Effect of COVID-19 on SAC schools

[BearsLRU]

There was a topic about football programs, but I'm talking about the schools themselves. We talked on here before about schools like Tusculum and Mars Hill showing some signs of trouble. If things aren't back to normal by fall, could we potentially see some SAC schools fold? Anyone have any information on what their schools are thinking? I'd bet former SAC member Brevard may be on its last leg.

[BEARS]

I don't have any specific insight on any of the SAC schools, but one thing is this has got to be what schools build up those big endowments and rainy day funds for. LR has made such a big deal out of that $100+ million endowment - well this is your time to dip into that fund.

[Ethel Kay]

Since all of the SAC Schools are out it is difficult to determine the effect of COVID-19. I don't know of any SAC football players who have been hospitalized but I do know of an assistant coach who has been diagnosed with it but is slowly recovering at home. I have heard that the Duke Hospital here in Durham has a large number of cases. The Governor wants to shut down everything, all business, playgrounds, parks, etc. Many of them will go broke because they can't pay their bills but he doesn't care. He says being on the safe side is more important. Sounds like he is trying to make a depression like in the 1930s when everybody was out of work and broke.

[CNC Maniac 1]

Don't count on big endowments to save the day, unless it was an absolute emergency. Usually 90+% of that endowment is designated funds by donors, so it can't be used for general operating. I work for an institution that has a rather large endowment, and financial restrictions have already been put in place because that endowment is NOT a "rainy day" fund. Maybe other schools have more discretion to borrow from it as need be, but all I am saying is you can't count on it automatically being the financial safety net.

[BearsLRU]

First college, and D2 program to shut down: https://www.whio.com/news/local/urba...H7KZSMDVAQ6NY/

I know LR will be ok, so long as this isn't a year after year thing, most of our money comes through means other than tuition dollars. I'm confident CN and Wingate, and Queens for that matter, will be fine too. Wise is publicly funded. I wonder about some of the other SAC schools.

[Eagle74]

Unfortunately, I can name 3 SAC schools (possibly more) which I believe could cease to exist, or would have to make drastic cuts to athletics (including their most expensive = Football) by this time next year, or even earlier. Most endowments are not earmarked for maintenance, upkeep, electric and water bills, insurance (including property, fire, etc). Nor will they cover high admin salaries, perks, (the very last thing to be cut).


From another post:

With all of the recent developments, including eyes being opened as it pertains to on-line college education, I'm not very optimistic about the longevity of D2 college football, especially for a lot of private institutions. I'm sure a lot people are at home (due to COVID-19) reevaluating everything, including high tuition cost and accumulating college debt verses other more cost efficient options, especially the alternative options in the fields of education they are pursuing.

Sure the 'college experience' is very special for those who attended, or those who are presently attending college universities. The fraternities, the freedom of dorm life, the support of the college's athletics, the expanded social life, spring break, etc, etc. However, things are changing very quickly, and it may not turn out all that well in the near future for private institutions of higher learning, and the high cost of students attending the same school their parents or friends attended. Enrollment, room & board,and tuition are the life blood of private schools, so much more so than public institutions. As enrollments and tuition revenue decrease, administrators start to look at ways of 'trimming the fat' in ways that do not directly effect their income, and athletics start being more scrutinized.

I'm afraid that the D2 Football we have become accustom to and have thoroughly enjoined over the years will start seeing major changes in the near future.


I hope everyone stays in, stays safe, and stays healthy.

[cneagle99]

Don't count on big endowments to save the day, unless it was an absolute emergency. Usually 90+% of that endowment is designated funds by donors, so it can't be used for general operating. I work for an institution that has a rather large endowment, and financial restrictions have already been put in place because that endowment is NOT a "rainy day" fund. Maybe other schools have more discretion to borrow from it as need be, but all I am saying is you can't count on it automatically being the financial safety net.

The benefit of large endowments is that they can be used as collateral on loans despite whether it is a restricted donation or not.

[BearsLRU]

Thought I'd bump this back up. Any new news from SAC schools? Florida Tech in the GSC just cut football, and they'd had much more success lately than a good bit of the SAC, wondering if any SAC schools are on the edge.

[Eagle74]

Difficult times indeed! Florida Tech (endowment over 82 million) dropping football will be the first of many. Unfortunately, within the next 12 months, I can see at least 3 SAC schools making the same move.

[WU Fan]

The situation is not as dire as some would have us to believe. First, no SAC institution is in financial peril. Secondly all plan on playing football this fall.

Now, here is what is causing the skeptics to cast a cloud of gloom and doom. All of the schools EXPECT a drop in enrollment caused by the virus scare. Despite the fact that 97% of all people who contract the virus recover and only a tiny fractional percent of young college age kids fall victim, there are kids who will not attend their college or university this fall out of fear. Some of those highly recruited football players will not report to Lenoir Rhyne, Carson Newman, Wingate or any other SAC school simply because Mama won't let them out of the house. How is this going to affect the bottom line? Rest assured the bean counters at each of the SAC schools have been busy trying to figure this out.

