In: Accounting
What are the differences between the expenses and income at Division I and Division III NCAA College Athletics programs?
Question:- what are difference between the expenses and income at division I and division III NCAA college ATHETICS PROGRAMS?
Answer:
The NCAA is the National Collegiate Athletic Association. It's the major governing body for intercollegiate athletics. More than 1200 colleges and universities are members of the NCAA. It's a "non-profit" organization that brings in roughly one billion dollars in revenue each year.
Division I offers the highest level of competition and Division I schools' athletic departments have the biggest budgets. Division III is the lowest level of competition in the NCAA, and Division III schools also tend to have the smallest athletic department budgets.
The purpose of the divisions is to create parity and a more level playing field in intercollegiate sports. Also, the existence of divisions gives smaller schools with fewer resources the opportunity to compete for championships.
Division I :-
1) Division I schools have the biggest student bodies, the largest athletic budgets, and the most athletic scholarships. More than 350 schools that field more than 6,000 teams providing opportunities to more than 170,000 student-athletes are members of NCAA Division I.
2) Division I schools have to sponsor at least six sports for men and eight sports for women.
3) Division I team are the most prestigious , have most money and have highest caliber of athletes. Division I school are the largest on average.
4) Football Championship Subdivision schools did not follow the trend in FBS. With their generated revenue increases outpacing the jump in expenses. Generated revenues have jumped by 10.1 percent since 2012, while expenses increased by only 8 percent over the same timeframe.
Division III :-
1) Division III is the largest of all of the NCAA divisions. In Division III, there are 444 institutions and more than 170,000 student-athletes.
2) Examples of Division III schools include Babson College, California Institute of Technology, Emory, Eastern Connecticut State University, and the University of Rochester.
3) In Division III, student-athletes represent 20 percent of the overall student body, yet athletics account for only 4 percent of institutional expenditures
4) Division III offers no athletic scholarships, tends to have the lowest level of competition, but the highest number of participants across all divisions. Division III schools offer an average of 18 sports per school. Also, Division III has the highest average percentage of the student body participating in sports.
5) Given Division III’s large size – more than 400 institutions – and the diversity of school size within the division, there were large ranges of both revenues and expenses. Total revenues at schools with football ranged from $275,000 to $14.1 million and from $232,000 to $9.6 million at schools without football. The same disparities held true for total expenses, ranging from $785,000 to $14.1 million at football schools and $422,000 to $9.2 million at non-football schools.
6) As with Division II, generated revenues did not exceed expenses at any Division III institution.The overall athletic expense per student-athlete at Division III institutions is $7,100.