A proposed repeal of the athletics fee could peel fans away from Assembly Hall's courtside seats.\nIU Athletics Director Rick Greenspan presented a business plan to the IU board of trustees Friday outlining changes to the athletics department's budget. The plan proposes to eliminate the athletics fee, re-allocate some student seats to private donors and increase men's basketball ticket prices.\nThese changes are expected to be approved by the trustees in May and will be discussed further in November.
Elimination of Athletics Fee\nA $30-per-year athletics fee was introduced two years ago to help reduce the athletics department deficit. This year, it is projected to generate $1,016,200 in revenue.\n"One of the reasons it was so controversial is because the students didn't bring that to us as their option -- we imposed that," trustee Sue Talbot said.\nThe new plan eradicates the financial obligation for students who don't attend sporting events. Trustee Patrick Shoulders said he would be pleased with the fee's elimination.\n"You know, it's funny. Two years ago, I was the only (trustee) against it. Last year, I picked up a vote. Now, we're getting rid of it," Shoulders said.\nIU Student Association President Alex Shortle had previously proposed giving half of the athletics fee to a minority outreach program, but Shoulders and board president Steve Ferguson said it is likely the funds will remain in the athletics department.\nOf the trustees in attendance, none showed pointed opposition to the plan. \nIU President Adam Herbert said he is surprised students would prefer a user fee.\n"We are listening, and if students wish to utilize (this) approach, we'll try it," he said. "I'm surprised because this will make it harder to get tickets to students with lower incomes."
Re-allocation of Seats\nThe plan suggests taking 500 Assembly Hall seats currently reserved for students and giving them to private donors. The re-allocation is estimated to produce a $750,000 annual gain. The number of student seats would decrease from 7,800 to 7,300.\nDuring the meeting, Greenspan said the proposed seats would be "good seats," but later said all seats in Assembly Hall are "good seats."\nWith the changes, IU would still reserve nearly twice as many student seats for home games than any other Big Ten school. On average, IU would continue to allocate 19 percent more student tickets per game than seven other major Division I schools.\n"With a student ticket price raise, we're still below market," Shoulders said. "The allocation of the student tickets is still way above market so, you know, that doesn't trouble me."
Increase in Ticket Prices\nGreenspan said a $4 increase in men's basketball tickets from $11 to $15 will counter the elimination of the athletics fee. \nShoulders said even if the price hike is approved, IU tickets would remain cheaper than those of other Big Ten schools.\nStill, Michael Roberts, athletics ticket manager, is not sure how students will react to the increase. \n"I really can't speak for the students," Roberts said. "The student body as a whole has made the statement they don't like the student fee. So it's uncertain if they will like ticket increases."\nThis change would generate $530,400 annually. In conjunction with the funds created from the re-allocation of seats, the increased ticket prices would create $1,280,400 in revenue -- $264,200 more than the funds received from the athletics fee.
Other Changes\nGreenspan and trustee members discussed other measures that could be used to generate revenue. \nGreenspan suggested an increase in the price of IU's trademark for apparel licensing and a redistribution of profits from apparel sales. Currently, the athletics department receives 40 percent profit from sales of trademarked items while 60 percent goes to the University for scholarships and financial aid. Greenspan proposed inverting the proportions so athletics would receive 60 percent.\nAdditionally, he suggested charging admission for volleyball, men's soccer and wrestling, events that are now free for students. \nFerguson discussed the possibility of securing a more marketable football schedule and a seventh home game as provisioned by a recently approved NCAA allowance. But he said they won't accept tougher opponents until the football team has improved.\n"It's like a prize fighter," Ferguson said. "You don't want to fight someone above your class."\nGreenspan also suggested a renegotiation of vendor contracts, increased IU Foundation support for fund-raising, a grassroots media outreach to promote IU sports and a semi-privatization of the IU Golf Course. If Greenspan's recommendations are approved, the athletics department expects to have a budget surplus by fiscal year 2007-2008.\n"I think the most impressive thing is that, within a two-year period, they're going to have a balanced budget," Herbert said. "When you consider we've been operating in a deficit situation for seven or eight years, that is very impressive."\n-- Campus Editors Rick Newkirk and Michael Zennie and Editor in Chief Adam Aasen contributed to this report.
