Factors Influencing Collegiate Athletic Department Revenues

One of the primary challenges of Division I Football Bowl Subdivision (FBS) collegiate athletic programs is revenue generation, particularly in light of increasing costs and competition. Surprisingly, a limited number of studies have investigated factors related to athletic department-generated revenues. A statistically significant multiple regression model was created, explaining 76.7 percent of the variance in annual generated revenues among FBS programs. Factors such as conference affiliation, success in football and men’s basketball, enrollment, and time were identified as important in predicting revenue generation. The Revenue Theory of Costs was put forth as a framework for better understanding the financial behavior of intercollegiate athletic programs