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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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    Cited by:

    1. is not listed on IDEAS
    2. Kahn, Lawrence M., 2006. "The Economics of College Sports: Cartel Behavior vs. Amateurism," IZA Discussion Papers 2186, IZA Network @ LISER.

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    JEL classification:

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

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