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Global Sport Business Journal

Abstract

With increasing costs and decreasing funding (Zvosec & Baer, 2022), the evolution of college athletics has altered the financial realities facing athletic departments (Elliott et al., 2026). To maintain operations, athletic directors are now tasked with identifying new revenue streams and becoming creative in how they manage their budgets. Research in intercollegiate sport has traditionally focused on Division I athletics. However, given the role of Division II and Division III programs, especially in driving enrollment at their institutions, further understanding of the current financial environment facing these schools is needed. The purpose of this qualitative study was to examine the pressing financial issues perceived by Division II and Division III athletic directors in leading their athletic programs. Semi-structured interviews were conducted with 10 athletic directors, including five from a Division II conference and five from a Division III conference. Through a thematic analysis, four themes represent the main findings: (a) rising costs, (b) balancing flat budgets with creative revenue strategies, (c) athletics as a driver of institutional enrollment growth, and (d) expanding impact of NIL. From a theoretical perspective, this research demonstrates how individuals in college athletics make decisions given the multiple, and often competing, logics of key actors in their environment. For athletic directors working at the Division II and Division III levels, these findings provide helpful context for appreciating the current financial landscape, while also offering strategies to navigate the challenges that come with these issues.

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