Case Study: The Football Schools - Arkansas

[Pudge]

Look at the Growth? Academic/University Stature is tied to Growth.

What's going on here. Well ... in actual tweaks of terms & conditions of getting in, the University of Arkansas has done 2 prime things: (1.) Like Georgia, they now have a Lottery that is funding in-state kids to get to this level; (2.) for the 5 states that touch their border, University of Arkansas is offering in-state tuition. That significantly impacts Texas. The University of Texas is highly selective now as you need to basically be in the top 10% of your HS class to get in. Plus the demographic growth in that state is incredible. So ... the University of Arkansas is cheating some.

But ... what is going on?

When you grow undergrads from 15,000 to 20,000 in a short period, the President is crowing about the INCREASE in academic ranking at USN&WR. He is pumping that they are climbing all these rankings. This Football money is impacting them at this level. "The Football Schools" is now not just a euphemism; it is taking on a Stature with Institutional Investment & where retailers/developers/banks/kids want to be. Is it more than just Arkansas? Absolutely. The biggest example of growth lately is Arizona State University. But, many others are growing at 5% rate. That's a lot.

What is going on outside of that P5 in growth>?

In my circle of investment, the Texas State University in San Marcos; USF and UCF in Florida; Boise. Growth rates? Some are beyond the P5 - which includes some landlocked Privates and others that will simply never grow.

How is the P5 Cartel going to lock that door and never let any of these high-flying future Giants ? This I believe is a seem in this current push for Playoff structure. You are going to have policy makers, with constituents, knocking on the door. They have voters too.

 

[Carl Spackler]

I feel like there is some important to be conveyed in that message Pudge. Can you please dumb it down a bit for me?

 

[Dooley]

I feel like there is some important to be conveyed in that message Pudge. Can you please dumb it down a bit for me?

Me too. I think what he's saying is that the P5 schools will get more students and the G5 schools will not. The trickle down effect of being shunned by the P5 impacts athletics and academics.

 

[Pudge]

Case Study in business school are supposed to teach you a lesson from actual practical facts & strategy.

Here ... There's a clear case of Major Universities equating Excellence/ Branding with Growth. So, part of the P5 exclusion is distinctly beyond Football. It's all wrapped in bigger better best & that is bringing in major investment. Google $100m Private Student Residence & see where they are generally going: The Football Schools.

My question, in terms of Public Policy, are we going to let this focused investment skew our education ranking.

My question is what about these outliers - who have football - that are going to want their inclusion into the Cartel.

 

[Carl Spackler]

Ok, I think I get it. I think UCONN is a bit of an enigma though. Our path through intercollegiate athletics and growth and development as a university over the past 35 years is entirely unique in the entire country. Shifting conference affiliations, multiple sports spread around with different affiliations, multiple home venues - we've done it for 3 1/2 decades and counting, and the change in the university from what it was in 1980 to what it is now is hard to describe in words - and I do think that what the school has become is sustainable by the socioeconomic culture.

I think the major problem that UCONN faces, given that we've been excluded from the big money football club, is that we don't have a security blanket anymore. As long as UCONN money maker sports (men's bball, women's bball, and most importantly football) continue to be successful and draw enough revenue to maintain where we've come, and continue along a path of growth that reflects a reasonable inflation rate in coming years - I don't see much of a change for UCONN. With the merchandising, and the entire generation of UCONN huskymaniacs and their children growing, and the power of the brand of the University - I think we can survive.

We don't have a security blanket in revenue though, if we become bottom dwellers and losers in athletics though - that's what's changed for UCONN. As winners, we'll continue to attract students, academics and grants, research, funding both privately and publicly. I don't see any reason for that change.

The majority of schools outside the big money football club, don't have the same profile though.