AN EMPIRICAL NOTE ON THE IMPACT OF COLLEGE ATHLETICS ON TUITION REVENUES

The economics and sociology literature has given much attention to the proper role of athletics in the mission of institutions of higher edu cation. This discussion has turned into a debate; one argument holds t hat athletics fit nicely into the mission of most colleges. However, i t has also been argued that athletics impede the students and faculty from achieving their academic potential. We argue that college athleti cs can increase the demand to attend the institution and lower the pri ce elasticity of demand of non-resident students. This, in turn, incre ases the level of financial resources available to the institution. We model the percentage of out-of-state students as being dependent upon athletic success (among other variables) and find a positive and sign ificant relationship between the two. In addition, potential net reven ue gains from athletic success are provided for specific institutions.