ECONOMIC COST OF FOOTBALL AT MIDLAND HIGH SCHOOL
ECONOMIC COST OF FOOTBALL AT MIDLAND HIGH SCHOOL
ECONOMIC COST OF FOOTBALL AT MIDLAND HIGH SCHOOL by HUGH M. FRANKS, B.S. A THESIS IN ECONOMICS Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of MASTER OF ARTS Approved December, 1996
IIIIIIIIIIIIIIU I'*-' I' f \ L ' " v © 1996, Hugh Franks
ACKNOWLEDGMENTS With admiration and respect, I would like to compliment Dr. Lewis Hill for his gracious and gentle manner and for the understanding of the philosophy of economics I gained from his teachings. I would also like to thank Dr.
Klaus Becker for an exposure to the rigor of the discipline of economics, an ordeal not always pleasant but which was, in the long run, definitely worth the cost. Dr. Robert McComb made me feel as If I were In the correct field, for which I am grateful, as, at the time, I needed the confirmation. I also extend appreciation to Dr. Ronald Gilbert for his concern and patience with my questions. Dr. Thomas Stelnmeier's good humor, pleasant disposition, and advice was important, especially toward the end of my studies.
The following persons provided Ideas, Information, and interpretation related to this paper. To them I extend my sincere appreciation and gratitude: Dr. Joseph BaressI, Roy Blair, Robert Brown, Martin Bucy, J. D. Davis, Horace Doyle, Rick Dunlavy, Russell Dunlavy, Pat Erwin, Linda Goddard, Dan Hanks, Ann Heintz, Carl (Kelly) Jacobson, Melba Longoria, Wayne Merritt, Cody Meyers, i I
James Paschal, Ronnie Reeger, Lawrence Reeves, William (Hondo) Schneider, Frances Smith, Lisa Sutton, Casey Turner, Susan Webb, and, last but definitely not least, Tim Whalen, without whose support and cooperation this paper would not have been possible.
Jane Carrens, Dennis Stratton, and Burr Williams provided encouragement, criticism, witticism. Ideas, and editorial suggestions. Their friendship and support represent an integral part of this work and was accepted with deepest appreciation. Without any exaggeration, I contend that David Fly was the single most influential person with regard to my ability and willingness to complete this study; it could have been done without his support, but I doubt it would have been.
I would not have reached this point were it not for the efforts of my mother and father who, by example rather than through force, instilled In me a love of learning. Most importantly, however, I owe a debt of gratitude to my daughters, Codie and Carley, and to my wife, Robin; without their patience, support, and love, I would not have been able to complete this study. 11
TABLE OF CONTENTS ACKNOWLEDGMENTS i i LIST OF TABLES vii CHAPTER 1. INTRODUCTION 1 1.1 Introductory Comments 1 1.2 Cost Matrix 2 1.3 Overview of the Organization 3 2. RESEARCH, METHODOLOGIES, AND ASSUMPTIONS 6 2.1 Literature Review 6 2.2 Methodologies 6 2.3 Assumptions 7 3.
COST ASSIGNMENTS 8 3.1 Category I Costs 8 3.1.1 Salaries 8 3.1.2 Football Equipment and Supplies 10 3.1.3 Transportation and Meals 11 3.1.4 Scouting 11 3.1.5 Game Expenses 12 Iv
3.1.6 Coaching Schools and Clinics 13 3.1.7 Accident Insurance for Football Athletes 14 3.1.8 Football Booster Organization Explicit Expenditures 15 3.2 Category II Costs 16 3.2.1 Athletic Salaries 17 3.2.2 Stadium Maintenance, Supplies, Repairs, and Utilities 24 3.2.3 Band Expenditures 26 3.2.4 Dance Team Expenditures 30 3.2.5 Cheerleader Expenditures 34 3.2.6 Pep Rally Costs 37 3.3 Category III Costs 39 3.3.1 Implicit Student Resources 40 3.3.2 Implicit Community Resources 45 3.3.3 Real Estate Resources 50 4. COST SUMMARIES 54 4.1 Introductory Comments 54 4.2 Category I Costs 54 4.3 Category II Costs 55 V
4.4 Category III Costs 56 4.5 A Cost Summary 56 5. OBSERVATIONS AND CONCLUSIONS 58 5.1 Observations Related to Costs 58 5.2 Observations Related to Benefits 59 5.3 Conclusion 61 SOURCES 62 VI
LIST OF TABLES 3.1 Stipends and Additional-day Payments for Selected Coaches, Prorated for Football 9 3.2 Expenditures for New Football Equipment, Maintenance and Repair of Existing Equipment, and Supplies 10 3.3 Travel and Meal Expenses 11 3.4 Scouting Expenses 12 3.5 Game Expenses 13 3.6 Coaching School Expenses 14 3.7 Accident Insurance Premium, Prorated for Football 15 3.8 Explicit Expenditures of Football Booster Organization 16 3.9 Payments to Coaches and Trainers, Prorated for Football 19 3.10 Salaries of the Office of the Athletic Director, Prorated for Football 21 3.11 Athletic Facility Custodial and Maintenance Salaries, Prorated for Football 24 3.12 Memorial Stadium Expenses 25 3.13 Band Directors' Salaries, Prorated for Football .
