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The Stupid Prisoner’s Dilemma

A 2010 report showed more than $800 million in student fees were used to subsidize athletic programs annually, he said. Vanderbilt spends $10 million-$15 million a year to support its athletics program — at a cost of $2,000-$3,000 per student each year, [Vanderbilt economics professor John] Siegfried said.

That may explain why schools with Division I teams tend to charge higher tuition than those without such teams, he said.

Studies also have shown schools with Division I teams don’t receive significantly more student applications than those that don’t have such teams, he said.

So why did 109 universities upgrade their sports programs to higher divisions in the 1990s?

“Are they all stupid?” Siegfried said. “I don’t think so.”

Big-time sports programs have been shown to generate sports-related media attention for universities. Schools with Division I football programs also typically receive 8 percent more from their respective states by way of financial support, he said.

Schools with sports teams that have winning records typically see higher attendance at sports events, he said. However, they also often feel compelled to pay their coaches competitive salaries, a problem Siegfried called the “prisoner’s dilemma.”

“All that happens is they get paid more and more and more,” he said of coaches.

Margaret Soltan, September 30, 2011 8:30PM
Posted in: sport

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2 Responses to “The Stupid Prisoner’s Dilemma”

  1. superdestroyer Says:

    Take the fact that schools subsidize sports programs at a cost of $800 million with the stupid statements by Taylor Branch in Atlantic.

    How can Mr. Branch claims that athletes should be paid because they make so much money for the university when the universities are losing so much money on sports?

  2. Mr Punch Says:

    So that must be $10-15 million beyond the $17 million from the SEC football TV contract, and other revenue. Imagine what it would cost Vandy to drop down to FCS or below!

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