Rutgers University has decided to sell naming rights to its football and basketball facilities in an effort to increase revenue for the athletic department.
When Tim Pernetti was hired as athletic director he promised to change the way the department did business. He promised to find ways to generate new revenue that would help support the entire athletic department.
Selling naming rights is an excellent way to do this.
This is strictly a decision to help provide financial independence for the Rutgers' athletic department. According to reports, during the 2008-09 school year Rutgers' athletic revenue was $159,641 more than its expenses. While that looks and sounds good, nearly $18 million of that was state subsidy.
Pernetti sees the problem as a revenue issue.
"I don't feel like we have an expense problem; we have a revenue problem." the athletic director said.
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