This is the time of year where America celebrates college basketball as a spectacle, and more and more, as a business. In 2010, the NCAA struck a 14-year, $10.8 billion deal with CBS and Turner Broadcasting System for the rights to the tournament. Part of that money eventually devolves down to the teams, some of which have become truly enormous profit generators. At The Atlantic, we wondered what this year's bracket would look like if, instead of their on-the-court play, teams won and lost based on their most recent balance sheets. Using data from the Department of Education, we calculated which teams earned the biggest profits during the 2010-2011 fiscal year, then set them up against each other.
The Final Four: Louisville, Duke Ohio State, and the University of North Carolina. Your national champion: Louisville. By a longshot. (Click the bracket below for a full-size version.)
The government's numbers have one major flaw for our purposes. Colleges can hide the true cost of running a money-losing team with some fancy accounting -- essentially by covering up their losses with dollars from the school's general fund. As a result, many teams appear to finish the year breaking exactly even, despite the fact that they're actually in the red. On the bracket, I've marked those programs as having "unknown losses."*
But while the data won't tell you much about most of the money losers, it will tell you a lot about the money makers. Louisville has been college basketball's earnings leader three years running, raking in a monstrous $40.89 million in revenue in FY 2010-2011, and $27.55 million in profit. Second place Duke made a total of $28.91 million in revenue, netting $15.1 million.
College basketball teams earn income off three main things -- ticket sales, donations, and distributions from the NCAA itself, says Transylvania University Professor Daniel Fulks, who analyzes university athletic department finances on behalf of the NCAA. The ticket sales are the most straight-forward part of the equation. Large schools with large stadiums that can pack a crowd have an obvious built-in advantage. Unsurprisingly, four of the five highest revenue generating teams in this year's tournament -- Louisville, UNC, Syracuse, and Kentucky -- also led the NCAA in average per-game attendance.
But a successful team can get by without massive attendance. Duke, with its relatively modest 9,300 seat stadium, is the second most formidable revenue earner in the tournament. They do it with donations from alumni and boosters. Before Blue Devils fans are allowed to buy season tickets at Cameron Indoor Stadium, they're required to make a sizable donations. According to Duke Senior Associate Athletic Director Mike Cragg, the two worst seats in the house require an $8,000 dollar gift on top of the ticket price. Fans give all the way to up to the cost of a year-long scholarship, roughly $55,000. Many other universities have adopted similar practices.
Finally, there are the funds the NCAA distributes to conferences based on their performance in the national championship tournament. Conferences earn money based on the number of games their teams have played in the big dance during the past six years. The more games, the more the conference earns. Last year, the NCAA doled out about $180 million this way. It's up to each conferences to split up its haul between its teams.
Combined, those three categories make up three quarters of most basketball teams' revenue, Fulks says. Now consider Louisville. The Cardinals play in the brand new, 22,000 seat YUM Center, where prospective season ticket buyers are essentially required to make donations before they can claim a seat. According to Forbes, the team received more than $20 million in total contributions last year. It also plays in the Big East, which received the single biggest portion of last year's NCAA tournament bounty.
Wealthy teams, like Louisville, only stand to get richer. In the last few years, the top athletic conferences have signed lucrative television deals for football and basketball worth many millions of dollars to each of their member schools.
But just like in any other game, earning a nice financial return won't necessarily earn a college basketball team points on the court. Arizona is sitting out March Madness, even though it was the third most profitable school in Division I-A last year, with more than $14 million in net income. Other big spending, big-earnings schools such as the Universities of Illinois and Minnesota* will also be watching from home. On the other hand, Mississippi Valley State, which operated at a loss despite a shoestring budget of $682,000, got a shot at the tournament.
Thankfully, in real life, the big money doesn't always win.
*A note about the bracket: In matchups between teams with two unknown financial losses, I gave points for thriftiness and advanced the squad with lower expenses. When a program with an unknown loss played one with a known loss, I gave points for honesty and advanced the team with the known loss.
