The impact COVID-19 and other factors have on college and university athletic programs

The coronavirus (COVID-19) has affected higher education institutions both fundamentally and financially. In March 2020, as colleges and universities across the country transitioned to a remote learning environment, intercollegiate athletic seasons were cut short or cancelled entirely.

The decision to cancel competition intensified most athletic departments’ pre-existing struggle for financial stability. On an annual basis, the National Collegiate Athletic Association (NCAA) distributes funds to its member schools. Most of this money comes from the television and marketing rights as well as ticket sales for the Division I Men’s Basketball Championship. This, combined with decreased revenues (e.g., from tuition, fees and other revenue generating sports that were likely subsidizing others) and stagnant or increasing costs, have compelled leaders to make some difficult and unpopular decisions related to cutting athletic programs.

Programmatic cuts

Although cuts to athletic programs are not unique to the COVID era, colleges and universities of all sizes are considering changes to their athletic programs as a result of COVID-19 and other variables within the industry that have been exacerbated by the pandemic. Recently and in the current higher education athletic program landscape, institutions make cuts to programs for a variety of reasons, although financial pressures remain the primary driving force behind such decisions.

Potential risks to be aware of

It is important to understand the possible risks related to cutting a collegiate athletic program. Consider the following when making these strategic decisions.

Financial risks

• Impacts to the school’s ability to use and/or generate gift funds and endowed scholarships
• Decline in future enrollment and tuition revenue
• Reduction in funds distributed by the NCAA
• Decrease in special assistance funds (e.g., Pell Grant disbursements)

Regulatory risks

• Non-compliance with Title IX and NCAA regulations
• Misrepresentation in annual reports to the Department of Education on athletic program participation, staffing and revenue and expenses for men’s and women’s teams