Mirabile, McDonald and Witte, Mark (2012): Can schools buy success in college football? Coach compensation, expenditures and performance.
Download (658kB) | Preview
Using unique data of Football Bowl Subdivision college football games, we examine the determinants of coach compensation, football expenses and performance. We find that coach compensation is highly related to the coach’s past success. Additionally, coach pay is higher when the institution has a larger fan base and the program has achieved a higher profit in the previous year. Football expenses are likewise determined by institutional characteristics such as the fan base, past profitability and historical success. Results suggest that coach compensation has no measurable impact on performance. A coach’s past success may impact their salary but their salary has no significant impact on future success. Though, an additional, aspirational increase in spending of $1 million on the football program can improve the probability of winning any particular game by 3.5% to 7.0%. Thus, the budget of an administrator is a better predictor of future performance than the coach’s salary.
|Item Type:||MPRA Paper|
|Original Title:||Can schools buy success in college football? Coach compensation, expenditures and performance|
|Keywords:||college football, performance, coaching, compensation, spending|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Institutions > I23 - Higher Education ; Research Institutions
L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism
|Depositing User:||Mark Witte|
|Date Deposited:||14 Aug 2012 01:46|
|Last Modified:||28 Nov 2016 09:31|
Clement, R. & McCormick, R. (1989). Coaching team production. Economic Inquiry, 27, 287-304.
Farmer, A. & Pecorino, P. (2010). Is the coach paid too much? Coaching salaries and the NCAA cartel. Journal of Economics & Management Strategy, 19, 841–862.
Grant, R., Leadley, J., & Zygmont, Z. (2010) Just Win Baby? Determinants of NCAA Football Bowl Subdivision (FBS) Coaching Compensation 2006-2008. Manuscript for Southern Economic Association Conference 2010.
Grossman, G.M., & Levinsohn, J.A. (1989). Import Competition and the Stock Market Return to Capital. American Economic Review, 79, 1065-1087.
Herda, T. J., Ryan, E. D., DeFreitas, J. M., Costa, P. B., Walter, A. A., Hoge, K. M., Weir, J. P., Cramer, J. T. (2009). Can Recruiting Rankings Predict the Success of NCAA Division I Football Teams? An Examination of the Relationships among Rivals and Scouts Recruiting Rankings and Jeff Sagarin End-of-Season Ratings in Collegiate Football. Journal of Quantitative Analysis in Sports, 5, 1-11.
Langlett, G. (2003). The Relationship Between Recruiting and Team Performance in Division 1A College Football. Journal of Sports Economics, 4, 240-245.
Orszag, J. & Israel, M. (2009). The empirical effects of collegiate athletics: An update based on 2004-07 Data. Compass Lexicon Consulting.
Orszag, J. & Orszag, P. (2005). The Empirical Effects of Collegiate Athletics: An Update. Compass Lexicon Consulting.
Zimbalist, A. (2010). Dollar dilemmas during the downturn: A financial crossroads for college sports. Journal of Intercollegiate Sport, 3, 111-124.