Vespidae
Helluva Engineer
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That's not necessarily true. The majority of programs don't make money and has yielded limited if ineffective results.
The study didn't look at that. It looked at the value of a winning sports program to a school. Harvard Business School did a study of 117 schools and wrote a paper in 2015 that concluded that ...
"We do find, however, that past athletic success carries over significantly to the present in both football and basketball, suggesting the significance of the long-term monetary effect of athletic success to many academic institutions in the United States."
In other words, winning programs are better for schools than losing programs and the more consistent the winning, the better for the university.
It's like running a business. If you offer a good quality product, your coffers fill, your brand and reputation improves, and you get a halo effect. If you field a consistent loser, you lose money, your brand suffers and you don't realize the benefits you could. I think HBS basically concludes the same. So, if you are a football program, you should try and field a consistent winner.
Disclamer: The study cites that "education quality dissipates the effect of athletic success on monetary payoffs" ... meaning that top academic schools get a bump, but not as much as state schools. And some schools (like Alabama), the value of each additional win to the school is about $3MM.
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