Chapter 8: Athletics as a Strategic Investment: Playing for the Public Good
Posted on March 03, 2025
Download as a PDFDownload as a PDF
Regional public universities are in the hot seat. The funding model has inverted so that students now supply the largest portion of our budget. Technology is revolutionizing how higher education is delivered. A global pandemic has invalidated every once-predictive data point we relied on for critical decisions. Students, parents, and politicians question the value of a college degree.
Yet, for as many doubters we encounter, I keep hearing a different message from those who hire University of Wisconsin-Eau Claire’s graduates: “We need more employees who think, communicate, and collaborate like your other alumni we have hired.” They seek leaders with critical thinking skills who can help their organizations navigate challenging times. Oftentimes, the alumni they are referring to are former student-athletes.
Over the years, I have seen how the transformational competitive experience gained through intercollegiate athletics is a vital pathway to future success. The culture absorbed from competing alongside fellow student-athletes forges lifelong bonds and instills lasting lessons. Indeed, I believe student-athletic participation prepares graduates with the skills needed to serve the public good after commencement.
I recently completed a term as chair of the NCAA’s Division III Presidents Council. Division III represents more than 430 institutions and 195,000 student-athletes—nearly 40% of the NCAA’s total membership—making it the largest of the three divisions. Most DIII members are private institutions, encompassing many of the smallest schools in the NCAA. Unlike DI and DII, DIII student-athletes are not eligible for institutional aid because of athletic participation.1 UW-Eau Claire is an atypical DIII institution because we are a regional public university with an enrollment of 10,000.
For most NCAA institutions, athletics is not a profit center. Despite institutional investment, sponsorships and philanthropy often are needed to meet the cost of transportation, personnel, and facility maintenance. Most revenue is generated by the 130 schools in the Division I Football Bowl Subdivision league through media contracts, ticket sales, donor contributions, and endowments. Yet, in 2022 only 28 of those universities’ athletic departments earned more than they spent.2
When times are tough, it is not uncommon to hear the suggestion that cutting athletics is a quick way to balance the campus budget. I heard those calls when the Universities of Wisconsin dealt with a massive state budget cut in 2015. I rejected the notion that cutting sports teams would save the university money and worked to educate our campus on the true impact of intercollegiate athletics.
We focused on the narrative that participation in intercollegiate athletics can change a student’s academic trajectory for the better.
We focused on the narrative that participation in intercollegiate athletics can change a student’s academic trajectory for the better. Many of our student-athletes have embodied the “power of AND.” In addition to competing at the highest levels, they have been entrepreneurs, opera singers, student body presidents, and scientists. This multifaceted learning experience enhanced the careers of former student-athletes who have become presidents and CEOs of major corporations, successful coaches at all levels, surgeons and physicians, and state and national leaders in their chosen professions. I believe that strong athletics programs are a strategic asset worthy of institutional investment. They never should be viewed as superfluous addenda to institutions of higher learning, but as high-engagement programs whose transformative outcomes produce graduates who lead lives of purpose and impact. How else might we measure fulfillment of our mission to serve the public good?
Over the last 10 years, UW-Eau Claire has leaned into creating an ecosystem of support and accountability for student-athletes. We have learned that:
- Investing in athletics has a positive ROI for student recruitment. The first contact nearly all future UW-Eau Claire student-athletes have with our institution is through a coach. The total revenue attributable to nearly 750 student-athletes—who take classes, declare majors, and earn degrees like all our other students—clearly shows athletics are a more than prudent investment. We also know the student-athlete’s decision to attend UW-Eau Claire means their high school friends may consider attending as well.
- DIII student-athletes are as comfortable in the classroom as they are on their teams. Division III student-athletes meet the same admissions criteria as other students. Our faculty support student-athletes in the classroom because they know they are just as prepared for our curriculum as any other admitted student. What’s more, faculty know these athletes have a network of supportive peers and trusted adults adding value to their undergraduate experience. I have had athletics alumni recall memories of the study groups they formed with their teammates just as fondly as those of competitive success.
