How much does Nebraska spend on coaches?
The Omaha World-Hearld posted Nebraska's 2012 coaching salaries on Friday. The brief rundown is this: John Papuchis gets a 50 percent raise to $300,000 for his promotion. Almost every other coach gets a $20,000 raise except for Ross Els, who gets a $50,000 bump in pay, and Corey Raymond, who gets no raise. Make of that what you will but Raymond was already at $200,000, the highest salary of last year's new-hires and equal to what Papuchis was making as the DL/ST coach.
Bo Pelini will also get a $100,000 raise to $2.875 million. All told, Nebraska will spend $4.975 million on its coaching staff next year, up from $4.905 million in 2011. Seems like a big number and it is. Nebraska spent the third-highest amount on football coaching salaries in the Big Ten last year according to USA Today. But that number doesn't really mean much on its own given the wide gaps in football revenue across the Big Ten.
What is interesting is the percentage of Nebraska's football money the school is spending on football coaches.
The numbers in the following chart are taken from USA Today's 2011 coaching salary database. You can read the full methodology behind those numbers here, but the chart below is (an admittedly simple) calculation of total coaching salaries as a percentage of reported football-only net profit from 2011.
| SCHOOL | ALL COACHES | FB INCOME | PCT |
|---|---|---|---|
| Purdue | $2,423,406 | $6,297,633 | 38.48 |
| Indiana | $3,210,000 | $8,989,433 | 35.71 |
| Illinois | $3,932,500 | $13,671,285 | 28.76 |
| Wisconsin | $4,532,036 | $16,621,483 | 27.27 |
| Minnesota | $3,415,000 | $14,888,991 | 22.94 |
| Iowa | $5,783,000 | $28,005,330 | 20.65 |
| Ohio State | $3,725,550 | $18,154,877 | 20.52 |
| Nebraska | $4,905,000 | $32,084,379 | 15.29 |
| Michigan St | $3,597,050 | $24,263,640 | 14.82 |
| Michigan | $5,814,000 | $44,861,184 | 12.96 |
| Penn State | $1,022,794 | $49,217,078 | 2.08 |
| Northwestern | $1,189,961 | NA |
NA |
A couple of notes:
--USA Today used the income numbers reported to the NCAA but this isn't necessarily a uniform number, particularly when it comes to shoe company money. Ohio State's income seems low but that could be due to how they allocated their school-wide Nike deal. The Buckeyes' also had a relative bargain this year in interim coach Luke Fickell.
--Penn State's numbers are a little shaky as well, due in part to Pennsylvania's strange public records laws that offer some protection to public institutions and also in part to Joe Paterno's senior discount salary. Unrelated to that: Holy (blank)! $49 million!
--Northwestern isn't required to disclose but I think it's safe to assume the Wildcats would rank in the top half of this list.
A couple of thoughts:
--To be honest, I thought Nebraska would rank lower than it did but at 15.29 percent (8th out of 11 teams) but Nebraska is in line with most of its perceived "contemporaries" (i.e. Michigan, Ohio State, Iowa, Michigan State).
--What this calculation really illuminates for me:
1) Schools that aren't traditional football powers are in a losing battle with ever escalating coaching salaries. According to USA Today, college coaching salaries have risen 55 percent over the last six seasons. For schools like Purdue and Indiana the simple "cost of doing business" resulted in them spending more than 30 percent of their football income last year on staff alone. The idea of devoting major resources to football and hiring a big name coach is almost impossible to do at those schools without running at a defecit. And that's in the Big Ten, a conference with a wide, devoted and monied alumni base. To put it another way, Ohio State will pay Urban Meyer, and just Urban Meyer, $4 million next year. That was 63.5 percent of Purdue's total football income last year.
2) Widening the scope, Nebraska is well-placed among its national contemporaries as well. Nebraska's total 2011 coaching salary ($4.905M) ranked 16th nationally in 2011. The net profit of the football program ($32.1M) ranked 12th while the net profit for the athletic department as a whole ($1.75M) ranked 17th. Could they go higher? Sure. Alabama spent 20.8 percent of its football income ($40.77M) last year on coaches, but Nebraska is far from lagging behind.
Individually, Pelini's $2.775 million per year ranked 13th nationally last season and you'll hear both sides of the argument from Nebraska fans -- for some it's too high, for other it's not high enough when you consider the arms race going on at places like Texas, Alabama and Ohio State. But when factoring in football income, Nebraska is pretty competitive and you also have to consider this: Pelini's maximum bonus potential of $1 million based on contract incentives (12th nationally) seemed like a fair number as well. Only four coaches -- Kirk Ferentz, Gene Chizik, Chip Kelly and Steve Spurrier -- had a higher base salary and a max bonus of $1 million or more.
So, how much does Nebraska spend on its football coaches? The raw number doesn't really matter but in comparison to the rest of the schools and coaches in FBS I think you can definitively say this: It's a very fair amount.
1/20/2012
If we want to pay coaches lower amounts, we should be prepared to face what Wisconsin is facing this year. Six coaches leaving the program.
Boston, MA
1/20/2012
I think Nebraska is in about the right place on this list. I don’t have a problem paying coaches well when there’s a solid return on that investment. Penn State’s numbers surprise me ($49m) and I wonder how much of a drop off they’ll experience next season and what kind of ripple effect that may have. I can’t imagine they haven’t lost some season ticket holders or that there are that many people out there purchasing new Nittany Lions hoodies.
1/20/2012
Bo Pelini is an over paid under achieving coach who will be looking for a new job at this time next year. We the people of Nebraska who pay these coaches must demand that they take pay cuts like the rest of the working world.
1/21/2012
His buy-out clause of $250,000 should be higher than what it currently is. I don’t feel it’s commensurate to other programs. Other than that, I feel it’s a fair value.
San Diego, Ca.
1/21/2012
“It’s a very fair amount.”
Fair, reasonable, all that.
What this means, is, Nebraska maintains position as a financially healthy program and in turn, football money dependant athletic dept.
Also, obviously, it means they could conceivably make Pelini’s current total compensation… the benchmark, for his replacement.
You know, should the Packers, or somebody, come a callin’.
Even the price of hiring somebody’s assistant (to be your coach) has gone up, beyond the 1.1 mil or so, Pelini was hired at.
So when that day in the distant future arrives, I predict Nebraska’s future AD won’t hire an assistant and certainly won’t hire a big time coach, but a young, successful mid major type Head Coach.
1/22/2012
They ought to add a bit more in Bo’s contract for mandatory anger control classes…other than that, we’re right where we need to be.