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.
Years of misleading coverage left viewers so misinformed that many were shocked when confronted with the actual costs of repeal.
As the Republican Party struggled and then failed to repeal and replace Obamacare, pulling a wildly unpopular bill from the House without even taking a vote, a flurry of insightful articles helped the public understand what exactly just happened. Robert Draper explained the roles that Stephen Bannon, Paul Ryan, and others played in deciding what agenda items President Trump would pursue in what order. Politicoreported on how and why the House Freedom Caucus insisted that the health care bill repeal even relatively popular parts of Obamacare. Lest anyone pin blame for the GOP’s failure on that faction, Reihan Salam argued persuasively that responsibility rests with poor leadership by House Speaker Paul Ryan and a GOP coalition with “policy goals that simply can’t be achieved.”
After the largest demonstrations in years erupted across the country on Sunday, the Kremlin is fighting back.
MOSCOW— It’s not a rare sight in this city to see tens of thousands of people pour into the streets to express their opposition to the government that makes its home here. Moscow was the epicenter of the massive pro-democracy protests of 2011-2012, and many others since, including rallies to commemorate slain opposition leader Boris Nemtsov. This is the city where Vladimir Putin lives, along with the tens of thousands of people who make his machine of state hum. But given its wealth and cosmopolitanism, Moscow is also the most oppositional city in Russia. In 2013, it nearly forced the Kremlin-installed mayor into a run-off with a charismatic young opposition leader, Alexey Navalny. So in some ways, it was not surprising to see thousands heed his call to come out and protest here on Sunday.
The College Board earns over half of all its revenues from the courses—and, in an uncertain environment, students keep being suckered.
Fraudulent schemes come in all shapes and sizes. To work, they typically wear a patina of respectability. That's the case with Advanced Placement courses, one of the great frauds currently perpetrated on American high-school students.
That's a pretty strong claim, right? You bet. But why not be straightforward when discussing a scam the scale and audacity of which would raise Bernie Madoff's eyebrows?
The miscellany of AP courses offered in U.S. high schools under the imprimatur of the College Board probably started with good intentions. The idea, going back to the 1950s, was to offer college-level courses and exams to high-school students. The courses allegedly provide students the kind of rigorous academic experience they will encounter in college as well as an opportunity to earn college credit for the work.
Despite the damage done to his reputation, the defeat may liberate him to pursue the agenda his voters support—not the one the Republican establishment favors.
Friday was the worst day of Donald Trump’s young presidency—an unprecedented defeat on his first legislative priority, which also happened to be his party’s signature promise for the last seven years and one of his own top campaign promises. What’s more, the collapse undercuts the central premise of Trump’s political identity, his supposedly formidable reputation as a dealmaker.
But what if, instead, Trump dodged a serious bullet on Friday, setting him up for a recovery? If that’s the case, Friday might even have perversely been the best day of Trump’s presidency so far—or at least the point where he hit rock-bottom, allowing him to turn things around.
Depending on a researcher’s needs, there are many other available databases of human faces—some featuring tens of thousands of images. These collections of faces draw from public records like mugshots, surveillance footage, news photos, Google images, and university studies.
It’s entirely possible that your face is in one of these databases. There’s no way to say for certain that it isn’t.
Most of management theory is inane, writes our correspondent, the founder of a consulting firm. If you want to succeed in business, don’t get an M.B.A. Study philosophy instead
During the seven years that I worked as a management consultant, I spent a lot of time trying to look older than I was. I became pretty good at furrowing my brow and putting on somber expressions. Those who saw through my disguise assumed I made up for my youth with a fabulous education in management. They were wrong about that. I don’t have an M.B.A. I have a doctoral degree in philosophy—nineteenth-century German philosophy, to be precise. Before I took a job telling managers of large corporations things that they arguably should have known already, my work experience was limited to part-time gigs tutoring surly undergraduates in the ways of Hegel and Nietzsche and to a handful of summer jobs, mostly in the less appetizing ends of the fast-food industry.
Highly educated immigrants from South Asia have often been able to live comfortably in America. With a new wave of hate crimes, that’s changing.
Manik Suri is the archetypical overachiever from an Indian American family. The 34-year-old runs a start-up in Silicon Valley. He speaks four languages. He’s got two Ivy League degrees.
And yet, when the windows at an Indian restaurant near his house were shot out in late February, along with those of an Eritrean place nearby, he felt shaken. “We catered my wife’s sister’s wedding in that restaurant,” he said. “The whole conception of the Indian community as a model minority—we benefitted from that perception.” This is “the first time I’ve ever felt, ‘Wow, it doesn’t matter.’”
Many Indian Americans seem to be going through a period of disorientation during these first few months of the Trump administration. As more than one percent of the U.S. population, Indians are one of the country’s largest immigrant groups, and they’re also one of the most distinctive: They tend to be wealthier, more highly educated, and more geographically dispersed than other immigrants. While they do face discrimination, they’re often referred to as a “model minority,” as Suri noted: Middle- and upper-class Indians are more willing and able to assimilate to America’s majority culture because of their educational and economic status. The quickly growing minority has not always been that politically engaged, and their political identity isn’t necessarily connected to their ethnic or religious background: Mobilization around Indian or Hindu American identity is relatively rare compared to other minority groups, according to Sangay Mishra, a visiting assistant professor of political science at Drew University.
Walk into the offices of Memac Ogilvy Advize, an advertising firm on the third floor of a car rental building in a business district of West Amman, Jordan, and you’ll be greeted with an immense black-and-white photo of Donald Trump’s face. The red cursive text printed across it reads: “We Trumped the awards.”
The sign sits behind a reception counter boasting a large trophy won at the Dubai Lynx 2017, an annual advertising competition where Memac Ogilvy won the Grand Prix for PR (a first for any Jordanian agency) along with four other silver and gold prizes, for trolling Trump in their ads on behalf of Royal Jordanian Airlines.
The chair of the House Intelligence Committee, under fire for excessive closeness to President Trump, visited the White House the day before lodging a bombshell allegation.
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Conservatives once warned that Obamacare would produce the Democratic Waterloo. Their inability to accept the principle of universal coverage has, instead, led to their own defeat.
Seven years and three days ago, the House of Representatives grumblingly voted to approve the Senate’s version of the Affordable Care Act. Democrats in the House were displeased by many of the changes introduced by Senate Democrats. But in the interval after Senate passage, the Republicans had gained a 41st seat in the Senate. Any further tinkering with the law could trigger a Republican filibuster. Rather than lose the whole thing, the House swallowed hard and accepted a bill that liberals regarded as a giveaway to insurance companies and other interest groups. The finished law proceeded to President Obama for signature on March 23, 2010.
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