- Participation in collegiate athletics positively impacts student-athletes’ persistence. All student-athletes are recruited onto teams where coaches and senior team members can look out for first-year students. This culture of support and accountability helps them stay on track while they simultaneously become skilled communicators and collaborators. Among the cohort of students arriving at UW-Eau Claire in Fall 2020, the first-year to second-year retention rate for student-athletes exceeded the overall student body, 92.23% to 78.3%. Student-athletes of color were retained nearly ten points higher than overall students of color, 83.3% to 73.42%. Student-athletes in the Fall 2017 cohort also notched a win on the six-year graduation rate compared to their overall cohort, 81% to 74%.3
- Strong athletics programs create a more interconnected campus. Student-athletes have diverse academic interests, making teams cross-disciplinary summits where young learners from all parts of the campus mingle. To encourage faculty and staff to experience the intersectional university, we made admission to athletic events free for anyone who shows an employee ID. From football to volleyball, crowds at UWEC athletic events are a vibrant cross-section of our campus and community. The crowds add to the inimitable rush of a great college contest, creating a virtuous cycle wherein the audience and student-athletes amplify each other’s energy.
As UW-Eau Claire’s student-athletes continued to outperform the general student body’s retention and graduation rates, we looked to see if there were other programs on campus where an ecosystem of support yielded similar outcomes. From the Blugold Marching Band to living-learning communities in our residence halls, we developed an appreciation for “high-engagement programs” that provide an exceptional environment of support for undergraduates. This concept allowed us to design pilot interventions for students, focusing on those at high risk of non-retention. We found that replicating those tenets of a high-engagement program for high-risk students—such as connection to a trusted adult, engagement with upper class mentors, and regular co-curricular interaction with students in a similar situation—created a sense of belonging and improved retention. The outcomes are even stronger for underrepresented students on our campus.
This model is sound, as exemplified by our intercollegiate athletics program, but I also believe athletics’ efficacy hinges on student-athletes having the freedom to learn and develop throughout their experiences. My service on the Division III Presidents Council allowed me to join other university leaders at the forefront of contemplating and enacting policy changes to better serve student-athletes. Our discussions and decisions benefited greatly from the student representatives who joined chancellors and athletic directors in envisioning better structural supports for today’s competitors.4 Each of the NCAA’s three divisions serves the public good in its own way. DIII is committed to providing a true student-athlete experience, where educational quality and academic success are priorities. The Division III Presidents Council recommitted to this mission in 2023 as we celebrated the division’s 50th anniversary.5
The past five years have seen a massive disruption in intercollegiate athletics. When I became chair of the Council in 2022, we thought fallout from the pandemic would be THE primary game changer impacting intercollegiate athletics. Although the NCAA transfer portal was launched in 2018, we had not seen significant usage prior to the pandemic. The pandemic, which provided student-athletes with additional eligibility, suddenly brought the portal into full focus as students realized they could extend their collegiate athletic careers, often at other institutions. Use of the portal skyrocketed. And we are not seeing any indication that the use of the portal will decline.6 Just as athletic programs were adjusting to the impact of the portal, the Name, Image, and Likeness (NIL) rules approved in 2021 opened up a world of opportunity for student athletes. A new NCAA constitution was about to take effect, making additional reforms possible.
Throughout the country, some have suggested reclassifying student-athletes benefiting from NIL opportunities as university employees, a development I believe would irrevocably diminish the best possible outcomes of participation in intercollegiate athletics. During my tenure, the Division III Presidents Council supported the NCAA’s push for federal legislation to help codify national standards for NIL and create a special status so student-athletes would not be classified as university employees.7 We can and will continue to enhance structures of support for future generations of student-athletes, but we cannot afford to lose sight of our guiding values.
We can and will continue to enhance structures of support for future generations of student-athletes, but we cannot afford to lose sight of our guiding values.
The transfer portal aims to make it easier for student-athletes to move between institutions. The potential benefits are clear. NCAA research found that mental health, conflicts with coaches or teammates, and playing time or participation opportunities ranked as the most common reasons for entering the portal.8 Many DI schools have seen major roster changes become commonplace every season, with that high turnover quickly becoming the enemy of preserving team culture. But from whom do first-year players learn team norms if senior players are transferring for their last year of eligibility? How does the team dynamic shift when we alter the value placed on loyalty and trust within the team?
