective
Introduction
North Dakota State, North Dakota, Montana State, & Montana: A Closer Look
When North Dakota State beat Sam Houston State 17-6 on January 7, 2012 to claim the 2011 season’s national title, the institution’s first Division 1 championship since completing the transition from DII to D1 in 2008, no one could have imagined the Bison’s defensive bludgeoning of the explosive Bearkats would kickoff a run of dominance that exceeded Alabama’s reign of terror under Nick Saban. The following season North Dakota State would defeat Sam Houston State by a resounding 39-13 score in a title game rematch to become the first back-2-back champion since Appalachian State completed their 3-peat in 2007. The Bison would then claim three more consecutive national titles to notch the first ever 5-peat at the 1-AA/FCS level. After losing to rising power James Madison in the 2016 semifinals, North Dakota State would regain their championship stride in 2017, 2018 2019 and 2021 to wrap up a 10 year, 11 season period that saw the school from Fargo capture a total of 9 national titles. Rainey (2022) put the Bison’s decade of dominance in this historical context, “The two biggest threats to the Bison dynasty claim might be in the college ranks as well. Perhaps the greatest coach in the history of American sports, John Wooden, led UCLA to ten titles in 12 seasons including seven straight” then added, “Geno Auriemma’s UConn Huskies won 11 national titles but over a 25 year span”.
With these parallels being drawn, making North Dakota State’s sustained period of excellence all the more impressive is the fact 3 coaches, Craig Bohl (3x), Chris Klieman (4x) and Mike Entz (2x), not only contributed to the championship total but also claimed multiple rings themselves. Looking further back in Bison football history, one comes to realize NDSU’s success is truly rooted in institutional, program, and community culture merging together to support prolonged greatness rather than one or two transcendent coaches ruling an empire for an extended period of time. Ellis’ (2016) furthered this sentiment in 2016 when NDSU was at the midway point of their title stampede (and prior to Entz winning), “The football program has won 13 national championships under seven different head coaches”, stating, “that tradition began in the 1960s when President Albrecht decided to revamp the school’s focus on football”. Like Miller (2022) succinctly wrote, “Success breeds success and it’s ever-so prevalent in North Dakota”.
For the University of North Dakota in Grand Forks, its athletic identity has been forged by 80+ years of excellence in men’s hockey. The program’s 8 national titles, 22 Frozen 4 banners, and 35 NCAA Tournament Appearances allows University of North Dakota to make a legitimate claim to being home to the nation’s preeminent college hockey program. The team competes before sold-out crowds in arguably the nicest college hockey facility in the country, the 12,000-seat Ralph Engelstad Arena. Program success and a deep-rooted regional passion for the game combined with the Ralph’s large capacity (by collegiate standards) have all contributed to UND routinely leading college hockey in attendance (Schlossman, 2022). For the 2021-22 season, North Dakota’s support reached new heights according to Schlossman (2022), “UND was the highest-drawing hockey team in North America outside of the NHL, and the second highest in the world behind Bern SC (Switzerland)”.
The Fighting Hawk football program has also enjoyed notable success over the decades; although it pales in comparison to their arch nemesis’ accomplishments. North Dakota did capture the 2001 DII National Championship and fell just short, losing to Grand Valley State 10-3, two years later in their bid for a second title in three seasons. Like NDSU, the University of North Dakota transitioned their athletic programs to Division 1, specifically FCS subdivision for football, in the mid-2000s. However, unlike their rival from Fargo, the University of North Dakota opted to join the Big Sky Conference with fellow Northern Plains mate the University of South Dakota who was also making the jump from DII to D1 at the time rather than trying to pair up with the Bison in the Midwestern-centric MVFC for football. Because the MVFC is a football only league its members were required to find homes for their other sports, usually the MVC or Summit. With this in mind, UND and USD chose the continuity of the Big Sky with the understanding that aligning with schools west of the Rocky Mountain Front would present natural logistical hurdles and cultural differences. Interestingly, before the Big Sky papers were formally signed, the University of South Dakota had a last second change of heart which caused them to select the MVFC/Summit arrangement meaning UND’s closest conference mate would now be over 800 miles away. Holden (2010) provides more perspective to the unexpected about-face in Vermillion, “the University of South Dakota has joined the Missouri Valley Football Conference and Summit League just three days after the Big Sky was counting on the school to bring 14 teams for football and 12 for all other sports”.
