Future of Division III

[jknezek]

Hearing from one college President recently, I think next summer will be the real mass closing window.  Most schools will be OK coming out of 2019-2020, but if there's a 10% enrollment drop across the board this fall (which is probably a low estimate), a lot of schools won't be able to ride that dip out.  I'm sure we'll see more schools close this year, but it feels like next summer may see even more.

That's in line with what I think also. They will try and tough it out this year, but it may take every reserve they can scrape together. And if it doesn't bounce back in a banner way with admissions next year, there will be some plug pulling on these schools. We will see. It's just not a happy thought.

[scottiedoug]

Meanwhile, Harvard got millions of dollars from the COVIT-19 "rescue" process.

[Ron Boerger]

Many colleges got funds from the program, at least half of which must be provided to students as emergency relief.  According to the Texas Tribune, $14 billion dollars was allocated in total.

As to how the amounts were determined, another story says "[t]he funds were allocated based on a formula prescribed in the Coronavirus Aid, Relief, and Economic Security Act that weighs the number of full-time students who are Pell-eligible but also takes into consideration the total population of the school and the number of students who were not enrolled full-time online before the coronavirus outbreak."

This URL from Inside HigherEd allows you to look up relief granted to any college.

Edit: redundant "dollars"

[jaller]

Hearing from one college President recently, I think next summer will be the real mass closing window.  Most schools will be OK coming out of 2019-2020, but if there's a 10% enrollment drop across the board this fall (which is probably a low estimate), a lot of schools won't be able to ride that dip out.  I'm sure we'll see more schools close this year, but it feels like next summer may see even more.

Is that President at a school I would be reasonably familiar with?

[Dave 'd-mac' McHugh]

It has been a few years since Division III found itself at a place where so many important decisions needed to be made along with other events needing time and attention. However, never in NCAA history have we found ourselves with winter championships cut short, no spring sports at all, and more questions than answers for what might happen with fall sports and beyond.

COVID-19 has certainly made it's mark.

However, the coronavirus isn't the only important item in front of Division III that requires attention and decisions. Expanding and realigning regions in all sports is nearing the end of a multi-year process. The NCAA's effort to revamp it's student-athlete rules with "Names, Images, Likeness" (NIL) is at critical juncture, especially in DIII. And with the shutdown of 'March Madness' brought with it a sudden budget deficit.

That's just what Division III is dealing with overall. Individual schools are fighting just to keep the doors open. That could result in cutting sports, teams, or other challenges. That could cause conferences to tackle sudden changes in membership or sports sponsorships.

And of course, student-athletes and their well-being is even more important.

Plenty to be thinking about in Division III even athletes and teams are not competing right now.

On this special Hoopsville Podcast, NCAA Vice President for Division III Dan Dutcher joins Dave McHugh for an extensive, in-depth, and detailed conversation on the "State of DIII." Dutcher talks about how the decisions to shut down winter and spring championships came to be. Plus, how COVID-19 continues to impact the division, NCAA, schools, and conferences around the country. Dutcher explains how this year's DIII budget was impacted and if there will be any impact down the road. And Dutcher discusses how NIL is taking form in DIII along with the latest on Regional Realignment and Expansion.

You can listen to the podcast here: https://bit.ly/3apilyF

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[Ryan Scott (Hoops Fan)]

Hearing from one college President recently, I think next summer will be the real mass closing window.  Most schools will be OK coming out of 2019-2020, but if there's a 10% enrollment drop across the board this fall (which is probably a low estimate), a lot of schools won't be able to ride that dip out.  I'm sure we'll see more schools close this year, but it feels like next summer may see even more.

Is that President at a school I would be reasonably familiar with?

They're in a better financial place now,  but still very tuition dependent. Ten percent would be very tough. A lot higher local student percentage now, though, so they may be able to manage. We'll see.

[Ron Boerger]

Meanwhile, Harvard got millions of dollars from the COVIT-19 "rescue" process.

Harvard will return CARES act monies (as will Princeton, Stanford).

[Dave 'd-mac' McHugh]

What is interesting about the schools returning the money ... they had applied for money that was specifically carved out to help students who because of these circumstances were now in some dire straights. They actually got money they deserved to get to try and help out students in need. Harvard, like many schools around the country, do accept students who may not come from the wealthiest homes or places and this new world may have really derailed them.

It is too bad they likely felt pressured to return money that was really designed to help their own students in these difficult times. Pressured because people thought they had taken money from a very different program that was abused and as I have read Harvard and others had nothing to do with.

[Gregory Sager]

What is interesting about the schools returning the money ... they had applied for money that was specifically carved out to help students who because of these circumstances were now in some dire straights. They actually got money they deserved to get to try and help out students in need. Harvard, like many schools around the country, do accept students who may not come from the wealthiest homes or places and this new world may have really derailed them.

It is too bad they likely felt pressured to return money that was really designed to help their own students in these difficult times. Pressured because people thought they had taken money from a very different program that was abused and as I have read Harvard and others had nothing to do with.

Harvard has a $40 billion endowment, Dave. That's billion with a 'b'. It's bigger than the GDPs of several European countries.

Do you honestly think that American taxpayers really need to step in and aid Harvard undergraduates with their tuition and their room & board because Harvard is unable to do so?

