A Strategy to Reduce Financial Risk Facing Intercollegiate Athletic Departments from Variable Ticket Revenue

Revenue from ticket sales is an important, yet highly variable, budget component at many intercollegiate athletics programs, thus exposing programs to considerable financial risk. We explore the potential for athletic departments to reduce or eliminate this uncertainly via a risk management model. 71 NCAA institutions were examined that met threshold criteria for ticket revenue importance and variability. Over the four years 2007–2010 these departments collected ticket revenues 10 % or more below projected targets in nearly 25 % of the cases examined. We propose that the $137 million in total unexpected revenue shortfalls over the study period were avoidable.