The Financial Behaviors of Chasing Athletic Prestige: Evidence from the NCAA Cost of Attendance Policy

The NCAA's 2015 Cost of Attendance (COA) policy allowed Division I schools to increase spending on student-athletes. Using data documenting COA implementation and a difference-in-differences design, we explore the relationships between COA and institutions' financial behaviors. Athletics expenditures grew substantially after COA adoption, particularly in the "Power 5" schools. While the Power 5 generated substantial revenue from corporate and other sources, Non-Power 5 institutions relied on institutional and government support to fund their prestige pursuits. The findings suggest COA may have exacerbated longstanding inequities in athletics resources and expenditures and illustrate the financial behaviors of prestige maximization in intercollegiate athletics.