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MPC

Economics of Coronavirus for College Sports

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If you are following the higher education debates, colleges and universities are likely going to be paying back 10s of millions in room and board refunds for students this spring (as they probably should). This is going to have a disastrous ripple effect impact on university budgets across the board. Simple fact is that non-revenue sports programs are going to feel the effects big time in the coming years as universities try to climb back out of the financial hole. So if you are a supporter of college wrestling, please donate to your local college program----even a few bucks will help the administration know there is a base of support out their they don't want to alienate in the future. We need to be proactive.

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8 minutes ago, MPC said:

Simple fact is that non-revenue sports programs are going to feel the effects big time in the coming years as universities try to climb back out of the financial hole.

The over-priced universities should take the money from the revenue-generating sports (like basketball and football) to keep the non-revenue sports like wrestling from losing any further ground. Personally, I would volunteer to purchase a new set of singlets for a team of my choice before I send a dime to an college "administrator."

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Restricted giving to a specific team account at a university is the way to go. If a college has a wrestling specific endowment/gift account, it legally means the admin can't spend it on anything else. Its like an insurance policy for the program----if they cut a program, they have to give the money back

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23 minutes ago, MPC said:

Restricted giving to a specific team account at a university is the way to go

I agree, to an extent. I would like to see the money trail so I know the money goes directly to the cause I support instead of in the pockets of the admins. Every year during Christmas time we make a donation to our local vet towards someone with a pet who's mostly in need. We just don't blatantly send money but we ask our vet who she feels needs it the most to keep their pet alive during that time of the year and then anonymously pay the bill in full. I'm happy to donate but I want to be sure its going where it was intended to go.

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2 hours ago, MPC said:

If you are following the higher education debates, colleges and universities are likely going to be paying back 10s of millions in room and board refunds for students this spring (as they probably should). This is going to have a disastrous ripple effect impact on university budgets across the board. Simple fact is that non-revenue sports programs are going to feel the effects big time in the coming years as universities try to climb back out of the financial hole. So if you are a supporter of college wrestling, please donate to your local college program----even a few bucks will help the administration know there is a base of support out their they don't want to alienate in the future. We need to be proactive.

Does your handle really stand for marginal propensity to consume? 

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3 hours ago, MPC said:

If you are following the higher education debates, colleges and universities are likely going to be paying back 10s of millions in room and board refunds for students this spring (as they probably should). 

Why, most students don't live in university housing.   I have one still in college, this hit during spring break, remainder of classes for semester all on-line, students can go home if the want but she & room mates have house rented, they are staying doing remaining classes from their house.  There are no magic pots of money that can cover all this, we are all in it together, everyone is going to be out something, it's not the university's fault.

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The colleges are still getting their tuition dollars for the rest of the semester right?   Colleges are probably among who I'm least concerned about with all this.   Maybe small colleges that have declining enrollment could end up needing to cut sports, but no large school should really be hurting enough as a result of this that it would cause them to cut sports.

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1 minute ago, 1032004 said:

The colleges are still getting their tuition dollars for the rest of the semester right?   Colleges are probably among who I'm least concerned about with all this.   Maybe small colleges that have declining enrollment could end up needing to cut sports, but no large school should really be hurting enough as a result of this that it would cause them to cut sports.

Think you mean universities but yes tuition was paid beginning of the semester but the universities are still open and completing classes for the semester on-line.  Again there are a lot of students who can't and others who aren't going home, they are still there and completing course work.

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15 minutes ago, 1032004 said:

The colleges are still getting their tuition dollars for the rest of the semester right?   Colleges are probably among who I'm least concerned about with all this.   Maybe small colleges that have declining enrollment could end up needing to cut sports, but no large school should really be hurting enough as a result of this that it would cause them to cut sports.

Ohio State example (just room and board---not tuition)

46,820 Undergrads at Columbus

32% live on campus or in university owned housing= 14,046 (all are required to vacate these as per university policy March 23)

These students pay 6,354 room and board for the semester= 89,248,284 per semester

50% reimbursement would be 44,624,142= 3,177 per student

25% reimbursement would be 22,312,071= 1,588.50

So lets say its in the ball park of 20 million minimum---that has gotta come from somewhere and next year sports may take a major hit. 

