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The Relationship Between Big-Time College Football and State Appropriations for Higher Education

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  • Brad R. Humphreys

    () (University of Illinois)

Abstract

Do big-time college sports affect state appropriations to public colleges and universities? Little attention has been given to the possibility that big-time athletic programs generate economic benefits for a university at the state capital. The paper estimates a reduced form model of the determination of annual state appropriations to public universities, including institution-specific effects to control for unobservable factors like mission and reputation that could affect appropriations. The results suggest that institutions fielding Division I-A football programs receive 8% more in annual state appropriations — about $2.6 million in real 1982 dollars — than those without such programs. Bowl appearances and national rankings do not lead to additional appropriations. These results suggest that the total economic benefit associated with big-time athletic programs may be larger than previously thought and provide insight into why the number of institutions fielding Division I-A college football programs increased by 10% from 1998 to 2002.

Suggested Citation

  • Brad R. Humphreys, 2006. "The Relationship Between Big-Time College Football and State Appropriations for Higher Education," International Journal of Sport Finance, Fitness Information Technology, vol. 1(2), pages 119-128, May.
  • Handle: RePEc:jsf:intjsf:v:1:y:2006:i:2:p:119-128
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    Citations

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    Cited by:

    1. Malcolm Getz & John Siegfried, 2010. "What Does Intercollegiate Athletics Do To or For Colleges and Universities?," Vanderbilt University Department of Economics Working Papers 1005, Vanderbilt University Department of Economics.
    2. Allen R. Sanderson & John J. Siegfried, 2015. "The Case for Paying College Athletes," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 115-138, Winter.
    3. Steven Salaga & Rodney Fort, 2017. "Structural Change in Competitive Balance in Big-Time College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(1), pages 27-41, February.
    4. repec:kap:revind:v:52:y:2018:i:2:d:10.1007_s11151-017-9590-z is not listed on IDEAS
    5. Adam Hoffer & Brad R. Humphreys & Donald J. Lacombe & Jane E. Ruseski, 2014. "The NCAA Athletics Arms Race: Theory and Evidence," Working Papers 14-29, Department of Economics, West Virginia University.
    6. Kahn, Lawrence M., 2006. "The Economics of College Sports: Cartel Behavior vs. Amateurism," IZA Discussion Papers 2186, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    higher education finance; intercollegiate athletics; political influence;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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