26 3.14 Band Budget, Prorated for Football 27 vli
3.15 Band Uniforms, Depreciated and Prorated for Football 28 3.16 Band Travel Related to Football 29 3.17 Explicit Expenditures by Band Booster Organization, Prorated for Football 30 3.18 Dance Team Sponsor's Salary, Prorated for Football 31 3.19 Dance Team Budget and Travel, Prorated for Football 32 3.20 Explicit Expenditures by Dance Team Booster Organization, Prorated for Football 33 3.21 Cheerleader Sponsor's Salary, Prorated for Football 35 3.22 Cheerleader Budget and Travel, Prorated for Football 36 3.23 Explicit Expenditures by Cheerleader Booster Organization, Prorated for Football 37 3.24 Custodial and Supervisory Pep Rally Costs 39 3.25 Implicit Value of Time, Members of the Football Team 41 3.26 Implicit Value of Time, Members of the Band, Prorated for Football 42 3.27 Implicit Value of Time, Cheerleaders, Prorated for Football 44 VII
3.28 Implicit Value of Time, Dance Team, Prorated for Football 45 3.29 Implicit Value of Time, Football Booster Organization 46 3.30 Implicit Value of Time, Band Booster Organization, Prorated for Football 48 3.31 Implicit Value of Time, Dance Team Booster Organization, Prorated for Football 49 3.32 Implicit Value of Time, Cheerleader Booster Organization, Prorated for Football 50 3.33 Implicit Annual Cost of Memorial Stadium Real Estate 53 4.1 Category I Costs 54 4.2 Category II Costs 55 4.3 Category III Costs 56 4.4 Overall Cost of the Midland High Football Program 57 IX
CHAPTER 1 INTRODUCTION 1.1 Introductorv Comments A consistent adage in West Texas, as In many other parts of the state, Is that a high school football program not only pays for Itself but generates enough revenue to support other athletic programs, for both males and females, of the school.
It is this assertion that prompted interest In this study. As is the case with most public institutions, the methods of accounting for various costs within a school system are quite different than those used by a private, profit-motivated entity. In addition, as with all social goods, the benefits of the activities of public schools are quite difficult to monetize, thus creating problems in the application of any standard economic evaluation along the lines of a cost-benefit analysis; more regarding this concern will be provided toward the conclusion of this study. With that in mind, the focus of this study is to assess the total economic cost of the football program at a single public high school for a one-year period.
The school In
question is Midland High School (MHS) in Midland, Texas; the time period Is the 1995-1996 school year. 1.2 Cost Matrix For the purpose of organization and analysis, this study will assign costs Into one of three major categories; these categories are enumerated and described below. 1. Category I: directly assigned explicit costs; these costs would include all direct monetary expenditures by Midland Independent School District (MISD) and the community directly to the MHS football program. 2. Category II: explicit costs related to the football program at MHS but attributed by MISD or the community to some program other than football.
3. Category III: Implicit costs; these costs represent the estimated monetary value of the alternative use of school and community resources absorbed by the MHS football program; these would represent opportunity costs.
After costs are assigned to a specific category, an itemization and summation of the resultant findings will be presented. It is important to note that within the course of this work, certain assumptions, major and minor, must be made. When discretion, opinion, or interpretation is required, every effort will be made to adopt a conservative position; this Is to say that when a question arises regarding a Category II or Category III cost, the decision will be made with the idea of assigning to football the least reasonable cost in each situation.
1.3 Overview of the Organization In order to better understand the organization under consideration, some basic information about Midland High School and its football program should be considered.
The main campus consists of grades ten, eleven, and twelve with a separate campus for the ninth grade. For the purpose of this study, only the football program in the upper grades will be considered. Total enrollment in these three grades during the time frame in question averaged
2130.^ The student body Is ethnically and socloeconomlcally diverse, with 55.5% of the student body classified as White, 9.6% African-American, 34.2% Hispanic, and 0.7% other.' With regard to the socioeconomic makeup of the students, approximately 32% come from families considered economically disadvantaged, as measured by the number of students qualifying for the free- or reduced-lunch program administered by the state of Texas.^ The dropout rate was 5.4%, down from 6.7% the previous year."* Midland High School maintains an extensive selection of extracurricular activities. As with most large high schools, students may participate in band, orchestra, choir, debate, speech, drama, academic decathlon, various vocational programs and activities, University Interscholastic League competitions, cheerleading, and dance team.
The athletic programs for both males ^Accountability Data Tables, Base Indicators, Texas Education Agency, 1996, for Midland High School, Campus Number 165901003, 6 June 1996. This Information Is the most recent available at the time of this study but is based on 1994-1995 data. 'Ibid.
and females include the following: tennis, swimming, diving, golf, soccer, basketball, cross country, and track. In addition, there are sports offered which, at least on a de facto basis, are available only for single-sex participation. These are softball and volleyball for female student-athletes and, for male student-athletes, baseball and football. The 1995-1996 football program at MHS officially began on 6 August 1995 with approximately 115 student participants; by the end of the season, only ninety remained.^ Technically, there were three football teams at MHS during this time, a sophomore team, a junior varsity team, and a varsity team.
For the purpose of this work, all of these teams are aggregated and an average of 103 student-athletes in the football program will be used. ^ Tim Whalen, Athletic Director, Midland Independent School District, interview with author, Midland, Texas, 15 July 1996.
CHAPTER 2 RESEARCH, METHODOLOGIES, AND ASSUMPTIONS 2.1 Literature Review There appears to be no previous work directly related to the topic of this research. Similar studies have been done within the realm of college athletic programs, but apparently none focusing on high school football. One published work somewhat related to this study is H. G. Bissinger's Friday Night Lights, a narrative of the football program at Permian High school in Odessa, Texas.^ While an interesting and apparently accurate presentation, it provides only an oblique glimpse of the economics of high school football.
