A financial analysis of the Uaniversity of the Philippines- Diliman athletic program
Date
2013-04
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Abstract
It is well known that collegiate sports can be big business, especially in the Philippine case of men's basketball and more recently women's volleyball. It is not uncommon for Philippine universities to spend great amounts of money on their basketball programs. From related literature based on US collegiate sports in their NCAA, big-time athletic programs were known to bring in huge profits and donations, while some were said to run at a net loss. This paper aims to provide an analysis on the financial status of the University of the Philippines Diliman's varsity athletic program and its externalities on the University in the case of enrolment. An accounting analysis of marginal costs and revenues was done to reflect the true economic costs and benefits derived from the varsity program. The estimated the impact of athletics was then derived using the general standing and men's basketball standing of UP Diliman in the University Athletic Association Philippines (UAAP) on University-wide freshman enrolment through an ARIMA model. The accounting analysis indicated that UPD's varsity athletic program had a loss ofPHP 294,553.85 and a budget deficit ofPHP 4,952,917.29 forAY 2011- 2012. However, when enrollment impacts of University athletics are taken into consideration, it seems that the University's varsity athletic program is a positive contributor to University revenues. It was also found that UPD's varsity athletic program, although supposedly state subsidized, is largely dependent on non-state allocated funds, such as private or alumni donations, commercial sponsorships, and political entities.
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Keywords
sports economics, collegiate athletic programs, accounting analysis, auto regressive integrated moving average model (ARIMA), University of the Philippines