Editorial Columns

Focus on the Presidency: The Business of Intercollegiate Athletics

In 1852, James Elkins, the enterprising superintendent of the Boston, Concord and Montreal Railroad, had an innovative marketing idea. He urged the men of Harvard and Yale to test their skills in a rowing regatta, so he could sell train tickets to spectators. The event was a great success, and it wasn’t long before other matches were planned, stands were built, tickets were sold, local businesses began to advertise their services, and coaches were hired to improve teams’ chances of winning. So began the association of college sports and commerce. Whether the men of Harvard and Yale made a deal with the devil or a mutually beneficial arrangement has been hotly debated ever since.

Today, as university budgets are being stretched by the economic crisis, by the arms race in arenas and stadiums, and by multi-million dollar coaching contracts, the spotlight is again focused on corporate sponsorships and advertising. The expansion of “new media” platforms has increased demand for programming, even while university presidents are committed to preserving the amateur status of student-athletes.

To address today’s challenges, the National Collegiate Athletic Association (NCAA) formed the Presidential Task Force on Commercial Activity in Intercollegiate Athletics, which I chaired. The committee’s key findings are intended to draw attention to some of the central issues facing higher-education administrators and governing boards as they seek to find the right balance between an appropriate level of commercialization and unrealistic idealism. Commercial activity associated with intercollegiate athletics is not going away, and the revenue it produces is critical to supporting a wide range of athletic programs beyond the revenue-generating sports. 

Universities prefer to support athletics through ticket revenues, philanthropy, conference and NCAA allocations, media contracts, and sponsorships. Presidents tend to shy away from the murky issue of funds for athletics competing with funds for academics. While colleges and universities may have differing philosophies about what level of commercial activity fits within their institutional values and culture, two underlying principles should be common to all programs:  

1.      Commercial activity cannot abridge the principle of amateurism as applied to student-athletes, including their exploitation by commercial and professional interests. Student-athletes cannot benefit financially beyond grants-in-aid and other forms of support allowed by NCAA regulations, and their motivation to play college sports should come primarily from the educational and physical benefits of participation. 

2.      Commercial interests must comport with the values of higher education. Intercollegiate athletics and higher education share common values (e.g. achievement, excellence, integrity, hard work) and the keystone of the relationship is the student-athlete, who resides in both worlds.

As straightforward as these principles appear, their implementation can prove elusive. The ubiquity of media companies, corporate sponsors, sports reporters, and analysts, combined with the enthusiasm of athletic boosters, fans, and alumni, can sometimes blur the lines between college and professional sports and weaken the perceived connection to higher education.  

We would do well to remember, as the NCAA likes to say, that there are 400,000 student-athletes, and most are “going pro” in something other than sports. As educators and trustees, it is our responsibility to ensure that student-athletes receive the educational benefits of being enrolled in a university.

The best relationship is a reciprocal one in which the corporate world advocates for the values of intercollegiate athletics. Administrators and governing boards, in turn, have an obligation to work with corporations to help them understand the role of universities. Working in concert with their presidents and chancellors, trustees can ensure that an institution enjoys the full benefits of an athletic program without the undue influence of commercial interests. That way, no matter what the outcome, everyone wins. 

Graham B. Spanier is president of The Pennsylvania State University (president@psu.edu).