This study examines how major college basketball programs have become professionalized, and follow a professional model in terms of their revenues, expenses, and profits. “Professionalized” is defined as having a fundamental focus on profits and revenues. Revenue and expense data for the 2006-2007 season was selected from the six major conferences: Big East, Big Ten, Big 12, ACC, PAC 10, and SEC. Data was collected from the Office of Postsecondary Education, where revenues and expenses are reported for each school. These data were examined and used to gauge whether these programs or conferences are following a professional model. In addition, the study examined the marginal revenue product of acquiring one more premium player (a player that has been drafted into the NBA or WNBA). Data were collected from NBAdraft.net, where NBA and WNBA draft classes were be used to determine the number of premium players on each college team. OLS regression analysis was be used to indicate relationships between the data. These relationships indicate that men’s basketball programs follow a professional model and that the marginal revenue product of acquiring one more premium player is greater than their compensation through scholarship. Women’s basketball programs do not appear to follow a professional model, or acquire players that generate significant revenues greater than their compensation through scholarship.
Recommended CitationKaukas, Sean, "Professionalization of College Sports: The Case of College Basketball" (2011). Honors Projects in Finance. Paper 17.