Are College Football Coaches Paid with Tax Dollars? Explained.
College football is a big business in the United States, with millions of dollars generated from ticket sales, merchandise, and media rights. One of the biggest expenses for universities is the compensation paid to their football coaches. But where does this money come from? Are college football coaches paid with tax dollars?
The short answer is that it depends on the university. Some universities are public institutions, which means that they receive funding from state and federal governments.
In these cases, some of the money used to pay football coaches may come from tax dollars. However, many universities are private institutions, which means that they do not receive government funding and are funded through tuition, donations, and other sources.
According to a report by USA Today, some public universities have paid millions of dollars in taxes on coaching salaries.
For example, Villanova reported that it paid nearly $2.65 million in excise taxes resulting from coaches’ pay over the first three years of the tax.
This has led to questions about whether it is appropriate for tax dollars to be used to pay for the salaries of college football coaches.
College Football Coaching Salaries
Overview
College football coaches are some of the highest-paid public employees in the United States. According to a report by USA Today, the average salary for a head coach in the Football Bowl Subdivision (FBS) was $2.7 million in 2021.
This figure does not include bonuses, benefits, or other perks that coaches receive as part of their compensation packages.
Sources of Funding
The question of whether college football coaches are paid with tax dollars is a complex one.
While some coaches are paid directly from taxpayer funds, many others are paid through revenue generated by their athletic departments.
This revenue comes from a variety of sources, including ticket sales, media rights, and bowl game payouts.
One example of how this works in practice is the University of Alabama football program. According to a report by AL.com, Alabama’s football program generated $174 million in revenue in 2019.
Of that amount, $9.1 million went to head coach Nick Saban in salary and bonuses. The rest of the revenue was used to fund the program’s operations and facilities.
Another source of funding for college football coaches is deferred compensation. This is money that is set aside for coaches in the form of retirement benefits or other forms of compensation.
According to a report by Forbes, deferred compensation can account for a significant portion of a coach’s total compensation package.
For example, former Texas A&M head coach Kevin Sumlin had $10.4 million in deferred compensation built up during his tenure at the school.
Control
One issue often raised in college football coaching salaries discussions is the question of who controls the money.
Some critics argue that athletic departments have too much control over the revenue generated by college football programs, and that coaches are paid too much as a result.
Others argue that coaches are being paid what the market dictates and that their salaries are a reflection of the value they bring to their programs.
To illustrate this point, consider the following table, which shows the top 10 highest-paid college football coaches in 2021:
| Coach | School | Salary (millions) |
|---|---|---|
| Nick Saban | Alabama | 9.1 |
| Ed Orgeron | LSU | 8.7 |
| Dabo Swinney | Clemson | 8.3 |
| Jimbo Fisher | Texas A&M | 7.5 |
| Kirby Smart | Georgia | 6.9 |
| Ryan Day | Ohio State | 6.5 |
| Lincoln Riley | Oklahoma | 6.2 |
| Jim Harbaugh | Michigan | 6.0 |
| Dan Mullen | Florida | 6.0 |
| Tom Herman | Texas | 5.8 |
As you can see, the salaries of these coaches are driven by market forces, with schools competing to hire the best coaches in order to win games and generate revenue.
While it is true that some of these coaches are paid with taxpayer funds, the majority of their compensation comes from other sources, such as athletic department revenue and private donations.
In conclusion, college football coaching salaries are a complex issue that involves a variety of factors, including revenue, control, and market forces.
While some coaches are paid with taxpayer funds, the majority of their compensation comes from other sources, such as athletic department revenue and private donations.
Ultimately, the question of whether college football coaches are paid too much is a matter of perspective, with some arguing that coaches are simply being paid what the market dictates, while others argue that they are paid too much relative to other public employees.
Taxpayer Money and College Football Coaching Salaries
When it comes to college football coaching salaries, a question that often arises is whether taxpayers’ money is used to pay for these salaries.
The answer is yes, but it’s not as simple as it may seem. The funding for these salaries comes from a variety of sources, including student fees, alumni donations, and the revenue generated from ticket sales and merchandise.
Federal Tax Law
Under federal tax law, colleges and universities are tax-exempt organizations, which means they don’t pay taxes on their income.
However, there are some exceptions to this rule. One of them is the excise tax on excessive compensation, which was introduced in 1996 to discourage tax-exempt organizations from paying excessive salaries to their executives.
This tax applies to any compensation paid to an employee that exceeds $1 million per year.
In the case of college football coaches, many earn salaries far exceeding this threshold.
As a result, colleges and universities must pay excise taxes on these salaries, which can add up to millions of dollars annually.
State Schools
When it comes to state schools, the situation is a bit different. These schools are funded by taxpayers’ money, which means that taxpayers indirectly pay the salaries of college football coaches.
However, it’s important to note that these salaries are not paid directly from state funds, but rather from the revenue generated by the football program.
In fact, many state schools have self-sustaining athletic departments that generate enough revenue to cover their expenses, including the salaries of their coaches.
