Just had a fascinating lengthy discussion with AI (!) about the future of university athletics programs following the NIL decisions and the upcoming House V. NCAA settlement. I'm sure I didn't read it thoroughly or understand all of it. And I admit I come from an academic background with a somewhat anti-Big-Time sports bias. But -it sounds to me as though the fallout from the House settlement is now irreversible. There is a "premier league" in formation - nicknamed the "Super League," which will separate the big money teams from second tier teams.
This will NOT solve the problem of university's subsidizing athletics. Apparently it's well known that even the biggest media contracts are not paying for even football expenses - the universities are footing the bill for, e.g. legal expenses (think U. of Michigan today!), for utilities of athletic facilities, for snow plowing the parking lots, for tutor's benefits. Etc.) But the Super League will be followed by formation of limited liability companies, which DO separate ALL the expenses, and indeed are themselves not tax exempt, to protect the university's non-profit status. The University of Kentucky has already formed a limited liability company (Champions Blue) which separates the university's athletics department from the university, but all these revenue questions are not yet settled and indeed are under legal challenges.
Am I understanding all this correctly (never have a long AI discussion on a small phone screen!) What I don't understand is why second tier schools are fighting so hard to maintain the status quo EVEN THOUGH 1) it's costing them huge deficits and is unsustainable; 2) it's already 95% hopeless for them to compete with Big Time schools; and 3) it's pretty much proven that the arguments that faculty and student recruitment depends on how big a sports name the school has matters very little in individual decisions. As for donors, those who care about athletics are now busier than ever keeping up with the Joneses and trying to pool money to pay athletes.
AI explained all this as the "sunken costs dilemna," human inertia, backers' emotions, and institutional blocks. Yes, the lesser sports will have to travel less, make do with older facilities, and smaller scholarships, but so be it - they are still competing, right, when many lesser sports are being cut entirely to focus on the big boys. But even further - it sounds as though all this is already unstoppable, so why continue to fight so desperately?
This will NOT solve the problem of university's subsidizing athletics. Apparently it's well known that even the biggest media contracts are not paying for even football expenses - the universities are footing the bill for, e.g. legal expenses (think U. of Michigan today!), for utilities of athletic facilities, for snow plowing the parking lots, for tutor's benefits. Etc.) But the Super League will be followed by formation of limited liability companies, which DO separate ALL the expenses, and indeed are themselves not tax exempt, to protect the university's non-profit status. The University of Kentucky has already formed a limited liability company (Champions Blue) which separates the university's athletics department from the university, but all these revenue questions are not yet settled and indeed are under legal challenges.
Am I understanding all this correctly (never have a long AI discussion on a small phone screen!) What I don't understand is why second tier schools are fighting so hard to maintain the status quo EVEN THOUGH 1) it's costing them huge deficits and is unsustainable; 2) it's already 95% hopeless for them to compete with Big Time schools; and 3) it's pretty much proven that the arguments that faculty and student recruitment depends on how big a sports name the school has matters very little in individual decisions. As for donors, those who care about athletics are now busier than ever keeping up with the Joneses and trying to pool money to pay athletes.
AI explained all this as the "sunken costs dilemna," human inertia, backers' emotions, and institutional blocks. Yes, the lesser sports will have to travel less, make do with older facilities, and smaller scholarships, but so be it - they are still competing, right, when many lesser sports are being cut entirely to focus on the big boys. But even further - it sounds as though all this is already unstoppable, so why continue to fight so desperately?