Tarleton State University - Athletics NCAA Division II to Division I Proposed Transition Plan. Discussion Draft Only December 21, 2017

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1 .. Tarleton State University - Athletics NCAA Division II to Division I Proposed Transition Plan Discussion Draft Only December 21, 2017

2 TABLE OF CONTENTS Introduction 2 Benefits of Reclassifying to NCAA Division I.. 3 Challenges of Reclassifying to NCAA Division I. 4 Budget Considerations... 5 Academic Executive Summary

3 TARLETON STATE UNIVERSITY ATHLETICS NCAA Division II to Division I Proposed Transition Plan Introduction At Tarleton, intercollegiate athletics develops our student-athletes into leaders who will contribute meaningfully to society. The athletics program at Tarleton enhances the image and reputation of the institution, and visibly demonstrates the university's core values of tradition, integrity, civility, leadership, excellence, and service. Having a successful athletics program requires significant resources -- often 8-15 percent of a university's overall budget. As a front porch to the university, athletics not only molds studentathletes, but also the student body. A thriving athletics program engages the student body and invigorates the student experience. Athletics instills valuable attributes -- discipline, work ethic, sportsmanship, leadership -- and those qualities permeate the campus to establish its culture and image. Since leaving the NAIA in 1994 to rejoin the Lone Star Conference (NCAA Division II), Tarleton intercollegiate athletics has gained strength and prominence across the board. Since 2000, Tarleton has produced seven national champions in track and field, reached four national NCAA II Elite Eight tournaments in men's basketball, had eight regional championships in nine years in women's golf, appeared in nine regional women s tennis tournaments in 11 years, and won numerous conference and regional titles in all 14 sports. And, the university s athletic programs ranked 23rd nationally out of 305 Division II schools, in the Learfield Directors Cup the measure of overall success -- in Victories, sportsmanship and favorable exposure have brought a healthy expansion of the university s brand and marketability, its image and reputation, and cast Tarleton in a favorable light. This plan explores the potential transition from NCAA Division II to Division I -- the resources required, the processes needed, and the benefits anticipated in moving to a larger stage in intercollegiate athletics. Tarleton's continuing growth, performance and vision present a favorable opportunity to evaluate its current situation and consider how athletics adequately supports Tarleton's values and ambitions. 2

4 Benefits of Reclassifying to NCAA Division I Aligns with the direction the university is taking in enhancing its academic and enrollment profiles. Tarleton has grown at an unprecedented pace, topping 13,000 students. The campus has been transformed and new academic programs give students an opportunity to prepare for leadership in their chosen professional careers. A move to NCAA Division I would be historic one of the biggest decisions in the school s history. Energizes alumni and supporters, especially in Dallas-Fort Worth. The excitement generated by athletics benefits all areas of the university, from academic programs to student recruitment to fundraising. In just its second year as a member of the Division I Southland Conference (SLC), Abilene Christian opened the 2014 football season against Georgia State at the Georgia Dome on national television. Tarleton could not buy advertising equal to the exposure Abilene Christian received. On Sept. 14, 2014, second-year SLC member Incarnate Word, formerly of the Lone Star Conference, faced No. 1-ranked North Dakota State in the Fargo Dome, also on national television. ESPN s fan-favorite College Game Day show originated from Fargo, and broadcaster Lee Corso picked Incarnate Word to win. Before the day was over, Incarnate Word had more than one million hits on its university and athletic websites, so much traffic that the sites crashed. Three months later, Incarnate Word defeated Big 10 member Nebraska, 74-71, in basketball in Lincoln. That evening on ESPN, Incarnate Word was the No. 1 sports story in the nation, with more social media hits and media exposure than any other story in college or professional sports. Alumni and fans are justifiably more excited about similar matchups on the national stage as compared to Division II institutions in small stadiums with little to no television coverage. This move could energize our alumni base and supporters, increasing our brand image and reputation through national exposure, which would have its greatest impact in the DFW area and north central Texas our roots. The excitement generated by athletics would affect all areas of the university, including academic programs, student recruitment and fundraising. Provides opportunities for increased revenue and marketing. In football, SLC member Stephen F. Austin received $400,000 to play Kansas State University in Manhattan. In 2017, SLC member Nicholls State was paid $550,000 to play Texas A&M in College Station. In men's basketball, SLC member Texas A&M - Corpus Christi was paid $90,000 to play the University of Oklahoma in Norman. 3

