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.
On “Back to Back Freestyle” and “Charged Up,” the rapper forgoes the high road in his beef with Meek Mill.
Once upon a time, Drake made a vow of silence. “Diss me, you'll never hear a reply for it,” he said on “Successful,” the 2009 song in which the Toronto rapper correctly predicted he’d soon be superwealthy. This week, Drake has broken his vow twice over, a fact about which he seems conflicted. “When I look back,” he says on the new track “Back to Back Freestyle,” “I might be mad that I gave this attention.”
“This” is the beef started by the 28-year-old Philadelphia rapper Meek Mill, who recently tweeted accusations that Drake doesn’t write his own material. Depending on who you talk to or how you look at it, this is either a big deal or no deal at all. On Instagram, Lupe Fiasco had a good take: “Ghostwriting, or borrowing lines, or taking suggestions from the room has always been in rap and will always be in rap. It is nothing to go crazy over or be offended about unless you are someone who postures him or herself on the importance of authenticity and tries to portray that quality to your fans or the public at large. Then we might have a problem.”
Even when they’re adopted, the children of the wealthy grow up to be just as well-off as their parents.
Lately, it seems that every new study about social mobility further corrodes the story Americans tell themselves about meritocracy; each one provides more evidence that comfortable lives are reserved for the winners of what sociologists call the birth lottery. But, recently, there have been suggestions that the birth lottery’s outcomes can be manipulated even after the fluttering ping-pong balls of inequality have been drawn.
What appears to matter—a lot—is environment, and that’s something that can be controlled. For example, one study out of Harvard found that moving poor families into better neighborhoods greatly increased the chances that children would escape poverty when they grew up.
While it’s well documentedthat the children of the wealthy tend to grow up to be wealthy, researchers are still at work on how and why that happens. Perhaps they grow up to be rich because they genetically inherit certain skills and preferences, such as a tendency to tuck away money into savings. Or perhaps it’s mostly because wealthier parents invest more in their children’s education and help them get well-paid jobs. Is it more nature, or more nurture?
The Vermont senator’s revolutionary zeal has met its moment.
There’s no way this man could be president, right? Just look at him: rumpled and scowling, bald pate topped by an entropic nimbus of white hair. Just listen to him: ranting, in his gravelly Brooklyn accent, about socialism. Socialism!
And yet here we are: In the biggest surprise of the race for the Democratic presidential nomination, this thoroughly implausible man, Bernie Sanders, is a sensation.
He is drawing enormous crowds—11,000 in Phoenix, 8,000 in Dallas, 2,500 in Council Bluffs, Iowa—the largest turnout of any candidate from any party in the first-to-vote primary state. He has raised $15 million in mostly small donations, to Hillary Clinton’s $45 million—and unlike her, he did it without holding a single fundraiser. Shocking the political establishment, it is Sanders—not Martin O’Malley, the fresh-faced former two-term governor of Maryland; not Joe Biden, the sitting vice president—to whom discontented Democratic voters looking for an alternative to Clinton have turned.
Today's cities may be more diverse overall, but people of different races still don’t live near each other.
Nearly 50 years ago, after a string of race-related riots in cities across America, President Lyndon B. Johnson commissioned a panel of civic leaders to investigate the underlying causes of racial tension in the country.
The result was the Kerner Report, a document that castigated white society for fleeing to suburbs, where they excluded blacks from employment, housing, and educational opportunities. The report’s famous conclusion: “Our nation is moving toward two societies, one black, one white—separate and unequal.”
Much of America would like to believe the nation has changed since then. The election of a black President was said to usher in a “post-racial era.” Cheerios commercials nowfeature interracial couples. As both suburbs and cities grew more diverse, more than one academic study trumpeted theend of segregation in American neighborhoods.
Samuel DuBose’s death at the hands of a university police officer points to problems with piecemeal approaches to reform.
During a news conference Wednesday, discussing the killing of Samuel DuBose, Hamilton County, Ohio, prosecutor Joe Deters said several remarkable things.
“This is without question a murder,” he said, adding that Ray Tensing, who killed Dubose—an unarmed black man pulled over for a missing front license plate—“should never have been a police officer.” Deters said, “This is the most asinine act I’ve ever seen a police officer make.”
Amid a string of cases where police have killed black men, what makes this case different, as Robinson Meyer notes, is body-cam footage that captured the incident, and helped bring about Tensing’s indictment for murder. But the case is also interesting because Tensing wasn't a Cincinnati police officer. He was employed by the police department of the University of Cincinnati—a fact the prosecutor lamented.
