Headcounts Are Nader’s Problem, Not Scholarships

Ralph Nader’s proposal to replace athletic scholarships with need-based financial aid is a crackpot idea. Mostly because it would be totally ineffective. The cottage industry parents use to get a college scholarship would shift to also help parents maximize financial need. And a financial aid office unprepared for this transition would be raided by college coaches seeking to maximize their scholarship dollars.

But Nader has a point. The problem is he attacks the entire athletic scholarship rather than the more specific problem: the headcount.

NCAA sports have two financial aid models: headcount and equivalency. In a headcount sport, the limit is on the number of counters: student-athletes on the team who receive any athletically-related financial aid. $1 counts the same as a full scholarship, so typically only full grant-in-aids are awarded. In equivalency sports, the limit is on the total amount of athletically-related aid awarded. This limit is expressed as a number of equivalent full grant-in-aid awards, like the 4.5 allowed in men’s golf. There are also hybrid models in sports like FCS football and baseball where there are limits on both counters and equivalencies.

In a headcount sport, the coach has a binary decision: to offer aid or not. Ability to pay and academic merit count, but can quickly be overwhelmed by athletic concerns and are only baselines. Either a prospect can pay or not. A prospect can either keep up academically at the school or not. That’s something of an oversimplification, but the basic point remains.

In equivalency sports, financial need and academic merit matter much more. If a coach is recruiting two prospects of equal athletic ability and one could get half their schooling paid for through academic or need-based grants, that prospect is more valuable than the other. He or she frees up half a scholarship to get another student-athlete.

If headcounts were eliminated, particularly in the revenue sports of men’s basketball and FBS football, the recruiting process would be forced to focus more on academics and financial need. A coach who awards aid irrespective of the other financial aid a student-athlete would be out of a job quickly because the team wouldn’t be competitive. Academically gift or needy prospects would become more valuable in the recruiting process.

Under current rules, the effect would be limited due to the in ability to mix athletic aid with other forms of institutional aid, particularly need-based aid. In lieu of developing best practices for managing the relationship between financial aid and athletics, using institutional aid to augment an athletic scholarship is largely prohibited. The rules would need to be changed to exempt all non-athletically related aid, replacing those regulations with a system for ensuring athletics stays out of the awarding of non-athletically related aid.

Deregulation in this area would more closely align the goals of the athletics department and the university. To field the most competitive team, a coach would need to recruit prospects that will be offered the most non-athletically related aid. In a modern financial aid system, that means the students the admissions office, with the help of the financial aid office, is seeking to attract. Coaches would even be motivated to assist with fundraising for the general student body, since it would mean better financial aid packages for their prospects.

Student-athletes are just that: students and athletes. Ralph Nader is correct that in recruiting for revenue sports, the athlete part has overwhelmed the student part. But it is not the rewarding of athletic merit that is the problem. The problem is requiring coaches to award this aid in such a blunt and simplistic manner. More flexibilit would not just allow but essentially require football and basketball coaches to focus more on which students deserve and need a scholarship rather than just which athletes they need.

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office.

About John Infante

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office. If you’re a coach, do not attempt to contact the author looking for a second opinion. If you’re a parent, don’t attempt to contact the author looking for a first opinion. Compliance professionals are by their nature helpful people generally dedicated to getting to the truth. Coaches should have a bit of faith in their own, and parents should talk to one directly.

In the news: March 24

Is the number of scholarship equivalencies in Division I baseball high enough?

Chris Lewis, a baseball student-athlete at Texas Lutheran, sent a note yesterday saying that the 11.7 permitted grants-in-aid isn’t sufficient.

Here’s his letter:

“Compared to other collegiate sports, baseball does not receive an adequate number of full scholarships and should receive more.

“Football programs have 85 full scholarships to give to recruits, although only 22 players play in games. Baseball programs only receive 11.7 full scholarships for eight starting position players and roughly 10 to 12 pitchers who pitch regularly during a season. Therefore, collegiate baseball players rarely receive full scholarships while most players in collegiate football programs receive full scholarships, even if they do not play all season. In this scenario, baseball players who play significantly throughout a season are crippled by tuition and do not get the same financial relief as football players.

“The distribution of scholarships between sports should be re-evaluated and redistributed adequately between football and baseball. This will make for better recruiting, better player signing and, ultimately, better collegiate baseball.”

Texas Lutheran is a Division III member, so Chris isn’t directly affected by this issue at the moment. However, he does plan to make a career of coaching college baseball.

Whether 11.7 is the correct number is a matter for the Division I membership. The Division I Awards, Benefits, Expenses and Financial Aid Cabinet currently is looking at financial aid limitations in all Division I sports, although that shouldn’t necessarily suggest that radical changes are on the way. Members can access Michelle Hosick’s recent update at NCAA.org.

As part of its examination, the financial aid cabinet is looking at how much permissible aid is being used in each sport. In baseball, 282 programs (96 percent of sponsoring institutions) provide some financial aid. Of those programs, 79 percent provide less than the permitted 11.7 equivalencies. Baseball also has a maximum head count of 27 student-athletes, but only 144 programs (51 percent) field that many players.

Similar shortfalls exist in almost all sports throughout Division I.

Also, it’s worth noting that NCAA and institutional financial aid limits must be constructed to facilitate compliance with Title IX. Because so much men’s financial aid is directed at football, other men’s sports sometimes feel the effects. Michelle Hosick examined this complicated relationship among revenue sports, men’s nonrevenue sports and women’s sports in the Winter 2010 issue of NCAA Champion magazine.

Chris raises an interesting argument. The short answer: The Division I membership is currently reviewing financial aid limits in all sports to make sure that they are appropriate.

Correction included: This post originally had the wrong last name for Chris Lewis. My apologies to Chris.

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