ADV 378S Lecture Notes - Lecture 7: Sports School, A.D. Vision

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10 May 2016
ADV 378S Feb 17: Sports Law
Key Points
oColleges and Universities derive a number of benefits from sports programs, not
necessarily just financial
oThe NCAA is the primary body to govern college sports but it requires institutions
to police their own programs
oWhile major athletic programs may make a lot of money, most school do not and
most sports do not
oThe NCAA is not immune to anti trust challenges and lost the power to dictate
television contracts due to a challenge by Oklahoma
Benefits to Colleges and Universities
oJoy of victory (Flutie effect)
oExpanding the applicants/enrollment (especially out of state)
oIncreased ranking
oIncreased state appropriations
oIncreased donations
oIncreased licensing/branding
oIncreased retention and graduation rates
Do programs make money?
oNCAA made 12.6 Billion in 2011
oNFL, 9, MLB, 7.2, NBA, 4.1, NHL/NASCAR, 3
oSalaries/benefits (32%)
oScholarships (25%)
oFacilities (13%)
Do they make money
oIn general, only football/men’s basketball make money
oOnly 57% of Basketball/football programs make money
Athletic departments as university customers
oPhysical plant assessment/stadium rental
oScholarship/room and board
oTransportation and parking
oThis “transfer” totaled 32 million at Ohio State
Student Athlete “social contract”
oStudents participate in sports, and receive an education and a partial or full
scholarship to an institution
oIn exchange, they receive restrictions to maintain the amateur status
oCriticism of this revolves around a minority of schools in a small number of
NCAA Divisions
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