Using Activity-Based Costing to Create Transparency and Consistency in Accounting for Division I Intercollegiate Athletics

Lawrence, Heather J.; Gabriel, E. Ann; Tuttle, Lauren E.

doi:10.1123/jis.3.2.366

Cited by 6 publications

(10 citation statements)

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“…Results show how previously established ABC cost drivers for intercollegiate athletics (Lawrence et al, 2010;Tuttle, 2009) and reallocation of expenses back to specific sports allow for a greater understanding of the cost of each sport. The outcome is a working model for consideration by athletic leaders that seek to understand the full cost of each sport in their program offerings.…”

Section: Sijmentioning

confidence: 81%

“…In addition, many institutions are paying millions of dollars for athletic department expenses that are inaccurately attributed to other areas on campus (Alesia, 2006;Kirk, 2014;Sperber, 2000). According to Lawrence et al (2010), it is common to cover debt service obligations from the institution's general operating fund and/or other financial resources. It could be argued that student scholarships, loans, academic facilities, faculty salaries, and many other educational purposes suffer due to fiscal management that funnels general operating fund money to athletics.…”

Section: Intercollegiate Athletics Financial Challengesmentioning

confidence: 99%

“…In 2007, Dimitropoulos explored ABC within a sport context identifying 10 steps potentially needed to apply ABC in the sport industry. Then, Lawrence et al (2010) developed the case and logistics for application of ABC in the intercollegiate athletics segment of the sport industry. Similar to the Granof et al (2000) study, the purpose was to demonstrate the feasibility and benefits of applying ABC, but neither study developed a complete working model.…”

Section: Activity-based Costingmentioning

confidence: 99%

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Applying Activity-Based Costing to Intercollegiate Athletics

Lawrence

Wanless

Gabriel

2020

sij

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Current accounting methods in intercollegiate athletics make it difficult for leaders to assess and understand the true cost of each sport team operations. Institutional and athletics leaders often make decisions concerning sport sponsorship/offerings, budget allocations, overall program operations, and review Title IX compliance based on information that may not truly capture the cost of each sport. Additionally, intercollegiate athletics reform groups and the federal government are calling for athletic departments to report more consistent, accurate, and transparent financial data. The purpose of this paper is to respond to the call for accounting reform in intercollegiate athletics via an innovative application of activity-based costing (ABC) to one NCAA Football Bowl Subdivision (FBS) athletics department. ABC was applied to the athletic department budget report with results showing how previously established ABC cost drivers for intercollegiate athletics (Lawrence, Gabriel, & Tuttle, 2010) and reallocation of expenses back to specific sports allow for a greater understanding of the cost of each sport.

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Section: Sijmentioning

confidence: 81%

Section: Intercollegiate Athletics Financial Challengesmentioning

confidence: 99%

Section: Activity-based Costingmentioning

confidence: 99%

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Applying Activity-Based Costing to Intercollegiate Athletics

Lawrence

Wanless

Gabriel

2020

sij

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“…Stakeholders are often left befuddled as to how athletic departments fail to report a positive net income annually with the large sums of money that are being introduced to athletic departments through multi-year billion dollar television contracts (McEvoy & Morse, 2013). In 2010, it was reported that only the top 6% of schools produce a net income annually, an analysis in 2014 displayed that the top 20% of schools in the FBS division of the NCAA produce a net income (Lawrence, Gabriel, & Tuttle, 2010;Schlereth, Scott, & Berman, 2014).…”

Section: Nicholas Schlerethmentioning

confidence: 99%

Social Reporting & NCAA

Ubochioma¹

2018

JBLE

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Commercially precious information that gives a corporation a competitive edge like customer lists, production methods, advertising strategies, pricing data, and chemical formulae is what is known as a trade secret. Safeguarding these secrets is thus essential for corporations. Three different aspects are associated with trade secrets: one comprising their essence; their business value; and keeping reasonable efforts to maintain secrecy. Such terms are essential in attaining actual protection in addition to offering proof of secret existence upon request through judicial protection. This study considers the various approaches and techniques used to safeguard trade secrets by giving an individual lawful charge of filing a complaint where court needs attending to any abuses contravening his/her rights to these secrets. Therefore, the present study offers a detailed analysis of the kind of litigation considered when seeking civil legal actions involving trade secrets; the offended, by considering immediate complaint or civil action against the individual who legally cased the damage to as to have his/her trade secret protected.