The Coyotes’ decision to spurn the Big Sky Conference at the last moment would turn out to be one of a series of defining events the University of North Dakota and its athletic department would be forced to negotiate over the course of the next several years. Arguably, the institution’s public decree in the Spring of 2010 that stated the school’s decision to drop the “Fighting Sioux” nickname had the greatest impact on the University of North Dakota and its athletic teams. It would take over 5 years of intense conversations, hundreds of thousands of dollars spent on consultation and legal fees, and a community vote before the page was finally turned to the “Fighting Hawks Era” of UND Athletics nickname (Williamson, 2015). Less than 18 months after resolving the long-standing mascot issue, UND’s leadership made another extremely difficult decision. At the conclusion of just its 15th year of competition, the university decision to cut the women’s hockey program created seismic repercussions according to Borzi (2018), “the move stunned this sprawling state on the northern Great Plains where the sport is a powerful unifying force”. Borzi (2018) went on to add, “UND dropped women’s hockey, baseball, men’s golf, and men’s and women’s swimming in a two-year wave of athletics budget cuts brought on by a state revenue shortfall” then noting, “men’s golf was reinstated with outside financing”. Finally, on the heels of dropping multiple sports, the North Dakota administration chose to rejoin their former regional rivals by accepting an invitation to become members of the MVFC and Summit League. As Schlossman (2017) indicated, “The move will put UND back in the same conference as North Dakota State, South Dakota, and South Dakota, just as they were in their DII days”. While the sample size remains relatively small, the early returns on the football side of things have been quite positive. Since officially becoming members of the MVFC in 2020, Fighting Hawks football has made the FCS Playoffs 3 out of the last 4 seasons and beat NDSU in 2023 which marked their first win over the Bison in 20 years when both programs were still in DII.
Over a similar time frame, North Dakota’s former Big Sky Conference mate Montana State University has enjoyed great success on the gridiron as well as tremendous growth as an institution having regained the coveted Carnegie R1 designation back in 2019. With that said, MSU’s rise was far from a linear process and didn’t come about without facing some perilous moments themselves. After the Bobcats won the 1984 1-AA National Title, the program fell out of the limelight for the next quarter-century as their bitter rivals from Missoula emerged as one of the gold standards in the subdivision. It took an athletic department wide scandal in the mid-2000s to shake things up in order to get Montana State headed in the right direction competitively and more importantly, ethically. A scathing 2007 Sports Illustrated article written by Dohrmann (2007) offered this perspective of the institutional and athletic perception prior to MSU’s on-going period of prosperity, “the university’s athletic department has been importing crime to the idyllic mountain setting” stating, “the arrests shook Bozeman and left Montana State fans violated”. Dohrmann (2007) also hinted at a racial divide and/or a lack of understanding within the greater Montana State community that existed during this period, “If Montana State continues to bring in black, urban athletes, it must find ways to integrate them into the community that is 95% white”. One can’t help but read Dohrmann’s assertion without thinking about the racial tensions that arose between “several” black Colorado football players who hailed from urban areas and the overwhelmingly white Boulder community during the Buffaloes rise to power in the late 1980s under Dan McCartney.
When Rob Ash left Drake University as the Bulldogs’ all-time winningest coach to take on the task of rebuilding the Bobcat program, the Iowa native was cognizant of the work that needed to be done as well as the elite level of success that could be attained in Bozeman. Ash did an excellent job of rebuilding community relations which paved the way for MSU to be among the leaders in FCS football attendance year in and year out. The Bobcats enjoyed considerable on the field success as well, peaking at #1 in 2012, but could not solve the Bison and SHSU riddle in the playoffs which contributed to his dismissal in 2016. His predecessors have picked up the momentum Ash generated allowing Bobcat Football to emerge as one of the elite programs in FCS despite not having won a national title in 40 years. The tremendous growth of Bozeman has also greatly impacted Montana State University along with its athletic program as the institution and Gallatin Valley have become highly desirable destinations.
Not to be outdone by Bozeman’s beauty and Montana State’s commitment to football success is enchanting Missoula, home of the two-time 1-AA/FCS National Champions (1995, 2001) and 2023 runner-up University of Montana Grizzlies. Now that Delaware is in the process of moving to FBS (CUSA) the ‘Griz, along with Youngstown State, Furman and Eastern Kentucky are the last 1-AA/FCS superpowers who took control of the subdivision in the 1980s, 1990s and 2000s that remain committed to the second tier of Division 1. Washington-Grizzly Stadium remains one of the best stadiums in all of college sports, a true “bucket list” venue given its incredible vistas, raucous crowd, and the quality of the team that calls it home. The Montana/Montana State rivalry, aptly dubbed “The Brawl of the Wild” is without question one of the most intense in all of college athletics. Robbins (2023) emphatically declares, “The rivalry between the Griz and Cats is deeply ingrained in the culture and tradition of the state of Montana. It goes beyond football, encompassing academics, community pride, and regional supremacy”. The Griz retain a commanding 74-42-5 edge despite the Bobcats stemming the tide in recent years.
