HL Scholarships to Cover Cost of Attendance

[valpo95]

According to ESPN, the Horizon League has expanded scholarship payments to cover cost of attendance for men's basketball and an equal number of women.

http://espn.go.com/mens-college-basketball/story/_/id/12682835/horizon-league-passes-cost-attendance-measure

[valpotx]

That is good news to separate us from other mid-major conferences!

[valpo64]

What actually does this mean in terms of dollars?   When does it start?  What does it cover?  When will Valpo begin the supplemental aid?  Has anyone heard when and if others schools will start?

[justducky]

What actually does this mean in terms of dollars?   When does it start?  What does it cover?  When will Valpo begin the supplemental aid?  Has anyone heard when and if others schools will start?

I hate to speculate from a position of total ignorance but depending on those answers this could mean anything from "little change" to "a substantial recruiting advantage" when compared to equal and lower programs. I was not even aware that this option was available for the mid-majors so maybe I will need to retract some of my initial rant which was directed towards the BIGS. 

[wh]

If I recall correctly, only 23 college athletic departments are self-sustaining, all of which are high majors. All the rest are committing to something for which no revenue source presently exists to cover the cost. The MAC has committed to paying COA money to every scholarship athlete in every sport, which will cost every school an estimated $500,000 to $1 Million per year. Where is that money going to come from?  Even the the HL's more conservative approach could add $100,000 to Valpo's athletic budget. This may be pocket change for the big time majors, but it's a huge ongoing financial commitment for the vast majority of college athletic departments that have been put in the unfortunate position of trying to keep up with the Joneses.

[valpo04]

If I recall correctly, only 23 college athletic departments are self-sustaining, all of which are high majors. All the rest are committing to something for which no revenue source presently exists to cover the cost. The MAC has committed to paying COA money to every scholarship athlete in every sport, which will cost every school an estimated $500,000 to $1 Million per year. Where is that money going to come from?  Even the the HL's more conservative approach could add $100,000 to Valpo's athletic budget. This may be pocket change for the big time majors, but it's a huge ongoing financial commitment for the vast majority of college athletic departments that have been put in the unfortunate position of trying to keep up with the Joneses.

While I agree that most schools don't have as much margin as the big dogs, the "only 23 top departments are self-sustaining" is a bit of a myth that is refuted in this article about paying players:

http://www.huffingtonpost.com/2015/03/27/ncaa-pay-student-athletes_n_6940836.html

As Rodney Fort, a sports economist and professor of sports management at the University of Michigan, succinctly put it, "The money is already there." The NCAA alone brought in nearly a billion dollars in revenue in its most recent financial year, and top-tier athletic programs regularly bring in tens of millions of dollars as well.

Sure, you might say, there's a lot of money coming in. But if the schools are still losing money or only breaking even on their sports programs, won't additional labor costs hurt those programs and the schools?

"That's a silly argument," Berri said. "They're nonprofits, and their incentive is to spend every cent that comes in."

"That doesn't mean they aren't making money," he added. "That just means they spent all of it."

Duke's athletic program, for example, pulled in revenue of nearly $80 million during a recent fiscal year. But it ended up with just $146,000 in excess revenue. That's also why the NCAA had a surplus of only $80 million on $989 million in revenue for its last fiscal year.

The system is set up so that almost all the money that comes in from college athletics is soon spent.

"Schools quite often move around or spend money to basically get rid of excess revenue -- what would be called profit in a profit-making corporation," said Michael Leeds, a professor of economics at Temple University. "'[That's why] you have several coaches [in the NCAA] getting paid NFL money, despite working for an enterprise that really does not match what the New England Patriots and the New York Giants take in."

That would explain why some universities end up with state-of-the-art sports facilities. Or why Duke basketball coach Mike Krzyzewski makes nearly $10 million per year, much more than the typical NBA coach. Or why in so many states, the best-paid public employee is a basketball or football coach.

[VULB#62]

That would explain why some universities end up with state-of-the-art sports facilities. Or why Duke basketball coach Mike Krzyzewski makes nearly $10 million per year, much more than the typical NBA coach. Or why in so many states, the best-paid public employee is a basketball or football coach.

[/quote]

Wow.  You have to go down to the map.  Of the 50 states, there are only 11 where the highest paid public employee is NOT a college football or basketball coach.  They are:

Alaska
Nevada
Montana
ND
SD
NY
Delaware
VT
NH
Maine
Massachusetts

FWIW -- The 4 New England states barely equal in size some of the bigger states like WI. But strangely, CT and RI (little Rhodie) pay their MBB coaches the highest of any of their respective public employees