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The Impact of College Athletic Success on Donations and Applicant Quality

Author

Listed:
  • Benjamin Baumer

    (Program in Statistical and Data Sciences, Smith College, Northampton, MA 01063, USA)

  • Andrew Zimbalist

    (Department of Economics, Smith College, Northampton, MA 01063, USA)

Abstract

For the 65 colleges and universities that participate in the Power Five athletic conferences (Pac 12, Big 10, SEC, ACC, and Big 12), the football and men’s basketball teams are highly visible. While these programs generate tens of millions of dollars in revenue annually, very few of them turn an operating “profit.” Their existence is thus justified by the claim that athletic success leads to ancillary benefits for the academic institution, in terms of both quantity (e.g., more applications, donations, and state funding) and quality (e.g., stronger applicants, lower acceptance rates, higher yields). Previous studies provide only weak support for some of these claims. Using data from 2006–2016 and a multiple regression model with corrections for multiple testing, we find that while a successful football program is associated with more applicants, there is no effect on the composition of the student body or (with a few caveats) funding for the school through donations or state appropriations.

Suggested Citation

  • Benjamin Baumer & Andrew Zimbalist, 2019. "The Impact of College Athletic Success on Donations and Applicant Quality," IJFS, MDPI, vol. 7(2), pages 1-23, April.
    • Handle: RePEc:gam:jijfss:v:7:y:2019:i:2:p:19-:d:218980
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    References listed on IDEAS

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    Cited by:

    1. Austin F. Eggers & Peter A. Groothuis, 2021. "The Impact of Winning an NCAA Men's Basketball or Football Championship on Academic Quality," Economics Bulletin, AccessEcon, vol. 41(2), pages 263-275.
    2. Minnich, Aljoscha, 2022. "Do fans’ emotions influence charitable donations? Evidence from monetary and returnable cup donations in German soccer stadiums," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    3. Craig McFarland & Peter A. Groothuis & Dennis Guignet, 2023. "The Role of Football Win Percentage on College Applications for Power Five and Group of Five School," Working Papers 23-02, Department of Economics, Appalachian State University.

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