2.2 Methodologies The majority of the data presented herein was gathered through personal interviews and communications with school officials, teachers, coaches, sponsors, students, and community ^ H. G. Bissinger, Friday Night Lights (Reading, MA: Addison-Wesley Publishing, Inc., 1990). 6
members. Some of these sources maintained complete and detailed records; some did not. Much of the Information is based on the opinions and estimations of those interviewed. As these individuals often represent the only source of the Information required, their opinions are accepted as valid. Records of the Midland Independent School District also served as a source for this research, especially data related to salaries and other and explicit costs. These records are considered public Information but often are not available in a formally organized manner. Consequently, personal input from officials and employees of the school district was necessary for access to and interpretation of appropriate data.
2.3 Assumptions In a study of this nature, a number of assumptions are necessary to organize the data Into a perspective compatible with economic analysis. Rather than attempt to list and explain all such assumptions at this point, each will be addressed the first time such a decision is made. 7
CHAPTER 3 COST ASSIGNMENTS 3.1 Category I Costs This category consists of costs directly attributed to the MHS football program by the school district and community. At this point, the school district's accounting methods are compatible with the methodology of this study, therefore, the sum of the costs in this category should represent what is assumed by the community to be the cost of football at MHS.
It Is this cost which, when compared to revenues generated by the football program, should be used to test the validity of the assertion that football is self-sufficient or even financially profitable. Towards the end of this work, a comparison of this nature will be made. As necessary, brief explanations of the methods used in determining specific costs and justifications of those inclusions will be provided. 3.1.1 Salaries Only explicit salary stipends for football coaching are included in this category, as other salary costs are assigned by the school 8
district to other accounts and will thus be dealt with below as Category II costs. Further, formal planning and initial football practice begins well prior to the start of the standard school year, necessitating a contract extension for football coaches. These additional days, approximately fifteen, are paid through a system whereby the base salary is prorated on a daily basis. Finally, several coaches have assignments in addition to football; in such cases, only the portion directly attributable to football is Included. Table 3.1 summarizes this data and incorporates these assumptions and accounting methods.
Table 3.1 Stipends and Additional-day Payments for Selected Coaches, Prorated for Football. Coach A B C D E F G H Totals Football stipend $ 4,300.00 4,300.00 4,300.00 3,075.00 4,300.00 3,075.00 3,075.00 3.075.00 $29,500.00 Additional-day payments $ 2,963.10 3,276.90 1,760.70 2,241.75 2,106.00 2,500.05 2,782.80 2,286.90 $19,918.20 Total football-related payments $ 7,263.10 7,576.90 6,160.70 5,316.75 6,406.00 5,575.05 5,857.80 5,361.90 $49,518.20 Source: Payroll Department, Midland Independent School District, Dr. Joseph Baressi, Payroll Administrator, July, 1996.
3.1.2 Football Equipment and Supplies The purchase, maintenance, and repair of equipment, as well as miscellaneous supplies for the football program will be summarized herein.
An Important assumption regarding capital expenditures subject to depreciation is first encountered here. The school district does not maintain depreciation schedules for athletic equipment. New equipment is simply purchased and then replaced as It becomes worn or outdated. Each year, approximately the same amount of new equipment is added, thus, it is assumed that each year, some amount of equipment is consumed and that this amount is also relatively constant from year to year. Consequently, no attempt is made to impose depreciation schedules on any capital purchase of athletic equipment.
These expenditures are summarized in Table 3.2. Table 3.2 Expenditures for New Football Equipment, Maintenance and Repair of Existing Equipment, and Supplies. Expenditure type New equipment Repair of existing equipment Miscellaneous supplies Total Cost $30,193.56 3,998.50 3,613.10 $37,805.16 Source: Account Check List, Budget Code 6399, Office of the Athletic Director, Midland Independent School District, Midland, Texas, July, 1996.
3.1.3 Transportation and Meals During the 1995-1996 football season, the costs summarized in Table 3.3 were incurred by the football program related to transportation to and from games, meals after those games, spring training travel costs, and miscellaneous transportation costs on the part of the football coaching staff. Table 3.3 Travel and Meal Expenses. Expenditure type Transportation Meals Total Cost $ 8.594.93 5,255.27 $13,850.20 Source: Account Check List, Budget Code 6414, Office of the Athletic Director, Midland Independent School District, Midland, Texas, July, 1996.
3.1.4 Scouting The football program at MHS, as with most high schools, maintains an extensive scouting system in order to provide reports on future opponents. This responsibility is primarily assumed by coaches from the freshman and junior high schools in the district, although the monetary value of their time will not be a part of this study. A typical scouting team would consist of three coaches who travel to a selected location to watch and record performance of an n
upcoming opponent.^ Table 3.4 summarizes the transportation and meal costs for this activity. Table 3.4 Scouting Expenses. Expenditure type Transportation Meals and expenses Total Cost $1,097.98 971.93 $2,069.91 Source: Account Check List, Budget Code 6414, Office of the Athletic Director, Midland Independent School District, Midland, Texas, July, 1996. 3.1.5 Game Expenses At each football game played at Midland Memorial Stadium, the school designated as the home team incurs certain expenses related to the officiating, security, and supervision necessary to effectively and safely conduct the game.
These expenditures for Midland High's 1995-1996 season are itemized in Table 3.5. There is a $750.00 cost for an armored car to collect game receipts at the conclusion of all football games; another $750.00 expense is for an ambulance and paramedics to be assigned to each football game at Memorial ^ Roy Blair, Assistant Football Coach, Midland High School, interview with author, Midland, Texas, 4 September 1996. 12
Stadium.^ As MHS was the home team in only half of these games (with the other local school, Robert E. Lee High, representing the remaining games) only half of each of these expenses will be applied to the cost of the MHS football program. Table 3.5 Game Expenses. Expenditure type Game officials Game workers Armored car service Ambulance Total Cost $ 3,818.77 7,101.97 375.00 375.00 $11,670.74 Source: Account Check List, Budget Codes 6219 and 6299, Office of the Athletic Director, Midland Independent School District, Midland, Texas, July, 1996.
