Compare and Contrast National Athletic Association (NCAA) - Coursework Example

Compare and Contrast National Collegiate Athletic Association (NCAA) Similarity NCAA is a non-profitable organization that controls athletes from over one thousand institutions. It systematizes athletic programs for many USA as well as Canada’s institutions. NCAA membership comprises of three divisions including I, II and III whereby the first two are capable of offering sponsorships (Rosner & Shropshire, 2011). Renowned schools contest in Division I, which comprises of further levels embracing Division I-A (Football Bowl Subdivision) and Division I-AA (FCS) while smaller schools are in II and III (Rosner & Shropshire, 2011).

Despite an institution being profitable in its athlete program or not, they can take part in either divisions depending on their success in playing. The common situation among college participants is that they do not have the right to profit from their own aptitudes despite the NCAA doing so. Media and game giant, Electronic Art pays NCAA to use its bowl games and team names in videogames like NCAA Basketball as well as NCAA Football. This college version does not include players’ names; hence they do not share the splits with the NCAA for the governing body contends student-athletes receive enough benefits worth their caliber.

These benefits comprise free college education to the athletes through sponsorships, which mainly is in terms of waiving tuition.Differences Mainly, revenues emanate from broadcast agreements, tickets besides other sources like subsidies among the division I institutions (Burnsed, 2014). Regardless of all these funds, athletics associated costs rise at a fast rate such that expenses surpass the obtained revenue in all except 20 institutions in division I-A, for instance, the annual median proceeds from 2012 to 2013 augmented by 3.

2% but their expenses managed to top by 10.6% (Burnsed, 2014). These institutions outside the 20 could not make profits therefore since expenses were more than their revenue forcing them to subsidies. Institutions like University of Michigan alongside other others with major athletics programs make profits, hence no need for subsidies for the sports fetch them quite a sum of profits. For instance, when The University of Michigan won the national championship in 1997, managed to realize proceeds of approximately 14 million dollars from the football program yet at that time many other institutions complained of poverty when advised to expand their financial aids (Rosner & Shropshire, 2011).

The profit making institutions from athletics have managed to take their sports to another level by compensation of celebrity coaches, having bigger stadia for example Michigan’s The Big House that has 100,000-sitter stadium, and offering professional contracts to star athletes (Rosner & Shropshire, 2011). This has justified how money controls many aspects of collegiate athletics. Contrary, institutions that have no profits do not have this kind of sophistication for they do not have adequate funds to develop in athletics that much.

All these 20 self-sustained institutions come from conferences whose participants gain automatic qualification into the Football Bowl Subdivision. This is the reason for their huge revenues because it is in this competition where a lot of money is (Berkowitz, Upton, & Brady, 2013). The other typical institutions have to go through qualifications in order to reach the Bowl Championship Series. Most institutions that fail to qualify are the typical ones and they fail to make profits through athlete programs hence having it hard in getting enough funds since subsidies is the major source of fund for them.

ReferencesBerkowitz, S., Upton, J. & Brady, E. (2013). Most NCAA Division I athletic departments take subsidies. American Council of Trustees and Alumni. Retrieved from http://www.goacta.org/news/most_ncaa_division_i_athletic_departments_take_subsidiesBurnsed, B. (2014). Growth in Division I athletics expenses outpaces revenue increases. NCAA. Retrieved from http://www.ncaa.org/about/resources/media-center/news/growth-division-i-athletics-expenses-outpaces-revenue-increasesRosner, S. & Shropshire, K. L. (2011).

The business of sports. MA: Jones & Bartlett Learning.