Drake University opts into new revenue-sharing model for college athletics
On July 1, Drake University entered the new world of revenue sharing in college athletics, opting into a model where colleges and universities will directly pay their athletes.
Drake's choice to opt in hinged on the concept of grandfathering. As part of the NCAA vs. House settlement, schools are required to cut down their rosters in every sport to a certain number, which would have meant cutting players. The grandfathering provision allows students who would have been cut to remain on the roster as designated student-athletes until they graduate.
"Once the grandfathering piece was approved, it then became, 'Well, why wouldn't we do this?'" said Brian Hardin, Drake's athletic director.
Despite opting in, Drake faces challenges in raising funds. The maximum schools can give in the first year is $20.5 million, but Drake will not reach that number.
"We're not in the space where we have to find $20.5 million for this next year, that's not who our peer group is," Hardin said.
Hardin and his team have a goal, though he declined to disclose the specific number when asked.
"Am I able to tell you? Yes. Am I going to? No," Hardin said.
Drake does not have the benefit of other schools in the state, such as Iowa State or Iowa, which benefit from large TV contracts and sell out large football stadiums.
"Other schools in other conferences benefit from those incredible TV contracts. That's not a space that we find ourselves in in the Missouri Valley Conference. Other schools have, you know, they sell out 100K or 70K seat football stadiums. That's not a luxury that we're going to have here at Drake," Hardin said.
Drake is finding ways to increase revenue, including adjusting ticket prices for men's and women's basketball in sections that were 90% or greater sold out from a season ticket holder standpoint. However, ticket sales alone are not enough. Drake is asking fans to donate to their newly introduced men's and women's basketball excellence funds.
"Our excellence funds will really go towards what are the greatest needs of that program," Hardin said.
The funds will provide the biggest boost to the budget, with dollars going to student-athletes primarily driven by direct donations from fans. Drake has 15 sports eligible for revenue sharing, but currently, only men's and women's basketball will be the primary beneficiaries.
"Right now, as you see here today, it would be 100% would go to basketball because we haven't had anyone else step forward to say, 'Hey, we want to devote something else to another sport,'" Hardin said.
Money given will be based on what the two programs need. Hardin, along with women's coach Allison Pohlman and men's coach Eric Henderson, will discuss what is projected for next year to ensure coaches have the tools needed for success. Other sports can receive revenue sharing if donors specify so in their donations to the excellence funds.
"If somebody comes forward and says that we really want to do this for Darren McBroom and his volleyball team, then we're going to do it," Hardin said.
Basketball and Drake Relays are prioritized as the main revenue generators.
"Basketball and Drake Relays are the rising tides that lift all boats here," Hardin said.
Among its Missouri Valley Conference peers, Drake ranks third or fourth in this new era.
Hardin believes opting in sends a strong message about Drake's commitment.
"Yeah, I think the message it sends is that Drake is one of those rare institutions where you can have it all. You have a tremendous academic institution, you're in a thriving community, and now you have an athletic department that is committed to doing things the right way and pursuing success in all that we do," Hardin said.
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