Why Ivy League schools could award athletic scholarships in the future

[aceinthehole]

It wasn’t splashed across the headlines, instead lost somewhere in the constant news cycle of NFL football, college football, MLB pennant races and more NFL football.


But when Congress allowed the Ivy League’s antitrust exemption to expire a couple of weeks ago, it potentially set a path for major change in the conference. Namely, the possibility of Ivy League schools giving out athletic scholarships.


Since 1994, the Ivy League’s antitrust exemption was buried in something called the Higher Education Act. Few, if anyone, knew about it – save, in theory, for the league’s presidents. The exemption allowed Ivy League schools not to award academic or athletic scholarships and instead offer need-based financial aid that, in the cases of student-athletes from some low-income families, can provide a virtually free education.



https://www.stamfordadvocate.com/college/article/Could-athletic-scholarships-be-coming-to-Ivy-17507200.php

[DFW HOYA]

And Georgetown would still be playing in the PL without them...

But that said, any decision in these cases would not supersede the Ivy's decisions on athletic or other merit grants. If they choose not to offer them, they would not be forced to do otherwise.

[bonarae]

Meanwhile... will this change anything in the Ivy Presidents' status quo regarding playoff participation, 11th game, etc.? xdontknowx

[Ivytalk]

Given the generous financial aid given by Ivy League schools, the scolly/non-scolly debate should be a moot point.

[Son of Eli]

It was an antitrust decision which paved the way for increased financial aid in the Ivy League. That had a huge impact on the quality of Ivy League sports. This could take them the rest of the way there. After that change it will be easier to get an 11th game in order to schedule FBS opponents and FCS playoffs. Chipping away at those crumbling Ivy walls built in the 1940’s!

[DFW HOYA]

It was an antitrust decision which paved the way for increased financial aid in the Ivy League. That had a huge impact on the quality of Ivy League sports. This could take them the rest of the way there. After that change it will be easier to get an 11th game in order to schedule FBS opponents and FCS playoffs. Chipping away at those crumbling Ivy walls built in the 1940’s!

It's a considerable leap of faith from "schools can't exchange financial aid data" to "when are we scheduling Stanford?"

Left unsaid, of course, is that H-Y-P have resources to do things than Brown or Cornell don't. The Ivy has always acted in unison rather than let one or two schools fall off the map.

[Son of Eli]

One of the biggest impediments for The Ivy League to schedule FBS opponents are the bowl counter rules which don’t give bowl eligibility credit for a win over a non-athletic scholarship program. So if The Ivy League adopts athletic scholarships they would find it much easier to schedule FBS opponents. That could lead them to starting the season earlier with an 11th game in order to facilitate that. Once that’s done why not just add FCS playoffs. The paradigm will have shifted.

[Son of Eli]

Here’s some more articles on it.

https://www.dailyprincetonian.com/article/2022/10/antitrust-scholarships-financial-aid-athletics-varsity-recruitment-ivy-league-princeton


https://www.espn.com/college-sports/story/_/id/34696671/congress-allows-ivy-league-antitrust-exemption-expire

[Go Green]

Given the generous financial aid given by Ivy League schools, the scolly/non-scolly debate should be a moot point.

Pretty sure that some Ivies still require some payments of bills. It's not my impression that all students are getting free rides at the Ivies.

[Son of Eli]

Pretty sure that some Ivies still require some payments of bills. It's not my impression that all students are getting free rides at the Ivies.


My understanding is a middle class family would still be on the hook for approximately 50% of the tuition after receiving financial aid. The current Ivy system only works for the very rich or the very poor.

[Go Green]

Left unsaid, of course, is that H-Y-P have resources to do things than Brown or Cornell don't.

Bingo.


The Ivy has always acted in unison rather than let one or two schools fall off the map.

Agreed, but hands can be forced. My understanding is that freshmen football was dropped by the entire league in 1994 after Brown and Columbia said that they weren't going to do it anymore.

At the end of the day, it's mostly going to be whatever Harvard and Yale want to do...

