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Kingston Case

In: Business and Management

Submitted By taniavsd
Words 1035
Pages 5
1) The current allocation of indirect costs may be hiding some inequality in the way the university invests in male vs. female athletes. For example, indirect costs such as salaries for support staff, the equipment usage, vehicle leases, etc, are generally consumed more by male teams such as the football, basketball and wrestling teams, as compared to the female golf, swimming, volleyball, teams. For example, another way of allocating the indirect costs could be based on the proportion of direct cost incurred by male and female athletes, because the indirect costs, except for sports conditioning and student development, don’t tend to vary with the number of athletes. If this approach were used, the proportional indirect cost for male athletes would be 70.54% of the total and 29.46% for female athletes. This would incur a total indirect cost for the male athletes equal to $5,557,492.49 and for the female athletes equal to $2,321,005.51. So, the cost per male athlete would be $39,776.22 (= 11,256,669.49 ÷ 283), and the cost per female athlete would be $24,614.09 (=4,701,290.51 ÷ 191). As we can see, this method would indicate an increase in discrepancy.

2) Current cost per male athlete = $36,760
Current cost per female athlete = $29,084

Men Women
Direct Cost 2,346,200 2,380,285
+ Indirect Cost 3,908,067.61 3,970,430.39
Total Cost 6,254,267.61 6,350,715.39
÷ #of Students 188 191
Total Cost per Athlete 33,267.38 33,249.82
This option is fairer because it brings both direct and indirect cost between male and female athletes more in line which would comply with Title IX. The problem is that the school will not want to eliminate the male football team because it is a revenue sport and given the amount of their costs, it’s probably the major team of the entire school. A possible suggestion would be to create additional female...

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