Compounding the situation here in NC is our governor Roy "Napoleon" Cooper who is on a power trip playing political ping-pong by restricting some things and allowing others. For example, you can't go to church in NC but you can dive into a swimming pool (swimming pools are notoriously nasty) with any number of people as long as social distancing is practiced. NASCAR is having races with no spectators. Some say if Cooper gets his way fall sports will be played the same way, no fans allowed. if this happens, for example, Wingate fans will be able to go to Newberry to see a game but Newberry fans won't be able to come to Wingate.

[WU Fan]

Difficult times indeed! Florida Tech (endowment over 82 million) dropping football will be the first of many. Unfortunately, within the next 12 months, I can see at least 3 SAC schools making the same move.

The situation is not as dire as some would have us to believe. First, no SAC institution is in financial peril. Secondly all plan on playing football this fall.

Now, here is what is causing the skeptics to cast a cloud of gloom and doom. All of the schools EXPECT a drop in enrollment caused by the virus scare. Despite the fact that 97% of all people who contract the virus recover and only a tiny fractional percent of young college age kids fall victim, there are kids who will not attend their college or university this fall out of fear. Some of those highly recruited football players will not report to Lenoir Rhyne, Carson Newman, Wingate or any other SAC school simply because Mama won't let them out of the house. How is this going to affect the bottom line? Rest assured the bean counters at each of the SAC schools have been busy trying to figure this out.

Compounding the situation here in NC is our governor Roy "Napoleon" Cooper who is on a power trip playing political ping-pong by restricting some things and allowing others. For example, you can't go to church in NC but you can dive into a swimming pool (swimming pools are notoriously nasty) with any number of people as long as social distancing is practiced. NASCAR is having races with no spectators. Some say if Cooper gets his way fall sports will be played the same way, no fans allowed. if this happens, for example, Wingate fans will be able to go to Newberry to see a game but Newberry fans won't be able to come to Wingate.

[SW_Mustang]

Despite the fact that 97% of all people who contract the virus recover and only a tiny fractional percent of young college age kids fall victim, there are kids who will not attend their college or university this fall out of fear.

This is just me personally - but I'd be more concerned about the long-term effects of COVID-19 more than actually dying.

People are kidding themselves if they think this thing won't have a long-term impact on their health. For some it may not have any impact, for others - it could be a massive reduction for quality of life.

[Eagle74]

Please keep in mind that I'm not throwing rocks at Limestone because it wouldn't surprise me to hear about any schools making drastic changes, including with their athletic programs.

We already know that Tusculum has had at least 5 confirmed cases of COVID -19, and as the poster said, how many parents are really going to feel comfortable about sending their child to college, with them staying in a dorm where limited (if any) social distancing will be going on. This is yet another reason why on-line college's enrollment will boom this coming fall, and brick and mortar schools will struggle to fill seats.

Lots of questions are out there, will teams lose around 1/3 of their players, and will a lot of newly signed players simply opt out? Who really knows? It remains hard to be both optimistic and realistic at the same time these days.

[RedFromMI]

Please keep in mind that I'm not throwing rocks at Limestone because it wouldn't surprise me to hear about any schools making drastic changes, including with their athletic programs.

We already know that Tusculum has had at least 5 confirmed cases of COVID -19, and as the poster said, how many parents are really going to feel comfortable about sending their child to college, with them staying in a dorm where limited (if any) social distancing will be going on. This is yet another reason why on-line college's enrollment will boom this coming fall, and brick and mortar schools will struggle to fill seats.

Lots of questions are out there, will teams lose around 1/3 of their players, and will a lot of newly signed players simply opt out? Who really knows? It remains hard to be both optimistic and realistic at the same time these days.

You seem to have a lot of certainty regarding a big move to online instruction. But the problem with an online only approach is that you miss out on a lot of what makes going to a college/university, and you require a different sort of motivation.

It is not an accident that at some small colleges/universities the athletes have better GPAs than the non-athletes. Motivation for playing time can do wonders for focus...

Making an on campus experience safe in light of the pandemic is a tall order, but it is not certain that it cannot be done.

As far as Limestone - this is the first time you have mentioned them in this thread. Not sure what they have to do with it anyway.

And for Tusculum - the fact that they may or may not have had students exposed to coronavirus at this point in time has no bearing on what the situation may be in the fall. Anyone who has it now looks unlikely to be a problem later.

I think if the schools can convince parents that they have appropriate plans in place to deal with the pandemic students will come.

[Eagle74]

You seem to have a lot of certainty regarding a big move to online instruction. But the problem with an online only approach is that you miss out on a lot of what makes going to a college/university, and you require a different sort of motivation.

Fraternities, partying, socializing, freedom without supervision, yep, been there done that, as have thousands of others who are still up to their neck with student debt. This year, after spring break, and classes being moved online, a lot of eyes (including parents of students) have been opened to other options of higher education where you can obtain a degree in your field of choice without mounting huge debt. More and more employers these days are looking more at the degrees as opposed to where they were obtained, unless it was one of the more prestigious school with very high standards, to which in the most part (I hate to admit) do not pertain to this post or site. Just the way things are headed, it's just the COVID-19 situation accelerated it.