[Son of Eli]

Below is a link to an excellent article that explains the legal ramifications as well as a quote from the article:


In their article, Cotler and Litan predict the expiration of Section 568 a year in advance given "strong bipartisan support for more vigorous enforcement and possible toughening of the antitrust laws" and speculate on the ramifications for the Ivy League.

"If that happens," they write, "then the Ivies would run a substantial antitrust risk if they were to continue, by explicit or implicit agreement, not to award merit aid of any type, or to prohibit the awarding of athletic scholarships."

In other words, in the event the Ivy League collectively abandons its policy of prohibiting athletic scholarships, but every Ivy school individually continues that practice, they could be subject to legal action. Who might have the standing to sue? Current and former athletes could file a suit, as could the Justice Department, as it did with the Overlap Group.

"Let's say the schools would make a public announcement and say, 'Hey, now that this exemption has expired, we're no longer going to agree among ourselves. We don't want to be potential antitrust defendants,'" Matthew Mitten, professor of law at Marquette University and executive director of the National Sports Law Institute, told BestColleges. "Then, if each of the schools decides not to start offering athletic scholarships, potentially it could be still an implied agreement if you could show uniform conduct."

https://www.bestcolleges.com/news/analysis/ivy-league-athletic-scholarships-could-be-imminent/

[Go Green]

Below is a link to an excellent article that explains the legal ramifications as well as a quote from the article:


In their article, Cotler and Litan predict the expiration of Section 568 a year in advance given "strong bipartisan support for more vigorous enforcement and possible toughening of the antitrust laws" and speculate on the ramifications for the Ivy League.

"If that happens," they write, "then the Ivies would run a substantial antitrust risk if they were to continue, by explicit or implicit agreement, not to award merit aid of any type, or to prohibit the awarding of athletic scholarships."

In other words, in the event the Ivy League collectively abandons its policy of prohibiting athletic scholarships, but every Ivy school individually continues that practice, they could be subject to legal action. Who might have the standing to sue? Current and former athletes could file a suit, as could the Justice Department, as it did with the Overlap Group.

"Let's say the schools would make a public announcement and say, 'Hey, now that this exemption has expired, we're no longer going to agree among ourselves. We don't want to be potential antitrust defendants,'" Matthew Mitten, professor of law at Marquette University and executive director of the National Sports Law Institute, told BestColleges. "Then, if each of the schools decides not to start offering athletic scholarships, potentially it could be still an implied agreement if you could show uniform conduct."

https://www.bestcolleges.com/news/analysis/ivy-league-athletic-scholarships-could-be-imminent/

In case anyone is wondering, the article does opine that other non-scholarship schools (i.e., D-III schools) would be vulnerable as well.

World stay tuned...

[DFW HOYA]

In case anyone is wondering, the article does opine that other non-scholarship schools (i.e., D-III schools) would be vulnerable as well.

World stay tuned...

A lot of speculation in that article, not a lot of guidance. No school, even D-III, is bound by federal law to offer any aid. Would the Ivy League (or any private school, for that matter) be forced to offer merit aid to all students? No.

[Son of Eli]

A lot of speculation in that article, not a lot of guidance. No school, even D-III, is bound by federal law to offer any aid. Would the Ivy League (or any private school, for that matter) be forced to offer merit aid to all students? No.


At the very least the end of the exemption will require the Ivy League to formally drop its prohibition against athletic scholarships. This opens the door to just one of the eight schools to reverse course and offer athletic scholarships. The rest would then be forced to follow. There can be no retribution against such school by the league or else that would be prima facie proof of collusion. One way or another athletic scholarships are going to happen in the Ivy League. It’s a question of sooner or later. I believe it will be sooner.

[DFW HOYA]

At the very least the end of the exemption will require the Ivy League to formally drop its prohibition against athletic scholarships. This opens the door to just one of the eight schools to reverse course and offer athletic scholarships. The rest would then be forced to follow.

