Here is more data for the fire. I found a list of the
leading endowments in 1999, which I compared to the list of
leading endowments from 2011. I then grouped the Universities into 4 groups. First was the ultra-elite schools, where I included only Ivy League Schools, plus MIT and U. Chicago, and I also included Princeton Theological Institute since I presume it is affiliated. The second group was BCS schools. Next was other schools with FBS football programs. The Final group was schools with no FBS football. I found the following:
1. Ultra Elite - 11 schools, average annual increase in endowment 7.0%
2. BCS Schools - 53 schools - seven of them were new entrants to the top endowments, so I don't have 1999 data, meaning they had a much larger average increase. For convenience I used as their 1999 endowment $340 million, which was the bottom of the 1999 list, which should understate their growth. The average of the 53 schools, then, was 6.7%. By conference there isn't much difference, except that the Big Least is lower than the rest::
Pac 12 - 7.4%
Big Tendozen - 7.2%
ACC - 6.4%
Big 12 - 6.4%
SEC - 6.3%
Big Least - 4.9%
3. Other FBS Schools - 8 schools, one being a new entrant. The average growth of endowment was 3.4%.
4. Schools with no FBS football program - 62 schools, 8 of which were new entrants. The average growth of endowment was 4.2%.
My analysis:
If you are an ultra elite school, you can get along fine without a football program. BCS schools did just about as well as the ultra-elite schools, however, and the only Universities with endowment growth over 10% a year were BCS schools. Amongst the BCS schools it wasn't even - the ones with better programs did better than others. Schools typically towards the bottom of their conferences, or in the Big Least did worse than others, but even those schools did better than non-elite schools without football.
Among the non-football schools, there was a wide disparity of endowment growth. I suspect that some of those were able to function as an "elite" school, while others were not. Leaders included Washington & Lee, Tufts, New York U, Amherst, U. Richmond, Carnegie Institute, Pomona, Bowdoin, Berry College, and Colby. There were also a very large number that did very poorly. At the bottom of the list you have Agnes Scott, St. Louis University, Earlham, Wesleyan, Carleton, Case Western, and DePauw.
I believe that the data shows there has been a paradigm shift in giving. Schools that attract the most giving to their general fund are either ultra elite, or are among the elite at football. The second tier of elite schools, schools like Oberlin, Case Western, or Wesleyan, were not nearly as successful at growing their endowments, nor were the second tier of football programs, schools like Rice, Buffalo, SMU, Tulane, and Tulsa.
As a side note, while Ohio University was not on my list, 26 schools on my list bore the name of just a state name plus the word "University", and those schools averaged 6.4%.
Conclusions:
If you want to increase general giving, you need to stand out from the crowd. Being a second tier "elite" school doesn't accomplish that, nor does being a second tier football program. On the other hand, bearing the name of a state is a big advantage, especially if coupled with another advantage. If Ohio is going to play football, football will help, not hurt, general giving if the team is good. Note that the Ohio endowment is $336 million. Thus a difference of 1% in growth is $3.4 million. I think the data supports the conclusion that the difference between winning and losing, even in the MAC is worth more than 1% a year to the endowment.
So long as Ohio is going to play football, it is worth it to try to be good at it, even in the MAC, though a move to a BCS conference, even the Big Least, would increase general giving even more. Ohio also needs to focus on improving academically, and trying to build its status as an ultra elite program in as many areas as possible, such as Journalism or Sports administration, where they are already leaders. (Note that it would be harder to have an elite Sports Administration program without a football program.)
Last Edited: 9/19/2012 10:59:08 PM by L.C.