This study uses a panel of National Collegiate Athletic Association (NCAA) Division I athletic department revenue and expenditure data from 225 public colleges and universities to empirically investigate the behavior of athletic departments over the period 2006-2011. Three empirical relationships were explored: (a) how changes in total revenue affect disaggregated expenditure categories, (b) how disaggregated revenue streams influence total expenditures, and (c) whether changes in revenue categories change the size of the athletic department’s subsidy. The results show that additional athletic revenue increases expenditures for coaches 7.5 times more than direct expenditures for student-athletes, a ratio that increases for schools in power conferences. For every US$1 increase in ticket sale revenue, total expenditures can rise by US$0.83 and reduce a school’s athletic subsidy by US$0.19.