The commitment to athletics in Division III has lead to money being spent on new sports and recreation facilities. So much so that it’s been put to question if there is an “arms race” to who can build the biggest and best facilities. In division I there has been almost 15 billion dollars spent on new facilities since 2000. From 2002-2008 50 brand new facilities were built on college campuses throughout the NCAA with thirteen of them being in division III. All of which cost more then 20 million dollars to the school.
These small, mostly private schools are spending millions on Football fields, Gyms, indoor and outdoor tracks and student recreation centers. This battle seems almost unnecessary considering almost zero of these athletes will become professionals and in most cases athletics takes away around 20-25 hours of school work time to there student athletes. Looking at the research there seems to be three reasons why schools sell the idea of how a new facility can bring more then a large bill to the school. These points are first recruiting success that leads to athletic success and the enrollment bump in not only the student athletes but also the student population as a whole. Finally how the sch...
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...s sketch is shown to every alumni possible in efforts to fundraise in most cases 20 millions dollars plus needed to complete a new athletic center. Alumni are willing to give possibly millions of dollars because it can be considered a “charitable donation” and can help relieve their taxes. Colleges are essentially non-profit business and when they are donated to it is considered a “charitable donation”.
If the athletic department cannot raise enough money by themselves they can turn to long term tax exempt bonds to help offset the costs. A bond isn’t all that different from a loan in the sense that it is, in its most basic form, a contract to repay borrowed money with interest at fixed intervals. These bonds can be spread out up to Thirty years and in most cases will be paid back with ease. Other ways schools can pay for facilities are with student fees.
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