3.1.6 Coaching Schools and Clinics The MHS football coaching staff, along with coaches of other sports, attended a coaching school in Ft.
Worth during the summer of 1995. The portion of these expenses assigned by the school district to MHS football are summarized in Table 3.6. ^ Tim Whalen, Athletic Director, Midland Independent School District, interview with author. Midland, Texas, 15 July 1996. 13
Table 3.6 Coaching School Expenses. Expenditure type Transportation Meals, lodging, etc. Total Cost $ 175.76 1,652.45 $1,828.21 Source: Account Check List, Budget Code 6411, Office of the Athletic Director, Midland Independent School District, Midland, Texas, July, 1996. 3.1.7 Accident Insurance for Football Athletes The school district provides accident insurance coverage for all of Its student-athletes; the premium for the 1995-1996 school year was $33,100.00.^ As this policy Is not specific to football, the fraction associated with MHS football Is calculated by simply determining the percentage of participants in MHS football relative to the total number of participants in all district athletic programs, approximately 3,500.^° This calculation is reflected in Table 3.7.
However, injuries related to football, and thus claims against the insurance, are much more common, and often more severe, than those ^ Budget for the Fiscal Year 1995-1996, Midland Independent School District, p. 175.
^° Ann Heintz, Secretary to the Athletic Director, Midland Independent School District, telephone Interview with author, 13 September 1996. 14
related to other sports. Consequently, it could be argued that a greater portion of the Insurance premium Is absorbed by the football program than is indicated by the simple calculation used herein.^^ Table 3.7 Accident Insurance Premium Expenses, Prorated for Football. Accident insurance premium paid by the school district $33,100.00 Number of participants in MHS football program 103 Number of participants in MISD athletic programs 3500 MHS football participants as a percentage of all district athletes 2.94 Accident insurance premium absorbed by MHS football program $ 973.14 Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, Midland Texas, p.
3.1.8 Football Booster Organization Explicit Expenditures The MHS football booster organization engaged in several activities which generated funds used to supplement the school's football budget. Table 3.8 itemizes the net expenditures by the booster organization on behalf of the MHS football program. ^ ^ Tim Whalen, Athletic Director, Midland Independent School District, telephone interview with author. Midland, Texas, 4 September 1996. 15
Table 3.8 Explicit Expenditures of Football Booster Organization, Expenditure type Athletic equipment Uniforms Advertising Scholarships Telephone directories Computer hardware Copier maintenance Club expenses* Total Cost $ 8,856.96 2,856.82 1,573.00 1.500.00 200.00 2.403.00 350.00 7,021.69 $24,761.47 *Expenses for decorations, meals, banquets, etc.
Source: Rick Dunlavy, Treasurer, MHS Football Booster Organization, personal records and interview with author, Midland, Texas, 24 September 1996. 3.2 Category II Costs In this category are accumulated the explicit costs experienced by the school district and community which are at least partially in support of the football program at Midland High but which are not technically and formally acknowledged as such. These costs are recorded In a myriad of other accounts, most of which are, at first glance, unrelated to football. Such costs include expenditures for the activities of the school band, dance team, and cheerleaders; other costs of this nature are associated with salaries, facilities maintenance, utilities, and administration.
It will be demonstrated that, in a proper economic measurement of the 16
economic costs of football at MHS, a portion of these costs should be considered a part of the football program. 3.2.1 Athletic Salaripg While the explicit football-related salaries accruing to football coaches are accounted as a Category I expense above, there are other salaries which should be at least partially assigned to the football program. This section attempts to Identify such salaries and determine the percentage of which represents a football-related expense on the part of the school district.
18.104.22.168 Coaches and Athletic Trainers. The head football coach is technically the athletic director for the campus and, as such, has certain responsibilities outside of football.
Consequently, only a percentage of salary and travel expenses commensurate with the percentage of time spent on football at MHS compared to total work time will be explicitly assigned to football. During the 1995- 1996 football season, the head football coach/campus athletic director had a base salary of $58,420.64 and a travel allowance of $5,004.00 for total payments of $63,424.64. The full-time trainer assigned to MHS had a base salary of $30,500.00 and an athletic 17
supplement of $4,300.00 for a total base salary of $34,800.00. The part-time trainer had a base salary of $30,100.00, a travel allowance of $900.00, and an athletic supplement of $4,500.00 for a total compensation package of $35,500.00, of which one-half is assigned to the MHS athletic programs. For the purposes of this study, It Is assumed that 50% of the time of the head football coach/campus athletic director is related to football.^^ The percentage of the trainers' time related to football, and thus the percentage of their salaries herein assigned to football, is found by dividing the number of participants in the campus football program by the total number of athletes in all sports at MHS.
This greatly understates the amount of time allocated to football, as football requires more of the trainers' time on a per person basis than do other sports.^^ Further, a part of the base salaries of the assistant football coaches must be allocated to football. For at least a part of the school year, football represents a specific class assignment, '^Ronnie Reeger, Head Football Coach and Athletic Director, Midland High School, 1995 Football Season, interview with author. Midland, Texas, 7 August 1996.
