The Government Accountability Office released a report showing that the vast majority of college athletic programs operate at a financial loss, requiring substantial support from student fees and university budgets. The analysis examined Division I and Division II programs, finding that 330 of 352 Division I schools—representing 94 percent of programs—spent more money than they generated during the 2023-24 academic year. At the highest competitive level, only 20 of 69 Division I athletic departments managed to generate revenue exceeding their expenses.
The financial gap between spending and revenue is substantial. Division I programs collectively spent $20.8 billion while generating only $13.1 billion in that academic year. To address this multibillion-dollar shortfall, athletic departments drew from institutional funds including tuition, student fees, and other unrestricted university resources. The report determined that the median contribution per undergraduate student to cover athletic deficits was $8,500 over a four-year period, with these contributions sometimes including federal student aid. Additionally, Division I programs received an average of $19.9 million in institutional support annually.
Division II programs faced even more severe financial challenges, with all 297 programs reviewed spending more than they generated. These programs collectively spent $2.7 billion while generating only $365 million in revenue, requiring universities to transfer $2.3 billion to sustain their athletic operations. The report, commissioned by Education and Workforce Committee Chairman Tim Walberg, prompted concerns about the use of student and taxpayer resources to fund athletic operations.
The findings have sparked calls for reform within Congress. A bipartisan bill known as the Protect College Sports Act is under consideration and could receive a vote as early as this week. The proposed legislation would impose various changes to college athletics, including limits on conference expansion, stricter transfer rules, and constraints on coaching changes. While the bill has garnered support from numerous colleges, conferences, and the NCAA, observers note it appears unlikely to directly address the spending concerns highlighted in the GAO report.
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