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NCAA Athletic Departments: An Empirical Investigation of the Effects of Revenue and Conference Changes

Author

Listed:
  • Pincin, Jared
  • Hoffer, Adam

Abstract

The paper uses a panel of athletic department revenue and expenditure data of 227 public colleges and universities to empirically investigate the behavior of NCAA Division I athletic departments over the period 2006 – 2011. Four primary hypotheses were tested: (1) the effect of revenue changes on individual expenditure categories, (2) how individual revenue streams influence total expenditures, (3) whether changes in individual revenue categories change the size of the athletic department’s subsidy, and (4) how total revenue and expenditures change when a school switches conference affiliation. The empirical results show that when a school receives additional athletic revenue, expenditures for coaches can be as high as 10 times more than direct expenditures for athletes. For every one dollar increase in ticket sale revenue, total expenditures can rise by $0.83 and reduce a school’s athletic subsidy by $0.19. Lastly, changing conferences can increase total revenue and total expenditures by millions of dollars.

Suggested Citation

  • Pincin, Jared & Hoffer, Adam, 2013. "NCAA Athletic Departments: An Empirical Investigation of the Effects of Revenue and Conference Changes," MPRA Paper 49807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49807
    as

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    File URL: https://mpra.ub.uni-muenchen.de/49807/1/MPRA_paper_49807.pdf
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    References listed on IDEAS

    as
    1. Devin G. Pope & Jaren C. Pope, 2009. "The Impact of College Sports Success on the Quantity and Quality of Student Applications," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 750-780, January.
    2. Brad R. Humphreys & Jane E. Ruseski, 2009. "Monitoring Cartel Behavior and Stability: Evidence from NCAA Football," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 720-735, January.
    3. Fleisher, Arthur III & Shughart, William II & Tollison, Robert D. & Goff, Brian L., 1988. "Crime or punishment? : Enforcement of the NCAA football cartel," Journal of Economic Behavior & Organization, Elsevier, vol. 10(4), pages 433-451, December.
    4. Craig A. Depken II & Dennis P. Wilson, 2006. "NCAA Enforcement and Competitive Balance in College Football," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 826-845, April.
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    More about this item

    Keywords

    NCAA expenditures; athletic subsidy; athletic departments; conference realignment; bureaucracy;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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