^ ^ William (Hondo) Schneider, Trainer, Midland High School, interview with author. Midland, Texas, 22 August 1996. 18
thus a portion of the base salary represents a cost of the football program. Each teacher at MHS, with few exceptions, Is required to teach five classes each of the two semesters. Thus, ten semester teaching units will be assumed to constitute a full teaching load and the percentage of these assignments related to football will be used to prorate base salaries of the assistant football coaches to the football program. These calculations are shown in Table 3.9 below.
Table 3.9 Payments to Coaches and Trainers, Prorated for Football.
Employee Head coach Trainer (full- time) Trainer (part- time) Coach A Coach B Coach C Coach D Coach E Coach F CoachG Coach H Totals Base payments $ 63,424.64 34,800.00 17,750.00 36.150.00 39,978.00 35,214.00 27,350.00 25,700.00 30.500.00 33.950.00 27,900.00 $372,716.64 Percentage of time related to football 50 35 35 30 30 40 10 30 20 10 10 - - Additional- day stipend - - $ 2,500.05 1.233.60 * * • * * _ _ * _ _ * •*• $ 3,733.65 Total cost related to football $ 31,712.32 14,680.05 7.446.10 10.845.00 11,993.40 14,085.60 2,735.00 7,710.00 6,100.00 3,395.00 2,790.00 $113,492.47 *The additional-day stipends for these coaches are included in Table 3.1 above.
Source: Payroll Department, Midland Independent School District, Dr. Joseph Baressi, Payroll Administrator, July, 1996.
22.214.171.124 Office of the Athletic Dirertnr. As the title implies, this office is responsible for overseeing almost all aspects of all athletic programs within the school district. This is in addition to the activities of the campus-specific athletic directors at each of the two high schools as well as each school's coaching staff. Much of the efforts of the athletic director are related to scheduling events, hiring coaches, public relations, and overseeing budgets. It Is estimated that approximately 25% of the athletic director's time and efforts are related to football.^"^ While some of this time is related the junior high and freshman school football organizations, as these programs are organized to support the efforts their respective high schools, the full 25% of the athletic director's time will be assigned to high school football, with half to each of the two high schools.
The same will be done with the time of the two part- time assistant athletic directors. In addition, there is the matter of the staff of the athletic director's office. It is estimated that 33% of the time and efforts of these personnel are related to football, ^"^Tim Whalen, Athletic Director, Midland Independent School District, telephone interview with author, 13 September 1996. 20
with the extra time a function of football ticket sales, clerical works, and accounting.^^ Table 3.10 summarizes these costs. Table 3.10 Salaries of the Office of the Athletic Director, Pro- rated for Football. Employee Athletic director Assistant athletic directors Secretary Part-time secretary Totals Total salary $ 62.434.52 20,118.48 20.579.04 9,876.96 $113,009.00 Travel allowance $ 2,000.00 - - $ 2,000.00 Percentage of time related to football 25 25 33 33 - - One-half of total cost related to football $ 8,054.32 2,514.81 3,395.54 1.629.70 $15,594.37 Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, Midland, Texas, p.
126.96.36.199 Athletic Facilitv Custodial and Maintenance. The method of accounting for expenses related to MHS football with regard to the Midland Memorial Stadium complex (where all football games are played and all football practice takes place) presents special problems. The stadium also includes a track for practices ^^Ann Heintz, Secretary to the Athletic Director, Midland Independent School District, telephone interviews with author, 9 and 13 September 1996. 21
and competitions and for use by the general public on a daily basis. The football practice field adjacent to the stadium Is also used for baseball practice and occasional baseball games.
Finally, various community activities often use the facility. Thus, assigning a percentage of the stadium complex's total cost of care and maintenance to a specific football program is difficult. Therefore, for the purpose of this study, it will be assumed that, were it not for football, Memorial Stadium would not exist. There would be some facility for track and baseball, but not that which exists at present. With this assumption, the entire cost for care and maintenance of the complex will be assigned to football, with half assigned to the MHS program and the remainder to the Robert E. Lee High School football program.
This same assumption is used in Section 3.3.3 regarding the facility's real estate value. There are two full-time employees assigned to the care and maintenance of Midland Memorial Stadium and the MHS field house and weight-room facility. One of these cares for the field house, used exclusively by MHS student-athletes and coaches. The other is responsible for maintenance of the grounds; as the portion of the grounds used exclusively by MHS accounts for approximately 4 acres 22
of the entire 16.3 acre complex, 62.5% of the costs of maintaining the grounds will be assigned to MHS football with the remaining 37.5% assigned to the Robert E. Lee High School football program.^^ In addition to these permanently-assigned employees, there is a group of three district employees who Inspect the bleachers and other public areas of the stadium each week, making whatever minor repairs are required. This inspection and subsequent repairs requires approximately twelve person hours per week for each of the ten weeks compromising a regular football season. The average salary of these employees is $11.50 per hour.^^ One-half of this cost will be assigned to the MHS football program.
Table 3.11 incorporates these assumptions Into an itemization and summation of the appropriate data.
^^ From the 16.3 total acres, 4 acres are subtracted, leaving 12.3 acres used equally by both high schools. One-half of the cost associated with these 12.3 acres is assigned to MHS football as is all of the cost associated with the 4 acres exclusively by MHS. ^^ Lawrence Reeves, Supervisor of Maintenance, Midland Independent School District, interview with author, Midland, Texas, 24 July 1996. 23
Table 3.11 Athletic Facility Custodial and Maintenance Salaries, Prorated for Football. Employees Total salary Percentage assigned to MHS football program Total cost related to MHS football program Stadium grounds- keeper $21,736.00 62.5 $13,585.00 Field house custodian 21,715.20 100 21.715.20 Weekly safety inspectors 1.380.00 50 690.00 Totals $44.831.20 80.3 $35.990.20 Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, Midland, Texas, pp.
