Football in Many Universities, Athletic

Football

In many universities, athletic teams have a very profound impact on the overall student experience. For one, athletic programs instill a sense of pride and accomplishment on behalf of the overall student population. Particularly, if the team is winning, students tend to feel better about their school and their overall affiliation with it. In addition, athletic programs are often seen as marketing tools used to help supplement the overall recruitment process. Although few perspective students attend college solely for the schools athletic programs, successful athletic programs do aid in the overall recruitment process. For one, students are often attracted to successful schools both athletically and academically. Most schools can excel in the academic component, but only a handful can be successful athletically. As such, this dual approach to recruitment provides a means for universities to differentiate themselves relative to their peers in the industry. Finally, athletic programs, particularly football provide revenue streams to the university. Although very few university athletic programs are profitable, many due provide revenue that can support the overall athletic program in its entirety.

In the instance of the University of Nevada, the committee must juxtapose the benefits listed above with many of the costs associated with having a football team. This is particularly true, if the university has mounting obligations to both faculty and the university as a whole. Mounting benefits for tenured professors, scholarships awards to attract bright students, renovations to old facilities, and marketing expense are related to university budgets. Many of which are very important for the long-term success of the institution. In order to make a rational decision, the committee should use discounted cash flow analysis to determine the present value of the future cash streams of these projects. Through discounted cash flow analysis, the committee can better ascertain which projects to keep and which projects to forego. This will allow the committee to make the best informed decision regarding money and the resulting return on investment.