College Sports in the United States

(Economic Impact and Lessons for Application in Saudi Arabia)

Abstract

Higher education institutions in the United States have several distinctive features that set them apart from those in other countries. One of the most notable aspects is the widespread popularity of collegiate sports, which have become a central component of university life and a significant economic driver. This study aims to analyze the financial impact of collegiate sports within American higher education institutions by examining the primary sources of revenue and the associated expenditure patterns.The findings reveal that a considerable number of U.S. universities generate substantial annual revenue from collegiate athletic activities, with many institutions exceeding $100 million in annual income. Notably, six universities recorded revenues exceeding $200 million in 2023: Ohio State University, the University of Texas at Austin, the University of Alabama, the University of Michigan, the University of Georgia, and Louisiana State University. These figures underscore the vast scale of the collegiate sports economy and its added financial value to academic institutions. The study identified key revenue streams, including ticket sales, broadcasting and media rights, corporate sponsorships, and alumni donations. It also highlighted the expenditures universities incur to support and develop their athletic programs, which include training costs, infrastructure development, salaries for coaching staff and administrative personnel, and other financial commitments. Based on these findings, the study offers several recommendations to enhance the collegiate sports sector in the Kingdom of Saudi Arabia. These suggestions draw on the successful American model to transform collegiate sports into a productive economic sector that contributes to the financial sustainability and marketability of Saudi universities.