Freakinomics examines the impact of CFB wins on alumni donations

Submitted by ish on
The impact seems real:

bit.ly/NUHuiM

I bet it has increased my donations whether I know it or not.

triangle_M

July 9th, 2012 at 12:30 PM ^

You know, you can change your vote. 

Someone help me with the methology here.  They indexed point spreads and expected wins to donations.  I downloaded the article and read most of it, skipping the pages of formulae.  They also don't include bowl games in the analysis.  

Here's a bit more from the paper itself, if you're interested:

One extra win is associated with a $340,400 increase in alumni athletic donations and a $960,100 increase in total alumni donations. Out-of-state and in-state enrollment increase by 34 and 91 students respectively. However, there is no significant relationship between wins and non-athletic operating donations, the average donation rate, academic reputation, applications, the acceptance rate, or the 25th percentile SAT score.
An extra win is a win beyond the 5.4 win per year average that they assigned.

AllForBlue

July 9th, 2012 at 11:37 AM ^

This is pretty interesting, but I would like to see a more detailed article. I've always used arguments like these when people ask me why I care so much about UM Football. The football teams' success makes people think more positively about the university, and I argue actually increases the value of my degree(s). 

thisisme08

July 9th, 2012 at 12:12 PM ^

A comment below the article pretty much asks this question; I would have to assume as you do that wins lead to a better brand across all facets of the university which in turn makes your degree more valuable when you go job hunting from the sheer name recognition alone. 

Blue Durham

July 9th, 2012 at 12:35 PM ^

on donations as well as institutional prestige has been disputed by Murray Sperber in his book College Sports, Inc.  Although it is a little old (published in 1990) I think that the material contained in it is still quite relevant.

I don't think that the University of Chicago lost anything by dropping out of active participation in Big Ten sports, and I don't think that MIT, Harvard, Cal Tech, Yale, Princeton etc. have lost any prestige from not having a major football program. 

They all have plently of endowment and name recognition; if anything I think that having a successful D-1 football program would probably cost them in donations. 

jmblue

July 9th, 2012 at 1:41 PM ^

It seems like the big issue is getting the name recognition in the first place.  Once that happens, it may not require sports to maintain it.   Remember that the Ivies were once the great football powers of the country.  The Big Ten was dubbed the "Western Conference"  because at that time, all of the other good football programs were in the Northeast.  Likewise, Chicago was once Michigan's archrival in football.  By the time these schools decided to de-emphasize sports, they were understood to be nationally elite schools.  Was that the case before they started playing sports?  

 

Blue Durham

July 9th, 2012 at 2:34 PM ^

Agreed on obtaining name recognition in the first place, but this was established by the Ivies prior to the existence of football. Granted, much of this was due to them being established before most other colleges. And there are a number of elite schools that never played D-1 football like MIT, Cal Tech, and Duke (just had to throw that one in there). On the other side of the coin, look at the list of all-time winningest programs; it is not a who's who of elite universities. Yes, Michigan is good, but for every Michigan, there is an Alabama, an Oklahoma and a Penn State (which was the Big Ten's worse ranked University when they joined, just like Nebraska now). None of these universities come close to the Ivies and related institutions that do not have D-1 football. And the ultimate point of this thread is contributions/endowment. None of these traditional football powers (with perhaps the exception of Michigan) have annual contributions or endowment the comes close to the Ivies, etc. And I would guess that the Ivies generated most of their endowment after they stopped competing as national powers. Football success either way had little to do with the wealth of the Ivies; if it did, Columbia would probably be the poorest of all universities in the country.

jmblue

July 9th, 2012 at 3:39 PM ^

Were all eight of the Ivy League schools considered highly prestigious all along?  The Harvard/Yale/Princeton trio were, but I don't know about the others.  The fact that they became associated with those three in an athletic conference may have helped their prestige.  

As for historical powers, many of them actually have increased in prestige in recent years.  PSU was nothing 50 years ago; now it's considered a pretty good school.  USC and ND are now considered top 25 schools, which is a new development, and likely tied to the glamour of their football programs.  It doesn't work that way for every school, but I think the general trend is that schools can put themselves on the map with sports and use that as a springboard to bigger things.

Regarding endowments, you have to keep in mind the public vs. private distinction.  Historically, people have been much more reluctant to donate to public schools, presumably because they figured they were already giving to them through tax dollars.  Private schools, lacking that source of revenue, have been more aggressive at raising funds.  

