How Nick Saban’s tenure changed the financial picture for Alabama

How Nick Saban’s tenure changed the financial picture for Alabama

Alabama athletics is one of college sports’ money-making behemoths. According to the fiscal year 2023 revenues and expenses report that UA submitted to the NCAA and was obtained by AL.com, the program brought in $199.9 million in total revenue, which doesn’t include $14.3 million in gifts that were collected but not expensed in FY 2023.

FY 2023 will go down as the final full fiscal year where Alabama had Nick Saban as its football coach. The next report runs from June 2023-July 2024, and will include months in which Kalen DeBoer was in place.

The last time Saban wasn’t the lone coach during a fiscal year report, came from the 2007 report, when he took over for Mike Shula. After 17 seasons, plenty changed at UA, from the six national titles to the renovations at Bryant-Denny Stadium.

The power of Saban’s football program, coupled with the growth of the SEC during that time period, also changed the athletics department’s financial picture. Here are some key numbers that show the changes.

The rich get richer

In Alabama’s 2007 financial report, the program reported $87.6 million in total revenue. By 2023, that had jumped up to the aforementioned $199.9 million.

That’s a huge increase, 128.2% over the course of Saban’s tenure. However, it’s not adjusted for inflation.

According to the U.S. Bureau of Labor Statistics’ Consumer Price Index inflation calculator, a dollar in January of 2007, the month Saban accepted the Alabama job, would have the same purchasing power as $1.52 in January of 2024. Multiplying Alabama’s 2006-07 revenue by 1.52 comes out to $133.1 million.

Though it’s not the same gap, it’s an inflation-adjusted 50.2% increase in athletics department revenue from FY 2007 to 2023.

Saban’s tenure coincided with a huge jump in media rights revenue at Alabama. In the 2007 report, the school claimed $8.2 million from its broadcast TV and radio rights.

That jumped to $55.6 million for FY 2023. A 582.6% increase. Even adjusting for inflation, which would bring the 2007 number to $12.4 million, it’s still a 349.1% boost.

It’s worth noting that the jump wasn’t all Saban’s doing. His tenure coincided with huge increases in media rights and conference payouts from the SEC, which drove up revenue across the conference.

For example, Auburn’s broadcast TV and radio revenue was reported at $5.5 million for FY 2011. By FY 2023, media rights jumped to $23.3 million for the Tigers.

Spending the cash

The program started bringing in significantly more money under Saban’s leadership. It also figured out plenty of ways to spend that income.

In FY 2007, Alabama’s athletics department reported $77 million in expenses. By FY 2023, that had ballooned up to $212 million.

Without adjusting for inflation, that’s a 175% increase. Changing everything to 2024 dollars, it’s still an 80.9% jump.

UA spent $857,670 department-wide on recruiting during FY 2007. In Saban’s final season, that had jumped to $4 million, with $2.9 million on football alone.

Coaching and support staff salaries also rose. In 2007, the school was spending $11.2 million on coach pay, with another $1.5 million paid by third parties.

On support staff, the school put up $11.7 million, with third parties paying another $673,821. By FY 2023, the third parties were out of the picture, and Alabama was paying $38.5 million for support staff, the biggest expense listed on the report.

Coaches’ pay took a similar jump, rising to $37.3 million, not counting $1.5 million bowl compensation and bonuses. There was also no third-party spending on coaching salaries in FY 2023.

The power of football

While the entire athletics department saw huge financial changes during Saban’s tenure, it was most visible in his football program. During Saban’s first full fiscal year in charge, FY 2008, football alone brought in $64.3 million in revenue.

Adjusted for inflation from 2008 dollars, that’s $93.8 million. In FY 2023, that number rose to $129.3 million. Non-adjusted, Alabama’s football revenue rose 101.2%, with the adjustment bringing that down to 37.8%.

Football ticket sales revenue rose from $26.4 million in FY 2008 to $37.9 million in FY 2023. Contributions also made a major increase, going from $20.9 million during Saban’s first full fiscal year to $42.7 in his last.

Spending on football took another enormous increase. UA reported $27.6 million spent on football for FY 2008.

That jumped to $83.3 million in FY 2023. That made for a $46 million surplus for football.

Without adjusting for inflation, football spending increased 201.5% from Saban’s first full fiscal year to his last. Even making the adjustment, that’s a 68.9% boost.

Coach salaries once again saw a huge boost under Saban’s leadership, going from $7.3 million in FY 2008, split between the school and third parties, to $21.3 million in his final fiscal year. Support staff went up from $1.9 million in FY 2008 to $6.8 million in FY 2023, though the football team almost certainly took advantage of some of the $29.2 million in non-program specific support staff spending.

As mentioned previously, recruiting spending took a major jump as Saban increased the Crimson Tide’s national footprint. After spending $360,327 during FY 2008, Alabama reported $2.9 million in football recruiting expenses for FY 2023.

AL.com senior sports reporter Michael Casagrande contributed to this story.