The seemingly inseparable bond the Griz and Cats share is one of, if not the most, influential variable that has kept Montana in FCS. After all, the Griz were in the then Pacific Coast Conference (precursor to the PAC 12) with the likes of Washington, California, Stanford, Oregon State, Oregon, UCLA and Southern Cal before the institution decided to de-emphasize athletics in the 1940s ala the University of Chicago; but with considerably less historical fanfare. According to Rachac (2023) the Griz were courted by the Western Athletic Conference a number of years ago while indicating their rivals to the south have not received similar overtures during the same time frame. Given the downfall of the WAC and recent disintegration of the PAC 12, the Griz and Bobcats could be in a position to finally join up with other prominent state schools like Boise State, Wyoming, Colorado State, Utah State, Washington State, Oregon State etc. in the Mountain West, under the “PAC” namesake or perhaps a yet to be formed FBS conference.
North Dakota State, and to a lesser extent (political forces notwithstanding) UND, have also been tied to the Mountain West Conference over the years. However, due to Eastern North Dakota’s geographical isolation the possibility of NDSU’s/UND’s inclusion has been hotly debated before generally being dismissed as a “bridge too far”. This also goes for a potential move to the MAC, CUSA, AAC and Sun Belt which appear even more unlikely because of these conferences’ current/desired footprint.
Motivation for Research
This is an initial investigation into the current and potential financial circumstances four flagship/prominent public institutions should consider when debating whether to remain in FCS or move to FBS. First, total revenue and total expenses will be looked at to provide a macro-level overview of each institution’s balance sheet. To expand on the revenue side of the ledger, donor contributions and student-fees will be looked at in detail to gain a greater contextual understanding of ancillary financial support along with the importance of internal subsidization on sustainability at the FCS and FBS level. Coaching compensation and recruiting costs will be the two components of total expenses that will be explored in detail. The primary rationale behind the selection of these two variables being the holistic impact of a football coach's salary on the athletic department and the financial ramifications of adjusting recruiting behaviors/practices to meet G5 FBS standards respectively.
Three periods of time (2015, 2019, & 2023) will be used to add depth to the data. The reasoning behind the specific years is that they maintain the traditional 4-year benchmark that has long been associated with higher education while also avoiding the obvious “data skewing” that resulted from the Covid 19 pandemic in 2021 and 2022. It must be noted, all the figures are whole numbers representing the entire athletic department, not football specific breakdowns. As it is, the numerical data does provide pertinent insight due to football accounting for a “significant” portion of an athletic department’s budget. The data was exclusively retrieved from the Knight Commission’s Financial Information Database. Also, the data was not adjusted for inflation as it is the belief of this student the figures are best interpreted in their organic condition to provide greater perspective to the 4-year increments.
(Knight Commission on Intercollegiate Athletics, 2023)
Results and Analysis
The Institutions
Upon an initial inspection of the data, perhaps the most glaring observation is how narrow the margin is between net profit and net loss for each university’s athletic department. Of the 3 reporting periods used; Montana State was in the black 2x, North Dakota State 2x, Montana 2x, and North Dakota 2x with Montana’s 2023 being the only instance where revenues exceed expenses by more than $1,000,000. Interestingly, Montana was also the only school to have expenses surpass revenue by $1,000,000 (2015). North Dakota’s revenues and expenses rose past the $30 million mark in 2019 and 2023 from a little over $24 million in 2015 which goes against conventional wisdom that suggested being an all-sports member of the Big Sky was more expensive than the MVFC/Summit arrangement. In fact, of the 4 universities, only the North Dakota schools (UND 2x and NDSU 1x) expenses broke the $30 million barrier.
North Dakota State spent the most on coaching salaries which might be attributed to the need to pay national title winning football coaches over the selected periods. Montana State saw the largest 8-year increase in salary costs, approximately $3.4 million in 2015 to $5.3 million in 2023, which coincides with the school's larger financial investments in recent years. Conversely, the University of North Dakota saw the greatest salary stagnation over the 3 reporting periods with an increase of “only” $406,915. Meanwhile, Montana State led the way with total amount spent on recruiting with $1,570,175 followed by North Dakota 1,507,413; North Dakota State $1,391,501; Montana $1,175,666.
