The NCAA has concluded a study of programs moving from Division II to Division I and found that while revenue increased by $2.5 million (nearly $2 million of that increase came from the school itself), expenses increased by an average of $3.5 million.
In an interesting note. Schools that are Division II if they increase their spending on athletics the increase will not be recovered by new revenue. On average each extra dollar of athletic spending for a Division II school nets only 60 cents, losing 40 cents per dollar of investment. If memory serves a similar study in Division I found that the ROI in Division I ranged from 80 cents per dollar to $1.10 depending the type of school. For example a BCS school adding luxury suites can expect an ROI of around $1.10 but a non-football school beefing up its program can expect to lose 20 cents for every extra dollar (couldn't find the link to the Div I study... sorry).
The report does note that pure financial reasons aren't the only reason for shifting Divisions.
Quote:
However, school officials cited a number of intangible reasons for moving to Division I, including: public visibility, increased school spirit, or feeling out of place in Division II because of enrollment size or nearby rivals.
Here is the article.
http://www2.ncaa.org/media_and_events/p ... y_rls.html
Thanks for the knowledge arkstfan. Bring us more whenever you get this.
I sure hope the powers that be are reading some of this stuff and REALLY doing their homework before this move up, or we are going to end up like Savannah St out of GA, or close to it if we misjudge this move.