I am not saying Ohio State wrestling will be in trouble, but this is just an example of the impact will likely be in the hundreds of millions for universities across the country......the smaller the school, the greater the risk----especially private residential colleges (many DIV III schools, where up to 90+% live on campus)

Edited by MPC

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3 hours ago, MPC said:

Restricted giving to a specific team account at a university is the way to go. If a college has a wrestling specific endowment/gift account, it legally means the admin can't spend it on anything else. Its like an insurance policy for the program----if they cut a program, they have to give the money back

This is the move. I don’t want to put him on the spot or anything, but I think @Coach_J has shared the details before of how to set something like this up. Maybe it can be found in using the board’s Search feature.

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1 minute ago, MPC said:

Ohio State example

46,820 Undergrads at Columbus

32% live on campus or in university owned housing= 14,046 (all are required to vacate these as per university policy March 23)

These students pay 6,354 room and board for the semester= 89,248,284 per semester

50% reimbursement would be 44,624,142= 3,177 per student

25% reimbursement would be 22,312,071= 1,588.50

So lets say its in the ball park of 20 million minimum---that has gotta come from somewhere and next year sports may take a major hit

The "or" is key.  Probably varies by university by "on campus" does not mean its university owned housing, there are fraternities, sororities, apartments, high rises, houses etc all not owned by the university.  Many universities do require that freshmen live in university dorms.  Not sure how you force people to vacate private housing, but maybe it's in the March 23 policy. 

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2 minutes ago, pamela said:

This is the move. I don’t want to put him on the spot or anything, but I think @Coach_J has shared the details before of how to set something like this up. Maybe it can be found in using the board’s Search feature.

Well said---I also think any college coach could easily tell someone how to do this via the college's online giving platform. They try to make it quite simple---even to give to restricted accounts.

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2 minutes ago, ionel said:

The "or" is key.  Probably varies by university by "on campus" does not mean its university owned housing, there are fraternities, sororities, apartments, high rises, houses etc all not owned by the university.  Many universities do require that freshmen live in university dorms.  Not sure how you force people to vacate private housing, but maybe it's in the March 23 policy. 

You don't---but the all 14,046 are required to leave university owned properties and dorms.....thats the policy most universities are taking across the country. (this is only 32% of the undergrad population but it is still a huge number).  And at many schools, fraternities and sorority houses are owned by the university.

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Just now, MPC said:

You don't---but the all 14,046 are required to leave university owned properties and dorms.....thats the policy most universities are taking across the country. (this is only 32% of the undergrad population but it is still a huge number).  And at many schools, fraternities and sorority houses are owned by the university.

But how do you know its 14,046 you said that was the university owned AND on campus number?

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Just now, ionel said:

But how do you know its 14,046 you said that was the university owned AND on campus number?

Ohio State reports this number as referenced in US News and World Report---"Ohio State University--Columbus has a total undergraduate enrollment of 46,820, with a gender distribution of 51 percent male students and 49 percent female students. At this school, 32 percent of the students live in college-owned, -operated or -affiliated housing and 68 percent of students live off campus."  See the OSU policy here https://news.osu.edu/coronavirus-prompts-travel-restrictions-at-ohio-state/ ----do the math, its a big number (and Universities will need to provide this for students---who certainly need it too).

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4 minutes ago, MPC said:

Ohio State reports this number as referenced in US News and World Report---"Ohio State University--Columbus has a total undergraduate enrollment of 46,820, with a gender distribution of 51 percent male students and 49 percent female students. At this school, 32 percent of the students live in college-owned, -operated or -affiliated housing and 68 percent of students live off campus."  See the OSU policy here https://news.osu.edu/coronavirus-prompts-travel-restrictions-at-ohio-state/ ----do the math, its a big number (and Universities will need to provide this for students---who certainly need it too).

All undergraduate students living in university housing — whether they remain on campus at this time or are currently traveling for spring break — will be required to return for the remainder of the semester to their permanent home residences, or a non-campus or alternative housing arrangement.

Actual text indicating "university housing" and will be "alternative housing" for those who can't go home.   

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Just now, ionel said:

All undergraduate students living in university housing — whether they remain on campus at this time or are currently traveling for spring break — will be required to return for the remainder of the semester to their permanent home residences, or a non-campus or alternative housing arrangement.

