deadspin on scholie costs

[Millhouse]

no opinion on it yet, need to read thoroughly later

http://regressing.deadspin.com/how-athletic-departments-and-the-media-fudge-the-cost-1570827027

 

[javadoc]

no opinion on it yet, need to read thoroughly later

http://regressing.deadspin.com/how-athletic-departments-and-the-media-fudge-the-cost-1570827027

Pretty good reiteration of what has been discussed here. The real cost of scholarships is discounted by financial aid, and direct grants to the AD ("institutional support") are like financial aid for the AD.

 

[nzm136]

Scholarships cost the attached university money to the extent that the costs paid for by the scholarship (i.e. tuition) cover variable costs. That fact is true to the extent that those costs are variable (few costs are truly variable, but many are semi variable). The rest of the money is essentially an athletic subsidy for the university. That subsidy is then reversed to the extent that the attached university gives its athletic program "institutional support."

calculating exact cash flows is very difficult as each university is structured differently, and that structure changes at each university every year.

 

[nzm136]

IMHO, the net effect is that at most universities, athletic departments subsidize academics, even if it doesn't always look like it (especially to the untrained eye).

The same is true for bowl games. They are insanely profitable, even if it doesn't always look like it.