In general, which of the following is true?
Group of answer choices
Eighty percent of all Division I athletic departments making a profit, with the average profit equal to $2 million
One hundred percent of Division I athletic departments lose money and rely on subsidies to pay their expenses
Eighty percent of FBS athletic departments turn a profit in excess of $5 million
Twenty of the 126 FBS athletic programs made a profit in 2013
Which of the following is part of the impact of restricting payments to college athletes?
Group of answer choices
Athletic departments make greater profits, which allows them to subsidize the school’s academic mission
Rents are transferred from players, who are disproportionately black, to coaches who are largely white
The demand for tickets and broadcast rights have been found to rise because of the popularity of amateurism among fans
All athletes are paid less than their marginal revenue products
Why might the grants-in-aid expenses in the athletic department financial statement overstate the actual expenditures?
Group of answer choices
Athletic directors have been known to inflate these figures as a way to extract larger subsidies from the university
Most schools combine the scholarship expenses of both athletes and nonathletes
The NCAA requires schools to use out-of-state tuition as the proxy for the cost of an education, which inflates the reported expense
The actual marginal cost of an athlete to the university may be less than the amount of his or her scholarship