Associate Professor of Economics

With Adam Hoffer.

Published in the Journal of Sport and Social Issues

Abstract:

This study uses a panel of NCAA Division I athletic department revenue and expenditure data from 225 public colleges and universities to empirically investigate the behavior of athletic departments over the period 2006-2011. Three empirical relationships were explored: (1) how changes in total revenue affect disaggregated expenditure categories, (2) how disaggregated revenue streams influence total expenditures, and (3) whether changes in revenue categories change the size of the athletic department’s subsidy. The results show that additional athletic revenue increases expenditures for coaches 7.5 times more than direct expenditures for student athletes, a ratio that increases for schools in power conferences. 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.