Universities treat athletic scholarships as a charge to the athletic department who must pay for the scholarship out of its net revenues.

Question

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Athletic scholarships are typically treated as a cost to the university, but they are often funded through the athletic department's budget, which may include revenue from ticket sales, donations, and other sources. However, the university as a whole bears the financial responsibility, not just the athletic department.

Universities Treat Athletic Scholarships as a Charge to the Athletic