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Profit or loss? On the determinants of net income of United States college football programs

Profit or loss? On the determinants of net income of United States college football programs PurposeThis study aims to predict the determinants of net income of 101 US university football programs.Design/methodology/approachGuided by stakeholder theory, financial capacity model and resource dependency theory, the dependent variable was net income (indicated as profit or loss) and independent variables were measured as the number of women and men’s team sports, average home attendances, win–loss records, conference ranking, endowment funds and age of football programs. Statistical analysis was performed using Kendell tau and binary logistic regression (BLR).FindingsNet income was positively and statistically associated with home attendance, win–loss record, conference rankings and endowment funds, but not number of women’s sports, age of football program and number of men’s sports teams. The BLR indicated that home attendance was the best predictor of net income.Research limitations/implicationsThe research was delimited to 101 Football Bowl Subdivision football programs from public universities.Practical implicationsThe findings indicate that home attendance and conference rankings had the highest association with net income, but the former was the best predictor of net income and not football tradition nor number of sports teams.Originality/valueThe study was pioneering in the predictive evaluation of the possible determinants of loss or profitability in college football programs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Reporting and Accounting Emerald Publishing

Profit or loss? On the determinants of net income of United States college football programs

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1985-2517
DOI
10.1108/JFRA-04-2018-0028
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study aims to predict the determinants of net income of 101 US university football programs.Design/methodology/approachGuided by stakeholder theory, financial capacity model and resource dependency theory, the dependent variable was net income (indicated as profit or loss) and independent variables were measured as the number of women and men’s team sports, average home attendances, win–loss records, conference ranking, endowment funds and age of football programs. Statistical analysis was performed using Kendell tau and binary logistic regression (BLR).FindingsNet income was positively and statistically associated with home attendance, win–loss record, conference rankings and endowment funds, but not number of women’s sports, age of football program and number of men’s sports teams. The BLR indicated that home attendance was the best predictor of net income.Research limitations/implicationsThe research was delimited to 101 Football Bowl Subdivision football programs from public universities.Practical implicationsThe findings indicate that home attendance and conference rankings had the highest association with net income, but the former was the best predictor of net income and not football tradition nor number of sports teams.Originality/valueThe study was pioneering in the predictive evaluation of the possible determinants of loss or profitability in college football programs.

Journal

Journal of Financial Reporting and AccountingEmerald Publishing

Published: Sep 2, 2019

References