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.
Footnotes. Numbers. Detailed proposals. The Donald’s economic address at an aluminum factory in Pennsylvania had it all.
Donald Trump must have hired some researchers.
The famously off-the-cuff orator delivered a surprisingly specific speech on trade, making seven detailed policy pledges while predicting that Hillary Clinton, if elected, would tweak and then sign the enormous Pacific trade pact she now opposes as a candidate for president.
Trump’s address to workers at a Pennsylvania aluminum factory continued his recent effort to lift both the tone and substance of his speeches. But it marked an even bigger departure in its sheer wonkiness.First, his campaign sent out the prepared remarks with 128 footnotes. And in delivering the speech from a teleprompter, Trump delved into such granular policy detail that he referenced specific sections of decades-old trade laws and vowed to invoke “Article 2205” of the North American Free Trade Agreement. Doing so, he said, would withdraw the U.S. from NAFTA if its trading partners don’t agree to renegotiate the Clinton-era accord.
It happened gradually—and until the U.S. figures out how to treat the problem, it will only get worse.
It’s 2020, four years from now. The campaign is under way to succeed the president, who is retiring after a single wretched term. Voters are angrier than ever—at politicians, at compromisers, at the establishment. Congress and the White House seem incapable of working together on anything, even when their interests align. With lawmaking at a standstill, the president’s use of executive orders and regulatory discretion has reached a level that Congress views as dictatorial—not that Congress can do anything about it, except file lawsuits that the divided Supreme Court, its three vacancies unfilled, has been unable to resolve.
On Capitol Hill, Speaker Paul Ryan resigned after proving unable to pass a budget, or much else. The House burned through two more speakers and one “acting” speaker, a job invented following four speakerless months. The Senate, meanwhile, is tied in knots by wannabe presidents and aspiring talk-show hosts, who use the chamber as a social-media platform to build their brands by obstructing—well, everything. The Defense Department is among hundreds of agencies that have not been reauthorized, the government has shut down three times, and, yes, it finally happened: The United States briefly defaulted on the national debt, precipitating a market collapse and an economic downturn. No one wanted that outcome, but no one was able to prevent it.
At least 36 people were killed in an attack Tuesday at Ataturk airport, one of the busiest in Europe.
Here’s what we know:
—Explosions and gunfire were reported Tuesday night at Istanbul’s Ataturk International Airport, one of the busiest in Europe. Turkey’s prime minister, Binali Yildirim, said in a news conference three attackers opened fire at the airport’s international terminal and detonated explosives, blowing themselves up.
—The prime minister said 36 people were killed and 147 wounded. Photos from the scene showed bloodied bodies and debris on the pavement outside the terminal. The airport was evacuated.
—We’re live-blogging what’s happening, and you can read how it unfolded below. All updates are in Eastern Standard Time (GMT -5). It’s after 3 a.m. Wednesday in Istanbul.
Turkish Prime Minister Binali Yildirim told reporters outside Ataturk airport that 36 people had been killed in the attack. The dead included five police officers. He said 147 people had been wounded, adding the three attackers blew themselves up.
Fears of civilization-wide idleness are based too much on the downsides of being unemployed in a society premised on the concept of employment.
People have speculated for centuries about a future without work, and today is no different, with academics, writers, and activists once again warning that technology is replacing human workers. Some imagine that the coming work-free world will be defined by inequality: A few wealthy people will own all the capital, and the masses will struggle in an impoverished wasteland.
A different, less paranoid, and not mutually exclusive prediction holds that the future will be a wasteland of a different sort, one characterized by purposelessness: Without jobs to give their lives meaning, people will simply become lazy and depressed. Indeed, today’s unemployed don’t seem to be having a great time. One Gallup poll found that 20 percent of Americans who have been unemployed for at least a year report having depression, double the rate for working Americans. Also, some research suggests that the explanation for rising rates of mortality, mental-health problems, and addiction among poorly-educated, middle-aged people is a shortage of well-paid jobs. Another study shows that people are often happier at work than in their free time. Perhaps this is why many worry about the agonizing dullness of a jobless future.
Their degrees may help them secure entry-level jobs, but to advance in their careers, they’ll need much more than technical skills.
American undergraduates are flocking to business programs, and finding plenty of entry-level opportunities. But when businesses go hunting for CEOs or managers, “they will say, a couple of decades out, that I’m looking for a liberal arts grad,” said Judy Samuelson, executive director of the Aspen Institute’s Business and Society Program.