When diving into the revenue side of the pool, North Dakota State’s philanthropic support stands above the rest. The Bison’s booster organization ‘Team Makers’ has long been revered in FCS circles for its ability to raise “FBS type” donations to ensure football’s ability to compete for national titles year after year. The 2023 figure of $8,453,089 puts NDSU’s most recent data point is nearly $3 million ahead of the second-best performer, North Dakota. North Dakota State also saw the biggest increase in contributions, 52%, from 2015 to 2019 while Montana saw the smallest, and by a wide margin, at 12%. Montana State and North Dakota enjoyed growths of 46% and 35% respectively during that time frame. UND was the most reliant on student fees to generate revenue for athletics. In fact, the Grand Forks institution collected on average nearly 3x more money from student fees than the University of Montana who relied on this source of revenue the least of the four. With that said, Montana State was the only institution to see an increase in student fee revenue each of the 3 reporting periods: $1,786,164 in 2019, $2,005,477 in 2019, $2,170,683 in 2023. Minimizing student subsidization should be considered a positive action despite the inevitable trickle-down effect.
Current Situation vs Mountain West Conference Averages
Because of the substantial increase in television revenue Mountain West members enjoy over their FCS counterparts, it is inherently impossible to draw direct parallels when it comes to the balance sheet. However, when putting the 4 athletic programs against both MWC and FCS averages one can begin to see the “no man’s land” of sorts the Bison, Bobcats, Griz, and Fighting Hawks live in financially and when it comes to FBS options, geographically. After a quick check, these 4 already share similar profiles (based on the limited variables) to the vast majority of MAC, CUSA and Sun Belt athletic departments but “remoteness” and “institutional fit” remain major hurdles for membership.
One area where the FCSers stack up quite well already is in donations. NDSU is already well above the MWC median while the other 3 fall “respectably short” of the average. This suggests that as members, given the natural uptick in giving that would occur all four could be in the top half of arguably the best G5 league. The MVFC and Big Sky schools are already ahead of the MAC averages. Unfortunately, Montana State, Montana, and North Dakota State would all have to increase their student fees substantially to align with the MWC norm. In Montana’s case, the institution would have to quadruple their current figure ($1,039,011) to be commensurate with the MWC’s median in 2023 ($4,354,272). Saddling students with such a pronounced additional financial burden in order to facilitate athletic ambitions is something that should be avoided if at all possible. Granted, a pragmatic argument can be made that the elevated level of play will enhance the student experience and even the value of the institution’s degree. Even so, an individuals’ ROI (if there is one) will vary greatly while the fee is uniform across the board.
Future Considerations
Placing football under the microscope would provide the program specific feedback that was missing in this initial foray into the data using the Knight Commission’s platform. It would also be prudent to look more closely at the financial situations of men’s and women’s basketball given the monetary influence both programs do/can have on athletics. Like football, basketball would require additional resources to meet the standards associated with a conference of MWC’s pedigree. All other sports would need to be positioned accordingly as well to determine resource needs and/or viability (is this sport even sponsored in the new conference?).
A brief look at MAC data suggests the Montana and North Dakota institutions are already on the correct plane financially. However, more time needs to be spent identifying relevant nuances between each sport. Gaining greater clarity of the competitive component for the athletic department beyond football is important too. The MAC, as well as CUSA and Sun Belt athletics have multiple sports at a mid-major to low-major Division 1 level thus a decision to join one of these FBS conferences would be a lateral and/or negative move for certain teams.
Conclusion
Georgia Southern, Boise State, Marshall, Appalachian State, and Massachusetts all departed 1-AA/FCS a decade or more ago while many of the programs, Jacksonville State, Sam Houston State and James Madison for example, who supplanted the “old guard” atop the rankings in recent years have recently hopped on the FBS train. The power in FCS now resides in the Northern Plains and Western Montana. South Dakota State just captured back-2-back national titles and appear well positioned to vie for their own 3-peat. However, like their foes to the North and Northwest, the Jackrabbits appear to be stuck in FCS purgatory for the time being; or at least until the MWC/PAC 2 arrangement sorts itself out. Nevertheless, the North Dakota, Montana, and South Dakota FCSers must remain committed to ongoing due diligence so if the right opportunity presents itself in the rapidly evolving world of Division 1 college football these institutions are prepared to act.
