Harvard loses $8 Billion – what does that mean to you?
December 3rd, 2008 - byIn an article in Dec. 4th’s Wall Street Journal, Harvard’s endowment has been hit by losses of 22% in the 4 months between July 1st and October 31st. That’s 8 Billion dollars! More than the total endowments of all but 6 universities. Income from Harvard’s endowment funds 35% of its budget. That includes athletics. As mentioned in the article, all other college endowments have suffered a similar fate. State schools, who don’t have large endowments, must cut back because of reduced tax receipts.
So what does that mean to student athletes and their parents? First, recruiting budgets for college coaches are going to be reduced. That means less travel for coaches. They will be relying more on video than ever before to evaluate talent. Second, college coaches are going to be more careful in their selections. So those high school students they’ve known the longest (starting freshman year) will be more likely to score the scholarship. Third, colleges will be reducing the financial aid awarded for academics. A smaller percentage of elite students will receive the top awards. A student athlete who wants to compete will need better grades and test scores than ever. She/he better be working on that starting freshman year! Fourth, large state institutions will be cutting costs. That means larger class sizes for required courses. If your student-athlete doesn’t do well in class sizes of 300 or more, then they need to find a better fit. Finally, student-athletes will be competing harder than ever for the existing scholarship dollars. That competition will be in the work out room, in the class room, in preparing for college entrance exams, and finally in knowing the rules of the recruiting game. How can you gain a significant competitive advantage over others and win the recruiting game? Start here.