5 Tarleton athletics has experienced success in securing marketing agreements with Ford, National Farm Life and Nike, but usually large national companies allocate advertising dollars to Division I athletics. Stephen F. Austin has an enrollment similar to Tarleton, but its five-year marketing agreement with the Southeast Texas Ford Dealers is $450,000 over five years. Tarleton's marketing agreement with the North Texas Ford Dealers is $100,000 over five years. Marketing agreements like Tarleton's with the North Texas Ford Dealers are extremely rare in Division II. Tarleton is an exception, but in Division I more opportunities would open. Tarleton also has done well in engaging local businesses and building the Texan Club, but more than 90 percent of Texan Club members are in the Stephenville area. Division I could open the door to expanding the Texan Club base. With increases in initial eligibility standards, progress-toward-degree standards and creation of the Academic Progress Rate, Division I athletics is designed to ensure student-athletes receive exemplary educational and intercollegiate athletics experiences. Tarleton will accrue the benefits of Division I stature as the marketability and retention of students likely will increase in the transition. Challenges of Reclassifying to Division I Requires a significant additional investment, primarily in scholarships. The average athletic budget in the Lone Star Conference is $5.5 million, compared to $12 million for the Southland Conference. A summary of financial needs/recommendations is outlined later in this document. Four-year moratorium on postseason play. A transition to NCAA Division I carries a mandatory four-year absence from postseason play for all sports, making it difficult initially to recruit student-athletes, as they will not have the opportunity to compete for conference and national championships. The NCAA requires a $1.61 million application fee to reclassify to Division I. This substantial immediate investment will require spending priorities to be evaluated. It is more challenging to compete for Division I national championships in sports other than football. Football is the only Division I sport with two school-size classifications Football Championship Series (FCS) and Football Bowl Series (FBS) ensuring that large, power conference universities do not compete directly for post-season berths and honors with schools in conferences like the WAC and Southland. In every other sport, all Division I schools compete against each other for national championships. Deep NCAA postseason runs can be almost out of reach for some programs. 4

6 Budget Considerations In , 90.37% of Tarleton's athletic budget came from institutional funding. The tables below shows that this percentage likely would decrease as a Division I school, with additional external revenue required. These tables provide a possible baseline for developing a sustainable model. Percentage of Tarleton Budget Dedicated to Athletics Proposed Funding for NCAA Division I Tarleton Budget $ 174,386,000 $ 179,132,000 $ 184,147,696 $ 189,303,831 $ 196,604,338 $ 202,109,259 DI Athletics Spending $ 7,531,661 $ 8,753,815 $ 9,560,599 $ 10,662,609 $ 11,226,674 $ 11,854,628 % of Tarleton Budget 4.32% 4.89% 5.19% 5.63% 5.71% 5.87% Percentage of Tarleton Athletic Spending Derived from Institutional Funding Proposed Funding for NCAA Division I DI Athletic Budget $ 7,531,661 $ 8,753,815 $ 9,560,599 $ 10,662,609 $ 11,226,674 $ 11,854,628 Insitutional Funding $ 6,806,591 $ 8,410,788 $ 8,663,112 $ 8,923,005 $ 9,190,696 $ 9,466,416 Percent 90.37% 96.08% 90.61% 83.69% 81.86% 79.85% External Revenue A move to NCAA Division I would affect athletic fundraising, corporate partnerships, advertising, game guarantees, ticket sales, stadium rentals, suite sales all considered external revenue. Currently, external revenue provides 9.63 percent of the athletics budget. Advertising dollars refers to all Texan Club corporate memberships, radio, video board and marketing agreements (ex: North Texas Ford, National Farm Life). On average, percent of an athletic department's budget is derived from external revenue (Division I national average), while percent comes from institutional funding. This estimate can be higher or lower depending on a school s location and conference affiliation. Only a handful of Division I, the top programs in power conferences, raise enough money to fully support their athletic budget. The following table shows the amount the Tarleton Athletic Department projects to raise in external revenue through FY , assuming an invitation to a Division I conference is extended in The numbers are actual numbers; the next five years are projections. 5

