Is ROI Worth It At Walton? (Editorial)

(Editor’s Note: This editorial went to press a day before the University of Arkansas announced that it had removed Nolan Richardson as coach of the Razorbacks.)

Corporations that lease one of the 35 luxury suites at Walton Arena, or that buy large blocks of season basketball tickets, have seriously rethought their discretionary dollars. Given the deluge of unwarranted negative publicity recently brought to the University of Arkansas and state by Razorbacks basketball Coach Nolan Richardson, we don’t blame them.

Companies justify the enormous expense — more than $20,000 annually for some suites — by using the games to entertain clients. About 80 percent of gifts to fundraising arms such as the Razorback Foundation Inc. may also be used as tax write-offs.

Individual ticket prices vary when figuring the additional payola required by the Foundation to get good seats. Suffice to say several thousand dollars annually for one firm is common.

But what kind of return are these companies getting on their investments by associating their name with a basketball program that’s continually shrouded in controversy.

If it’s not Richardson’s unsubstantiated accusations of racism, it’s the mockery his program makes of the university’s commitment to academic excellence.

There is no ROI from showing clients one of America’s worst examples of promoting education through athletics, or from exposing guests to Richardson’s tirades.

Winning is nice, but there’s a point when class and public approval count, too. Richardson, despite his annual blowups, is normally fawned over in Arkansas like a royal potentate.

But his popularity is deservedly at an all-time low. Each time he lashes out at the people who have supported him, the backlash gets stronger.

The real concern from the UA’s standpoint should be for its corporate sponsorships. The university already has $11 million locked up in a 10-year telecommunications sponsorship deal with Southwestern Bell. But many smaller corporate contributions are solicited annually.

How many firms will be first in line next fall to fork over five figures in the name of Nolan?

Fortunately for the university, the games at Walton Arena offer an overall entertainment product that’s second to none. But if Richardson stays, the next time the UA passes the hat for basketball it should expect to find notes that read, “It’s time for a change,” instead of checks.