Universities treat athletic scholarships as a reduction in revenue.

Question

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Athletic scholarships are considered a reduction in revenue for universities because they are essentially providing free tuition, room and board, and sometimes other benefits to student-athletes, which is a cost that would otherwise be paid by the student or their family. However, universities also benefit financially from having successful athletic programs, as they can attract more applicants, boost school spirit, and generate revenue from ticket sales, merchandise, and advertising.

Universities Treat Athletic Scholarships as a Reduction in Revenue