Re: Overall and Earned Profit and Loss
This would depend upon whether a school has a fixed budget for financial aid that is distributed across the number of students that receive it, or whether the amount spent depends upon the specific students accepted. I'd also be very curious as to how a school's overall financial aid policy, such as Michigan's decision to charge zero tuition to any in-state student from a family that makes less than $65,000 a year, affects the accounting cost of athletic scholarships.
Another important thing to keep in mind is that a lot of the big Division 1 schools, especially those in the Big 10 and ACC, are facing a financial armageddon in the not so distant future. Whenever the next round of rights fees negotiations come up with ESPN, they are likely to involve a lot less money coming in to the athletic departments as ESPN's business model has collapsed. Unfortunately, I'm not seeing a lot of evidence that schools are thinking that far ahead in the capital expenditure decisions they are making right now. So, there could be a big crunch coming.
Originally posted by GTOWN
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Another important thing to keep in mind is that a lot of the big Division 1 schools, especially those in the Big 10 and ACC, are facing a financial armageddon in the not so distant future. Whenever the next round of rights fees negotiations come up with ESPN, they are likely to involve a lot less money coming in to the athletic departments as ESPN's business model has collapsed. Unfortunately, I'm not seeing a lot of evidence that schools are thinking that far ahead in the capital expenditure decisions they are making right now. So, there could be a big crunch coming.
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