A New On-Campus Football Stadium for Colorado State University: Boondoggle or Benefit???

1. A New On-Campus Football Stadium for Colorado State University:Boondoggle or Benefit??? B. David Ridpath, Ed.D. Associate Professor Center for Sports Administration College of Business Ohio University

2. Agenda • Thanks to SOSH and SOS • Recognize Tom Sutherland and other guests • The SOSH Position Paper • Who am I? My Reasons for Being here—Why is this Important to you and me? • Intercollegiate Athletic and Relevant Experience on this and Other Issues.

3. Agenda • Address the Five Points Presented to the Stadium Advisory Committee on Feb. 3rd • Detail Empirical Research Based Conclusions that Challenge the Existing Myths • Dangers and Unintended Consequences • Questions (Working Press, then Public)

4. I am a Fan!! Yes that is my Wife!!

5. My Kids!! Little Rammies!!

6. Who am I? Why am I Here? • Loyal CSU Alumnus, BA Speech Communication, 1990 • I Love and Care about this University and Community • This is too Important of an Issue not to hear Every Side and Every Angle! • It is not all Positive or Negative—but Information is Power as is Listening to Other Points of View!

7. My Journey • Born in Denver—Raised in Manitou Springs • Spent almost 12 years in the US Army (Eight years Active Duty) • Four years in Colorado National Guard • Lived in Ingersoll Hall, Shields and Mulberry—and Lake West Apartments!! • Member of the GRC and Alumni Assn. • I am a donor—when I can and as much as I can.

8. Relevant Experience • Faculty Member who has conducted Extensive Research into College Sports Business • Currently I am considered a National Expert in the Business of College Sports. • Worked in ICA Administration for almost 15 years as a NCAA Division I coach and Administrator at Four Institutions (NCAA Division I and II) in several capacities. • Been a part of Senior Staff planning for Facilities (New and Refurbishing)

9. Intercollegiate Athletics and Higher Education

10. The Good • Intercollegiate Athletics is an Integral part of Higher Education in America • It is fun and brings us together • It can enhance the profile of the institution • Gives some an impetus to attend college who may not have otherwise • We love cheering for Good old State U (GO RAMS)

11. The Bad • Intercollegiate Athletics issues proven by research: • Most programs lose money (CSRI, 2012) • Many have low graduation rates and the push for success may increase the desire to bend or break rules • Does not increase the quality of applications • Does not increase fund raising, marketing, and university profile as a whole—other than a short term unsustained spike, usually offset by increased spending • (The Empirical Effects of Intercollegiate Athletics, 2002 & May 2004 - Challenging the Myth: A Review of the Links Among College Athletic Success, Student Quality, and Donations by Cornell Economist Robert Frank)

12. The Ugly • College sports, particularly NCAA Division I-A is rife with abuses • An obsession with winning and generating revenue, can lead to sacrificing institutional integrity • Many athletes confirm taking money while an enrolled athlete • Many report active gambling on college sports • Worst of all—many are leaving without the academic skills to succeed—even if they “graduate”

13. Colorado State University • As I understand it, the current administration believes that there are certain objectives or an end game that will enhance the university as a whole if an on-campus stadium is constructed. • The goals of the administration are grounded in the opinion that sustained “success” as defined by consistent Top 25 rankings and Bowl Game appearances will result in national prominence and that cannot be achieved by playing in Hughes Stadium.

14. Five Reasons to Build-Compared with Several Reasons NOT to Build • Reason #1 Ability to develop strong game day Traditions that Unify the Community, Create Lifetime Ties with Students, and Engage Deeply with our Alums and Donors • These are admirable goals, but lets look deeper • Current Game Day Traditions and Views of an Alum of Hughes Stadium • The Price of Chasing Football “Success” and the Costs of that Effort. Will Gaining that Success result in the Tangible Gains that are Claimed by the Administration and/or will we fall in the trap of compromising institutional integrity? • Can CSU have a successful football program continuing to use Hughes Stadium? How do we realistically define success and Competitive Equity in today’s ICA environment?

