There are accounting rules
and you cannot simply ignore costs that one part of an organization incurs on behalf of another. Mostly these are because of tax laws, which universities aren't subject to (except for-profit ones like Grand Canyon) but they still have to behave in a manner consistent with accounting practices. If you hand-wave the cost of a player's scholarship, that cost is now borne by the school itself, and they have to report that as a loss, and they don't want to do that because it inevitably looks like a massive taxpayer subsidy of the athletic department. Given that scholarship costs easily run into eight figures, and that the athletic department does actually pay cash to the university (it's not all magic money) the cash flow is not insignificant, either.
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In response to this post by hoomonger)
Posted: 10/15/2020 at 07:39AM