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“…Today, ABC has been applied to many different industries, including airlines (Banker & Johnston, 1993), pharmaceuticals (Jorgensen & Edwards, 1998), government (Brown, Myring, & Gard, 1999), automotive retail (Booth & Balachandran, 1999), universities (Granof, Platt, & Vaysman, 2000), e-retailing (Zeller, 2000), banking (Bamber & Hughes, 2001), financial services (Byerly, Revell, & Davis, 2003), small manufacturing firms (Needy, Nachtmann, Roztocki, Warner, & Bidanda, 2003), health care (Arnaboldi & Lapsley, 2004), telecommunications (Major & Hopper, 2005), and community colleges (Carducci, Kisker, Chang, & Schirmer, 2007). In 2007, Dimitropoulos began to explore how ABC might be applied to sport organizations and then Lawrence, Gabriel, and Tuttle (2010) provided the conceptual framework for an application of ABC in intercollegiate athletics. In 2013, Lawrence and Gabriel tested the model using one large Division I institution.…”

Section: Activity-based Costingmentioning

confidence: 99%

The Impact of Intercollegiate Athletics Financial Inequalities

Lawrence

2013

Journal of Intercollegiate Sport

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Inequality within intercollegiate athletics has roots as deep as the enterprise itself. From a macro perspective, financial inequality in intercollegiate athletics stems from free-market forces influencing intercollegiate athletics, specifically the National Collegiate Athletic Association (NCAA), television broadcasting, and the Bowl Championship Series (BCS). Because the NCAA operates on behalf of its member institutions, these inequalities trickle down to all conferences, universities, and athletic programs, to specific sports, and finally to student-athletes. The goal of this paper is to respond to Zimbalist (2013), add to the conversation about financial inequality in intercollegiate athletics, and describe how national inequalities translate into inequalities on campus. An analysis of the structure of intercollegiate athletics that perpetuates these inequalities is presented, Activity-Based Costing (ABC) is introduced, and practical ideas to assist in creating a more financially equitable model of intercollegiate athletics are presented. Inequality within intercollegiate athletics has roots as deep as the enterprise itself. From a macro perspective, financial inequality in intercollegiate athletics stems from free-market forces influencing intercollegiate athletics, specifically the National Collegiate Athletic Association (NCAA), television broadcasting, and the Bowl Championship Series (BCS). Because the NCAA operates on behalf of its member institutions, these inequalities trickle down to all conferences, universities, and athletic programs, to specific sports, and finally to student-athletes. Conference executives are charged with putting their member institutions in the best possible position for success and the free market reigns, with some conferences substantially more valuable than others. The BCS operates in the best interest of the Power Conferences (SEC, Big Ten, Pac-12, Big 12, and ACC) and certainly considers the new Group of Five (Big East, Mountain West, Conference USA, MAC, and Sun Belt), resulting in a smaller group of conferences and institutions that are directly affected by their operations. But, in reality, all colleges that compete in the NCAA are indirectly affected by the BCS. As in any free market, many factors exist that affect the value of institutions and conferences, such as competitive success, geographic region, tax status, overall brand strength, history, and religious affiliation. Decision-making and priorities along the way are critical components of any discussion on college athletics finance, and this is where NCAA, conferences, BCS, Lawrence is with the

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Using Activity-Based Costing to Create Transparency and Consistency in Accounting for Division I Intercollegiate Athletics

Cited by 6 publications

References 16 publications

Applying Activity-Based Costing to Intercollegiate Athletics

Applying Activity-Based Costing to Intercollegiate Athletics

Social Reporting & NCAA

The Impact of Intercollegiate Athletics Financial Inequalities

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