Exploring Four Elite FCS Programs’ Next Move: A Financial and Geographical Perspective
Introduction
North Dakota State, North Dakota, Montana State, & Montana: A Closer Look
When North Dakota State beat Sam Houston State 17-6 on January 7, 2012 to claim the 2011 season’s national title, the institution’s first Division 1 championship since completing the transition from DII to D1 in 2008, no one could have imagined the Bison’s defensive bludgeoning of the explosive Bearkats would kickoff a run of dominance that exceeded Alabama’s reign of terror under Nick Saban. The following season North Dakota State would defeat Sam Houston State by a resounding 39-13 score in a title game rematch to become the first back-2-back champion since Appalachian State completed their 3-peat in 2007. The Bison would then claim three more consecutive national titles to notch the first ever 5-peat at the 1-AA/FCS level. After losing to rising power James Madison in the 2016 semifinals, North Dakota State would regain their championship stride in 2017, 2018 2019 and 2021 to wrap up a 10 year, 11 season period that saw the school from Fargo capture a total of 9 national titles. Rainey (2022) put the Bison’s decade of dominance in this historical context, “The two biggest threats to the Bison dynasty claim might be in the college ranks as well. Perhaps the greatest coach in the history of American sports, John Wooden, led UCLA to ten titles in 12 seasons including seven straight” then added, “Geno Auriemma’s UConn Huskies won 11 national titles but over a 25 year span”.
With these parallels being drawn, making North Dakota State’s sustained period of excellence all the more impressive is the fact 3 coaches, Craig Bohl (3x), Chris Klieman (4x) and Mike Entz (2x), not only contributed to the championship total but also claimed multiple rings themselves. Looking further back in Bison football history, one comes to realize NDSU’s success is truly rooted in institutional, program, and community culture merging together to support prolonged greatness rather than one or two transcendent coaches ruling an empire for an extended period of time. Ellis’ (2016) furthered this sentiment in 2016 when NDSU was at the midway point of their title stampede (and prior to Entz winning), “The football program has won 13 national championships under seven different head coaches”, stating, “that tradition began in the 1960s when President Albrecht decided to revamp the school’s focus on football”. Like Miller (2022) succinctly wrote, “Success breeds success and it’s ever-so prevalent in North Dakota”.
For the University of North Dakota in Grand Forks, its athletic identity has been forged by 80+ years of excellence in men’s hockey. The program’s 8 national titles, 22 Frozen 4 banners, and 35 NCAA Tournament Appearances allows University of North Dakota to make a legitimate claim to being home to the nation’s preeminent college hockey program. The team competes before sold-out crowds in arguably the nicest college hockey facility in the country, the 12,000-seat Ralph Engelstad Arena. Program success and a deep-rooted regional passion for the game combined with the Ralph’s large capacity (by collegiate standards) have all contributed to UND routinely leading college hockey in attendance (Schlossman, 2022). For the 2021-22 season, North Dakota’s support reached new heights according to Schlossman (2022), “UND was the highest-drawing hockey team in North America outside of the NHL, and the second highest in the world behind Bern SC (Switzerland)”.
The Fighting Hawk football program has also enjoyed notable success over the decades; although it pales in comparison to their arch nemesis’ accomplishments. North Dakota did capture the 2001 DII National Championship and fell just short, losing to Grand Valley State 10-3, two years later in their bid for a second title in three seasons. Like NDSU, the University of North Dakota transitioned their athletic programs to Division 1, specifically FCS subdivision for football, in the mid-2000s. However, unlike their rival from Fargo, the University of North Dakota opted to join the Big Sky Conference with fellow Northern Plains mate the University of South Dakota who was also making the jump from DII to D1 at the time rather than trying to pair up with the Bison in the Midwestern-centric MVFC for football. Because the MVFC is a football only league its members were required to find homes for their other sports, usually the MVC or Summit. With this in mind, UND and USD chose the continuity of the Big Sky with the understanding that aligning with schools west of the Rocky Mountain Front would present natural logistical hurdles and cultural differences. Interestingly, before the Big Sky papers were formally signed, the University of South Dakota had a last second change of heart which caused them to select the MVFC/Summit arrangement meaning UND’s closest conference mate would now be over 800 miles away. Holden (2010) provides more perspective to the unexpected about-face in Vermillion, “the University of South Dakota has joined the Missouri Valley Football Conference and Summit League just three days after the Big Sky was counting on the school to bring 14 teams for football and 12 for all other sports”.
