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APPENDIX II
is worth many millions of dollars more to a participating team in ticket and
broadcast revenues than a non-BCS bowl game.
The athletics department budgets at University of Southern California and
University of Texas indicate the economic value of big-time football pro-
grammes. Even though both universities have major programmes in other
team sports, football accounts for the dominant share of athletic department
revenue and expenditures while also generating large positive cash flow: 38
per cent of $75.8 million in revenue at USC, 65 per cent of $143.6 million at
the University of Texas; 27 per cent of athletic department expenditures at
USC, 22 per cent of $114 million at Texas.
68
This value –an operating surplus
of nearly $70 million at Texas –and the future value of highly-paid profes-
sional careers combine to make big-time football programmes important to
institutions and their student-athletes and attractive to other constituencies.
Several other features distinguish intercollegiate sports from professional
sports. First is a decentralised and layered system of governance, albeit, para-
doxically, one dominated from the top. Nearly all colleges and universities
in the United States are member of the National Collegiate Athletic Associa-
tion (NCAA), which promulgates the rules governing intercollegiate sports
and supervises national championships in 23 sports across three divisions.
The divisions are based on a member institution’s size and commitment to
athletics, with Division I consisting of the largest schools with the strongest
commitment. Committees consisting of representatives of member institu-
tions determine each division’s rules for “personnel, amateurism, recruiting,
eligibility, benefits, financial aid, and playing and practice seasons”.
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