Date of Award

12-2025

Degree Name

Doctor of Philosophy

Department

Educational Leadership, Research and Technology

First Advisor

Regina L. Garza Mitchell, Ed.D.

Second Advisor

Andrea Beach, Ph.D.

Third Advisor

Frimpomaa Ampaw, Ed.D.

Keywords

Athletic subsidy, college athletics, enrollment, graduation rate, loans, retention rate

Abstract

This study examines the relationship between university athletic subsidies and outcomes for the broader undergraduate student population. The athletic subsidy, referred to as an athletic tax, is defined as institutional and student fees used to support athletics. Although athletics are often viewed as enhancing institutional prestige and recruitment, most universities depend heavily on subsidies to sustain their programs. In 2019, National Collegiate Athletic Association (NCAA) institutions spent over $18.8 billion on athletics, with $8.3 billion, or 44 percent, coming from institutional and student sources rather than athletic revenue (NCAA, 2019a). This research explores whether such subsidization predicts measurable differences in student success outcomes.

Grounded in Bowen’s (1980) revenue theory of cost, which posits that institutions expand spending with virtually no limit in pursuit of prestige, this quantitative study analyzes publicly available data from NCAA Division I Football Bowl Subdivision (FBS) public universities between 2016 and 2019 (2017–2022 for undergraduate enrollment change). Athletic taxes are calculated per undergraduate student and compared with institutional outcomes such as retention and graduation rates, student loan amounts, spending on instruction, and enrollment changes. Descriptive statistics, ANOVA, and multiple regression analyses are used to explore relationships across FBS institutions.

Findings show significant differences between conferences and conference groupings. The more prestigious Autonomy group of conferences had an average athletic tax of $4.5 million per institution ($174 per student). Whereas the Nonautonomy conferences averaged an athletic tax of $20.4 million ($1,121 per student). Higher athletic taxes per student are not associated with improved student outcomes. Greater subsidies predict lower enrollment growth and higher loan averages, while smaller subsidies align with stronger retention, graduation, and instructional investment. The average Autonomy institution athletic tax per student, compared to the average Nonautonomy, predicts a 4.74 percentage point higher retention rate, a 5.68 percentage point higher graduation rate, $247.21 less in average loan debt, 10.53 percent more spent on instruction, and 1,115 more in change of students enrolled.

The study concludes that large athletic subsidies may be misaligned with institutional missions and financial priorities, particularly for Nonautonomy institutions. Continued escalation of athletic spending risks undermining accessibility, affordability, and long-term sustainability. Findings contribute to higher education finance literature by providing empirical evidence that athletic subsidization does not necessarily enhance campus-wide student success. Recommendations include reassessing athletic investment levels and considering de-escalation or reallocation of subsidies toward academic and student-success initiatives.

Access Setting

Dissertation-Open Access

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