IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/40642.html
   My bibliography  Save this paper

Can schools buy success in college football? Coach compensation, expenditures and performance

Author

Listed:
  • Mirabile, McDonald
  • Witte, Mark

Abstract

Using unique data of Football Bowl Subdivision college football games, we examine the determinants of coach compensation, football expenses and performance. We find that coach compensation is highly related to the coach’s past success. Additionally, coach pay is higher when the institution has a larger fan base and the program has achieved a higher profit in the previous year. Football expenses are likewise determined by institutional characteristics such as the fan base, past profitability and historical success. Results suggest that coach compensation has no measurable impact on performance. A coach’s past success may impact their salary but their salary has no significant impact on future success. Though, an additional, aspirational increase in spending of $1 million on the football program can improve the probability of winning any particular game by 3.5% to 7.0%. Thus, the budget of an administrator is a better predictor of future performance than the coach’s salary.

Suggested Citation

  • Mirabile, McDonald & Witte, Mark, 2012. "Can schools buy success in college football? Coach compensation, expenditures and performance," MPRA Paper 40642, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40642
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/40642/1/MPRA_paper_40642.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Clement, Robert C & McCormick, Robert E, 1989. "Coaching Team Production," Economic Inquiry, Western Economic Association International, vol. 27(2), pages 287-304, April.
    2. Amy Farmer & Paul Pecorino, 2010. "Is the Coach Paid too Much?: Coaching Salaries and the NCAA Cartel," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(3), pages 841-862, September.
    3. Grossman, Gene M & Levinsohn, James A, 1989. "Import Competition and the Stock Market Return to Capital," American Economic Review, American Economic Association, vol. 79(5), pages 1065-1087, December.
    4. Herda Trent J & Ryan Eric D & DeFreitas Jason M & Costa Pablo B & Walter Ashley A & Hoge Katherine M & Weir Joseph P & Cramer Joel T, 2009. "Can Recruiting Rankings Predict the Success of NCAA Division I Football Teams? An Examination of the Relationships among Rivals and Scouts Recruiting Rankings and Jeff Sagarin End-of-Season Ratings in," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(4), pages 1-13, October.
    5. George Langelett, 2003. "The Relationship between Recruiting and Team Performance in Division 1A College Football," Journal of Sports Economics, , vol. 4(3), pages 240-245, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joel G. Maxcy, 2013. "Efficiency and Managerial Performance in FBS College Football," Journal of Sports Economics, , vol. 14(4), pages 368-388, August.
    2. J. Mutti & R. Sampson & B. Yeung, 2000. "The effects of the Uruguay round: empirical evidence from U.S. industry," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 59-69, January.
    3. Seth Freedman & Melissa Kearney & Mara Lederman, 2012. "Product Recalls, Imperfect Information, and Spillover Effects: Lessons from the Consumer Response to the 2007 Toy Recalls," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 499-516, May.
    4. Levinsohn, James & MacKie-Mason, Jeffrey K, 1990. "A Simple, Consistent Estimator for Disturbance Components in Financial Models," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 516-520, August.
    5. Stacey L. Brook, 2021. "A Comparison of NCAA FBS Head Coaches Salary Determination From New and Modified Contracts," Journal of Sports Economics, , vol. 22(5), pages 491-513, June.
    6. Holger Breinlich & Elsa Leromain & Dennis Novy & Thomas Sampson & Ahmed Usman, 2018. "The Economic Effects of Brexit: Evidence from the Stock Market," Fiscal Studies, John Wiley & Sons, vol. 39(4), pages 581-623, December.
    7. Rahman, Mizanur, 2008. "The Impact of a Common Currency on East Asian Production Networks and China’s Exports Behavior," MPRA Paper 13931, University Library of Munich, Germany.
    8. Waschik, Robert & Fraser, Iain, 2007. "A computable general equilibrium analysis of export taxes in the Australian wool industry," Economic Modelling, Elsevier, vol. 24(4), pages 712-736, July.
    9. Kotchen, Matthew J. & Potoski, Matthew, 2014. "Conflicts of interest distort public evaluations: Evidence from NCAA football coaches," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 51-63.
    10. Fiona Carmichael & Dennis Thomas & Robert Ward, 2000. "Team performance: the case of English Premiership football," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(1), pages 31-45.
    11. Andrew N. Greenland & Mihai Ion & John W. Lopresti & Peter K. Schott, 2020. "Using Equity Market Reactions to Infer Exposure to Trade Liberalization," NBER Working Papers 27510, National Bureau of Economic Research, Inc.
    12. Trevon Logan, 2011. "Econometric tests of American college football's conventional wisdom," Applied Economics, Taylor & Francis Journals, vol. 43(20), pages 2493-2518.
    13. Trey Dronyk-Trosper & Brandli Stitzel, 2017. "Lock-In and Team Effects," Journal of Sports Economics, , vol. 18(4), pages 376-387, May.
    14. Peter Slade & Tor Tolhurst, 2019. "Job Security and Risk‐Taking: Theory and Evidence From Professional Football," Southern Economic Journal, John Wiley & Sons, vol. 85(3), pages 899-918, January.
    15. Brian L. Goff & Robert E. McCormick & Robert D. Tollison, 2002. "Racial Integration as an Innovation: Empirical Evidence from Sports Leagues," American Economic Review, American Economic Association, vol. 92(1), pages 16-26, March.
    16. John Charles Bradbury & Joshua D. Pitts, 2018. "Full Cost-of-Attendance Scholarships and College Choice," Journal of Sports Economics, , vol. 19(7), pages 977-989, October.
    17. J. Michael Dumond & Allen K. Lynch & Jennifer Platania, 2008. "An Economic Model of the College Football Recruiting Process," Journal of Sports Economics, , vol. 9(1), pages 67-87, February.
    18. Moser, Christoph & Rose, Andrew K., 2014. "Who benefits from regional trade agreements? The view from the stock market," European Economic Review, Elsevier, vol. 68(C), pages 31-47.
    19. Lawrence Hadley & Marc Poitras & John Ruggiero & Scott Knowles, 2000. "Performance evaluation of National Football League teams," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 63-70.
    20. Desai, Mihir A. & Hines Jr., James R., 2008. "Market reactions to export subsidies," Journal of International Economics, Elsevier, vol. 74(2), pages 459-474, March.

    More about this item

    Keywords

    college football; performance; coaching; compensation; spending;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.