The Coyotes’ decision to spurn the Big Sky Conference at the last moment would turn out to be one of a series of defining events the University of North Dakota and its athletic department would be forced to negotiate over the course of the next several years. Arguably, the institution’s public decree in the Spring of 2010 that stated the school’s decision to drop the “Fighting Sioux” nickname had the greatest impact on the University of North Dakota and its athletic teams. It would take over 5 years of intense conversations, hundreds of thousands of dollars spent on consultation and legal fees, and a community vote before the page was finally turned to the “Fighting Hawks Era” of UND Athletics nickname (Williamson, 2015). Less than 18 months after resolving the long-standing mascot issue, UND’s leadership made another extremely difficult decision. At the conclusion of just its 15th year of competition, the university decision to cut the women’s hockey program created seismic repercussions according to Borzi (2018), “the move stunned this sprawling state on the northern Great Plains where the sport is a powerful unifying force”. Borzi (2018) went on to add, “UND dropped women’s hockey, baseball, men’s golf, and men’s and women’s swimming in a two-year wave of athletics budget cuts brought on by a state revenue shortfall” then noting, “men’s golf was reinstated with outside financing”. Finally, on the heels of dropping multiple sports, the North Dakota administration chose to rejoin their former regional rivals by accepting an invitation to become members of the MVFC and Summit League. As Schlossman (2017) indicated, “The move will put UND back in the same conference as North Dakota State, South Dakota, and South Dakota, just as they were in their DII days”. While the sample size remains relatively small, the early returns on the football side of things have been quite positive. Since officially becoming members of the MVFC in 2020, Fighting Hawks football has made the FCS Playoffs 3 out of the last 4 seasons and beat NDSU in 2023 which marked their first win over the Bison in 20 years when both programs were still in DII.
Over a similar time frame, North Dakota’s former Big Sky Conference mate Montana State University has enjoyed great success on the gridiron as well as tremendous growth as an institution having regained the coveted Carnegie R1 designation back in 2019. With that said, MSU’s rise was far from a linear process and didn’t come about without facing some perilous moments themselves. After the Bobcats won the 1984 1-AA National Title, the program fell out of the limelight for the next quarter-century as their bitter rivals from Missoula emerged as one of the gold standards in the subdivision. It took an athletic department wide scandal in the mid-2000s to shake things up in order to get Montana State headed in the right direction competitively and more importantly, ethically. A scathing 2007 Sports Illustrated article written by Dohrmann (2007) offered this perspective of the institutional and athletic perception prior to MSU’s on-going period of prosperity, “the university’s athletic department has been importing crime to the idyllic mountain setting” stating, “the arrests shook Bozeman and left Montana State fans violated”. Dohrmann (2007) also hinted at a racial divide and/or a lack of understanding within the greater Montana State community that existed during this period, “If Montana State continues to bring in black, urban athletes, it must find ways to integrate them into the community that is 95% white”. One can’t help but read Dohrmann’s assertion without thinking about the racial tensions that arose between “several” black Colorado football players who hailed from urban areas and the overwhelmingly white Boulder community during the Buffaloes rise to power in the late 1980s under Dan McCartney.
When Rob Ash left Drake University as the Bulldogs’ all-time winningest coach to take on the task of rebuilding the Bobcat program, the Iowa native was cognizant of the work that needed to be done as well as the elite level of success that could be attained in Bozeman. Ash did an excellent job of rebuilding community relations which paved the way for MSU to be among the leaders in FCS football attendance year in and year out. The Bobcats enjoyed considerable on the field success as well, peaking at #1 in 2012, but could not solve the Bison and SHSU riddle in the playoffs which contributed to his dismissal in 2016. His predecessors have picked up the momentum Ash generated allowing Bobcat Football to emerge as one of the elite programs in FCS despite not having won a national title in 40 years. The tremendous growth of Bozeman has also greatly impacted Montana State University along with its athletic program as the institution and Gallatin Valley have become highly desirable destinations.
Not to be outdone by Bozeman’s beauty and Montana State’s commitment to football success is enchanting Missoula, home of the two-time 1-AA/FCS National Champions (1995, 2001) and 2023 runner-up University of Montana Grizzlies. Now that Delaware is in the process of moving to FBS (CUSA) the ‘Griz, along with Youngstown State, Furman and Eastern Kentucky are the last 1-AA/FCS superpowers who took control of the subdivision in the 1980s, 1990s and 2000s that remain committed to the second tier of Division 1. Washington-Grizzly Stadium remains one of the best stadiums in all of college sports, a true “bucket list” venue given its incredible vistas, raucous crowd, and the quality of the team that calls it home. The Montana/Montana State rivalry, aptly dubbed “The Brawl of the Wild” is without question one of the most intense in all of college athletics. Robbins (2023) emphatically declares, “The rivalry between the Griz and Cats is deeply ingrained in the culture and tradition of the state of Montana. It goes beyond football, encompassing academics, community pride, and regional supremacy”. The Griz retain a commanding 74-42-5 edge despite the Bobcats stemming the tide in recent years.
