The Effects of Conference Realignment on NCAA Athletic Departments

12 Pages Posted: 16 Mar 2015

See all articles by Adam J. Hoffer

Adam J. Hoffer

University of Wisconsin - La Crosse

Jared Pincin

The King's College; The King's College

Date Written: March 14, 2015

Abstract

This study uses a panel of NCAA Division I athletic department revenue and expenditure data from 227 public colleges and universities to empirically investigate the effects of conference realignment over the period 2006-2011. The results show that schools moving into automatic-qualifying conferences experienced nearly $12.15 million in increased revenue, nearly matched by $10.12 million in added expenditures. Schools moving into any FBS conference saw revenues increase by $6.43 million, with expenses growing $5.03 million. Schools switching conferences to a non-FBS conference did not see a statistically significant change in revenues or expenses. Schools with football programs saw revenues increase by $2.94 million and profits increase by close to $1 million. Despite the increase in revenues, no change to institutional subsidies was observed.

Keywords: expenditures, athletic subsidy, athletic departments, conference realignment

JEL Classification: L83, L3, H3

Suggested Citation

Hoffer, Adam J. and Pincin, Jared, The Effects of Conference Realignment on NCAA Athletic Departments (March 14, 2015). Available at SSRN: https://ssrn.com/abstract=2578333 or http://dx.doi.org/10.2139/ssrn.2578333

Adam J. Hoffer

University of Wisconsin - La Crosse ( email )

1725 State Street
La Crosse, WI 54601
United States

Jared Pincin (Contact Author)

The King's College ( email )

56 Broadway
New York, NY 10004
United States

HOME PAGE: http://https://www.tkc.edu/

The King's College ( email )

56 Broadway
New York, NY 10004
United States

HOME PAGE: http://https://www.tkc.edu/

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