Blue Durham

July 9th, 2012 at 5:15 PM ^

Columbia (originally King's College) and Penn (founded by Ben Franklin) were always pretty prestigious. Brown, Dartmouth and Cornell, I can't say. Regarding tax dollars going to public schools and suppressing donations, I am not sure I understand this as the income tax (state and federal) is a relative recent thing relative to the age of these schools. Also, the income tax only affected the very top earners during its initial implementation. Also, prior to income taxes, I don't think much (as a percentage of budget) went to public universities, and the state budgets were small relative to today's. Finally, regarding Notre Dame and USC's emergence, I don't know if there is any cause-and-effect regarding fundraising, prestige and W/l of the football team. I would be pretty comfortable that there would be a cause/effect with the endowment and prestige; more money to recruit better know academicians. It is interesting that the 2 cases you site are both private institutions, like the Ivies, etc.

superstringer

July 9th, 2012 at 12:56 PM ^

There is definitely an angle that UM's football success UNDERMINES our academic prestige.  Guilt by association.

For many snobby types who went to the aforementioned Harvard, Yale, Chicago, Columbia, or overseas places like Oxford, etc., being a "football school" is a BAD thing.  We have dumb athletes who can't read or write getting degrees, patrolling the campus in packs, we'll let anyone in who can catch/throw/block/shoot etc.  REAL school like Hahvahd and Yale don't let stupid athletics undermine the quality of the student body.  Etc. etc.  I've personally heard this from people at the office -- including those who go to not-so-well-known small snobby East coast prep schools not on the Harvard-level (eg Bryn Mawr, Haverford, etc.).

There's nothing to be done about it.  Stanford seems immune to this, maybe because they have always sucked at the two college sports anyone cares about.

Blue Durham

July 9th, 2012 at 1:05 PM ^

To compound/reinforce this viewpoint, for the most part, the best schools that participate in D-1 football have (1) traditionally sucked and (2) are small private schools, like the Ivies, MIT, etc. Duke, Northwestern, Rice, Vanderbilt. Stanford is the best of the lot, football-wise, and they have been, at best, average in the PAC10 over the years. What is considered the best of the public schools in D-1, UVa, Cal, Michigan and UNC, Michigan is the only program that is a traditional power.

snarling wolverine

July 9th, 2012 at 1:46 PM ^

It can go both ways.  Notre Dame is a school that was put on the map because of football.  For a long time, it was not particularly selective in its admissions.  It is now, presumably because of all the people who grew up ND fans who want to go there.

Of the schools you mentioned, keep in mind that some of them have big-time basketball programs.  Some schools just are more geared to basketball.  Indiana and Kentucky certainly are, but I don't see any correlation with academic quality there.I would imagine that UNC, Duke, Vandy et al. get donation boosts and application upticks after good basketball seasons.  (I'd be pretty surprised if this phenomenon were restricted to football alone.)  

Compare Duke with Davidson.  Two schools in North Carolina with highly selective admissions, but one is nationally-renowned while the other is not that well known.  What's the difference?  Probably sports. 

 

jmblue

July 9th, 2012 at 1:37 PM ^

We have dumb athletes who can't read or write getting degrees, patrolling the campus in packs, we'll let anyone in who can catch/throw/block/shoot etc. REAL school like Hahvahd and Yale don't let stupid athletics undermine the quality of the student body. Etc. etc.

But it's a sham, because the Ivies actually lower their standards dramatically to admit athletes - not as low as the NCAA minimum, granted, but a good 200-300 points on the SAT (under the old 1600-point scale) on the average. If you are a talented athlete, your odds of gaining admission to an Ivy increase exponentially. Why they do this is hard to understand, given that they don't seem to reap the financial benefits of sports.

BTW, Stanford's historically been pretty good in basketball, or at least they have over the last 20 years or so.  Under Mike Montgomery they were an annual NCAA tournament team and made the Final Four once.

Mr. Rager

July 9th, 2012 at 12:58 PM ^

I donated this past year. Never donated during the RR era. It was definitely due to the fact we werent winning, and Hoke gave me a great season of memories last year (went to UTL and Sugar Bowl).

UMgradMSUdad

July 10th, 2012 at 12:46 AM ^

As others have pointed out, the freakonomics article paints with too broad of a brush.  Certainly in some cases, athletic success has helped to raise awareness of schools.  Boise State was a community college 30 or 40 years ago.  Now, with the football success, it's a least a school people have heard of,  I would say West Virginia, too is helped by success in football to where many people don't realize what a crappy academic instituion it is.

And at some private institutions especially, success on the gridiron might actually hurt their academic reputation--or at least lack of athletic success isn't bringing them down. There are probably more people out there like Superstringer alludes to than we think, snobs who presume a school with a successful football school program is by definition academically inferior.