University of Kentucky is the first to spin off their actual athletics department as a limited liability corporation (as opposed to the current model of booster corporations distinct from the department). The operationalization of this is yet to be seen, but it sounds a lot like a “public-private partnership” and may open the flood gates of private equity getting involved. While private equity can create a cash boom, it is not without consequences. Sometimes it’s hard to know whose money it actually is. And frequently the business model of private equity is that parts of the business are worth more than the sum, so they have no issue squeezing the valuable parts dry and leaving someone else to cleanup the bankrupt mess. See Sears, Red Lobster, and current efforts to burn down Southwest Airlines.
Unless players like Fresno can also find operational efficiency, I don’t know jacking the price of hotdogs and getting a 20 yard line sponsor will close the gap. By operational efficiency maybe there’s some overhead to cut, but ultimately I think the House settlement athletic model is in financial trouble at the mid-majors unless congress finds a way to rethink football’s relationship to T-IX (and for sure T-IX does need reform because it has been “interpreted” over the years probably in a more extreme way than the writers intended).
Student fees commensurate to value provided are reasonable, for example to contribute to operating costs of recreation activities, student union, student seating at games. But there is a moral issue with pushing 1000s of students into more debt in order to pay six figure “salaries” to athletes already getting a free ride.
“ But there is a moral issue with pushing 1000s of students into more debt in order to pay six figure “salaries” to athletes already getting a free ride.”
Amen. And a high percent of the students are taking out student loans to pay their way which compounds the cost. What a mess.
There definitely is a moral issue with that. And what percentage of students even give a crap about the athletics programs they're increasingly asked to support ?
If people truly wanted to stop all of this nonsense they could boycott the college sports programs that promote it. Big corporate donors watch what the little people do and adjust their behaviors based on what will buy them good P.R. However, when it comes to college football people become sheeple. Got to have the college football at all costs. Well, everyone else can continue to feed the monster. They just better not complain when the monster tries to eat them.