Final Paper/ Powerpoint

Running Head: Revenues and Expenses 2

2

Revenues and Expenses for Collegiate Athletes

Trae’Von Clavo

Belhaven University

MSA 643

Revenues and Expenses for Collegiate Athletes

Upon joining college, some students are privileged to access resources that help them to explore talents and abilities besides the studies. They identify values, build characters, and explore their potentials in co-curricular activities. For instance, some become athletes with guaranteed payments. The universities that host such students stand a chance to benefit from some appreciation and reputation for providing a conducive environment for nurturing students' talents and potentials. Some of the resources provided to balance students' welfare in sports and education include financial literacy information, test preparation materials, online education, and behavioral assessments. Therefore, the major concern in this paper is the analysis of collegiate athletes' revenues and expenses, finding out why most colleges operate in red, some of the economic issues for a university that decides to eliminate its football program, and the Christian concepts that are depicted in the entire scripture reding.

College athletes' budgets are comprised of revenues from various sources. Part of the revenue is allocated while the other is generated. The allocated revenue occurs in different forms, for example, part of the student school fee is directly allocated to athletics. Some funds are also transferred directly from the general fund to athletics, especially for the funds that are only allocated for institutional support in athletics. Other revenues are sourced from indirect institutional support with the aim of supporting athletics. This occurs through support salaries, payment of utilities, and maintenance. Also, the government supports athletics directly by allocating funds for sports. The state and local governmental agencies channel funds directly to the respective institutions. The other source of revenue is the generated revenues. The generated revenue is produced by the department of athletics. It includes alumni contributions, guarantees, radio and television receipts, royalties, ticket sales, and NCAA distributions. It also comprises of other sources that do not depend on institutional entities outside the department of athletics.

The athletics department makes some payments while others are paid by outside parties. Third-party payments are not supposed to be involved in the determination of the net financial results of the athletics operations. Indirect support from the institution is not counted in the expenses but is reported as a line item on both the expenses and the revenue side. If the paid or guaranteed revenues by the institution exceeds the generated revenues, a negative net generated revenue is recorded.

Currently, most of the colleges operate in the red. Operating in red means that the university delays or suspends an athlete's participation to lengthen their period of eligibility. Colleges operate in red, therefore, to provide students an opportunity to take some classes so that they meet the expectations of their profession. They also do so to enable students to secure an opportunity to play as an academic freshman. Moreover, they do it to offer students a year of practice with another team before they can participate in the competition.

Any decision made results in some positive or negative impacts. If a university decides to eliminate a football program, there are many things that would fade away. For instance, students would not be able to explore their talents and abilities. The university will, therefore, not serve the expectations and mission of any other institution. Institutions work to enable students to pursue studies and nurture their talents. That would not be accomplished if a football program would be eliminated. Also, football programs act as billboards for many universities. They act as televised advertising. It is believed that if a university does well in athletics it can as well do well in studies. This perception of people acts as a marketing strategy to attract urge student applications for the respective university. The probability of enrolling competent students increases, hence improving the general performance of the school. Next, the financial revenues which students acquired from athletics would not be provided. The financial support helped students to solve their needs and have a conducive environment of study. The benefits that a university acquires from governmental agencies would not be acquired. That money is purposely allocated for athletics; hence it would not serve its purpose.

From the chapter reading, the following inferences can be made: a university is a very crucial institution of learning for nurturing students' values, talents, and potentials and making them responsible and reliable future citizens in society. Any decision that deprives any student of their rights and opportunities for success should not be made. For example, delaying an athlete's participation to lengthen his or her eligibility should be done based on the athlete's consent, but not as determined by the university. Also, eliminating a program that is very critical to the welfare and future of students would deny them opportunities for nourishment. The university should provide the required resources so that students can explore their abilities. Although education is the main aim of joining a university, it must be done besides other activities that contribute positively to one's life. Therefore, any institution should nourish and flourish student's goals and ambitions both academically and physically.

Reference

Diedrich, C. (2007). Homefield Economics: The Public Financing of Stadiums. Policy Matters.4(2). 22-27. Retrieved fromhttps://www.faegrebd.com/webfiles/Homefield%20Economics.pdf

Fried, G., DeSchriver, T. D., & Mondello, M. (2013). Sport Finance. In sport finance (pp. 21–36). Human Kinetics