Just a routine bookkeeping entry

Those of you who keep insisting that the cost of tuition is “real” compensation to college athletes because schools say it is need to listen to what else schools say about the cost of tuition.

Akron athletic director Larry Williams was ordered to chop 23%, or $4.4 million, from his budget. Akron depends on student fees for 40% of its athletic budget and enrollment is expected to be down 20% this fall. The school dropped men’s cross country and golf and women’s tennis two weeks ago, and there will be other spending and staff reductions.

Williams noted the accounting system used by his and other universities often consider the athletic department a cost center and revenue is generally not considered.

“So we in athletics don’t get credit for any of those tuitions that are paid by the walk-ons. The university does,” Williams said.

The walk-ons are paying tuition, but…

“The tuition the athletic department pays to the university on behalf of the student-athlete is really an internal transfer and it doesn’t really matter,” Staben said. “The tuition the student pays matters.”

Ah, romance…

22 Comments

Filed under College Football, It's Just Bidness

22 responses to “Just a routine bookkeeping entry

  1. Corch Irvin Meyers, New USC Corch (2021)

    Question: Since the advent of lottery scholarships like HOPE, isn’t tuition for everyone pretty much the least expensive part of their college education? Even in the late 90’s early 00’s when most of my friends went to school, they paid way more for their dorm rooms and chow plans than they did tuition. When I was in school a decade later, that pretty much held the same.

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    • NON-RESIDENT

      UNDERGRADUATE (FALL 2020 & SPRING 2021)

      On Campus   Off Campus
      

      Tuition 28,830 28,830
      Fees 2,290 2,290
      Books & Supplies 1,052 1,052
      Room 6,292* 4,340
      Board 4,036 4,036
      Transportation 1,898 1,898
      Miscellaneous
      Living Expenses 2,944 3,574
      Total 47,342 46,020

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      • GEORGIA RESIDENT

        UNDERGRADUATE (FALL 2020 & SPRING 2021)

        On Campus   Off Campus
        

        Tuition 9,790 9,790
        Fees 2,290 2,290
        Books & Supplies 1,052 1,052
        Room 6,292* 4,340
        Board 4,036 4,036
        Transportation 1,254 1,254
        Miscellaneous
        Living Expenses 2,944 3,574
        Total 27,658 26,336

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  2. Been trying to explain this point to the “but the scholarship is priceless” crowd for years. There is absolutely a price for a scholarship, but it ain’t anywhere near what the school says tuition costs. If I move $100 from my left pocket to my right pocket, I didn’t gain or lose anything. That is literally how the cost of athletic scholarships work for universities.

    Liked by 1 person

  3. Debby Balcer

    He went to ARC in Augusta for high school. He was a great man. Prayers for his family.

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  4. Former Fan

    And don’t forget that when a business offers you a $100 rug, that only cost them $60 to buy it. The other $40 goes to profit, overhead, fixed and variable costs, etc. Ditto the schools. The scholly doesn’t cost them the full amount of the price they put on it.

    Liked by 1 person

  5. TNDAWG

    OK, what would it cost the athlete if he were not on scholarship. Would there be a monetary transaction to attend classes and use facilities? This aint about internal monetary transfer, its about what the athlete would pay if not on scholarship.

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    • Well, that’s a convenient argument.

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    • TN Dawg (the one y'all hate)

      $28,558.00/yr according to their tuition page.

      More than virtually any Akron football player would be paid by fair market value for their football abilities in any semi-pro league.

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      • This argument assumes the athlete would attend the school even if they did not get a scholarship – which is of course highly unlikely. Add in that the COST of education now likely exceeds its VALUE (see: student loan default rates) and your argument does not hold up. For an extreme illustrative example – Senator Blutarsky could charge a $30,000 “commenting fee”, but then give you a “scholarship” to comment for free with your insights being consideration for the “scholarship”. Your argument would say that you basically just got paid $30,000 – but we all recognize that the value of a “commenting scholarship” is much lower than its cost.

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        • And to take it one step further – your argument also assumes that accepting the “scholarship” somehow actually costs Senator Blutarsky $30,000 – when we all realize that his supply of these scholarships would be basically unlimited (killing any opportunity cost argument), and that without you taking the scholarship, you would just go elsewhere to make UGA football comments.

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        • TN Dawg

          So the “average college graduate will make a million dollars more in their lifetime” is mort?

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          • Are you arguing that college football players are basically getting $1M by right of getting their school paid for?

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            • TN Dawg

              No, I am asking if your position is that a college degree is worthless based on your citation of college loan default rates and capitalized statement that the value received from a college education is not commensurate with the cost.

              For instance, if a 4 year degree costs $120,000 and student loans yields you one million more dollars in earnings over the course of a lifetime than a non-degreed individuals, the return on investment would come in at 8-fold.

              So I’m guessing, but don’t want to put words in your mouth, that if you feel the cost exceeds the value, that you must find the attendance of college to be fiscally unwise, regardless of whether one plays sports or not, just generally.

              Is that your position?

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              • It 100% depends on the degree you get. Is a Housing Management and Policy degree from UGA worth the same as a finance degree from Stanford? Absolutely not. Throw in that UGA football players have a sub-60% 6 year graduation rate and that their majors generally are not money-makers and your argument is far too general at best and incompetent at worst. Also – love your return on investment metrics! Too bad Enron isn’t around to hire you anymore!

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    • practicaldawg

      Agree with TNDAWG. If anything, this shows how much a scholarship is worth in dollars. Players on scholarship are not paying tuition, so that represents cash flow that isn’t being taken in.

      Now that universities are cutting non-self-supporting sports right and left, I’m sure they are fully aware of the cost of scholarship athletes. This is a sad time because 1000s or non-football scholarship athletes will lose scholarship opportunities.

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  6. Don’t you think it’s more intellectually honest to stick with: (1) limiting NIL rights on anyone in the world is patently unfair and (2) these guys deserve it for what they bring in to the university rather than trying to convince me a recipient of a service is getting nothing of value because the provider is not getting its teeth kicked in on overhead.

    I’m sure you have never streamlined anything in the legal field on routine forms that you don’t reinvent every single time, for which you bill at an agreed-upon fixed price that beats your+staff hourly input.

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    • Don’t you think it’s more intellectually honest to stick with: (1) limiting NIL rights on anyone in the world is patently unfair and (2) these guys deserve it for what they bring in to the university rather than trying to convince me a recipient of a service is getting nothing of value because the provider is not getting its teeth kicked in on overhead.

      I would, except I’ve never argued that college athletes get nothing of value. I’m simply pointing out that whatever that value is, the way schools present it is an artificial construct.

      As far as your second point goes, I don’t bill hourly. My fee is based on liability, expertise and base expense. If you’re suggesting that I simply make it up as I go along, as schools do, that’s an ignorant comparison. I guess I shouldn’t be surprised.

      Liked by 1 person

      • I understand how various firm billing methods work, I am an attorney as well.

        I always thought that the value of someTHING was generally determined by the recipient of said “thing,” particularly if it has a readily ascertainable opportunity cost component. In this case, the Thing is readily quantifiable—that is, the native Georgian who could either pay 27k or not-pay-27k by taking the football scholarship. How is that artificial, unless you’re someone who goes to charity raffles and screams cheapskate! at the family who donated a week at their beach house?

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        • I understand how various firm billing methods work, I am an attorney as well.

          Oh, cool. So when you asked about “streamlining” forms, you were speaking from personal experience, then?

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