The effects of conference realignment on NCAA athletic departments

Adam J. Hoffer and Jared A. Pincin

Applied Economics Letters, 2015, vol. 22, issue 15, 1209-1223

Abstract: This study uses a panel of National Collegiate Athletic Association (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.

Date: 2015
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DOI: 10.1080/13504851.2015.1021448

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