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Revenue Generation: College Sports

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Revenue Generation – College Athletics as a Whole. Big-time collegiate athletic departments are generating more revenue than ever, largely in part to massive television contracts, endorsement deals, student fees and big spending boosters that will do whatever it takes to create a dominant program and maintain bragging rights. As stated earlier, the NCAA generated the most the organization has ever before, $1.06 billion in revenue. However, that is only a small percentage of what college athletics generated as a whole, 8% to be exact. College athletics as a whole includes the NCAA organization as well as the revenue generated by the member institutions and teams. In my research, I have concluded based on my findings that college athletics generated …show more content…
These two sports combined accounts for all most ¾ of the revenue generated by division I programs. Going a step further I want to break down the revenue generation of FBS, FCS and D-I without football. The NCAA Revenue and Expense report separates the FBS into two categories, Autonomy Group and Non-Autonomy Group. The Autonomy group is a group that is self-sufficient and has less restrictions because of the amount of revenue they generate. An example of the disparity between these two groups is in the average total revenue within these groups. The average total revenue in 2016 for the autonomy group was 97,276,000 while the non-autonomy group was 33,470,000. I gathered some information to depict the disproportion between not only these two groups but also FBS and FCS. The chart entails where the average total revenue is generated, through either allocated revenue sources or generated revenue …show more content…
There is undoubtedly an arms race in collegiate athletics, everyone wants to be at the top. Teams are spending more than ever on recruiting tools, facilities, and anything else that can be thought of to awe an incoming recruit. Even with college athletics generating more revenue than ever before many athletic departments are also losing more money than ever. Because many departments are choosing to outspend their revenue generated just to stay in the competition of the arms race that is costing students and universities millions of dollars. In regard to the NCAA as an organization, they are a non-for-profit organization. This is due to their affiliation with higher education and the term amateurism. Because of the label as a non-for-profit, there is no incentive for the NCAA to make a profit. Instead they spend an incredible amount of money on scholarships and programs for member institutions. The NCAA states on their webpage, (“Finances” n.d.) “that we put our money where our mission is: equipping student-athletes to succeed on the playing field, in the classroom and throughout life. The NCAA and our member colleges and universities together award $3.3 billion in athletic scholarships every year to more than 150,000 student-athletes. In addition, we provide almost $100 million each year to support student-athletes’ academic pursuits and assist them with the basic needs of college life, such as a computer, clothing or

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