Price elasticity breeds inefficiency. When you can have pretty much whatever you want and be able to raise your prices to cover it, why would you try to do more with less? And if Olympic sports are not the things the administrations want, they are at risk. This is the last decade of the great university build out. In 2030 the chickens will come home to roost. States, municipalities, and cities will declare bankruptcy like falling dominos and default on their pension obligations. This will trigger the steepest recession in 100 years. Universities will have to reinvent themselves just like those businesses and retirees that depend on government work and pensions. Unless you live in Wisconsin. They are 99% funded. They will just have to build a southern wall to keep Chicagoans out. Illinois' pension funding ratio is 23%. They are screwed. Pennsylvania has over $75 billion in unfunded pension obligations. Include municipalities and it balloons to $225 billion. That is just one state.PSU continues to make more and more money every year, and they continue to spend almost every dollar they make. The whole system is broken. If you’re interested, The Knight Commission report provides a high level breakdown of the expenses….
Pennsylvania State University | College Athletics Database
cafidatabase.knightcommission.org
Invest heavily now. These are the roaring 20's. Just start liquidating inflated assets in 6-7 years, then sit back and watch the show.