KINS 4520 Lecture Notes - Lecture 5: Ope, Opportunity Cost

• School: University of Georgia
• Department: Kinesiology
• Course: KINS 4520
• Professor: Slonaker

Document Summary

Ncaa report shows that just 14 of the 120 fbs schools made money from campus athletics in 2009 fiscal year, down from 25 years before. The average median deficit in 2010 was . 6 million, while no programs in fcs or division 1 programs without football operated in the black. As those programs, losses continue to grow each year. Using the ncaa"s own data, those hostile to college sports foist a myth on casual observers - athletic departments struggle to break even. Say without institutional support, they would be deep in the red. Even those that grant there are values from college sports question why universities foot the bill. Here is the logic that generates the idea that athletic departments lose money: The investment in athletics is seen as subsidy. From this accounting fiction, athletic departments lose money if generated revenues are less than spending. This ignores that the investment in athletics has a payoff that matters to administrators.