An Analysis of Outsourcing Sponsorship Activity as a Revenue Generation Strategy in Non-Power Division I Athletic Departments

This study examines whether non-Power NCAA Division I athletic departments are better positioned to outsource multimedia rights (MMR) and sponsorship sales to third-party companies or retain these functions in-house. Using data from public Division I institutions, multiple linear regression models were employed to assess the relationship between outsourcing and sponsorship revenue while controlling for institutional and market characteristics, such as enrollment, population, and athletic performance. Results indicate that outsourcing is a significant positive predictor of sponsorship revenue, with outsourced institutions generating substantially higher expected revenues than their in-house counterparts. Additional findings suggest that attendance is the most consistent driver of sponsorship revenue for programs, while team performance did not have a significant effect. These results provide insight into strategic decision-making for non-Power athletic departments navigating resource constraints and revenue optimization.