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The Impact of Basketball Malfeasance on the University and its Rankings

Abigail Cormier, Austin F. Eggers, Peter Groothuis and Kurt W. Rotthoff

No 22-01, Working Papers from Department of Economics, Appalachian State University

Abstract: Collegiate sports have a profound impact on a university beyond athletics. Successfully managed athletics have been shown to have a positive impact on the institution. Likewise, unsuccessful management that leads to athletic malfeasance has been shown to have negative impacts on the university. We analyze tournament bans in Division I college basketball as a signal for university quality in student quality, rankings (U.S. News and World Report’s peer rankings), and other university measures. We find evidence that following a postseason tournament ban, applications from students in the top ten percent of their high school class decrease, some evidence that academic test scores decrease, and some evidence that the amount of alumni donations decrease. These results suggest that mismanagement of athletics leads to a decline in university quality. We do, however, find that peer rankings from faculty administrators do not change and actually increase slightly after sanctions of athletic malfeasance. Key Words: Education, (Anti) Flutie-Factor, NCAA, Athletic Malfeasance

JEL-codes: I2 Z2 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-spo
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