An Analysis of NCAA Enforcement and its Influence on Conference Bowl Revenue: Does the Punishment Fit the Crime from a Financial Perspective?

In 2009, $260 million dollars in bowl game revenue was paid out to Football Bowl Subdivision (FBS) schools competing in bowl games (BCS, 201 la). This study examined the relationship between the annual revenue each FBS conference receives from their teams' bowl appearance and various factors impacting this revenue. Specifically, this examination identifies what, if any, impact violations and probation have on conference bowl revenue, and the distribution of that revenue to individual institutions. The majority of research in this area focuses on individual athletic department success and how variables such as attendance, postseason play and winning percentage can be a factor in determining monetary contributions to a school's athletic program and academic endowment (Coughling & Erekson, 1984, Fleisher, Goff, Shughart, & Tollison, 1988, Grimes & Chressanthis, 1994). In terms of enforcement, previous studies have focused on individual institutions and the triggers of investigation (Clark & Batista, 2009) and the negative effects probation can have on a football program (Clark & Batista, 2009; Depken & Wilson, 2006; Fleisher et al., 1988; Humphreys & Ruseski, 2009). Examinations regarding the effect probation and violation has had on conferences from a financial perspective are non-existent. Data were collected from the various bowl game, conference, and news websites and input into SPSS for analysis. The sample includes all of the National Collegiate Athletic Association (NCAA) FBS conferences from 1998-2009 for a total of 131 observations. A multiple regression model including 11 predictor variables was developed to identify the variables which significantly influence total annual conference bowl revenue. The overall regression model was found to be significant [F (10, 120) = 173.881, p = .001]. The ten independent variables in the model explained 93.5% of the variance in bowl revenue. A total of three independent variables were found to be significant in the model, number of bowl eligible teams (β =. 104, t(120) = 1.981, p < .050), number of teams in BCS bowls (β = .609, t(120) = 13.04, p < .001) and conference bowl tie-ins (β = .255, t(120) = 5.177, p < .001). Violations (β = .008, t(120) = .275,p <.784), number of teams on probation (β = .051, t(120) = 1.035, p < .303) and probation status (β = -.028, t(l20) = -.616,p < .539) were not significant in the model.