The seemingly inseparable bond the Griz and Cats share is one of, if not the most, influential variable that has kept Montana in FCS. After all, the Griz were in the then Pacific Coast Conference (precursor to the PAC 12) with the likes of Washington, California, Stanford, Oregon State, Oregon, UCLA and Southern Cal before the institution decided to de-emphasize athletics in the 1940s ala the University of Chicago; but with considerably less historical fanfare. According to Rachac (2023) the Griz were courted by the Western Athletic Conference a number of years ago while indicating their rivals to the south have not received similar overtures during the same time frame. Given the downfall of the WAC and recent disintegration of the PAC 12, the Griz and Bobcats could be in a position to finally join up with other prominent state schools like Boise State, Wyoming, Colorado State, Utah State, Washington State, Oregon State etc. in the Mountain West, under the “PAC” namesake or perhaps a yet to be formed FBS conference.
North Dakota State, and to a lesser extent (political forces notwithstanding) UND, have also been tied to the Mountain West Conference over the years. However, due to Eastern North Dakota’s geographical isolation the possibility of NDSU’s/UND’s inclusion has been hotly debated before generally being dismissed as a “bridge too far”. This also goes for a potential move to the MAC, CUSA, AAC and Sun Belt which appear even more unlikely because of these conferences’ current/desired footprint.
Motivation for Research
This is an initial investigation into the current and potential financial circumstances four flagship/prominent public institutions should consider when debating whether to remain in FCS or move to FBS. First, total revenue and total expenses will be looked at to provide a macro-level overview of each institution’s balance sheet. To expand on the revenue side of the ledger, donor contributions and student-fees will be looked at in detail to gain a greater contextual understanding of ancillary financial support along with the importance of internal subsidization on sustainability at the FCS and FBS level. Coaching compensation and recruiting costs will be the two components of total expenses that will be explored in detail. The primary rationale behind the selection of these two variables being the holistic impact of a football coach's salary on the athletic department and the financial ramifications of adjusting recruiting behaviors/practices to meet G5 FBS standards respectively.
Three periods of time (2015, 2019, & 2023) will be used to add depth to the data. The reasoning behind the specific years is that they maintain the traditional 4-year benchmark that has long been associated with higher education while also avoiding the obvious “data skewing” that resulted from the Covid 19 pandemic in 2021 and 2022. It must be noted, all the figures are whole numbers representing the entire athletic department, not football specific breakdowns. As it is, the numerical data does provide pertinent insight due to football accounting for a “significant” portion of an athletic department’s budget. The data was exclusively retrieved from the Knight Commission’s Financial Information Database. Also, the data was not adjusted for inflation as it is the belief of this student the figures are best interpreted in their organic condition to provide greater perspective to the 4-year increments.
(Knight Commission on Intercollegiate Athletics, 2023)
Results and Analysis
The Institutions
Upon an initial inspection of the data, perhaps the most glaring observation is how narrow the margin is between net profit and net loss for each university’s athletic department. Of the 3 reporting periods used; Montana State was in the black 2x, North Dakota State 2x, Montana 2x, and North Dakota 2x with Montana’s 2023 being the only instance where revenues exceed expenses by more than $1,000,000. Interestingly, Montana was also the only school to have expenses surpass revenue by $1,000,000 (2015). North Dakota’s revenues and expenses rose past the $30 million mark in 2019 and 2023 from a little over $24 million in 2015 which goes against conventional wisdom that suggested being an all-sports member of the Big Sky was more expensive than the MVFC/Summit arrangement. In fact, of the 4 universities, only the North Dakota schools (UND 2x and NDSU 1x) expenses broke the $30 million barrier.
North Dakota State spent the most on coaching salaries which might be attributed to the need to pay national title winning football coaches over the selected periods. Montana State saw the largest 8-year increase in salary costs, approximately $3.4 million in 2015 to $5.3 million in 2023, which coincides with the school's larger financial investments in recent years. Conversely, the University of North Dakota saw the greatest salary stagnation over the 3 reporting periods with an increase of “only” $406,915. Meanwhile, Montana State led the way with total amount spent on recruiting with $1,570,175 followed by North Dakota 1,507,413; North Dakota State $1,391,501; Montana $1,175,666.