*An earlier version of this piece mistakenly stated that Wisconsin had not made the tournament (despite having them on my bracket). Having spent time working in the badger state, I realize that residents there rightly get frustrated about being mixed up with their next door neighbor. My sincere apologies.
It’s a paradox: Shouldn’t the most accomplished be well equipped to make choices that maximize life satisfaction?
There are three things, once one’s basic needs are satisfied, that academic literature points to as the ingredients for happiness: having meaningful social relationships, being good at whatever it is one spends one’s days doing, and having the freedom to make life decisions independently.
But research into happiness has also yielded something a little less obvious: Being better educated, richer, or more accomplished doesn’t do much to predict whether someone will be happy. In fact, it might mean someone is less likely to be satisfied with life.
That second finding is the puzzle that Raj Raghunathan, a professor of marketing at The University of Texas at Austin’s McCombs School of Business, tries to make sense of in his recent book, If You’re So Smart, Why Aren’t You Happy?Raghunathan’s writing does fall under the category of self-help (with all of the pep talks and progress worksheets that that entails), but his commitment to scientific research serves as ballast for the genre’s more glib tendencies.
Three Atlantic staffers discuss “Home,” the second episode of the sixth season.
Every week, for the sixth season of Game of Thrones, Christopher Orr, Spencer Kornhaber, and Lenika Cruz will be discussing new episodes of the HBO drama. Because no screeners are being made available to critics in advance this year, we'll be posting our thoughts in installments.
A professor of cognitive science argues that the world is nothing like the one we experience through our senses.
As we go about our daily lives, we tend to assume that our perceptions—sights, sounds, textures, tastes—are an accurate portrayal of the real world. Sure, when we stop and think about it—or when we find ourselves fooled by a perceptual illusion—we realize with a jolt that what we perceive is never the world directly, but rather our brain’s best guess at what that world is like, a kind of internal simulation of an external reality. Still, we bank on the fact that our simulation is a reasonably decent one. If it wasn’t, wouldn’t evolution have weeded us out by now? The true reality might be forever beyond our reach, but surely our senses give us at least an inkling of what it’s really like.
Nearly half of Americans would have trouble finding $400 to pay for an emergency. I’m one of them.
Since 2013,the Federal Reserve Board has conducted a survey to “monitor the financial and economic status of American consumers.” Most of the data in the latest survey, frankly, are less than earth-shattering: 49 percent of part-time workers would prefer to work more hours at their current wage; 29 percent of Americans expect to earn a higher income in the coming year; 43 percent of homeowners who have owned their home for at least a year believe its value has increased. But the answer to one question was astonishing. The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all. Four hundred dollars! Who knew?
“A typical person is more than five times as likely to die in an extinction event as in a car crash,” says a new report.
Nuclear war. Climate change. Pandemics that kill tens of millions.
These are the most viable threats to globally organized civilization. They’re the stuff of nightmares and blockbusters—but unlike sea monsters or zombie viruses, they’re real, part of the calculus that political leaders consider everyday. And according to a new report from the U.K.-based Global Challenges Foundation, they’re much more likely than we might think.
In its annual report on “global catastrophic risk,” the nonprofit debuted a startling statistic: Across the span of their lives, the average American is more than five times likelier to die during a human-extinction event than in a car crash.
Partly that’s because the average person will probably not die in an automobile accident. Every year, one in 9,395 people die in a crash; that translates to about a 0.01 percent chance per year. But that chance compounds over the course of a lifetime. At life-long scales, one in 120 Americans die in an accident.
The U.S. president talks through his hardest decisions about America’s role in the world.
Friday, August 30, 2013, the day the feckless Barack Obama brought to a premature end America’s reign as the world’s sole indispensable superpower—or, alternatively, the day the sagacious Barack Obama peered into the Middle Eastern abyss and stepped back from the consuming void—began with a thundering speech given on Obama’s behalf by his secretary of state, John Kerry, in Washington, D.C. The subject of Kerry’s uncharacteristically Churchillian remarks, delivered in the Treaty Room at the State Department, was the gassing of civilians by the president of Syria, Bashar al-Assad.
