How Are Athletic Directors Rewarded in the NCAA Football Bowl Subdivision?

Abstract

Intercollegiate athletics has been a source of ongoing controversy regarding the potential conflict in pursuing athletic success while maintaining academic standards. This study examines the implicit reward system for athletic directors (ADs) in the National Collegiate Athletic Association Football Bowl Subdivision. Using AD compensation for 2010-2011, the evidence shows that base salaries are largely determined by revenues generated within the athletic department. Earned bonuses are unrelated to revenues but are correlated positively with football success, the tenure of the AD, and the number of teams sponsored by the school.

Keywords

athletic director NCAA intercollegiate economic rents market-based tournaments job signaling

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