Not all of the money that was awarded to colleges and universities in the stimulus package was "specifically carved out to help students who because of these circumstances were now in some dire straights [sic]." The codicil to the stimulus package is that only half of the money need be given to students for emergency cash relief. The rest of the package can go straight into the coffers of the institutions themselves, with a few restrictions; for example, it can't be used for salaries or bonuses for senior institutional administrators or executives. It's that 50% codicil that drew the ire of the White House, and also a lot of other people, many of whom despise the president. And it's why Harvard, Stanford, Princeton, etc., quickly announced within a day or so that they would not be accepting the money, and would support their students out of their own voluminous endowments. And it's why other super-wealthy institutions of higher learning such as Notre Dame immediately announced that 100% of their stimulus money would go towards financial aid to students whose families have been impacted by the pandemic shutdown. Those schools all know a public-relations black eye when they see one.

[Oline89]

What is interesting about the schools returning the money ... they had applied for money that was specifically carved out to help students who because of these circumstances were now in some dire straights. They actually got money they deserved to get to try and help out students in need. Harvard, like many schools around the country, do accept students who may not come from the wealthiest homes or places and this new world may have really derailed them.

It is too bad they likely felt pressured to return money that was really designed to help their own students in these difficult times. Pressured because people thought they had taken money from a very different program that was abused and as I have read Harvard and others had nothing to do with.

Harvard has a $40 billion endowment, Dave. That's billion with a 'b'. It's bigger than the GDPs of several European countries.

Do you honestly think that American taxpayers really need to step in and aid Harvard undergraduates with their tuition and their room & board because Harvard is unable to do so?

Not all of the money that was awarded to colleges and universities in the stimulus package was "specifically carved out to help students who because of these circumstances were now in some dire straights [sic]." The codicil to the stimulus package is that only half of the money need be given to students for emergency cash relief. The rest of the package can go straight into the coffers of the institutions themselves, with a few restrictions; for example, it can't be used for salaries or bonuses for senior institutional administrators or executives. It's that 50% codicil that drew the ire of the White House, and also a lot of other people, many of whom despise the president. And it's why Harvard, Stanford, Princeton, etc., quickly announced within a day or so that they would not be accepting the money, and would support their students out of their own voluminous endowments. And it's why other super-wealthy institutions of higher learning such as Notre Dame immediately announced that 100% of their stimulus money would go towards financial aid to students whose families have been impacted by the pandemic shutdown. Those schools all know a public-relations black eye when they see one.

Good point, Greg.  Also do not forget that there are no student loans at Harvard (or Princeton), any student who qualifies for financial aid receives a grant from the university.  So student graduates with no financial aid debt.

[Dave 'd-mac' McHugh]

People tend to think that endowments can be used for anything and everything. I have no idea the makeup of Harvard's endowment, but I do know that many endowments have restrictions on WHAT they can be used for. I have been told this by college administrators on many an occasion when I see a school with an insanely high endowment and shotty athletics - the endowments can't be used for (pick something relevant). So while a school might have billions in those endowments, we don't know how that money is allowed to be used.

Furthermore, the money available for students in colleges was so that colleges don't have to pour BILLIONS into keeping them safe (basically with no end in sight) and keep the college from having to dip too far into their endowments ... thus keep them open.

[Gregory Sager]

People tend to think that endowments can be used for anything and everything. I have no idea the makeup of Harvard's endowment, but I do know that many endowments have restrictions on WHAT they can be used for. I have been told this by college administrators on many an occasion when I see a school with an insanely high endowment and shotty athletics - the endowments can't be used for (pick something relevant). So while a school might have billions in those endowments, we don't know how that money is allowed to be used.

It's quite true that a lot of endowment money typically consists of restricted funds that are the product of directed giving.

It's also true that Harvard's endowment is sixty billion dollars.

Sorry, Dave, but it's beyond belief that all $60,000,000,000 in Harvard's coffers is already earmarked for other uses. It strains credulity to think that Harvard has no more financial latitude than, say, the late and lamented MacMurray College.

Furthermore, the money available for students in colleges was so that colleges don't have to pour BILLIONS into keeping them safe (basically with no end in sight) and keep the college from having to dip too far into their endowments ... thus keep them open.

C'mon, Dave. Harvard has fewer than 7,000 undergraduates. The cost that the school will incur to provide debt relief for the economically-challenged individuals among that 7,000 -- which is, let's be honest, not that large a percentage of the Harvard student body -- doesn't come anywhere close to being in the billions of dollars. It may not even end up being in the millions.

[Dave 'd-mac' McHugh]

I choose to not attack schools for decisions in a time we have never experienced ...

[Gregory Sager]

And I choose to applaud schools for doing the right thing, like Harvard just did in giving back the money.

[Dave 'd-mac' McHugh]

And I choose to applaud schools for doing the right thing, like Harvard just did in giving back the money.

I think you misunderstood my original point ... Harvard gave back the money under pressure that was based on the wrong pretenses. The "small business loans" story had gained traction for a number of not-so-small businesses like Ruth Chris' Steakhouse that had gotten significant loans from a system not designed for them (due to lots of problems, loopholes, and lack of proper details on both sides of the entire thing). In that "story," many started looking around and found other anomalies and one that people "found" and conflated into the story was Harvard. As if they had gotten a loan from the same small business set-up. Even when it was discovered where their loan had really come from (the one set-up to help students who were suddenly in a tough spot), no one wanted to correct the point (or at least no one anyone wanted to listen to ... but I won't get started on that).

So my point was it was unfortunate that Harvard felt pressured into a decision based on a completely different system, story, and premise, instead of there being a legit convo on the merits of the system they actually got the money from and what the purpose was.

Thus ... I don't want to attack or knock them necessarily because I don't feel the entire scenario was all that fair or forthright towards them.