A New Era: Financial Implications of Division I Intercollegiate Athletics on an Institution

Abstract

This research paper analyzed the financial differences between “Power Five” and “Group of Five” Division I Institutions. The results show Power Five universities have double the athletics budget ($97.6 million vs. $32.8 million), while receiving an average subsidy of $4.6 million compared to $18.4 million. Furthermore, our analysis shows that Power Five institutions are substantially more productive financially on the academic side in terms of research funding ($428 million vs $96 million) and have five times a median endowment size ($1.25 billion vs $229 million) compared to institutions residing in Group of Five conferences.