Factors influencing collegiate athletic department revenues影响高校体育院系收入的因素.pptxVIP

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Factors influencing collegiate athletic department revenues影响高校体育院系收入的因素.pptx

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Factors influencing collegiate athletic department revenues By: Chad D. McEvoy, Alan L. Morse, and Stephen L. Shapiro Presented by: Dion Doucet NCAA Division 1 Revenue Generation Median generated revenues increased about $13 million from 2004 – 2010 More than one half of the schools from the six major BCS member conferences increased budgets by 10% or more from 2010 – 2012 Athletic Directors Were usually current or former coaches Now, someone who has a track record of success in business in areas such as fundraising, sales, and marketing Factors leading to large growth Television media rights 5 BCS bowl games distribute more than $174 million a year March Madness terms for CBS and NCAA; 2011 – 2028 $10.8 billion New conference level deals Pacific 12 receiving $225 million a year from FOX and ESPN Southeastern conference receiving $205 million a year from CBS and ESPN Big Ten Network generating $252 million Longhorn Network generating $300 million for school over 20 years Ticket Sales In 2010, accounted for 29% generated revenue at Football Bowl Subdivision (FBS) institutions Charitable Contributions/ Donations Accounting for 23% Corporate Sponsorships Approximately 10% of athletic departments’ external sources of revenue Highly-commercialized non-profit Bowen’s Revenue Theory of Costs An increase in expenses is an outcome of non-profit organizations spending all revenue to avoid a significant surplus Revenue-to-cost spiral A cycle created when increases in revenue are the source for increases in expenditures Bowen’s 5 laws to explain costs in higher education Be perceived as high quality There are never enough resources Institutions will always attempt to increase revenue Each institution spends all that it raises All this leads to a consistent increase in expenditures. Instead of trying to minimize costs like profit seekers do. Applying the laws to college athletic departments Be perceived as high quality There are never enough resources Institutions will always