Athletics, Academics, and the Financial Condition of U.S. Private Colleges.

Many private colleges in the United States face financial difficulty. The role of athletics in the financial condition of U.S. colleges is subject to controversy. Supporters argue that collegiate sports draw students, improve student quality, and increase donor support. Detractors argue that athletics are costly and undermine the academic mission of the institution. Accordingly, this study examined metrics of athletic and academic quality to determine their effects on the financial health of a sample of 561 U.S. private colleges. The relationship between athletics and an institution's financial health was examined using a simultaneous equations model. Financial GPA was the dependent variable in the first equation and athletic spending per athlete was the dependent variable in the second equation. Measures of academic quality served as control variables. The results of this study indicate that higher spending on athletics reduces an institution's financial health and that academic quality increases an institution's financial health. [ABSTRACT FROM AUTHOR]