An Assessment of the Economic Differences Associated with Reclassification to NCAA Division I-AA

Abstract

In today's athletic environment, with approximately 96% of National Collegiate Athletic Association (NCAA) athletic departments in Divisions II and III operating with expenses exceeding revenues (Fulks, 2002), the abundance of revenue and media exposure in Division I has led many administrators to view reclassification as a means to market their university and athletic department, create new revenue streams, and solve budgetary problems. While research has demonstrated competing and winning in Division I-A often brings economic prosperity to a university, insufficient research has examined the effects of competing in Division I-AA. The purpose of this study was to examine economic differences that may occur following an athletic department's reclassification to Division I-AA from lower divisions. The data revealed universities that reclassified from 1993-1999 did not obtain significant positive differences in (a) donations to the university, (b) attendance at football games, (c) incoming freshmen applications, and (d) undergraduate enrollment in the first three years following reclassification.

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