175-176. 3.2.2 Stadium Maintenance. Supplies. Repairs, and Utilities For a facility as large as Memorial Stadium, several expenses related to upkeep are to be expected. The grass areas themselves absorb a great deal of effort;^^ further, the cost of water, sewer, and electricity must be accounted for within this study. As justified in Section 188.8.131.52 above, the total cost of such efforts will be assigned to football, split appropriately between the MHS and Robert E. Lee High School football programs. As MHS football uses the practice field and field house facility on an almost daily basis and Robert E.
Lee High School uses the stadium only during ^^Dan Hanks, Supervisor of Grounds, Midland Independent School District, interview with author, 25 July 1996. 24
football games, 62.5% of the cost of water, 50% of the electric cost during the season and 100% of the cost outside the football season, and 100% of the natural gas cost should be assigned to the MHS program. Table 3.12 presents these costs. Table 3.12 Memorial Stadium Expenses. Expenditure type Fertilizer, herbicides, and equipment maintenance Practice field repairs Seat and walkway replacement Public address system maintenance Handicapped seating installation* Water and sewer Electricity during football season** Electricity outside of football season# Natural gas## Totals Total cost $ 5,637.50 450.00 5,800.00 500.00 10,000.00 32.511.60 2,974.34 5,383.15 2.912.16 $66,168.75 Percentage assigned to MHS football program 50 100 50 50 50 62.5 50 100 100 - - Total cost related to MHS football program $ 2.818.75 450.00 2,900.00 250.00 • 5,000.00 20,319.75 1,487.75 5,383.15 2,912.16 $41,521.56 *This represents a capital expenditure which should be depreciated, but MISD does not establish such schedules.
Further, as a similar amount is spent each year on additions of some type, the inclusion of this entire cost as a current-year expense seems justified. **Cost of electricity for September, October, and November, 1995. #Cost of electricity for August and December, 1995, and January through July, 1996. ##Cost of natural gas for August, 1995, through July, 1996. Sources: Budget for the Fiscal Year 1995-1996, Midland Independent School District. Midland, Texas, pp. 175-176, and Martin Bucy, Energy Manager, Midland Independent School District, utility bills, 1995-1996 25
3.2.3 Band Expenditures The MHS band plays an integral role in the overall football program of the high school. Most notable are the performances during half-time at all football games but there is also participation in pep rallies and homecoming activities. 184.108.40.206 Salaries. Between the planning, rehearsals, travel, and performances. It is estimated that 70% of the band directors' time is tied to football-related tasks.^^ Table 3.13 summarizes band directors' salaries related to football. Table 3.13 Band Directors' Salaries, Prorated for Football. Employee Band director Assistant band director Totals Base salary $33,375.00 23,500.00 $56,875.00 Band stipend and extra- day stipend $ 9,937.50 5,350.00 $15,287.50 Total salary $43,312.50 28,850.00 $72,162.50 Percent- age related to football 70 70 70 Salary related to football $30,318.75 20,195.00 $50,513.75 Source: Payroll Department, Midland Independent School District, Dr.
Joseph Baressi, Payroll Administrator, July, 1996.
^^Cody Meyers, Band Director, Midland High School, Interview with author. Midland, Texas, 4 September 1996. 26
220.127.116.11 Equipment. The band at MHS had an explicit budget of $17,753.00 for the 1995-1996 school year. Major budget categories are listed in Table 3.14 and appropriate allocations made to the football program. It is assumed that approximately 58% of these expenditures are related to football.^° Naturally, some of the expenditures represent purchase of durable capital equipment and, when available, the depreciation term is incorporated into the calculations.
Table 3.14 Band Budget, Prorated for Football. Expense type Instruments Instrument repair Teaching* supplies Totals Expense amount $ 9,130.00 3,623.00 5,000.00 $17,753.00 Expected useful life 10 years - - - - Annual cost 913.00 3,623.00 5.000.00 $9,536.00 Percentage related to football 57.7 57.7 57.7 57.7 Expenditures related to football $ 526.80 2,090.47 2,885.00 $5,502.27 *Pat Erwin, School Secretary, Office of the Principal, Midland High School, interview with author, Midland, Texas, 23 July 1996.
Source: Budget for the Fiscal Year 1995-1996, Midland Independent School District, p. 9. 20 Ibid. 27
18.104.22.168 Uniforms. In addition to salaries and expenses related to football, a portion of the cost of band uniforms must be allocated to football. Of the 52 hours the uniforms were worn by the band during 1995-1996, 40 hours, or about 77%, represented some use related to football.^^ Purchased In December, 1994, at a total cost of $59,147.90,^^ these uniforms, unlike most capital expenditures of MISD, are subject to an unofficial depreciation schedule, with current uniforms estimated to have a life of ten years.
