Subsidies that Intercollegiate Athletic Programs - Essay Example

In a surprise, even the most successful programs receive huge amounts of money in the form of subsidies. A certain percentage of the student fees go to the general fund. Such central funds service subsidies to the Intercollegiate Athletic Programs (Killpatrick & Killpatrick, 2009). The small programs depend on student fees for their subsidies, instead of depending on the successful programs. This has led to a general increase in student fees in colleges that has raised concerns. Yes, athletics departments should be self-supporting.

This is because they find access to well-paying television contracts. If there is proper management of the revenue, then the departments need to support themselves. In addition, they receive the ticket proceeds from large stadiums, where they collect the revenue from the sales. If the athletic departments develop a realistic budget, then they could easily have self-support. Some large athletic departments actually generate more revenue than they spend (Padilla & Boucher, 2007). This means that they do not need any additional money to fund their projects.

Furthermore, if the athletic departments learn to be independent, then they are more likely to stabilize. This relates to the ability to remain financially stable even in times of economic slowdown. The worst concern is that even during an economic slowdown, some athletic departments do not lower their spending. This means that they have the capacity to become self-supporting and they need to become independent. The broadcasting rights have affected intercollegiate athletics in several ways. It has led to an increased generation of revenue.

For instance, the NCAA generated over 80% of its revenue from broadcasting contracts with TBS and CBS. Such income has led to the creation of a sustainable competitive advantage to intercollegiate athletics. Broadcasting rights are significant sources of revenue for intercollegiate athletics (Case, 2013). The competitive advantage created has led to a form of prestige and an increase in the value of the holders of broadcasting rights. In case they decide to sell the rights, they could do so at a higher price.

In relation to the economy, the forces of demand and supply of broadcasting rights make the intercollegiate athletics have a high demand due to the quality.In conclusion, Intercollegiate Athletic Programs receive subsidies from the government and through funds from student fees. However, they are not self-supporting due to overreliance on the subsidy funds. The programs need to be self-supportive because they receive funds from other sources such as the sale of tickets in stadiums. Finally, the Broadcasting rights have led to the creation of a competitive advantage that raises revenue.