KINS 4520 Lecture Notes - Lecture 3: Operating Surplus, Literature Review, The Indianapolis Star

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Old adage that without top men"s revenue programs - football and basketball - there would be no athletic department. Idea is that the ad spends any excess of revenues over cost in these sports on all of the other programs. As football and men"s basketball, so goes athletic department"s fate. Even argued in court to exclude football from title ix on these ground. Penn state used this myth to bolster the argument against the death penalty for the football program. Documents number athletic departments in which revenues from football and. Mbb exceed the costs of running just those two sports. Then, for those departments for which the rest of the sports have operating deficits (many do not), we show the number of athletic departments that can cover that deficit with their football and men"s basketball operating surplus. Examine the extent to which any surpluses also cover the remaining costs of running the athletic department.

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