💬 Is Nick Saban Worth $7 Million? A Brief Look At His Financial Impact At Alabama

[Max]

Nick Saban, head football coach at University of Alabama, makes upwards of $7 million dollars per year (after bonuses) which makes him the second highest paid public employee in the country. Many people think this is outrageous and believe he is being paid way too much considering he is just a coach. No matter what you think about his salary, I’m here to tell you that he is worth every penny (and more).

Here is a quick recap of Saban’s legacy since being hired in 2007. Over the past decade he has an impressive 85% win percentage, 5 SEC Conference titles (6 appearances), and 4 NCAA National Championship titles (5 appearances). He has brought in 8 #1 recruiting classes, developed two Heisman winners, and had 47 players selected in the NFL draft. Even if you aren’t a fan of Alabama football or college football, it is obvious that Saban’s accomplishments at Alabama are noteworthy.

Is Saban’s dynasty worth $7 million a year?
Unequivocally yes. Since hiring Saban, Alabama athletics has increased their revenue from all NCAA sports by 142% from $67.7 million in 2006 to $164 million in 2016. The year before Saban’s hire, Alabama football generated an estimated $43 million. In 2016, football generated $103.8 million in revenue representing an ~82.8% increase. We will use Urban Meyer, head coach at The Ohio State University ($6.5 million per year), as a comparison. Ohio State football generated $58 million in revenue the year before hiring Meyer, $65 million the year after, and $86 million in 2016. Last year, Alabama football was able to generate roughly $45 million dollars more in revenue than Ohio State despite having similar expenses. Due to the football program’s success, Alabama athletics was able to generate $18.7 million in profit, most of which was donated to create academic scholarships.

Should Alabama spend more on academics instead of paying Saban’s high salary?
Probably Not. That is because Saban’s financial influence extends far beyond athletics. Alabama has seen a 38% increase in total student enrollment since Saban’s hire enrolling 37,665 total students in the fall of 2016. Auburn University, a public university located in southeastern Alabama, has only seen a 15% increase during the same timeframe despite starting with similar numbers. University of Alabama has also increased net revenue from tuition (after scholarships) by 84.5% from $123.7m to $476.7m, increased scholarship allowance by a massive ~136% from $40.6m to $215.5, AND increased private donations from ~$11m to ~$34m, all during his tenure.

It isn’t possible to credit Saban for all of Alabama’s success but given the financial improvements during his tenure, both athletically and academically, you can easily see that Nick Saban is worth every bit of that $7 million per year and then some.

Numbers were gathered from EADA reports provided by the U.S. Department of Education and University of Alabama’s financial statements.

Is Nick Saban Worth $7 Million? A Brief Look At His Financial Impact At Alabama – The Real CFB

 

[TUSKtimes]

LSU, the barners, USC and a host of others are paying millions to make their former coach go away. At the same time, paying millions to their successor. What do they have to show for it? Still, it's big business and universities are telling us over and over with these crazy buyouts, that even without the championship, it's worth it, cause they keep doing it.

Saban at 7 million and all the hardware is a crazy question.

 

[sean]

my answer?

NO.....HE'S WORTH A HELLUVA LOT MORE!!!!!

 

[#80]

BARGAIN !!!

 

[BamaFan334]

This is a great topic and article that most people will never read or care to look at as proof that a great coach can help the academic side of the bill. So much money from our football program is being devoted to the school it's unbelievable. Only students and people really close to the day to day will see the difference, but as an alumni that took classes during the Saban tenure, it's showing big time. Also all of the high caliber students from all over the country that want to be a part of a winner is showing with their enrollment and scholarship dollars. This is like the stock market going from 15,000 to 20,000 in a matter of five years. Unprecedented climb.

 

[TerryP]

So much money from our football program is being devoted to the school it's unbelievable

I seem to recall seeing the numbers for '16, but can't recall what they were.

In 2015, over 25 million was transferred back to academics.

 

[musso]

To justify one coach's salary on the metric of how much his success contributes to his university's "academic" endeavors is dubious. First, I'd like to know if/how much Alabama tax-payers (and in the case of federal grants, US tax-payers) have been relieved from the compensation from football revenue. Second, the assumption is that the University's academic programs need the additional revenue in order to productively serve the demand for Higher Ed. We see it all the time in the public sector whenever government departments, bureaus, agencies, etc. receive additional funding, their top priority immediately becomes to spend it ASAP in order to perpetuate the illusion of its continued utility and necessity. Unlike in the private sector, when funding is idle for too long in the public sector, future funding disappears and bureaucrats lose their jobs.

 

[18Champs]

To justify one coach's salary on the metric of how much his success contributes to his university's "academic" endeavors is dubious. First, I'd like to know if/how much Alabama tax-payers (and in the case of federal grants, US tax-payers) have been relieved from the compensation from football revenue. Second, the assumption is that the University's academic programs need the additional revenue in order to productively serve the demand for Higher Ed. We see it all the time in the public sector whenever government departments, bureaus, agencies, etc. receive additional funding, their top priority immediately becomes to spend it ASAP in order to perpetuate the illusion of its continued utility and necessity. Unlike in the private sector, when funding is idle for too long in the public sector, future funding disappears and bureaucrats lose their jobs.

 

[TerryP]

To justify one coach's salary on the metric of how much his success contributes to his university's "academic" endeavors is dubious.

The success of the football program at Alabama under Saban has had a direct correlation to increased enrollment numbers.
The success of the football program at South Carolina under Spurrier had a direct correlation to increased enrollment numbers.

While these two things are not directly linked there's ample evidence of cause and effect.

 

[alabama mike]

Every cent!

 

[musso]

The success of the football program at Alabama under Saban has had a direct correlation to increased enrollment numbers.
The success of the football program at South Carolina under Spurrier had a direct correlation to increased enrollment numbers.

While these two things are not directly linked there's ample evidence of cause and effect.

Oh I don't question the enrollment increases, nor do I question the revenue increases as the article highlights. Rather, I'm questioning the usage of these metrics as a legitimate means to justify Saban's salary.

Now I imagine most people would reply with, "Well, geez Musso, what the heck is a university supposed to do if not enroll more students and attract more funding?????" But what I immediately think of is that universities are not intended to be for-profit enterprises. Higher Ed was never intended to be mechanisms for rent-seeking government contractors, superfluous pedagogues and administrative bureaucrats, and Keynesian stimulus for townships and municipalities. We've come so far from the narrowly defined, exclusive, and esteemed institutions of research in the public interest to what is now epicenters of construction booms and facilities arms races funded by how much value can be extracted out of the unpaid labor of so-called student athletes.

Look, I'm enjoying Saban's ride as much as the rest of you guys, but the rational and sensible part of me knows that what Saban has created here is likely to forever transform the whole enterprise of college football. The current trajectory isn't sustainable. Justifying escalating coaching salaries on the basis of what it returns to the pockets of administrators, professors, and contractors, isn't sound reasoning. In the private sector, yes, success deserves every dollar it earns. But the NCAA is a kind of Frankenstein creature that threatens its own survival.

 

[musso]

Language warning.