College Athletics Funding

College Athletics Funding

In this assignment, you will explore financial and ethical aspects that influence the management of intercollegiate athletics.

Prompt

After reading and viewing the module’s resources, respond to the following critical elements:

1. Address the type of financial analyses that would be appropriate for analyzing the budget and comparing it with those of similar colleges.
2. Evaluate the university’s fundraising options and recommend the best strategy for funding.
3. Discuss the role of money in college sports, evaluating the effectiveness of revenue sources and identifying potential greater ethical or legal concerns.
4. Assess potential ethical issues that may arise, including those related to paying student athletes.

What to Submit

Submit the assignment as a Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Your journal assignment should be 2 to 3 paragraphs in length, and any sources should be cited in APA format.

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APA

College Athletics Funding

Financial and Ethical Considerations in Intercollegiate Athletics

When analyzing the budget of an intercollegiate athletics department, appropriate financial analyses include benchmarking, cost-benefit analysis, and variance analysis. Benchmarking involves comparing the university’s athletic budget with those of similar institutions—both in terms of size and athletic division—to assess spending efficiency and resource allocation. Cost-benefit analysis helps evaluate whether investments in facilities, scholarships, or programs yield sufficient returns in terms of revenue, recruitment, or student satisfaction. Variance analysis compares actual expenses and revenues with the projected budget, helping administrators identify financial discrepancies and areas for improvement.

In terms of fundraising, universities often rely on alumni donations, booster clubs, corporate sponsorships, and ticket sales. While all options can contribute to funding, developing a targeted alumni engagement strategy may be the most sustainable long-term approach. Alumni who benefited from or have strong connections to the athletics program are often willing to give back, especially when presented with clear impact goals, such as facility upgrades or scholarship endowments. Matching gifts, naming rights, and online giving platforms can further enhance these efforts.

The role of money in college sports has become increasingly influential, with major revenue sources including broadcast rights, merchandise sales, and sponsorship deals. While these revenue streams contribute to program growth, they can also create ethical and legal concerns. For instance, disparities between revenue-generating sports and others can lead to inequality in funding and facilities. A significant ethical issue that continues to evolve is the debate over paying student athletes, especially with the emergence of Name, Image, and Likeness (NIL) policies. These policies, while a step forward in equity, also introduce concerns about fair compensation, recruiting advantages, and institutional control. Ensuring that these changes are implemented ethically and transparently is crucial for maintaining the integrity of collegiate athletics.

References
National Collegiate Athletic Association (NCAA). (2021). Name, Image and Likeness (NIL) resources. https://www.ncaa.org

Fulks, D. L. (2019). Revenues and Expenses: NCAA Division I Intercollegiate Athletics Programs Report. NCAA.