mwolverine1

July 8th, 2020 at 4:02 PM ^

If maintaining offered academic and athletic programs during a global pandemic isn't reason enough to dip into the endowment, then what is? Is the purpose of the endowment to support the university? Or is the primary purpose the endowment's own survival? The fund is considered endowed if it is expected to last in perpetuity. Based on the disbursement rates, investment gains, and donations, the endowment doesn't just maintain its value, it grows each year. Yes, this means Stanford benefits more in 2020 than it did in 2000. However, would it be acceptable for 2025 to be the same as 2020 if that means that programs can be saved? I think that's the real question. Those in charge of the endowments make it sound like any further disbursements put the future of the fund in jeopardy. I frankly think that's a little ridiculous. The way these funds are treated doesn't justify all of the tax advantages they enjoy in my opinion.

BlueinLansing

July 8th, 2020 at 10:41 PM ^

Nearly all large donations to endowments have covenants that restrict what the money or proceeds can be spent on.  So you might have a billion dollar endowment but only 200 million you're free to spend any way you please and a large university usually will have an extensive wishlist.  Dipping into the endowment to pay for one season of athletics isn't on that list.

 

Endowments are not saving accounts, they are invested and the money returned from investments is used to fund operations of the school.  Every school would like to increase its endowment so they can better pay their employees, expands schools within the University or improve capital projects among many other things.    Spending hard endowment money is usually a recipe for future financial disaster as many small liberal arts colleges are finding out or will find out.

highlow

July 8th, 2020 at 2:42 PM ^

I wonder if this is in any way related to the whole Varsity Blues (buying scholarships) thing. Stanford sailing got nailed there. Maybe an internal investigations thing? I know that squash especially is a sport where a substantial fraction of kids who play do so explicitly to get a scholarship (on the theory that the sport's unpopular but still gives schollies so, as far as D1 sports go, it's an "easy" get)

https://www.washingtonpost.com/education/2019/06/12/ex-stanford-sailing…

BlueinLansing

July 8th, 2020 at 2:45 PM ^

I wish people understood how endowments work and that they aren't an open checkbook.

 

Fencing was easy to drop since Stanford is one of only two schools on the West Coast sponsoring the sport, the other UC-San Diego.

Field Hockey is not a Pac-12 sponsored sport and is an Eastern sport as well, only UC-Davis and Cal-Berkely sponsor the sport out there.

 

All those other sports are heavy East Coast travel with limited Pac12 sponsorship.

highlow

July 8th, 2020 at 6:48 PM ^

I don't think anyone thinks that endowments are all general use funds or whatever. To suggest, though, that they can never, ever, be tapped no matter how much the University wants to is silly.

A board that wants to do it and donors who are amenable can make that happen. It is a choice by both parties to not do so, and to cast it as "oh, sorry, we'd love to but we're stuck here" is extremely untrue. I have my opinions on why neither side has decided to do this (tl;dr: they see endowments as a dick-measuring contest, are rich finance people who are totally insulated from financial distress and can't / don't understand the crushing impacts on normal people, and are predisposed to see non-finance people as spendthrifts who need to be governed, not subject-matter experts who should be taken seriously), and they may or may not be right, but again: if they wanted to, it would happen.

BlueinLansing

July 8th, 2020 at 10:48 PM ^

Men's volleyball.  The Pac12 has 3 schools sponsoring mens volleyball  Stanford, UCLA, USC  Wrestling is is also very minor Pac 12 sport with only Arizona State, Oregon State and Stanford having teams.  Pac12 is 6 teams which including CS Bakersfield, Cal Poly and Ark-Little Rock.

 Easy cuts.

Walter Rupp

July 8th, 2020 at 6:22 PM ^

False, the Sears/ Director's Cup relates to a school's best performing sports, or best 10 women's and 10 best men's.  So it's unlikely that a school like Stanford would remove something that they have a tradition of excellence in competing or that would not enable them to continue to win this trophy.

baileyb7

July 8th, 2020 at 7:21 PM ^

Perfect time to rethink college athletics.  We have too many teams and athletes in college sports.  There are only a couple revenue generating sports and the rest are a drag on the athletic department and/or the general fund of a university.  Just because you are really good at a very minor sport doesn't mean you should go to college for free.  Join a club team if you love playing so much.

I would propose for each non-revenue sport that two conferences with the most geographic and historical advantages be the only two conference with varsity scholarships for that sport. The winner of each conference plays for the national title.  For instance, women's volleyball would only be a varsity sport in the Big Ten and the Pac-12.  Men's wrestling only the Big Ten and Big 12.  Swimming the SEC and Pac-12, etc.  Try to even it out a bit among the Power Five conference that have large enough football budgets to pay for the handful of non-revenue sports that conference is playing varsity in.  

 

Mpfnfu Ford

July 8th, 2020 at 7:42 PM ^

People are going to cry over this, but all these non revenue sports are is an excuse to let shitty student rich kids into Stanford when they don't have the grades, and they get great facilities paid for by revenue generated by Football/basketball TV money/alumni donations directed mostly to Football/Basketball that gets siphoned away from the people who earned it.

Given the political culture at Stanford, I doubt you'd find any other area where anyone would support taking money away from the people who make it to give to money losers who produce a product nobody gives a shit about watching. It's high time the Pac 12 schools in general stop taking money from football/basketball to throw away on idiotic rich kids sports nobody cares about just so lil Colten can get into UCLA and Stanford with his 950 SAT score.

TrueBlue2003

July 8th, 2020 at 7:51 PM ^

I can't believe these were varsity sports, save for maybe field hockey and wrestling.

Squash!? Synchronized swimming!? Who do they even compete against?

JamesBondHerpesMeds

July 8th, 2020 at 9:25 PM ^

It's a bummer to see these programs restricted, but....to be honest, most of these sports are known as "rich kid" sports. The students getting scholarships would most likely be able to afford an education anywhere even without athletic financial aid.