When diving into the revenue side of the pool, North Dakota State’s philanthropic support stands above the rest. The Bison’s booster organization ‘Team Makers’ has long been revered in FCS circles for its ability to raise “FBS type” donations to ensure football’s ability to compete for national titles year after year. The 2023 figure of $8,453,089 puts NDSU’s most recent data point is nearly $3 million ahead of the second-best performer, North Dakota. North Dakota State also saw the biggest increase in contributions, 52%, from 2015 to 2019 while Montana saw the smallest, and by a wide margin, at 12%. Montana State and North Dakota enjoyed growths of 46% and 35% respectively during that time frame. UND was the most reliant on student fees to generate revenue for athletics. In fact, the Grand Forks institution collected on average nearly 3x more money from student fees than the University of Montana who relied on this source of revenue the least of the four. With that said, Montana State was the only institution to see an increase in student fee revenue each of the 3 reporting periods: $1,786,164 in 2019, $2,005,477 in 2019, $2,170,683 in 2023. Minimizing student subsidization should be considered a positive action despite the inevitable trickle-down effect.
Current Situation vs Mountain West Conference Averages
Because of the substantial increase in television revenue Mountain West members enjoy over their FCS counterparts, it is inherently impossible to draw direct parallels when it comes to the balance sheet. However, when putting the 4 athletic programs against both MWC and FCS averages one can begin to see the “no man’s land” of sorts the Bison, Bobcats, Griz, and Fighting Hawks live in financially and when it comes to FBS options, geographically. After a quick check, these 4 already share similar profiles (based on the limited variables) to the vast majority of MAC, CUSA and Sun Belt athletic departments but “remoteness” and “institutional fit” remain major hurdles for membership.
One area where the FCSers stack up quite well already is in donations. NDSU is already well above the MWC median while the other 3 fall “respectably short” of the average. This suggests that as members, given the natural uptick in giving that would occur all four could be in the top half of arguably the best G5 league. The MVFC and Big Sky schools are already ahead of the MAC averages. Unfortunately, Montana State, Montana, and North Dakota State would all have to increase their student fees substantially to align with the MWC norm. In Montana’s case, the institution would have to quadruple their current figure ($1,039,011) to be commensurate with the MWC’s median in 2023 ($4,354,272). Saddling students with such a pronounced additional financial burden in order to facilitate athletic ambitions is something that should be avoided if at all possible. Granted, a pragmatic argument can be made that the elevated level of play will enhance the student experience and even the value of the institution’s degree. Even so, an individuals’ ROI (if there is one) will vary greatly while the fee is uniform across the board.
Future Considerations
Placing football under the microscope would provide the program specific feedback that was missing in this initial foray into the data using the Knight Commission’s platform. It would also be prudent to look more closely at the financial situations of men’s and women’s basketball given the monetary influence both programs do/can have on athletics. Like football, basketball would require additional resources to meet the standards associated with a conference of MWC’s pedigree. All other sports would need to be positioned accordingly as well to determine resource needs and/or viability (is this sport even sponsored in the new conference?).
A brief look at MAC data suggests the Montana and North Dakota institutions are already on the correct plane financially. However, more time needs to be spent identifying relevant nuances between each sport. Gaining greater clarity of the competitive component for the athletic department beyond football is important too. The MAC, as well as CUSA and Sun Belt athletics have multiple sports at a mid-major to low-major Division 1 level thus a decision to join one of these FBS conferences would be a lateral and/or negative move for certain teams.
Conclusion
Georgia Southern, Boise State, Marshall, Appalachian State, and Massachusetts all departed 1-AA/FCS a decade or more ago while many of the programs, Jacksonville State, Sam Houston State and James Madison for example, who supplanted the “old guard” atop the rankings in recent years have recently hopped on the FBS train. The power in FCS now resides in the Northern Plains and Western Montana. South Dakota State just captured back-2-back national titles and appear well positioned to vie for their own 3-peat. However, like their foes to the North and Northwest, the Jackrabbits appear to be stuck in FCS purgatory for the time being; or at least until the MWC/PAC 2 arrangement sorts itself out. Nevertheless, the North Dakota, Montana, and South Dakota FCSers must remain committed to ongoing due diligence so if the right opportunity presents itself in the rapidly evolving world of Division 1 college football these institutions are prepared to act.