Table 3.15 presents a prorated allocation of this cost to the football program. Table 3.15 Band Uniforms, Depreciated and Prorated for Football. Cost of uniforms $59,147.90 Expected useful life 10 years Annual cost $ 5,914.79 Percentage related to football 77 Annual cost related to football $ 4,554.39 Source: Cody Meyers, Band Director, Midland High School, personal records. 22.214.171.124 Travel. Travel on the part of the MHS band to the football games also represents an expense not normally assessed as 21 Ibid. " Susan Webb, Communications Specialist, Midland Independent School District, letter to author, 27 August 1996, 28
a part of the football program. Even when football games are played in Midland, an expense Is incurred In transporting the band from the MHS campus to Memorial Stadium. These expenses are summarized in Table 3.16 and the entire amount assigned to the football program. Table 3.16 Band Travel Related to Football. Date 8 September 1995 15 September 1995 22 September 1995 29 September 1995 6 October 1995 13 October 1995 20 October 1995 27 October 1995 3 November 1995 10 November 1995 Total Opponent Frenship High Bel Air High Pecos High Robert E. Lee High Abilene Cooper High Odessa Permian High Dallas Jesuit High Odessa High Abilene High San Angelo High - - Site of game Frenship, Texas Memorial Stadium Pecos, Texas Memorial Stadium Memorial Stadium Odessa, Texas Memorial Stadium Memorial Stadium Abilene, Texas Memorial Stadium - - Travel expense $1,224.88 246.80 980.88 282.50 264.80 447.96 246.80 264.80 1,561.60 264.80 $5,785.82 Source: Carl A.
(Kelly) Jacobson, Assistant Principal, Midland High School, Travel Expense Records, 1995-1996.
126.96.36.199 Band Booster Organization. The booster organization supporting the MHS band provides monetary benefits to the band, some entirely tied to football while other contributions provide spillover benefits to non-football areas, such as the band newsletter. These expenditures are presented in Table 3.17. 29
Table 3.17 Explicit Expenditures by Band Booster Organization, Prorated for Football. Expenditure type Food Refreshments Drill design Music arrangement Stadium rental* Misc. spirit items Newsletter Percussion carts Bass drums** Bleacher covers Gasoline Marching squares Postage Spirit awards Uniform cleaning Equipment repair Truck rental Misc.
unassiqned Totals Expenditure amount $ 1,648.50 457.65 900.00 440.00 400.00 432.00 201.54 187.57 960.00 270.00 235.74 47.82 32.00 74.29 1,032.55 3,000.00 380.03 393.59 $11,093.28 Percent related to football 100 90 50 50 25 100 50 77 77 100 100 50 50 100 75 77 90 50 76.5 Expenditure related to football $ 1,648.50 411.89 450.00 220.00 100.00 432.00 100.77 144.43 739.20 270.00 235.74 23.41 16.00 74.29 774.41 2,310.00 342.03 196.79 $8,489.46 *Rental of Ratliff Stadium, Odessa, Texas, for marching contest practice. ** The actual cost of the bass drums was $4,800.00; the life expectancy is five years.
Therefore 20% of the cost, or $960.00, is assigned to the year under consideration. Source: Cody Meyers, Band Director, Midland High School, personal records. 3.2.4 Dance Team Expenditures The MHS dance team, known as the Golden Girls, performs at varsity football games and pep rallies. They also participate in other activities and competitions. It is assumed that 45% of the 30
23 time and of this group is related to football; thus 45% of budgeted expenditures and salaries will be assigned to the football program. 188.8.131.52 Salaries. The dance team is supervised by a single sponsor who, during the 1995-1996 school year, taught four classes in addition to the one formal period assigned to the dance team; therefore, 20% of the $27,050.00 base salary of this employee will be assigned to the dance team along with 100% of the dance team stipend.^"^ These calculations are presented in Table 3.18. Table 3.18 Dance Team Sponsor's Salary, Prorated for Football. Employee Dance team sponsor 20% of base salary $ 5,410.00 Dance team stipend $ 2,490.00 Percentage related to football 45 Cost related to football $3,555.00 Source: Payroll Department, Midland Independent School District, Dr.
Joseph Baressi, Payroll Administrator, July, 1996.
" Melba Longoria, Dance Team Sponsor, Midland High School, interview with author. Midland, Texas, 13 August 1996. ^^ Midland High School Master Schedule, 1995-1996, from the records of Frances Smith, Data Processing Clerk, Midland High School. 31
184.108.40.206 Budgeted Fxpenditures and Travel. The dance team was allocated $2,500.00 through teaching supplies at MHS.^' This entire amount (and more, from other sources) was used to cover expenses related to the activities of the group. In addition, school funds were used to transport the dance team to and from football games and for meals on two occasions.
Table 3.19 Itemizes and summarizes these expenditures. Table 3.19 Dance Team Budget and Travel, Prorated for Football. Category type Teaching supplies Travel to football games Meals Totals Total cost $2,500.00 1,442.09 200.40 $4,142.49 Percentage related to football 45 100 5 5 * 64.6 Cost related to football $1,125.00 1,442.09 110.20 $2,677.29 *0ne expenditure of $35.40 related to the Abilene football game is assigned 100% to football; another expenditure of $1 65.00 related to Dance Camp in June. 1995, is assigned 45% to football.
Source: Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas, and Carl A. (Kelly) Jacobson, Assistant Principal, Midland High School, Travel Expense Records, 1995-1996. " Pat Erwin, School Secretary, Office of the Principal, Midland High School, Interview with author. Midland, Texas, 23 July 1996. 32
220.127.116.11 Dance Team Booster Organization. The dance team booster organization, essentially an association of parents of the participants, contributed funds to augment the budget provided by the school. Some of these expenditures are more directly related to football, and are thus assigned at a 75% rate to the football program, while other are of more generic benefit to the group's total activities and are thus assigned at lesser rates.^^ Table 3.20 summarizes these expenditures.
Table 3.20 Explicit Expenditures by Dance Team Booster Organization, Prorated for Football.
Category type Practice, performing, travel, and uniforms Summer and line camps Officer camps Make-up Supplies for try-outs Office supplies Yard signs Totals Total cost $ 5,725.00 3,945.00 375.00 250.00 150.00 150.00 1.490.00 $12,085.00 Percentage related to football 75 75 75 75 50 50 2 5 * 68.2 Cost related to football $4,293.75 2.958.75 281.25 187.50 75.00 75.00 372.50 $8,243.75 *These signs are used for twelve months, thus, the three months of football season constitute 25% of total use. Source: Linda Goddard, President, Midland High Dance Team Booster Organization, 1995-1996, personal records.