Similarly, NIL rule changes sought to empower student-athletes—not just their institutions—to profit from their public image. Though we do not have extensive data to show the full impact of these developments, we know anecdotally that they have had an impact. The actual effects have varied widely among institutions and student-athletes. A major question focuses on the inequity created by NIL deals for some athletes and not others. How does that impact the institution’s ability to help them, and how do these deals impact team culture and cooperation? A relatively small number of student-athletes have profited significantly from lucrative NIL deals. Most student-athletes have not and will not get rich from NIL. Opportunities to benefit student-athletes at DIII institutions will be the slowest to take hold since most are in small, private institutions that have financial challenges. Still, we must continue to study the full impact of these changes—considering what may be gained and what we must protect.
Other reforms have improved support for students in less ambiguous ways, though they have received less attention. Beginning in 2024, the NCAA’s new post-eligibility insurance program will help student-athletes cover medical expenses related to injuries sustained during athletic participation for up to two years after their time with a team concludes.9 Advances like these, facilitated in part by student representatives added to all NCAA governing committees, keep me optimistic that we can resolve outstanding questions about the transfer portal and NIL.
I expect efforts to empower student-athletes will continue to evolve, gaining definition and uniformity as we learn what works and what does not in the years ahead. These developments reflect NCAA member institutions’ desire to give student-athletes more agency, and that is a job worth finishing.
As universities grapple with complex budgetary and enrollment environments, and as state and federal lawmakers work with the NCAA to define this new era of collegiate athletics, university leaders should not discount the invaluable lessons imparted when a student-athlete becomes part of a high-functioning team. As these individuals leave their collegiate experience, we have found the skills they honed through athletic competition and their interactions participating in a competitive team environment are highly transferrable. Contributions to their employers, communities, and society are significant. Intercollegiate athletics programs offer a high-engagement experience through which an undergraduate can develop sought-after skills, excel in academics, and forge a new path in life. The intended consequence is providing generations of graduates with the capacity and inclination to serve the public good for a lifetime.
References
- NCAA. (2021, February 16). Our Division III Story. Retrieved April 29, 2024, from https://www.ncaa.org/sports/2021/2/16/our-division-iii-story.aspx
- NCAA Research. (2023, December). Division I Athletics Finances: 10-Year Trends from 2013 to 2022 [Presentation slides]. https://ncaaorg.s3.amazonaws.com/research/Finances/2023RES_DI-RevExpReport_FINAL.pdf
- UWEC Office of Institutional Research
- Radford, C. (2022, April 28). DIII Presidents Council adopts legislation adding student-athletes to its roster. NCAA. https://www.ncaa.org/news/2022/4/28/media-center-diii-presidents-council-adopts-legislation-adding-student-athletes-to-its-roster.aspx
- Whitaker, J. (2023, August 3). DIII Presidents Council sponsors proposal to revise philosophy statement. NCAA. https://www.ncaa.org/news/2023/8/3/media-center-diii-presidents-council-sponsors-proposal-to-revise-philosophy-statement.aspx
- NCAA Research. (2024, January 5). Transfer Portal Data: Division I Student-Athlete Transfer Trends [Interactive data dashboard]. https://www.ncaa.org/sports/2022/4/25/transfer-portal-data-division-i-student-athlete-transfer-trends.aspx
- NCAA. (2023). NCAA Division III Presidents and Management Councils: Summary of Winter 2023 Quarterly Meetings. https://ncaaorg.s3.amazonaws.com/committees/d3/mc_mgmt/Jan2023D3MCPC_SummaryActions.pdf
- NCAA Research. (2022, May). NCAA Student-Athlete Well-Being Study [Presentation slides]. https://ncaaorg.s3.amazonaws.com/research/other/2020/2022RES_NCAA-SA-Well-BeingSurvey.pdf
- Henry, C. (2023, August 3). NCAA to provide schools post-eligibility injury insurance option for student-athletes. NCAA. https://www.ncaa.org/news/2023/8/2/media-center-ncaa-to-provide-schools-post-eligibility-injury-insurance-option-for-student-athletes.aspx