Measuring the Effect of Intercollegiate Athletic Success on Private Giving and Enrollment

Authors: Jamie L. Stangel

Abstract:

Increased popularity and visibility of college athletics has contributed to an environment in which institutions—most of which lack self-sufficient athletics department budgets—reallocate monies from the university general fund and seek additional funding sources to keep up with increasing levels of spending on athletics. Given the prevalence of debates on student debt levels, coach salaries, and athlete pay, empirical evidence on whether this spending yields expected return on investment is necessary. This study considered the relationship between the independent variable of winning percentage of the men’s basketball team at a mid-major university, moderated by National Collegiate Athletic Association (NCAA) tournament appearance, and number of applicants, number of enrollments, average SAT score of students, and donor giving to the university general and athletic funds. The results indicate that, other than a small correlation between athletic success and number of applicants, only when NCAA tournament appearance is used as a moderating variable, these purported benefits are not supported, suggesting the need for a reevaluation of athletic department spending and perceptions on tangible and intangible benefits for universities.

Keywords: Athletic success, enrollment, NCAA, private giving.

References:

[1] Turner, CBS and the NCAA reach long-term multimedia rights extension for DI men's basketball. (2016, April 12). NCAA.com. Retrieved from https://www.ncaa.com/news/basketball-men/article/2016-04-12/turner-cbs-and-ncaa-reach-long-term-multimedia-rights
[2] Brown, M. T., Rascher, D. A., Nagel, M. S., & McEvoy, C. D. (2016). Financial management in the sport industry (2nd ed.). Scottsdale, AZ: Holcomb Hathaway Publishers.
[3] Humphreys, B. R., & Mondello, M. (2007). Intercollegiate athletic success and donations at NCAA Division I institutions. Journal of Sport Management, 21(2), 265-280.
[4] Stinson, J. L., & Howard, D. R. (2004). Scoreboards vs. mortarboards: Major donor behavior and intercollegiate athletics. Sport Marketing Quarterly, 13, 129-140.
[5] Stinson, J. L., & Howard, D. R. (2007). Athletic success and private giving to athletic and academic programs at NCAA institutions. Journal of Sport Management, 21(2), 235-264.
[6] Turner, S. E., Meserve, L. A., & Bowen, W. G. (2001). Winning and giving: Football results and alumni giving at selective private colleges and universities. Social Science Quarterly, 82(4), 812-827.
[7] Meer, J., & Rosen, H. S. (2009). The impact of athletic performance on alumni giving: An analysis of microdata. Economic of Education Review, 28(3), 287-294.
[8] Getz, M., & Siegfried, J. (2012.) What does intercollegiate athletics do to or for colleges and universities? In L. Kahane and S. Schmanske (Eds.), Oxford handbook on sport economics (pp. 349-372). New York, NY: Oxford University Press.
[9] Pope, D. G., & Pope, J. C. (2008). The impact of college sports success on the quantity and quality of student applications. Southern Economic