Andy Schwarz, an Antitrust Economist who helps to run the site Sportsgeekonomics, has analyzed the University of New Mexico’s analysis of the money the University would save by cutting the four sports scheduled to be discontinued at the end of the 2018-19 fiscal year.
Upon reviewing the information, Schwarz believes that UNM has overstated the financial benefits by nearly $800,000 due to a loss of revenue from the student-athletes who attend on partial scholarships that will choose to go elsewhere, as well as other factors.
His numbers estimate that at most, UNM will save around $300,000 by cutting the sports, instead of the $1.1 million that the University estimates. He explains the difference as follows, all emphasis his.
“The primary reason that schools err when they assess the value of a scholarship is that they treat the price they charge a full-price student (receiving zero financial aid or other discounts) as if it is the actual cost involved in providing services to one additional student,” Schwarz said in his case study.
The study was shared by head soccer coach Jeremy Fishbein, who has been the most vocal throughout the process, has said that he doesn’t want to see any of the four sports cut. University President Garnett Stokes said that cutting sports was likely the only way to “ensure the long-term stability of Lobo Athletics.”
The Daily Lobo is reaching out to UNM’s Budget Leadership Team and others involved in the decision for their reaction, as well as Schwarz.
Cameron Goeldner is a sports beat reporter and photographer for the Daily Lobo. He primarily covers men’s soccer, women’s basketball, softball and the Albuquerque Isotopes, but also contributes content for baseball, basketball, football and track and field. He can be reached at email@example.com or on Twitter @goeldfinger.