The president’s unique approach to the White House Correspondents’ Dinner will surely be missed.
No U.S. President has been a better comedian than Barack Obama. It’s really that simple.
Now that doesn’t mean that some modern-day presidents couldn’t tell a joke. John F. Kennedy, Ronald Reagan, and Bill Clinton excelled at it. But Obama has transformed the way presidents use comedy—not just engaging in self-deprecation or playfully teasing his rivals, but turning his barbed wit on his opponents.
He puts that approach on display every year at the White House Correspondents’ Dinner. This annual tradition, which began in 1921 when 50 journalists (all men) gathered in Washington D.C., has become a showcase for each president’s comedy chops. Some presidents have been bad, some have been good. Obama has been the best. He’s truly the killer comedian in chief.
A pastor and a rabbi talk about kids, poop, and tearing down the patriarchy in institutional religion.
The Bible is a man’s book. It was mostly written by men, for men, and about men. The people who then interpreted the text have also been predominately male.
No wonder there’s not much theology preoccupied with weird-colored poop and the best way to weather tantrums. Throughout history, childcare has largely been considered women’s work—and, by extension, not theologically serious.
Danya Ruttenberg—a Conservative rabbi whose book about parenting came out in April—disagrees. So does Bromleigh McCleneghan, a Chicago-area pastor and the author of a 2012 book about parenting and a forthcoming book about Christians and sex. Both women have made their careers in writing and ministry. But they’re also both moms, and they believe the work they do as parents doesn’t have to remain separate from the work they do as theologians.
How the North Vietnamese remember the conflict 40 years after the fall of Saigon
HANOI, VIETNAM—Forty years ago, on April 30, 1975, Nguyen Dang Phat experienced the happiest day of his life.
That morning, as communist troops swept into the South Vietnamese capital of Saigon and forced the U.S.-backed government to surrender, the North Vietnamese Army soldier marked the end of the war along with a crowd of people in Hanoi. The city was about to become the capital of a unified Vietnam. “All the roads were flooded by people holding flags,” Nguyen, now 65, told me recently. “There were no bombs or airplane sounds or screaming. The happy moment was indescribable.”
The event, known in the United States as the fall of Saigon and conjuring images of panicked Vietnamese trying to crowd onto helicopters to be evacuated, is celebrated as Reunification Day here in Hanoi. The holiday involves little explicit reflection on the country’s 15-year-plus conflict, in which North Vietnam and its supporters in the South fought to unify the country under communism, and the U.S. intervened on behalf of South Vietnam’s anti-communist government. More than 58,000 American soldiers died in the fighting between 1960 and 1975; the estimated number of Vietnamese soldiers and civilians killed on both sides varies widely, from 2.1 million to 3.8 million during the American intervention and in related conflicts before and after.
The photographer Renaud Philippe returned to the epicenter of last year’s 7.8-magnitude earthquake to document what progress has been made in some of the hardest-to-reach villages.
The photographer Renaud Philippe returned to the epicenter of last year’s 7.8-magnitude earthquake to document what progress has been made in some of the hardest-to-reach villages. Before April 25, 2015, Barpak was a picturesque Nepali village nestled some 6,000 feet above sea level. After, less than 20 of the 1,400 houses remained. “Many things changed since last year, but there is so much to do,” Philippe said. Because it is so difficult to reach, people in Barpak and nearby Laprak have no machinery and limited electricity to help rebuild their homes; all construction must be done by hand. “Everyone is hopeless about getting any government help,” Philippe said. “They can only count on themselves.” Philippe has shared a selection of his images from both 2015 and 2016 with The Atlantic. The first 15 images below are from the first few weeks after the quake and the second 15 were taken in April of this year.