NCAA Athletic Department Economic Impact Analysis

An economic impact analysis is a methodology that examines the effect of an event on the economy in a specific area. This event that is being analyzed can be anything from a new tax, a new building, or a new business moving into a community. In sports management studies, economic impact is typically viewed as the net economic change in a community that results from spending money on a sports facility, franchise expansion or relocation, sporting event, or any other sports-related expenditure. Thus, a sports-related economic impact analysis is designed to measure the economic benefits of sports-related events to a community. In this article, I will analyze the impact of transitioning a National Collegiate Athletic Association (NCAA) Division II athletic department to NCAA Division I. An overall analysis of the athletic department and the varsity sports it sponsors, conference alignment, and facilities will be provided. A general financial analysis of revenues and expenses that result from this transition will also be reviewed. Finally, I will provide a general recommendation about this transition and briefly review universities that have made this transition