That presents a growing challenge to colleges and universities. Students are clamoring for degrees that will help them secure jobs in a shifting economy, but to succeed in the long term, they’ll require an education that allows them to grow, adapt, and contribute as citizens—and to build successful careers. And it’s why many schools are shaking up their curricula to ensure that undergraduate business majors receive something they may not even know they need—a rigorous liberal-arts education.
There are two basic modes of judgment: criticism and praise. The former consists of identifying a subject’s flaws; the latter of noting its merits.
In most settings, criticism tends to dominate. For any idea or book or movie or what have you, the question that people discuss is what’s wrong with it, why it didn’t live up to expectations. Often, one gets the feeling that the criticism isn’t dispensed in an effort to engage with the work but as a demonstration of the critic’s smarts, the implicit argument being that he or she is sharper and more discerning than the work’s creator.
Often, the greater intellectual challenge—as a reader, as a viewer, and as a manager—is to recognize when something is truly great.
The way members of the ‘model minority’ are treated in elite-college admissions could affect race-based standards moving forward.
In his new book, Earning Admission: Real Strategies for Getting Into Highly Selective Colleges, the strategist Greg Kaplan urges Asians not to identify as such on their applications. “Your child should decline to state her background if she identifies with a group that is overrepresented on campus even if her name suggests affiliation,” he advises parents, also referencing Jews. Such tips are increasingly common in the college-advising world; it’s not unusual for consultants, according to The Boston Globe, to urge students to “deemphasize the Asianness” in their resumes or avoid writing application essays about their immigrant parents “coming from Vietnam with $2 in a rickety boat and swimming away from sharks.”
Chimamanda Ngozi Adichie has a new short story: a Virginia Woolf-inflected ode to Melania Trump.
“Melania decided she would order the flowers herself.”
So begins the new short story from Chimamanda Ngozi Adichie, the first such work commissioned by, and for, The New York Times Book Review. The paper gave the acclaimed writer—author of Americanah and Half of a Yellow Sun, and the recipient of a MacArthur Genius grant—a broad assignment: Write anything about this election season you like.
Adichie chose Trump. Specifically, she chose the Trumps. And the result of that is “The Arrangements,” which, as its opening line suggests, trains its gaze on Melania, the woman most Americans know as silent and stoic and, perhaps most of all, a cipher. “The Arrangements” is, in the manner of Curtis Sittenfeld’s Eligible, a tribute to an earlier work of literature—in this case, Virginia Woolf’s Mrs. Dalloway, one of the still-soaring examples of literary modernism, and an early-20th-century novel that’s especially notable for being told from the perspective of a woman. In that sense, “Melania decided she would order the flowers herself” is at once a call-out to Dalloway’s opening line, an ironization of that line—ordering instead of buying—and a declaration of Adichie’s intent: It is Melania who will do the deciding. It is Melania who will do the thinking. It is Melania who will deal with the flowers.
There’s more to life than can be measured in monetary returns.
What’s a good use of money?
For investors, that question comes down to a relatively straightforward calculation: Which of the available options has the greatest expected return on the investment?
But investors are far from the only people who are using the “return on investment” framework to weigh different options. “This has become a very, very powerful tool for decision making, not only in business, but in our culture as a whole,” said Moses Pava, an ethicist and a dean of the Sy Syms School of Business at Yeshiva University, at the Aspen Ideas Festival, co-hosted by the Aspen Institute and The Atlantic. In particular, Pava sees this kind of thinking dominating the world of education, both on the part of students in choosing schools and majors, and on the part of school in how they market themselves to potential enrollees. This, he says, will not end well for liberal arts schools.
House Republicans released a lengthy report on Tuesday detailing how events unfolded and criticizing the government’s response to them.
After a two-year investigation that cost $7 million, one of the most politically contentious chapters of Hillary Clinton’s career came to a close on Tuesday. House Republicans released their long-awaited reporton the 2012 Benghazi terror attacks that killed four Americans, including Ambassador Chris Stevens.
Clinton was the secretary of state at the time. As a result, the investigation into the attack has been politically charged: It coincided with an election year in which Clinton is now the presumptive Democratic nominee. House Republicans, however, have repeatedly denounced accusations that the investigation was a political ploy. On Tuesday, they continued to do so, highlighting their efforts to make sense of the government’s response to the attacks.