That didn't quite work with the Patriot League... :(

[Son of Eli]

That didn't quite work with the Patriot League... :(

Speaking of the Patriot League, Yale’s Athletic Director, Vicki Chun, was hired away from Colgate. She transitioned them to athletic scholarships. That makes Yale a likely choice for the school to be the first to go through that door. Second guess would be Penn.

[Bill]

My understanding is a middle class family would still be on the hook for approximately 50% of the tuition after receiving financial aid. The current Ivy system only works for the very rich or the very poor.

That's not correct. HYP have a different aid model. We can debate what "middle class" is, but this copied directly from Princeton's site:

New Financial Aid Methodology

Most families with income under $100,000 will qualify for grant aid to cover full tuition, room, board, books and personal expenses.



Income
Total Family Contribution


$75,000
$0


$100,000
$0


$150,000
$12,500


$200,000
$25,000


$250,000
$37,500


$300,000
$50,000



Again, this makes H-Y-P, the three schools who do this, have defacto scholarships for many middle class families.

[NY Crusader 2010]

Bingo.



Agreed, but hands can be forced. My understanding is that freshmen football was dropped by the entire league in 1994 after Brown and Columbia said that they weren't going to do it anymore.

At the end of the day, it's mostly going to be whatever Harvard and Yale want to do...

Interesting. Was the Ivy old school like how the rest of the NCAA was up until the 1960's where freshmen weren't eligible at all to play varsity football until 1994? Or could a star freshman still get snaps in varsity games?

[Son of Eli]

Interesting. Was the Ivy old school like how the rest of the NCAA was up until the 1960's where freshmen weren't eligible at all to play varsity football until 1994? Or could a star freshman still get snaps in varsity games?


Freshman weren’t eligible to play.

[Go Green]

Freshman weren’t eligible to play.

And it was pretty rare for sophomores to see the field as well.

Different world back then.

https://www.latimes.com/archives/la-xpm-1993-09-18-sp-36313-story.html

[bonarae]

Makes me wonder why some antitrust exemptions need to end for any Ivy League football progress to happen at all? Why?! xdontknowx

[crusader11]

Wait, they don’t already give “scholarships”…?

[ngineer]

Given the generous financial aid given by Ivy League schools, the scolly/non-scolly debate should be a moot point.

Yes, a great percentage of the Ivy athletes are getting near full-rides now.

[Go Green]

Yes, a great percentage of the Ivy athletes are getting near full-rides now.

I think that's technically true, but requires context. Outside of HYP, it's my impression that the others have been targeting the very rich (where it doesn't matter) or the not-so-well off (essentially full rides). We're losing out on the middle class kids who don't qualify for the generous financial aid.

[FUGameBreaker]

Yes, a great percentage of the Ivy athletes are getting near full-rides now.


That's what I have been thinking as well, they just know how to be 'clever' with it

[Doc QB]

I think that's technically true, but requires context. Outside of HYP, it's my impression that the others have been targeting the very rich (where it doesn't matter) or the not-so-well off (essentially full rides). We're losing out on the middle class kids who don't qualify for the generous financial aid.

Yes and that's outlined in the book by Chris Lincoln, "Playing the Game."
Good, quick read.

[DFW HOYA]

My understanding is a middle class family would still be on the hook for approximately 50% of the tuition after receiving financial aid. The current Ivy system only works for the very rich or the very poor.

Not at Princeton.

"Most families whose annual income is less than $100,000 will pay nothing for tuition, room and board, up from the previous $65,000 annual income level. Roughly 1,500 Princeton undergraduates are expected to receive this level of aid — more than 25% of the undergraduate student body."

https://www.princeton.edu/news/2022/09/08/princeton-will-enhance-its-groundbreaking-financial-aid-program

[Bill]

Not at Princeton.

"Most families whose annual income is less than $100,000 will pay nothing for tuition, room and board, up from the previous $65,000 annual income level. Roughly 1,500 Princeton undergraduates are expected to receive this level of aid — more than 25% of the undergraduate student body."

https://www.princeton.edu/news/2022/09/08/princeton-will-enhance-its-groundbreaking-financial-aid-program

yes. please refer back to post #18 in the thread xrolleyesx