During the multi-country press tour for Mission Impossible: Rogue Nation, not even Jon Stewart has dared ask Tom Cruise about Scientology.
During the media blitz for Mission Impossible: Rogue Nation over the past two weeks, Tom Cruise has seemingly been everywhere. In London, he participated in a live interview at the British Film Institute with the presenter Alex Zane, the movie’s director, Christopher McQuarrie, and a handful of his fellow cast members. In New York, he faced off with Jimmy Fallon in a lip-sync battle on The Tonight Show and attended the Monday night premiere in Times Square. And, on Tuesday afternoon, the actor recorded an appearance on The Daily Show With Jon Stewart, where he discussed his exercise regimen, the importance of a healthy diet, and how he still has all his own hair at 53.
Stewart, who during his career has won two Peabody Awards for public service and the Orwell Award for “distinguished contribution to honesty and clarity in public language,” represented the most challenging interviewer Cruise has faced on the tour, during a challenging year for the actor. In April, HBO broadcast Alex Gibney’s documentary Going Clear, a film based on the book of the same title by Lawrence Wright exploring the Church of Scientology, of which Cruise is a high-profile member. The movie alleges, among other things, that the actor personally profited from slave labor (church members who were paid 40 cents an hour to outfit the star’s airplane hangar and motorcycle), and that his former girlfriend, the actress Nazanin Boniadi, was punished by the Church by being forced to do menial work after telling a friend about her relationship troubles with Cruise. For Cruise “not to address the allegations of abuse,” Gibney said in January, “seems to me palpably irresponsible.” But in The Daily Show interview, as with all of Cruise’s other appearances, Scientology wasn’t mentioned.
His press conference announcing murder charges had just one flaw: He understated how often police officers shoot unarmed people in traffic stops.
On Wednesday, as officials in Hamilton County, Ohio, released video footage of University of Cincinnati Police Officer Ray Tensing shooting unarmed motorist Samuel DuBose in the head during a traffic stop, prosecutor Joe Deters conducted himself as professionally and appropriately as any prosecutor I’ve ever seen in a similar situation.
The 30-year veteran, who announced that officer Tensing was being indicted for murder, took immediate care to affirmatively state that the victim in the case was not responsible for his fate. “This is the most asinine act I’ve ever seen a police officer make,” he told reporters. “People want to believe that Mr. DuBose had done something violent toward the officer; he did not. He did not at all. And I feel so sorry for his family and what they lost. And I feel sorry for the community, too.”
“If nobody respected the Taliban leadership anymore,” said one analyst, “then you have no one to talk to.”
Reports on Wednesday that reclusive Taliban leader Mullah Omar had died will be rightly hailed by some as the demise of an American nemesis. But the death of the one-eyed Afghan commander may also scuttle the most promising peace talks in Afghanistan in a decade.
Omar’s direct role in day-to-day Taliban operations had been declining for years, according to Western diplomats in Afghanistan. Even if he is alive, the former leader of Afghanistan is believed to be severely ill.
But the myth that surrounds Omar is a key element in determining whether peace talks can succeed. With the Islamic State and other jihadist groups vying for the loyalty of young Taliban fighters, it is unclear whether any leader except Omar can hold the movement together and then get its members to accept a peace settlement.
The authors in the running for Britain's most prestigious literary award come from seven countries and include seven women writers.
The longlist for the Man Booker Prize, one of the most prestigious literary awards, was announced Wednesday. For the second year, the prize was open to writers of any nationality who publish books in English in the U.K., and this year five American writers made the list of 13 contenders, chosen by five judges from a pool of 156 total works.
The U.S. is, in fact, the most well-represented country, with other entrants hailing from Great Britain, Jamaica, New Zealand, Nigeria, Ireland, and India. There are three debut novelists and one former winner on the list, and women writers outnumber men seven to six. From dystopian and political novels to a multitude of iterations on the family drama, the selections capture the ever-changing human experience in very different ways.
I agree: It’s why I wrote about how poorly iTunes performs for classical music listeners and, really, for anyone with a large music library.
But it’s worth spending time on iTunes’s specific design problems, which surpass those raised by managing a music library or listening to a specific genre. Toxic hellstew it may be, a new version of iTunes points at what kinds of technology are allowed to come out of Apple. Apple is the most valuable company in the world and an organization hailed for its good design. Why does iTunes fail at what it sets out to do?