Unit 4: Athletics Expenditures

The Center for College Affordability and Productivity released a study in 2006 that calculated ratios between total athletic and instructional expenditures for Division 1-A institutions. The Center expressed the concern that academic values were in danger of becoming subordinate to athletics at some institutions, at least in terms of expenditures. Institutions are forced to make a trade off between allocating scarce resources to these two demands, athletics and instruction. The study found high ratios of spending on athletics pared to the resources allocated on instruction. The University of Arkansas spent 56.5 percent on athletics and the University of Alabama spent almost as much at 50.2 percent.
Much of the money spent on athletics is shouldered by the athletic department from generated revenues. However, in 2006 only 19 of the 119 athletic programs studied had a positive net generated revenue. The Center urges administrators to consider the value of both and how each ties into the institution's mission.
The University of Memphis spent 26.4 percent on athletics in 2006 and the University of Tennessee spent 23.7 percent. Vanderbilt held the lowest total at 6.4 percent.

References:

Center for College Affordability and Productivity (2006). Athletic/instruction expenditures. Retrieved October 11, 2009, from http://www.centerforcollegeaffordability.org/pages/page.asp?page_id=50432.