The effects of conference realignment on NCAA athletic departments

This study uses a panel of National Collegiate Athletic Association (NCAA) Division I athletic department revenue and expenditure data from 227 public colleges and universities to empirically investigate the effects of conference realignment over the period 2006–2011. The results show that schools moving into automatic-qualifying conferences experienced nearly $12.15 million in increased revenue, nearly matched by $10.12 million in added expenditures. Schools moving into any FBS conference saw revenues increase by $6.43 million, with expenses growing $5.03 million. Schools switching conferences to a non-FBS conference did not see a statistically significant change in revenues or expenses. Schools with football programs saw revenues increase by $2.94 million and profits increase by close to $1 million. Despite the increase in revenues, no change to institutional subsidies was observed.