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.
After getting shut down late last year, a website that allows free access to paywalled academic papers has sprung back up in a shadowy corner of the Internet.
There’s a battle raging over whether academic research should be free, and it’s overflowing into the dark web.
Most modern scholarly work remains locked behind paywalls, and unless your computer is on the network of a university with an expensive subscription, you have to pay a fee, often around 30 dollars, to access each paper.
Many scholars say this system makes publishers rich—Elsevier, a company that controls access to more than 2,000 journals, has a market capitalization about equal to that of Delta Airlines—but does not benefit the academics that conducted the research, or the public at large. Others worry that free academic journals would have a hard time upholding the rigorous standards and peer reviews that the most prestigious paid journals are famous for.
It was the apotheosis of the outsiders—two candidates, written off when their campaigns began, recovering from defeat in Iowa to deliver resounding victories in the Granite State.
In a year of outsider success, Tuesday’s New Hampshire primary was the apotheosis of the outsiders. On the Democratic side, Senator Bernie Sanders coasted to a huge victory over Hillary Clinton. And for the Republicans, Donald Trump regained his footing after a letdown in Iowa, winning about a third of the vote and notching a huge victory over the rest of the GOP field.
The results for the rest of the field threatened to remake the race, too. Ohio Governor John Kasich, a moderate technocrat who had seemed to lack traction throughout the campaign, saw his decision to bet all his marbles on New Hampshire pay off, as he came in second. Meanwhile, Senator Marco Rubio had a painful night, falling to an apparent fifth-place finish with the vote mostly tallied—a major stumbling block to his momentum. Chris Christie, whose demolition of Rubio during Saturday night’s debate helped knock Rubio down, didn’t get much of a boost and seemed headed for the exits. Jeb Bush and Ted Cruz battled for the third and fourth spots, while Carly Fiorina and Ben Carson lagged far behind.
The number of American teens who excel at advanced math has surged. Why?
On a sultry evening last July, a tall, soft-spoken 17-year-old named David Stoner and nearly 600 other math whizzes from all over the world sat huddled in small groups around wicker bistro tables, talking in low voices and obsessively refreshing the browsers on their laptops. The air in the cavernous lobby of the Lotus Hotel Pang Suan Kaew in Chiang Mai, Thailand, was humid, recalls Stoner, whose light South Carolina accent warms his carefully chosen words. The tension in the room made it seem especially heavy, like the atmosphere at a high-stakes poker tournament.
Stoner and five teammates were representing the United States in the 56th International Mathematical Olympiad. They figured they’d done pretty well over the two days of competition. God knows, they’d trained hard. Stoner, like his teammates, had endured a grueling regime for more than a year—practicing tricky problems over breakfast before school and taking on more problems late into the evening after he completed the homework for his college-level math classes. Sometimes, he sketched out proofs on the large dry-erase board his dad had installed in his bedroom. Most nights, he put himself to sleep reading books like New Problems in Euclidean Geometry and An Introduction to Diophantine Equations.
The Warriors star is the embodiment of basketball’s analytics revolution.
The Golden State Warriors are now some 15 months in to their turn as one of the best teams in basketball history. Last season, they won 67 games, the most in the NBA in eight years, and secured a championship in June against LeBron James and the Cleveland Cavaliers. This season’s Warriors make last season’s Warriors look like a team that hadn’t yet gotten loose. They started the year winning their first 24 games in a row, a record opening, and as of now have won 46 of 50.
Golden State’s brilliance is more than just statistical. The Warriors are a basketball idyll, a paradise of skill and collaboration. Their offense runs on nifty ballhandling, willing passing, and sublime shooting, with their point guard and reigning NBA Most Valuable Player acting as ringleader. A slim 6’3” and 185 pounds, with a bouncy jog and a barely post-pubescent tuft of beard at his chin, Stephen Curry dribbles with the intentional abandon of a card hustler, flings one-handed passes to all sectors of the court, and shoots better than anyone ever has.
Sanders’s youth movement is powered by the energy of the new campus left. What does it believe?
RINDGE, New Hampshire—Twenty-three minutes into his typically rambling, hourlong stump speech in the arena here, at a private liberal-arts college on the Massachusetts border—after he had decried the Koch brothers and the prescription-drug companies, after he had accused Wall Street of bribing its way to deregulation, after he had called out the corporate media and the political establishment—Bernie Sanders turned to the bleachers behind him, which were filled with college students waving blue signs and chanting his name.
A sly, unusual smile crossed his face. “I feel like a rock-n-roll star!” he exclaimed, taking off his jacket and tossing it to a startled youth behind him. He pantomimed tearing off his sweater, too, prompting a fresh chant of “Ber-nie! Ber-nie!” Then he grinned sheepishly. “All right, nothing else is coming off,” he said, and continued to the next topic—the sins of Walmart.
