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[QUOTE="HtownOrange, post: 5659207, member: 622"]
Spot on.

Fundamentally, any business operation must not spend more than they bring in over time.  The concept is easy.  The application is difficult because decision makers fail to remove human emotion from the equation.  Some go so far as to justify losses on other bases to cover the emotional side of the decision.

Claiming that the AD is a "cost of doing business" to recruit students is a viable basis, but once the cost exceeds the net draw of new students, viability is lost and the basis is destroyed.  Compare ND v. Rutgers.  ND manages their AD and uses their sports, especially football, to recruit new students from across the nation.  Rutgers' AD has apparently little management oversight and does not bring in new students, nor any other new revenue sufficient to cover the costs/expenses of the AD.    All private schools and some state schools manage their ADs well.

Congress should legislate that state schools must operate within their AD revenue over time.  There will be years when there will be deficits, but there should be years when there is net gain.   Over time the break even point must be attained or lean to net revenue.

P.S. I did not use SU as the example as my point is not SU v. Rutgers.  SU parallels NDs principles.  SU generally pays into SU more often than running in the red.
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