15. Five Reasons to Build-Compared with Several Reasons NOT to Build Engaging the Student Body: • If a goal of building a new stadium is to enhance the potential for success in football which therefore will make CSU more attractive to prospective and current students--the existing research and examples like Rutgers, Minnesota, and Akron would challenge that conventional wisdom. • According to CCAP and several university surveys (Including ASCSU and Ohio University) Intercollegiate athletics and success of those teams factor little into choice of an institution and is typically not one of the main reasons a student chooses an institution. (Also Knight Commission and NCAA Studies) • I have great memories of athletics, specifically Football at Hughes, and those memories would not be diminished or enhanced by a new stadium in which the ROI is unpredictable and unproven by research. • The 12 Step Phenomenon and Technology • The Effects on College Basketball

16. Five Reasons to Build-Compared with Several Reasons NOT to Build Engaging the Alumni: • Research again is overwhelming that successful ICA does not increase alumni contributions outside of athletics. It does typically increase giving to athletics, albeit for a shorter time, but again gains are offset by increased spending in the growing athletics arms race. • CCAP; Frank Report; Orszag Report; Ridpath-An Examination of NCAA Expenditures and Revenues (The Journal of Sport, 2012) • Football games are a great way to bring people back to campus. While not the only way, games at Hughes do bring people back to the campus, community, and businesses in my experience. I have not seen data that an on-campus stadium will enhance these areas.

17. Reason #2-Attract Quality Coaches and Players • There is no solid data to back this up, only speculation • We will attract players that want to come to CSU including those that want to play in the NFL—something we have been quite successful at. The best players will still go to the major teams in most cases. • We can meet the definition of success in Hughes Stadium and we have done it before.

18. Reason #3-Exposure • One of the most consistent arguments for increased athletic spending • Not proven by research on a sustained basis—again only short term spikes • Little evidence there is an empirical effect (Orszag; Frank; Clotfelter; and Knight Commission Presidential Survey

19. Reason #3-Applications Increase • Does a Rising Tide raise all Boats? • Not in this case • Even in cases where there were increases that could be attributed to athletics in the short term—quality was not increased (Northwestern Rose Bowl Year; Boston College and the Flutie Factor) • Again not sustained and numerous examples of where it does not happen (Marshall and Ohio U.)

20. Reason #3-Financial Self- Sufficiency • Any claim that an athletics department that is currently in a fee based model could one day be financially independent is fundamentally flawed. Most programs are not self-sufficient and will never be. • Most ICA programs lose money. A new stadium, even a privately funded one will not offset these costs because the “Winner Take All Market” forces increased spending

21. Reason #4-Economic Impact • Economic Significance is not Economic Impact (Vedder) -If someone goes to a game at Hughes are they discouraged from spending money in the community before or after the game? -This is not my experience, especially for those that bring impact dollars and those people will still come to Hughes -Conflicting Research (See Position Paper)

22. Reason #5-Multi Use Athletic Complex • Want to’s versus the Have to’s • Can we do Division I and where it is going? • The Integrity of the Institution is at Stake • As the ante is upped and more money is spent the desire to “play within the rules” begins to wane as pushing for “success” overwhelms the desire to the right thing. • Situational Morality • It is more than Bricks and Mortar-there will be unintended consequences detailed by research and similar situations at colleges and universities.

23. Unintended Consequences • University Integrity • Academic Integrity Issues that can Permeate the Institution (Mississippi) • Post Building Operation and Spending will cost $$$$. Athletic Dept. costs increase. • The Concept of Price v. Cost • The cost of ICA is going up—not down. Even in this scenario student fees will rise and institutional subsidies will increase to compensate for increased costs in the AD.

24. Conclusions and Recommendations • It is clear to me the proposed stadium will not deliver the ROI to the university that has been advertised based on experience and existing research. • I believe that Graham and Frank have their hearts in the right place, but this is a huge gamble with a huge cost that will likely not deliver what they say. • It will indirectly increase spending that will raise tuition and fees causing the exact opposite effect (Ridpath, Vedder & Denhart; Vedder, Villwock & Denhart)

25. Conclusions and Recommendations • CSU should maximize what is great about Hughes Stadium and treat it as an asset and not a liability. It does not limit our football program in any way. • Off and on-campus examples—it can work!!! • Slow down!!!! Really assess the overall impact in the short and long term. Conduct research and surveys with all stakeholders to see if a project like this is even feasible • Demonstrate, that “successful” athletics does significantly increase applications, exposure, giving to academics, athletic self sufficiency etc.—I don’t think it is possible, but this data should be a first step before and move • Realize that athletics is a part of the institution and can be a value added—but cannot be the reason for a university to exist. Don’t compromise integrity!!!

26. Questions/Comments • Thank you for your attention!!! • Working press first please • Open Forum