Abstract
Traditionally, attendance has been the prevailing measure of demand in the intercollegiate athletics industry. However, new sources have emerged, including television ratings and revenue from broadcast rights fees and sponsorship agreements such as apparel and naming rights contracts. Given that U.S.-based intercollegiate athletics departments receive an estimated $500 million annually via rightsholders such as IMG College and Learfield for their multimedia rights (MMR), these rights fees have emerged as an important source of revenue. This research breaks new ground by utilizing these rights fees in a model that estimates how much each institution should receive, and identifying those who have been paid more or less than predicted. Results indicate that in many instances IMG College has overpaid for rights, while Learfield has underpaid, and that rights are predicted by the institution’s performance in men’s basketball and demand for its football program, rather than institutional or market-related factors.
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