What Greg says below is exactly the same thing I said the last time this was
brought up, but I was corrected on my athletic department accounting
principles by somebody.
 
"On the next Jerry Springer: Minnesota Recruiting Practices -- Round XI"
 
> > Another reason that Woog always states for his recruitment of locals, is
that
> > the scholarships don't cost the University as much.  The scholarship is
worth
> > the cost of an in-state tuition which is quite cheaper than an
out-of-state
> > student would pay.  I'm not sure who pays the difference?  We, the
people, I
> > suppose.
>
> This sentence doesn't appear to make sense.  Think of it this way: any
given
> student costs the same amount in overhead for the university (I know,
> actually the amounts are different by discipline, but that isn't related
to
> whether they are an in-state student or not).  The only reason why
in-state
> tuition is lower is that the school is being paid for from public funds (a
> tax liability if you are a MN state resident), and the "payoff" for state
> residents is that their kids' tuition is subsidized.
>
> But as far as the university balance sheet is concerned, either (1) an
> athletic scholarship would wave the full amount of tuition for the
student,
> in which case there is no difference to the university whether it goes to
an
> in-state or out-of-state student, or (2) an athletic scholarship would
waive
> only the amount of in-state tuition, in which case the university would
> actually make more cash by taking out-of-state players, since they would
> have to make up the difference.
 
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