He’s made the once-impossible seem possible—and now all bets are off.
CONCORD, New Hampshire—“Thank you, New Hampshire!” a somber but clearly gratified Bernie Sanders said to a crowd of thrilled supporters in a high-school gymnasium. The 74-year-old democratic socialist from Vermont had just resoundingly won the New Hampshire Democratic primary, dealing an astonishing blow to the Hillary Clinton juggernaut, casting the race into turmoil, and dramatically highlighting the dissatisfaction of the party base with its establishment.
Sanders’s win, he said, had sent a message to the country: “That the government of our great country belongs to all of the people, and not just a handful of wealthy campaign contributors and their super PACs!” The contest, he noted, had inspired record turnout, powered by a force that he implied would make him a better general-election candidate than his rival—“the energy and the excitement that the Democratic Party will need to succeed in November.”
The Wall Street Journal’s eyebrow-raising story of how the presidential candidate and her husband accepted cash from UBS without any regard for the appearance of impropriety that it created.
The Swiss bank UBS is one of the biggest, most powerful financial institutions in the world. As secretary of state, Hillary Clinton intervened to help it out with the IRS. And after that, the Swiss bank paid Bill Clinton $1.5 million for speaking gigs. TheWall Street Journal reported all that and more Thursday in an article that highlights huge conflicts of interest that the Clintons have created in the recent past.
The piece begins by detailing how Clinton helped the global bank.
“A few weeks after Hillary Clinton was sworn in as secretary of state in early 2009, she was summoned to Geneva by her Swiss counterpart to discuss an urgent matter. The Internal Revenue Service was suing UBS AG to get the identities of Americans with secret accounts,” the newspaper reports. “If the case proceeded, Switzerland’s largest bank would face an impossible choice: Violate Swiss secrecy laws by handing over the names, or refuse and face criminal charges in U.S. federal court. Within months, Mrs. Clinton announced a tentative legal settlement—an unusual intervention by the top U.S. diplomat. UBS ultimately turned over information on 4,450 accounts, a fraction of the 52,000 sought by the IRS.”
Donald Trump is back, Bernie Sanders is blowing up, and Marco Rubio is battered after the New Hampshire primary.
Trump is back, baby! The man who has made his business career by recovering from disasters did the same in his new political career Tuesday, setting aside his weak second-place showing in Iowa and delivering a commanding win in New Hampshire. The victory sets Trump up as the frontrunner for the Republican nomination once again.
How strong a frontrunner is he? There are still those who think he’s an unlikely nominee, but the wind is at his back for the moment. The next GOP contest is February 20 in South Carolina, where polls show him far ahead. And Marco Rubio, who the establishment hoped could rally an anti-Trump, anti-Ted Cruz coalition, had an awful night in the New Hampshire primary, finishing fifth—well short of his stated goal of second. Suddenly, Rubio seems less like the man who can unify the disparate party forces and more like, well, a robot.
Most people in the U.S. believe their country is going to hell. But they’re wrong. What a three-year journey by single-engine plane reveals about reinvention and renewal.
When news broke late last year of a mass shooting in San Bernardino, California, most people in the rest of the country, and even the state, probably had to search a map to figure out where the city was. I knew exactly, having grown up in the next-door town of Redlands (where the two killers lived) and having, by chance, spent a long period earlier in the year meeting and interviewing people in the unglamorous “Inland Empire” of Southern California as part of an ongoing project of reporting across America.
Some of what my wife, Deb, and I heard in San Bernardino before the shootings closely matched the picture that the nonstop news coverage presented afterward: San Bernardino as a poor, troubled town that sadly managed to combine nearly every destructive economic, political, and social trend of the country as a whole. San Bernardino went into bankruptcy in 2012 and was only beginning to emerge at the time of the shootings. Crime is high, household income is low, the downtown is nearly abandoned in the daytime and dangerous at night, and unemployment and welfare rates are persistently the worst in the state.
Black poverty is fundamentally distinct from white poverty—and so cannot be addressed without grappling with racism.
There have been a number of useful entries in the weeks since Senator Bernie Sanders declared himself against reparations. Perhaps the most clarifying comes from Cedric Johnson in a piece entitled, “An Open Letter To Ta-Nehisi Coates And The Liberals Who Love Him.” Johnson’s essay offers those of us interested in the problem of white supremacy and the question of economic class the chance to tease out how, and where, these two problems intersect. In Johnson’s rendition, racism, in and of itself, holds limited explanatory power when looking at the socio-economic problems which beset African Americans. “We continue to reach for old modes of analysis in the face of a changed world,” writes Johnson. “One where blackness is still derogated but anti-black racism is not the principal determinant of material conditions and economic mobility for many African Americans.”