CS11 - Relationship Between Athletic Department Financing and Student ROI
SCURS Disciplines
Business
Document Type
General Poster
Invited Presentation Choice
Not Applicable
Abstract
Introduction
Allen (2022) examined the relationship between allocated funds (tuition/fees) that subsidize athletic department operations and student Return on Investment (ROI). Only public NCAA Division I institutions were examined because relevant data is not publicly available for private institutions. The objective of the present study is to replicate Allen’s 2022 study, but with current NCAA financial data as well as utilizing a different ROI calculation referred to as Net Present Value (College NPV, 2025). When student tuition and fees are allocated towards subsidizing athletics, students need to ensure that they are still receiving adequate ROI upon graduation. This is especially concerning considering millions of Americans are struggling with burdensome student loan debt (Forbes, 2025).
Methodology
NCAA financial data made public via USA Today (2024) wasexamined in order to determine the nominal value as well as percentage of the overall athletic budget that is considered allocated funds. Allocated funds are not generated by the athletic department. Rather, they are transferred from the institution’s general funds in order to subsidize athletic departments that are not generating enough revenue to fund their operation. Additionally, data made public via College NPV was used to determine the ROI for students at the corresponding public NCAA Division I institutions.
A census was obtained from a finite population (231 public NCAA Division I institutions). A Pearson correlation coefficientwas utilized to examine the relationship between allocated funds and student ROI. Excel was used for data entry as well as the Pearson correlation. A critical values table was utilized to determine statistical significance of the Pearson correlation coefficient (UCONN, 2015).
Results
Descriptive statistics revealed the average percentage of allocated funds was 54.25% and while 12 institutions received zero dollars in allocated funds, 67 institutions received at least 75% of their total athletic budget from allocated funds. College ROI, in terms of Net Present Value, ranged from as low as -$101,956 to as high as +$858,638. The average ROI from the 231 public institutions in the dataset was +$103,142. The researchers identified a significant relationship between allocated funds and college ROI; r (229) = -.40, p < .01. There was a negative, inverse relationship between allocated funds and college ROI. Implications are discussed.
References
Allen, J. T. (2022). The Relationship Between Allocated Funds and College Student Return on Investment at Public NCAA Division I Institutions. Poster presented at the 13th Annual International Conference on Sport & Society, Aarhus, Denmark.
College NPV, Colleges Ranked by Return on Investment (2025).
https://www.collegenpv.com/collegerankings?query=&page=1&sort=rank_desc
Forbes, Student Loans For 6.4 Million Borrowers Are Heading Toward A Dangerous ‘Cliff’ (2025).
https://www.forbes.com/sites/adamminsky/2025/12/15/student-loans-for-64-million-borrowers-are-heading-toward-a-dangerous-cliff/
UCONN, Educational Research Basics by Del Siegle (2015). r Critical Value Table.
https://researchbasics.education.uconn.edu/r_critical_value_table/
USA Today, NCAA Finances: Revenues and Expenses by School (2024).
https://sportsdata.usatoday.com/ncaa/finances
Keywords
Finance, NCAA Athletics
Start Date
10-4-2026 9:30 AM
Location
University Readiness Center Greatroom
End Date
10-4-2026 11:30 AM
CS11 - Relationship Between Athletic Department Financing and Student ROI
University Readiness Center Greatroom
Introduction
Allen (2022) examined the relationship between allocated funds (tuition/fees) that subsidize athletic department operations and student Return on Investment (ROI). Only public NCAA Division I institutions were examined because relevant data is not publicly available for private institutions. The objective of the present study is to replicate Allen’s 2022 study, but with current NCAA financial data as well as utilizing a different ROI calculation referred to as Net Present Value (College NPV, 2025). When student tuition and fees are allocated towards subsidizing athletics, students need to ensure that they are still receiving adequate ROI upon graduation. This is especially concerning considering millions of Americans are struggling with burdensome student loan debt (Forbes, 2025).
Methodology
NCAA financial data made public via USA Today (2024) wasexamined in order to determine the nominal value as well as percentage of the overall athletic budget that is considered allocated funds. Allocated funds are not generated by the athletic department. Rather, they are transferred from the institution’s general funds in order to subsidize athletic departments that are not generating enough revenue to fund their operation. Additionally, data made public via College NPV was used to determine the ROI for students at the corresponding public NCAA Division I institutions.
A census was obtained from a finite population (231 public NCAA Division I institutions). A Pearson correlation coefficientwas utilized to examine the relationship between allocated funds and student ROI. Excel was used for data entry as well as the Pearson correlation. A critical values table was utilized to determine statistical significance of the Pearson correlation coefficient (UCONN, 2015).
Results
Descriptive statistics revealed the average percentage of allocated funds was 54.25% and while 12 institutions received zero dollars in allocated funds, 67 institutions received at least 75% of their total athletic budget from allocated funds. College ROI, in terms of Net Present Value, ranged from as low as -$101,956 to as high as +$858,638. The average ROI from the 231 public institutions in the dataset was +$103,142. The researchers identified a significant relationship between allocated funds and college ROI; r (229) = -.40, p < .01. There was a negative, inverse relationship between allocated funds and college ROI. Implications are discussed.
References
Allen, J. T. (2022). The Relationship Between Allocated Funds and College Student Return on Investment at Public NCAA Division I Institutions. Poster presented at the 13th Annual International Conference on Sport & Society, Aarhus, Denmark.
College NPV, Colleges Ranked by Return on Investment (2025).
https://www.collegenpv.com/collegerankings?query=&page=1&sort=rank_desc
Forbes, Student Loans For 6.4 Million Borrowers Are Heading Toward A Dangerous ‘Cliff’ (2025).
https://www.forbes.com/sites/adamminsky/2025/12/15/student-loans-for-64-million-borrowers-are-heading-toward-a-dangerous-cliff/
UCONN, Educational Research Basics by Del Siegle (2015). r Critical Value Table.
https://researchbasics.education.uconn.edu/r_critical_value_table/
USA Today, NCAA Finances: Revenues and Expenses by School (2024).
https://sportsdata.usatoday.com/ncaa/finances