7 Tarleton Athletics External Revenue as NCAA Division I Member Revenue Source Annual Fund (TX CL IND) 64,850 84,305 92, , , ,431 Corporate/Advertising 206, , , , , ,296 Corporate/Advertising in Kind Gifts 120, , , , , ,910 Corporate/Advertising Total 327, , , , , ,206 T-Club 9,607 12,489 14,987 17,984 21,581 25,897 Individual Gifts 65,700 85,410 97, , , ,171 Game Guarantees 12, , ,000 1,000,000 1,200,000 1,300,000 Stadium Rentals 85, , , , , ,000 Ticket Sales 151, , , , , ,000 NCAA Enhancement 8, , , , , ,000 Suite Sales/Club Level - 100, , , , ,000 TOTAL 725,070 1,692,633 2,221,726 2,544,403 2,816,187 3,013,705 Percentage of Athletic Budget Derived from External Revenue as Division I Member Athletic Budget $ 7,531,661 $ 8,753,815 $ 9,560,599 $ 10,662,609 $ 11,226,674 $ 11,854,628 External Revnue $ 725,070 $ 1,692,633 $ 2,221,726 $ 2,544,403 $ 2,816,187 $ 3,013,705 Percent 9.63% 19.34% 23.24% 23.86% 25.08% 25.42% 6

8 Athletic Program Operating Budgets as NCAA Division I Member Tarleton Athletic Administrative Salaries as NCAA Division I Member Athletic Director 152, , , , , , ,368 Administrative Assistant 32,287 32,933 33,592 34,244 34,929 35,628 36,341 Administrative Assistant 33,488 34,158 34,841 35,538 36,249 36,974 37,713 Assistant to AD 49,425 50,414 51,422 52,450 53,499 54,569 55,660 Assistant AD/Compliance 53,896 54,974 56,073 57,194 58,338 59,505 60,695 Compliance Coordinator - 40,000 40,800 41,616 42,449 43,722 45,034 Compliance GA 14,400 14,400 14,400 14,400 14,400 14,400 14,400 Assistant AD/Academic ,000 48,960 49,940 51,438 Academic Coordinator 43,764 44,639 45,532 46,443 47,372 48,319 49,285 Academic GA ,400 14,400 14,400 14,400 Sr. Associate AD/SWA 77,816 79,372 80,959 82,578 84,230 85,915 87,633 Assistant AD for Athletic Coom 47,037 47,978 48,938 49,917 50,915 51,933 52,972 Assistant Director Athletic Coom 37,696 38,450 39,219 40,003 40,803 41,619 42,451 SID GA 14,400 14,400 14,400 14,400 14,400 14,400 14,400 Assistant AD Development 59,152 60,335 61,541 62,772 64,027 65,308 66,614 Development Officer - 40,000 40,800 41,616 42,449 43,722 45,034 Associate AD Operations 57,427 58,575 59,747 60,942 62,161 63,404 64,672 Marketing/Ticket Coordinator - 40,000 40,800 41,616 42,449 43,722 45,034 Assistant AD for Sports Medicine 60,343 61,550 62,781 64,036 65,317 66,623 67,955 Head Athletic Trainer 57,759 58,914 60,092 61,294 62,520 63,770 65,025 Head Athletic Trainer 44,125 45,008 45,908 46,826 47,763 48,718 49,692 Assistant AD/Strength 71,679 73,112 74,574 76,065 77,586 79,138 80,721 Assistant Strength 38,563 39,334 40,121 40,923 41,741 42,576 43,428 Total 945,401 1,083,733 1,104,861 1,188,760 1,211,674 1,236,313 1,261,965 Benefits 311, , , , , , ,448 Grand Total 1,257,383 1,441,365 1,469,465 1,581,051 1,611,526 1,644,296 1,678,413 7