Actual text indicating "university housing" and will be "alternative housing" for those who can't go home.   

Indeed there are exceptions but not much that will dent a 20 million plus hole in the university budget next year---add that up across all colleges with similar policies as we are talking hundreds of millions.

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I don’t see any scenario where money is paid back to students. Perhaps, state funded schools on a trimester system where the third term hasn’t started yet. Most private NAIA schools do not operate at anywhere close to a profit and are already going to get hamstrung by the global recession; room and board is a major contributor to their balance books. Many would go bankrupt if they had to pay out in masse. 

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9 minutes ago, Force118 said:

I don’t see any scenario where money is paid back to students. Perhaps, state funded schools on a trimester system where the third term hasn’t started yet. Most private NAIA schools do not operate at anywhere close to a profit and are already going to get hamstrung by the global recession; room and board is a major contributor to their balance books. Many would go bankrupt if they had to pay out in masse. 

Good point, but many schools have policies for room and board refunds for medical withdrawals---without a pro-rated refund, I see lawsuits coming. This will also hurt retention and recruitment efforts at tuition driven colleges----all small private schools with wrestling programs will be hard hit by this.

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It will obviously vary from school to school, but I think tuition refunds may be more of an exception than the norm since instruction has moved online at most schools. Conversely, financial aid won’t be impacted at many schools if a student moves off campus, as long as they remained enrolled.

One of the UCs asked its students to go home, and is issuing housing and meal plan refunds, but is keeping the dorms open for students who have nowhere to go (although the dining halls will be nonoperational). The housing office is also helping off-campus kids to legally break or buyout the remainder of their leases.

I seem to remember when Princeton announced its closure, they setup funds to assist students in need with travel/plane tickets and relo services for those who need assistance. We also have a relative whose daughter was attending a small school in MA - don’t know the details but last I saw on Fb she’s home now finishing out the term and the school took care of her.

The policies are pretty scattered, so the institutional economic cost will be wide-ranging.

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2 minutes ago, MPC said:

Good point, but many schools have policies for room and board refunds for medical withdrawals---without a pro-rated refund, I see lawsuits coming. This will also hurt retention and recruitment efforts at tuition driven colleges----all small private schools with wrestling programs will be hard hit by this.

I think you are probably right. I also have no idea what kind of insurance schools carry to protect them from this sort of thing. I now it’s instances such as Grand View the wrestling program is a huge profit driver but so is their room and board.  They cram as many students into a room as possible to maximize $$$. At many other small schools the wrestling programs aren’t popular enough among students and will likely be the first to be cut if expenses mount. 

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7 minutes ago, pamela said:

It will obviously vary from school to school, but I think tuition refunds may be more of an exception than the norm since instruction has moved online at most schools. Conversely, financial aid won’t be impacted at many schools if a student moves off campus, as long as they remained enrolled.

One of the UCs asked its students to go home, and is issuing housing and meal plan refunds, but is keeping the dorms open for students who have nowhere to go (although the dining halls will be nonoperational). The housing office is also helping off-campus kids to legally break or buyout the remainder of their leases.

I seem to remember when Princeton announced its closure, they setup funds to assist students in need with travel/plane tickets and relo services for those who need assistance. We also have a relative whose daughter was attending a small school in MA - don’t know the details but last I saw on Fb she’s home now finishing out the term and the school took care of her.

The policies are pretty scattered, so the institutional economic cost will be wide-ranging.

Good point---only the richest schools like Princeton and Harvard have announced refunds and modest financial support for students. With billions in their endowments, they can afford it, but most universities will be crippled.

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2 minutes ago, Force118 said:

I think you are probably right. I also have no idea what kind of insurance schools carry to protect them from this sort of thing. I now it’s instances such as Grand View the wrestling program is a huge profit driver but so is their room and board.  They cram as many students into a room as possible to maximize $$$. At many other small schools the wrestling programs aren’t popular enough among students and will likely be the first to be cut if expenses mount. 

At least at my university, there is no insurance policy---even for bringing students home from Italy, China and other areas where the state department has declared a level 3 advisory. Most administrators claim that pandemic insurance does not exist.

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