How Entitlement, Discipline, and Complacency Undermine Teams – Insights From Saban Inside Penn State's Quarter‑Billion Dollar Athletic Budget and Its Profit Margins In episode #88 of Heavy Or Not, The OG Swim Guide, you'll meet my new best friend, Paul Falavolito and a snip from his show, The 7 Minute Leadership Podcast. He shares Nick Saban's "Five Enemies of Greatness." Paul's Site, The 7 Minute Leadership Podcast Plus, we'll break down the money behind a powerhouse college athletic department. You'll get practical leadership takeaways and a raw loo k at Penn State's finances. The five hidden threats to performance: entitlement, lack of discipline, choosing circumstance over vision, self‑pity, and complacency. How Saban's "standards over hype" mindset translates to everyday leadership. A step‑by‑step walkthrough of Penn State's $254 M athletic budget – where the cash comes from and where it goes. Why football alone generates 57% of the department's revenue and the impact on other sports. The razor‑thin profit margin and why college‑football reform (promotion/relegation, entry‑fee changes) matters now. Outline 1. Podcast Introduction & Teasers Host – Mark Rauterkus introduces his "new best friend" in podcasting, Paul Falavolito. Mentions Paul's own show "7 Minute Leadership." Announces upcoming content: A deep‑dive with Nick Saban. "A bunch of sports news in college swimming and college sports" that will appear in Episode 89. 2. Leadership Lesson: Nick Saban's Five Enemies of Greatness (7 Minute Leadership) a. Who Is Nick Saban? Most successful modern‑sports leader; multiple national championships. Built dominant programs at several schools over decades. Known for selling standards, not hope – discipline, consistency, daily execution. b. The Five Enemies (each broken down) Entitlement Success whispers "you deserve comfort." Leaders stop preparing, teams rely on reputation. Rent‑based metaphor: respect, trust, results are "rented daily." Lack of Discipline Doing the work when no one's watching; showing up on time. Small lapses (late meetings, cutting corners, ignoring safety steps). Sloppy habits ⇒ sloppy outcomes. Choosing Circumstances Over Vision Letting conditions dictate effort. Great leaders hold the line regardless of budget, morale, or external pressure. Avoids "meteorocracy" (followers drifting with every change). Self‑Pity "No one appreciates us" mindset; excuses become the norm. Kills ownership and responsibility. Leads to rapid decline. Complacency Thinking you've "arrived" – winning becomes expected, effort drops. Turns champions into former champions. Blind spots, reduced hunger, maintenance mindset. c. Overarching Takeaway Enemies sneak in quietly, sound reasonable, and cause damage before they're noticed. Saban's dynasties were built by refusing to tolerate these enemies. Call‑to‑action: Which enemy are you allowing right now? 3. Coaching Reflection & Mental‑Skills Prompt (Fortune Segment) Quote: "Coaches become more knowledgeable by immersing themselves patiently in the systematic teaching of the mental and emotional skills." Presented as a reflection prompt: apply to training, competition, coaching, or life beyond the pool. Suggests writing about the insight to turn ideas into habits. Source: Mental Skills for Young Athletes – John Hogg, PhD (link: swimisca.com). 4. Nick Saban on Player Development & NFL Draft Process Development First: Emphasizes "development as a person, student, and player" over money. Draft Call Statistics: 35 early‑exit players → >1,000 calls from NFL teams. No calls ask about freshman playing time; focus is on development into a player. Character Over Athleticism: Teams ask about character, fit, teammate qualities, leadership. Trustworthiness and ability to represent the organization are paramount. Advice: "Create value for yourself in all those areas." 5. NIL (Name, Image, Likeness) Resources Website & Email List: nil.cloh.org – a hub for NIL information and community. 6. Penn State Athletic Department Financial Deep Dive (Guy Moderator) a. Revenue Overview – Where the ~$254 M Comes From Donations: $64.5 M (pure donor power). Media Rights: >$58 M (Big Ten TV contracts). Ticket Sales: >$50 M (fan attendance). Zero funding from university tuition, state taxes, or student fees. b. Expense Overview – Where the Money Goes Personnel (Salaries & Benefits): >$84 M – the single biggest expense. Athlete‑Related Costs: ~$48 M total, broken into: Scholarships / Athletic Aid: >$24 M. NIL Payments: >$18 M. Educational Awards: ~ $5 M. Facilities & Operations: Significant portion (second‑largest bucket). c. Football Program As the Financial Engine Generates ≈$147 M in revenue – >4 × the combined revenue of all other men's sports and >16 × women's sports. Accounts for 57 % of total department income. d. Bottom‑Line Result & Sustainability Question Total revenues vs. total expenses differ by only ≈$223 K – essentially a "rounding‑error" profit. Highlights the razor‑thin margin model and raises the question: Is this breakeven structure sustainable as NIL and revenue‑sharing rules evolve? 7. College‑Football Reform Discussion Call for Reform: Need a functional, sustainable college‑football system. Geographic Remix of Conferences: Proposed plan (linked to Rauterkus.Substack and 4rs.org). Promotion & Relegation: Suggests a system allowing movement between tiers, avoiding punitive $5 M entry fees for new programs. New‑Program Examples: North Dakota wanting "big‑time " football (Paul's comment). Sacramento State—should not be penalized with heavy fees; discuss alternative handling.