9 Tarleton Athletic Coaches' Salaries as NCAA Division I Member Baseball Head Coach 66,446 69,768 73,256 76,919 80,765 84,803 Baseball Assistant Coach 39,923 40,721 41,535 42,366 43,213 44,077 Baseball Assistant Coach ,000 34,680 35,720 Men's Basketball Head Coach - 100, , , , ,551 Men's Basketball Assistant Coach 60,195 61,399 62,627 63,880 65,158 66,461 Men's Basketball Assistant Coach 49,000 49,980 50,980 52,000 53,040 54,101 Men's Basketball Assistant Coach 40,000 40,800 41,616 42,448 43,297 44,163 Football Head Coach 122, , , , , ,217 Football Assistant Coach 66,810 68,146 69,509 70,899 72,317 73,763 Football Assistant Coach 48,960 49,939 50,938 51,957 52,996 54,056 Football Assistant Coach 48,960 49,939 50,938 51,957 52,996 54,056 Football Assistant Coach 40,800 41,616 42,448 43,297 44,163 45,046 Football Assistant Coach 32,640 33,293 33,959 34,638 35,331 36,038 Football Assistant Coach 32,000 32,640 33,293 33,959 34,638 35,331 Football Assistant Coach - 45,000 45,900 47,277 48,695 50,156 Football Operations 30,000 30,600 31,212 32,148 33,112 34,105 Women's Basketball Head Coach 68,979 72,428 76,049 79,851 80,250 84,263 Women's Basketball Assistant Coach 45,900 46,818 47,754 48,709 49,683 50,677 Women's Basketball Assistant Coach 20,063 38,000 38,760 39,536 40,722 41,994 Women's Basketball Operations 30,000 30,600 31,212 32,148 33,112 34,105 Softball Head Coach 53,040 54,101 55,183 56,287 57,413 58,561 Softball Assistant Coach 35,700 36,414 37,142 37,885 38,643 39,416 Softball Assistant Coach ,000 34,860 35,906 Volleyball Head Coach 58,140 59,303 60,489 61,699 61,833 63,070 Volleyball Assistant Coach 41,004 41,824 42,660 43,513 44,383 45,271 Volleyball Assistant Coach ,000 30,600 31,518 33,438 Golf Head Coach 63,080 64,342 65,629 66,942 68,281 69,647 Golf Assistant Coach ,000 30,600 31,518 Tennis Head Coach 69,866 71,263 73,688 74,142 75,625 77,138 Tennis Assistant Coach ,000 30,600 31,518 Track & Field and Cross Country Head Coach 67,097 68,439 69,808 71,204 72,628 74,081 Track & Field and Cross Country Assistant Coach 35,700 36,414 37,142 37,885 38,643 39,416 Track & Field and Cross Country Assistant Coach ,000 30,600 31,518 Total 1,266,703 1,462,307 1,533,673 1,734,089 1,778,336 1,831,181 Benefits 418, , , , , ,290 Total with Benefits 1,684,715 1,944,868 2,039,785 2,306,338 2,365,187 2,435,471 8

10 Tarleton Athletic Graduate Assistants' Salaries as NCAA Division I Member Baseball 14,400 14,400 14,400 14,400 14,400 14,400 Football 28,800 28,800 28,800 28,800 28,800 28,800 Women's Basketball 14,400 14,400 14,400 14,400 14,400 14,400 Softball 14,400 14,400 14,400 14,400 14,400 14,400 Volleyball 14,400 14,400 14,400 14,400 14,400 14,400 Golf 14,400 14,400 14,400 14,400 14,400 14,400 Tennis 14,400 14,400 14,400 14,400 14,400 14,400 Total 115, , , , , ,200 Benefits 15,206 15,206 15,206 15,206 15,206 15,206 Grand Total 130, , , , , ,406 Tarleton Athletic Operating Budgets as NCAA Division I Member Administration 412, , , , , ,821 Cheerleading 25,000 26,750 28,581 30,497 32,501 34,597 Athletic Communication 28,245 30,092 32,024 34,044 36,155 38,360 Sports Medicine 55,000 57,650 60,409 63,281 66,271 69,382 Compliance 11,025 12,356 13,754 15,223 16,765 18,383 NCAA Annual Dues 900 1,800 1,800 1,800 1,800 1,800 Grounds 45,000 48,250 50,726 53,307 55,996 58,798 Medical 420, , , , , ,161 Athletic Performance 23,000 23,940 24,916 25,928 26,979 28,069 Sports Network 69,274 73,352 77,611 82,058 86,700 91,545 Total 1,089,444 1,181,150 1,275,402 1,374,154 1,477,594 1,585,917 Tarleton Athletic Facilities In recent years, several upgrades have improved the university s athletic facilities. In 2012, Tarleton added four tennis courts to the existing four, making eight total. All courts were resurfaced. Netting was installed for the backstops at the baseball/softball complex and lighting was added to the softball field. The Texas A&M University Board of Regents approved $24 million to expand Tarleton Memorial Stadium from 7,000 seats to more than 9,000 and to convert the west-side stands to seating for home fans. Renovations include an expanded press box and suites, 9

