Yes, universities are businesses

CSU's Hughes Stadium

CSU’s current football field, Hughes Stadium (image credit: Eric Lumsden)

 

Like many public universities around the country, Colorado State University is dealing with declining state funding. How does CSU plan on making up for this lack of funding? In the only logical way: by building a $246 million football stadium.

Faced with declining state funding, CSU is raising money to build a $246 million, 40,000-seat football stadium on its Fort Collins campus. University President Tony Frank says the new facility will help build a winning football team while advancing one of the school’s highest priorities: attracting more out-of-state students paying higher tuition.

The team doesn’t even sell out its current venue, the 32 500 seat Hughes Stadium, but don’t tell that to CSU President Tony Frank. His idea is that the new stadium will attract better football players, which, in turn, will attract more students — particularly out-of-state students, who pay higher tuition fees. And he thinks that the extra revenue from these out-of-state students will help cover part of the $246 million.

Hopefully someone will tell Frank that sports arenas don’t provide much economic benefit. This is more evidence that universities are businesses, and, like many businesses that are closely tied to sports, they are often run by people who make some very questionable decisions.

h/t to Stacey Brook for sharing this article via twitter.

- Devin

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