The new video display scoreboard in Tiger Stadium’s north side as seen from the Pete Maravich Assembly Center on Sept. 13, 2024. (Matthew Perschall for Louisiana Illuminator)
The chairman of the U.S. House Committee on Education and Workforce is calling for an inquiry into how college athletics spending impacts student fees.
U.S. Rep. Tim Walberg, R-Michigan, sent a letter to the U.S. Government Accountability Office seeking the inquiry. According to his letter, 92% of NCAA Division I athletics programs rely on student fees and institutional support. Many profitable athletic programs, such as Ohio State University and the University of Georgia, collect student fees, according to publicly available data published in the Knight-Newhouse College Athletics database.
Walberg noted federal student aid provided under Title IV of the Higher Education Act covers the costs of tuition, fees and other education related expenses.
“The data on spending on college athletics raises distinct questions about how schools fund their athletic programs and the extent to which Title IV student aid subsidizes these costs through students’ tuition and fees,” Walberg said.
While some NCAA Division I athletics programs bring in more revenue than they spend, not all schools within powerhouse conferences report profits. That’s true within the Southeastern Conference. Although LSU is typically profitable, it reported a deficit in the last full budget cycle.
No Division II programs are profitable, according to a 2022 NCAA report.
LSU does not currently have a student fee supporting athletics, but it might be forced to consider implementing one to keep up with peer programs.
Walberg, who was selected to chair the committee in January, has raised concerns as to how university budgets will be impacted by the upcoming settlement in the court case House v. NCAA. The lawsuit has opened the door for direct payments from schools to college athletes, maxing out at up to $22 million per year.
The congressman is posing the following questions to the Government Accountability Office:
- How do Division I and II colleges fund college athletic programs and facilities?
- How do student athletic fees vary among Division I and II colleges, including amounts, trends over time and transparency?
- To what extent do Division I and II colleges allocate specific funding sources (e.g., athletics revenue, private donations, student tuition and fees, institutional and government revenue) for various athletic program expenses, such as coaches’ salaries, student recruitment and athletic facilities?
- How does the recruitment of student-athletes, including NIL compensation and potential future revenue sharing, contribute to athletic program expenses and the cost of postsecondary education at Division I and Division II colleges?
- What role does the Department of Education play in providing guidance and oversight to colleges regarding the use of Title IV funds for athletic program expenses and the reporting of athletics-related revenues and expenses?
- How are Division I and Division II colleges adapting their financial aid strategies for both athletes and non-athletes in response to the rising costs associated with athletic programs, considering the potential impact on the overall affordability of education for all students?
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