For example, in 2021, the University of Alabama’s football program generated $185 million in revenue, which was enough to cover the salaries of all its coaches and staff.
To summarize, while it’s true that taxpayers’ money is indirectly used to pay for college football coaching salaries, it’s important to understand that these salaries are not paid directly from state funds.
Instead, they are funded by a variety of sources, including student fees, alumni donations, and the revenue generated by the football program.
Additionally, colleges and universities must pay excise taxes on these salaries, which can add up to millions of dollars annually.
| School | Football Program Revenue | Head Coach Salary |
|---|---|---|
| University of Alabama | $185 million (2021) | $9.1 million (Nick Saban) |
| Ohio State University | $223 million (2020) | $7.6 million (Ryan Day) |
| University of Texas | $144 million (2020) | $7.5 million (Steve Sarkisian) |
Controversies Surrounding College Football Coaching Salaries
The high salaries of college football coaches have been a topic of controversy for years.
While some argue that these salaries are justified due to the amount of revenue generated by college football programs, others believe that they are excessive and not in line with the salaries of other public employees.
This section will explore the various controversies surrounding college football coaching salaries.
Public Perception
Many members of the public are outraged by the high salaries of college football coaches, particularly when public universities employ those coaches.
According to a report by USA Today, “more than 80% of football coaches at public universities are the highest-paid employees at their respective institutions.”
This fact has led many to question whether college football coaches are overpaid, especially when compared to other public employees.
Governor’s Involvement
Some governors have become involved in the controversy surrounding college football coaching salaries. For example, in 2018, the governor of Kentucky called for the University of Louisville to fire its football coach, citing his $14 million buyout clause as excessive.
Similarly, in 2021, the governor of Illinois criticized the University of Illinois for hiring a football coach with a $5 million annual salary, arguing that the money could be better spent on other priorities.
Congressional Inquiries
In recent years, Congress has also become involved in the debate over college football coaching salaries. In 2022, a congressional report revealed that colleges paid millions in taxes on coaching salaries.
The report found that Villanova paid nearly $2.65 million in excise taxes resulting from what it was paying its now-former men’s basketball coach Jay Wright.
This revelation has led some members of Congress to call for legislation to limit college football coaches’ salaries.
To better understand the controversy surrounding college football coaching salaries, let’s take a look at some of the highest-paid coaches in college football.
According to a report by Forbes, the top five highest-paid coaches in college football in 2021 were:
| Coach | School | Salary |
|---|---|---|
| Nick Saban | Alabama | $9.1 million |
| Ed Orgeron | LSU | $8.7 million |
| Dabo Swinney | Clemson | $8.3 million |
| Jim Harbaugh | Michigan | $8.0 million |
| Jimbo Fisher | Texas A&M | $7.5 million |
As you can see, these coaches are compensated very generously. However, it is worth noting that these salaries are often tied to the amount of revenue generated by the football program. In other words, the more successful the program is, the more money the coach is likely to make.
In conclusion, the controversy surrounding college football coaching salaries is complex and multifaceted. While some argue that these salaries are justified, others believe that they are excessive and not in line with the salaries of other public employees.
As the debate continues, it will be interesting to see whether any legislation is passed to limit the salaries of college football coaches.
Conclusion
In conclusion, it is clear that college football coaches are paid with tax dollars. This is due to the various ways in which college sports are funded, including student fees, alumni donations, and revenue generated from ticket sales and television contracts.
As a result, taxpayers are indirectly contributing to the salaries of college football coaches.
While some may argue that coaches are overpaid, it is important to note that their salaries are often reflective of the revenue generated by their teams.
For example, Michigan State men’s basketball coach Tom Izzo, who earns $3.7 million per year, has led his team to numerous national championships and has helped to increase the school’s revenue.
Similarly, college football coaches who lead successful teams and bring in significant revenue for their schools are often compensated accordingly.
It is also worth noting that college sports, including football, are big business.
The CEO of Collegiate Sports Services estimates that the college sports industry generates $14 billion in annual revenue.
This revenue is used to fund not only coaches’ salaries, but also scholarships, facilities, and other services for student-athletes.
While it may be frustrating for some taxpayers to know that their money is indirectly funding college football coaches’ salaries, it is important to recognize college sports’ significant role in the American economy and culture.
Additionally, many argue that the benefits of college sports, including the opportunity for student-athletes to receive scholarships and the positive impact that sports can have on a school’s community, outweigh the costs.
Overall, it is clear that college football coaches are paid with tax dollars, but the issue is complex and nuanced.
As the debate over college sports and their funding continues, it is important to consider all perspectives and ensure that taxpayer dollars are used responsibly and ethically.
| Entity | Relevance |
|---|---|
| College football coaches | Paid with tax dollars |
| National championships | Reflective of coaches’ salaries |
| Michigan State | Example of successful program |
| Men’s basketball coach | Tom Izzo earns $3.7 million per year |
| CEO | Estimates $14 billion in annual revenue for college sports |
| College sports | Big business with significant economic impact |
| Services | Funded by revenue generated by college sports |
| Tuition | One of the ways in which college sports are funded |