^^ Linda Goddard, President, Midland High Dance Team Boosters Organization, 1995-1996, interview with author, Midland, Texas, 25 September 1996. 33
3.2.5 Cheerleader Fxpenditures Similar to the band and dance team, the cheerleader organization at MHS Is a part of many school-related functions, one of which is football. Of the 59 total performances of the cheerleaders during the 1995-1996 school year, 22 were related to football.^^ Consequently, 37% of the budgeted costs of the cheerleader organization will be assigned to the football program. 18.104.22.168 Salaries.
The cheerleader sponsor is paid a stipend for managing and supervising the organization; in addition, a one- semester class is devoted to the group, representing 10% of the annual teaching load of the sponsor.^^ Therefore, 10% of the base salary of $24,050.00 is assigned to the costs of cheerleading, along with 100% of the cheerleading stipend. Of the sum of these two payments, 37% will be assigned to the football program, commensurate with the overall percentage of time the cheerleader ^'' Casey Turner, Cheerleader, Midland High School, personal records and interview with author, Midland, Texas, 3 September 1996.
^ ^ Midland High School Master Schedule, 1995-1996, from the records of Frances Smith, Data Processing Clerk, Midland High School. 34
organization devoted to football-related activities. Table 3.21 summarizes these calculations. Table 3.21 Cheerleader Sponsor's Salary, Prorated for Football. Employee Cheerleader sponsor 10% of base salary $2,405.00 Cheerleading stipend $2,630.00 Percentage of gross salary related to football 37 Cost related to football $1,862.95 Source: Payroll Department, Midland Independent School District, Dr. Joseph Baressi, Payroll Administrator, July, 1996.
22.214.171.124 Budgeted Expenditures and Travel. In a manner similar to the dance team, the cheerleader organization at MHS is partially funded through the teaching supplies budgetary line item.^^ In addition, uniforms represent a separate budget item. As explained in Section 3.2.5 above, 37% of the general expenditures on the part of the cheerleader organization will be assigned to the football program but. In the case of travel to football games, 100% of the expenses will be allocated to football. These calculations are presented in Table 3.22.
^^ Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas. 35
Table 3.22 Cheerleader Budget and Travel, Prorated for Football. Category type Teaching supplies Travel to cheerleader camp Travel to football games Meals related to cheerleader camp Meals related to football games Totals Total cost $1,000.00 614.00 496.08 506.25 344.00 $2,960.33 Percentage related to football 37 37 100 37 100 55 Cost related to football $ 370.00 227.18 496.08 191.01 344.00 $1,628.27 Source: Allocation for Teaching Supplies, 1995-1996, Office of the Principal, Midland High School, Midland, Texas, and Carl A.
(Kelly) Jacobson, Assistant Principal, Midland High School, Travel Expense Records, 1995-1996.
126.96.36.199 Cheerleader Booster Organization. The cheerleader booster organization provides monetary benefits to the cheerleading program at MHS. These benefits are spread across the entire school year and thus are not specific to football. However, as previously explained, 37% of cheerleader activities are related to football; therefore, this multiplier will be used to assign booster organization spending to the football program. Some contributions, such as the purchase of advertising space In the MHS basketball magazine, are omitted as they have no bearing on football. Table 36
3.23 provides a general Itemization of selected contributions and calculates the portion applicable to football.
Table 3.23 Explicit Expenditures by Cheerleader Booster Organization, Prorated for Football. Category type Cheerleader camp, summer of 1995 Poster expenses Publicity Uniforms, etc.* Totals Total cost $ 4,245.00 327.50 700.00 4,800.00 $10,072.50 Percentage related to football 37 37 37 37 37 Cost related to football $1,573.98 121.18 259.00 1,776.00 $3,730.16 *Each of the 12 cheerleaders spends approximately $400.00 on uniforms and related items; this expenditure is included here although it is not technically provided by the booster club but is absorbed by the cheerleader households.
Source: Lisa Sutton, President, Cheerleader Booster Organization, Midland High School, 1995-1996, personal records and interview with author, Midland, Texas, 26 September 1996. 3.2.6 Pep Rallv Costs During the week of each football game, the campus participates in a pep rally, where the band, cheerleaders, dance team, the entire student body, teachers, administrators, and a few community members assemble in the gymnasium to generate enthusiasm for the upcoming contest. Prior to this assembly, eight members of the custodial staff require approximately 45 minutes to 37
prepare the facility and, at its conclusion, 90 minutes to return the gymnasium to its original conditlon.^° In determining the cost of staging a pep rally, an average hourly wage of $6.15 Is assumed for the custodial staff, $21.84 for the teaching staff, and $27.88 for administrative staff.^^ The monetary values of band, cheerleaders, and dance team related to pep rallies are included as a part of the Category II examination of each respective organization.
Table 3.24 summarizes the preparation and supervision costs of the nine football-related pep rallies at MHS during the fall of1995, plus the parade and bonfire associated with school homecoming activities; the entire cost of these events is assigned to football. ^°J. D. Davis, Building Manager, Midland High School, interviews with author. Midland, Texas, 24 July 1996, 20 September, 1996, and telephone interview 21 September 1996.
^ ^ These average hourly rates were calculated by dividing the total campus wages for each group by the contract length In days, then dividing the result by eight, representing the hours In a standard work day, a method which overstates the hourly wage of both administrators and teachers. 38