CASHING IN FOOTBALL PROGRAM'S SUCCESS HAS LED TO RECORD REVENUES.

Byline: SCOTT WOLF  Staff WRITER

When USC president Steven Sample spoke to athletic department employees last week, he made sure everyone knew what sport rules Trojan athletics when he said, ``football brings in the money for other sports.''

The year before, Sample used the term ``cash cow'' to describe football's financial prowess at USC.

After winning back-to-back national championships, USC's not only fielding the nation's premier football program, it's also generating revenue at unprecedented levels through ticket sales, corporate sponsorships and fundraising.

``Without question, every revenue category has seen a dramatic increase,'' said Steve Lopes, USC's senior associate athletics director. ``It's been across the board increases. I don't think it's surprised me. We had such a good potential upside with a big stadium. All things are aligned. We had the capacity to accommodate more fans.''

The Coliseum, which can seat 92,000 at its maximum configuration is no longer viewed as an outdated stadium with too many seats, as USC averaged a school-record 85,228 fans last year and broke a 1933 record for total home attendance (511,373).

Ticket sales are the best indicator of USC's burgeoning monetary machine. In the past two years, season-ticket sales have increased 41 percent.

As of Aug. 16, USC had sold a record 47,000 season tickets, which means more than half of the Coliseum is sold out before the Trojans even sell a single-game ticket.

After several years of running a deficit, the USC athletic department has recorded a profit the past two years. According to government figures, USC football revenues totaled $26.2 million for 2003-2004.

That's a 30-percent increase from 2001-2002, when football revenues were $19.9 million.

Although revenues are at an all-time high, USC isn't listed among the nation's top 10 schools according to government figures. Texas is No. 1 with $47.5 million and Tennessee No. 2 with $46.7 million.

One of USC's traditional rivals, Notre Dame, earned $38.5 million last year, but Lopes said the figures can be deceiving.

``It's difficult to compare us to other people,'' he said. ``We don't allocate athletic donations to football or a specific sport. There was $21 million that wasn't allotted (to those football figures).''

No matter how you divide it, football is providing some much-needed funding at record levels. USC's other 12 sports brought in just $1.1 million last year but had operating expenses of $6.1 million.

USC coach Pete Carroll said he doesn't mind supporting the other sports and considers it a natural byproduct of college football.

``That's our role to pay for the other sports,'' Carroll said. ``The formula is set up that way.''

The brain trust at USC is constantly thinking of ways to exploit its newfound success, sometimes to the chagrin of its supporters.

Some fans had their season tickets moved to less-desirable locations this season because the athletic department designated their seats for members of support groups.

Anyone could keep their original seat, as long as they forked over the money to join a support group.

For example, if you bought a season-ticket for $265 but did not want to pay an additional $2,500 to join the Cardinal and Gold support group, your seat got moved.

It's USC football's version of the personal-seat license, a surcharge on top of the actual ticket.

Those affected by the changes include a select group of former athletes, who received lifetime passes to football games, a practice abandoned in the 1980s. Many of those who still have lifetime passes are still waiting to hear where their seats will be moved. The huge crowds also forced USC to change its format for home games this season. Several changes were made that will be implemented for the home-opener against Arkansas on Sept. 17.

``We're really working hard this year to make sure fans have a good experience,'' Lopes said.

USC's primary goal this season is to help fans get into the Coliseum faster. Because most fans walk to the Coliseum from the USC campus, the gates on the west side of the stadium usually receive less traffic than those on the east side.

``We want to redirect them to the west gates,'' Lopes said. ``We will have more police officers in the park and more police explorers,''.

In addition to ticket sales, revenue from USC licensed products, such as football jerseys and apparel, are also at an all-time high. USC could also double its number of corporate sponsors, according to sources.

Lopes said the increased revenue helps take pressure off the operational budget and improves facilities.

``Our facilities had not been up to par,'' Lopes said. ``We're able to use it for all of our sport teams.''

In recent years USC remodeled its baseball stadium, Dedeaux Field, and constructed a track stadium at Cromwell Field. But those projects were built with private donations, so it's unfair to credit football with all improvements. The extra money also aids USC in paying off its debts, particularly when it comes to coaches' contracts. When USC fired former football coach Paul Hackett, his contract included a buyout of approximately $750,000.

When the athletic department wasn't making a profit in the late 1990's and early 2000's, it needed to borrow money from the university to cover its debt.

``We're able to take over all our obligations to the university,'' Lopes said.

Although numbers can be crunched in different ways, USC's athletic department officially reported a profit of $90,000 last season, according to government documents. Two years ago, the figure was $50,000. An even bigger profit is expected this season.

``It will definitely be a surplus,'' Lopes said.

Carroll's also seen a dramatic increase in offers for his speaking services. He said he has rejected eight-to-10 book proposals before settling on doing a book with his friend, Lou Tice, founder of the Pacific Institute in Seattle, a company that specializes in ``performance improvement and personal growth.''

``It's much different than after my first season,'' Carroll said. ``More than business deals, they like me to get together with companies or groups.''

Carroll, who makes nearly $2 million per year, said he donates the money he receives from outside groups. Revenues generated by his book money have been earmarked to go to his pet project, ``A Better L.A.,'' an organization that wants to solve gang problems in Los Angeles.

Carroll also has his own Web site which charges users $89.95 for a two-year membership. He said proceeds from the Web site will also go to A Better LA.

``It's nice to be able to help,'' Carroll said.

Even the players notice the difference in the financial value of USC football. Tickets are in high demand these days from unexpected sources.

``Right before my freshman year we were 6-6 and there weren't too many people asking for tickets my first season,'' linebacker Oscar Lua said.

``Now I've got a bunch of family members who were UCLA fans and now they want USC tickets.''

TROJANS BY THE NUMBERS

47,000

Season tickets sold for the 2005 season.

41 percent

Increase in season ticket sales the past two years.

85,228

Average home attendance last season

$26.2 million

Revenue generated in 2003-2004

$19.9 million

Revenue generated in 2001-2002

$21 million

Amount donated to USC athletics in 2003-2004

CAPTION(S):

3 photos, box

Photo:

(1) The leadership of head coach Pete Carroll, left, and Heisman Trophy-winning quarterback Matt Leinart has not only lead to success for USC on the field but has also helped the progam become a model for others around the country.

Kirby Lee/Special to the Daily News

(2 -- cover -- color) USC is reaping the rewards of back-to-back national championships. Money is flowing into the program at a record rate, blue chip recruits are lining up to sign letters of intent and, suddenly, the Trojans have become the model college football progam.

USC

The Gold Standard

(3) USC QB MATT LEINART

Box:

TROJANS BY THE NUMBERS (see text)