IJSF Issue 7:1

Contents for IJSF Issue 7:1

Entire issue of IJSF 7:1
Authors: D. Randall Smith, Leo H. Kahane, Victor A. Matheson, Debra J. O’Connor, Joseph H. Herberger, Benardino Benito, José Solana, María-Rocío Moreno
Abstract:This is the entire issue in PDF format that you can download

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The Curious (and Spurious?) Relationship Between Intercollegiate Athletic Success and Tuition Rates, pp. 3-18
Authors: D. Randall Smith
Abstract:Previous research suggests that college and universities may use success in big-time intercollegiate athletics to increase tuition. The largest effects have been found at public institutions, especially for out-of-state tuition rates. The present study revisits those findings using a broader sample that includes private schools. Rates are more responsive to athletic success when tuition includes room, board, and fees—more so in the case of football performance than in basketball performance. When the dependent variable is exclusively tuition, there appears to be little relationship with the fortunes of sports teams. These findings point to a need for increasing student fees in order to continue participation in the so-called athletic arms race and the potential of room and board to serve as revenue streams for the host school.

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The Estimated Rents of a Top-Flight Men’s College Hockey Player, pp. 19-29
Authors: Leo H. Kahane
Abstract:We employed a methodology similar to Brown (1993, 1994) to estimate the marginal revenue generated by a top-flight NCAA Division I college hockey player. We added to the extant literature in two ways. First, the previous research focused on college basketball and football players. This is the first attempt to consider the case of college hockey players. Second, previous research has been conducted using relatively small, cross-sections of data. We employed a larger, panel dataset. Empirical results showed that top-flight college hockey players generate between $131,000 and $165,000 in added revenues to schools. According to the NCAA, the average value of an athletic scholarship is between $14,000 for in-state public schools to $32,000 in private schools in 2008. This implied that a premium college hockey player generates rents in excess of $100,000 per year for the typical institution.

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The Bottom Line: Accounting for Revenues and Expenditures in Intercollegiate Athletics, pp. 30-45
Authors: Victor A. Matheson, Debra J. O’Connor, and Joseph H. Herberger
Abstract:We examined the profitability of Division I athletic programs at colleges and universities in the United States under a variety of accounting definitions of profit. The data identified several broad themes. First, a majority of athletic departments relied heavily on direct and indirect subsidization of their programs by the student body, the institution itself, and state governments in order to balance their books. Without such funding, less than one-third of Bowl Championship Series (BCS) athletic departments and none of the non-BCS departments were in the black. Second, athletic programs relied heavily on contributions to balance their books. Donations to athletic departments may serve as a substitute for donations to the rest of the university, lowering giving to other programs. Third, football and men’s basketball programs were generally highly profitable at BCS schools; however, below this top tier, fewer than 10% of football programs and 15% of men’s basketball programs showed a profit by any reasonable accounting measures.

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Assessing the Efficiency of Local Entities in the Provision of Public Sports Facilities, pp. 46-72
Authors: Benardino Benito, José Solana, and María-Rocío Moreno
Abstract:In recent years, Spanish municipal authorities have been devoting important amounts of their resources to financing the construction and maintenance of sports facilities. However, the current financial climate has led to a decrease in the resources available, while demand by citizens has continued to grow. Management must therefore become more efficient if quality services are to continue to be offered. Analysis of the factors that affect efficiency of local entities provides important strategic information. A twostage double bootstrap procedure was used to estimate the efficiency determinants of Spanish local entities in the provision of public sports facilities. In the first stage, robust efficiency estimates were obtained with a data envelopment analysis (DEA). We applied the nonparametric double bootstrap model by Simar and Wilson (2007), which is based on a truncated-regression. This estimated the effect of a group of environmental factors on robust DEA estimates. The results showed the existence of a significant relationship between efficiency and all of the analyzed variables. We also considered the influence of the political sign of the governing party.

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