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ERIC Number: EJ868445
Record Type: Journal
Publication Date: 2009
Pages: 13
Abstractor: ERIC
Reference Count: 24
ISSN: ISSN-0271-0579
Making Money--or Not--on College Sports
Suggs, Welch
New Directions for Institutional Research, n144 p19-31 Win 2009
Organizations such as the National Collegiate Athletic Association (NCAA) and the Knight Commission, as well as many members of the press, have debated for years whether intercollegiate athletics departments make money. In 2003, an NCAA study noted that 85 of the then 117 institutions in Division I-A, the highest competitive level of intercollegiate athletics, reported a positive cash flow (Fulks, 2004). That study further notes that if one discounts the general-fund subventions, scholarship supplements, and student fees transferred from the university to its athletics program, the number drops to 47. Few people believe that many athletics programs are financially stable. Myles Brand (2003), president of the NCAA from 2002-2009, often indicates that only a dozen or fewer athletics departments make money. Why can't anyone say for certain? Athletics departments have revenues and expenses, and it should not be that hard to ascertain the differences between income and spending. Two answers exist. The first is practical: no trustworthy data set on revenues and expenses currently exist for intercollegiate athletics. The second answer explains the reason for the unavailability of such data. Colleges are nonprofit institutions. This chapter examines the history and shortcomings of the available data collected over the past 45 years. The author starts by reviewing the early history of college sports and continues with an analysis of the most important studies of college sports finance. He then discusses changes in data requirements that came with federal gender equity laws and notes more recent quantitative studies of intercollegiate sports finance. Finally, he concludes by offering some potential theoretical positions from which to study the economics and finance of college sports and their relationship to the rest of the university.
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A