11 additional premium seating with chair backs, enhanced entrances and ticket booths, and improved concessions. The football field turf and track-and-field surface has been or is in the process of being replaced. Seating Capacity Institution Football Basketbal Volleyball Baseball Softball Track Soccer Tennis l Abilene Christian 8,500 4,500 4,500 4,000 1,000 1,000 1, Central Arkansas Houston Baptist Incarnate Word 9,000 5, ,000 1, ,000 1,000 1, ,000 2,500 2,500 1, ,000 6, Lamar 16,000 10, ,500 1, McNeese State 17,610 8, ,000 1,000 1, New Orleans 0 8,785 1, Nicholls State 10,500 3,800 3,800 3, , Northwestern State Sam Houston State Southwestern Louisiana Stephen F. Austin Corpus Christi A&M 15,971 3,400 3,400 1,200 1,000 1,000 1, ,500 6,100 6,100 1, ,500 3, ,408 7,500 7,500 3,000 1,000 1, ,575 7, , ,575 2, ,000 1, ,000 1, Tarleton State 9,800 2, , Academic Executive Summary Division I is committed to an intercollegiate athletics model that supports the academic mission of its member schools. Graduation rates of student-athletes are higher in Division I than Division II universities due in part to enhanced eligibility standards and the Division I Academic Performance Program. Division I went through drastic reform back in 2003 to hold institutions accountable for the academic progress of its student-athlete s. The Academic Progress Rate (APR) was implemented, which is team-based metric that accounts for the eligibility and retention of each 10

12 student-athlete for each academic term. The APR system includes rewards for superior academic performance and penalties for teams that do not achieve certain academic benchmarks. The following is a link to more information - The Graduation Success Rate for Division I college athletes has climbed to 86 percent, while Division II student-athletes outperform the general student body. The federal rate for student-athletes remained the same at 55 percent, while the federal rate for the overall student body increased to 49 percent, a difference of six percentage points. Academic Requirements Currently, first-time freshmen receive full admission to Tarleton if they graduated from high school in the top half of their class. Additionally, students must provide SAT or ACT scores. Students who graduated between the 40th and 49th percentiles of their high school class must achieve a minimum 950 on the SAT or 20 on the ACT. According to NCAA Division II academic requirements, a student-athlete must complete 16 core courses, earn a high school GPA of at least 2.00, earn a SAT combined score of at least 820, and graduate from high school. Based on university data, current Tarleton students beginning in fall 2011 had an average SAT score of and an average ACT score of For Fall 2013, these numbers were and During the same time period, the average scores for athletes on the SAT were (2011) and (2013). The average scores on the ACT for those students participating in athletics were and Statistically, percent of students participating in athletics at Tarleton met the minimum Division II requirements for the SAT in 2011 and percent in Using the Tarleton requirement of 950 for students graduating from high school between the 40th and 49th percentiles, percent of athletes scored above 950 in 2011, while 38.97percent accomplished this in Division I academic requirements include the completion of 16 core courses, 10 of which must be completed before the student's senior year; a GPA of 2.30; an SAT or ACT score on a sliding scale based on the high school GPA; and graduating from high school. Related to current Tarleton entrance requirements, potential athletes graduating in the top half of their high school class only need to submit SAT or ACT scores. Assuming these students meet the other Division I requirements, they would qualify to play for Tarleton. Students graduating within the 40th and 49th percentiles would have to meet the required SAT or ACT scores based on their high school GPA. These scores may or may not be equal to or above the 950 and 20 required by Tarleton on the SAT and ACT. Transfer students applying to Tarleton must meet the following requirements: With 30 or more semester hours or transferable college credits, they must have a GPA of 2.0 or higher; with fewer than 30 hours, they must have a cumulative GPA of 2.8. If the GPA is between 2.0 and 2.79, the student must meet the standard of first-time freshman applicants. 11

13 Division II transfer requirements include 12 semester hours of transferable degree credit and a cumulative GPA of 2.20 for students who have no four-year attendance. The potential athlete must also have six hours of transferable English and three semester hours of transferable math and science. To qualify to participate in Division I athletics, the potential athlete must have completed an average of 12 semester hours of transferable credit, attended one full-time semester, and have a minimum GPA of 2.5 with no more than two credit hours of physical education. Retention rates are another factor related to participation in athletics. Student (non-athlete) retention rates for those admitted to Tarleton in fall 2011 are: Fall %; Fall %; Fall %. The corresponding figures for athletes are: Fall %; Fall %; Fall %. In all cases, the student-athlete percentages are higher than those for non-athletes. 12

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