At the college level, the definition of athletic director is changing. The recent announcement that Stanford has hired John Donahoe, former CEO of Nike, ServiceNow, and PayPal, to lead its athletic department is a far cry from the traditional hirings of ADs. Once seen as the pinnacle of careers built in sports administration, the athletic director role is increasingly attracting leaders from the corporate world.
While this shift is currently only being observed in top Division 1 programs, it could begin to trickle down into smaller university and high school programs as NIL continues to expand. It raises critical questions for current and aspiring athletic directors: What skills are universities prioritizing? How should ADs prepare to stay competitive in an evolving landscape?
The CEO-ization of College Athletics
For years, athletic directors were called the “CEOs” of their departments. Today, universities are taking that title literally. Donahoe joins a small but growing group of ADs pulled directly from corporate leadership, like John Wildhack at Syracuse (formerly of ESPN). USF Bulls are even looking to replace former AD Micheal Kelly with someone who bear a new title: CEO of Athletics.
Industry observers say this reflects the new scale and complexity of modern college sports. Athletic departments in Power 4 conferences often manage revenues in the hundreds of millions, navigating challenges like NIL, conference realignment, compliance, and escalating facility costs. Boards and presidents are looking for leaders who can operate these departments like major businesses — with strategy, financial oversight, and stakeholder management at the forefront.
What This Means for Athletic Directors
Skills in Demand
Universities are signaling a preference for leaders with experience in strategic growth, fundraising, financial management, and multi-stakeholder leadership. The ability to manage relationships with presidents, donors, faculty, alumni, and coaches is becoming just as important as knowledge of NCAA regulations or athletic operations.
Challenges in Compensation
Despite the prestige of the AD role, salaries lag behind corporate equivalents. Tennessee’s Danny White, the highest-paid AD in the country, earned $3.35 million last academic year — far below the average CEO compensation of $4.7 million at similarly sized companies. That gap makes it difficult to lure sitting corporate leaders, but it also raises the bar for ADs to demonstrate business-level value.
A New Competitive Field
Traditional career pathways through compliance, operations, or coaching administration may no longer be the only way forward. Universities may increasingly consider candidates with business or media backgrounds, putting pressure on current ADs to broaden their professional toolkits.
Preparing for the Future: Action Steps for ADs
1: Strengthen business acumen – Consider pursuing executive education, leadership certifications, or even MBA coursework to deepen financial and strategic skills
2. Adopt corporate practices – Integrate data-driven decision-making, transparent financial reporting, and operational efficiency models commonly used in corporate environments.
3. Build stakeholder management skills – Develop stronger alignment with presidents, boards, and faculty while continuing to foster relationships with coaches and athletes.
4. Prioritize fundraising and NIL strategy – Demonstrate expertise in growing revenue streams, from donor campaigns to NIL initiatives, to showcase value beyond sports operations.
As the sports landscape continues to expand, so too will the roles and responsibilities of athletic directors. Continue to bring passion and knowledge of athletics, but be prepared to lead as an enterprise executive.
