Weekly Market Update
MARCH MADNESS PROVIDING A FINANCIAL BOOST FOR MANY SCHOOLS
Thursday, March 15, 2018
The NCAA receives significant financial compensation from the annual NCAA Division I Men's Basketball Tournament. More than 80 percent of its overall $1 billion 2017 revenue came from the sale of March Madness television rights. The NCAA passes on a large portion of this revenue to its member schools and athletic conferences, having dispensed $788 million in 2016. The disbursements are proportionally weighted towards conferences and schools that appear most often in the basketball tournament and college football playoff games. The University of Kansas, a number one seed in this year's tournament and member of the Big 12 conference, received over $28 million in 2016. By contrast, Marshall University, a tournament participant and member of the smaller Conference USA, received less than $5 million in the same year.
In Other News
- Ashford University is seeking nonprofit status. The potential conversion follows a larger trend as both Grand Canyon University and Kaplan University have in recent months sought to convert to nonprofit organizations.
- The University of Wisconsin at Stevens Point has announced its plan to cut 13 majors, primarily in the humanities departments. The announcement aligns with the University's plan to invest in more sought-after disciplines .
- Enrollment at historically black colleges and universities has spiked in recent years amid growing racial and political tension.
- The Education Department has issued guidance curbing state regulation of student loan providers. Many in the industry are opposed to the changes, arguing that states provide necessary oversight of the loan servicers.
- A bill moving through Congress would categorize municipal bonds as high-quality liquid assets. The legislation would increase demand by banks for municipal bonds, which are required to maintain a minimum level of high-quality liquid assets.
Rating Agency Update
- Moody's assigned A1 to University of Illinois' Series 2018A Revenue Bonds. The outlook is negative.
- Moody's assigned Baa2 to Le Moyne College's Series 2018 Revenue Bonds. The outlook is stable.
- Moody's assigned Aa3 to Texas Woman's University's Series 2018 Revenue Bonds. The outlook is stable.
- S&P assigned A+ to Rutgers University's Series 2018 General Obligation Bonds. The outlook is stable.
- S&P affirmed Franklin & Marshall College's AA- rating. The outlook is stable.
- S&P assigned AA to Florida State University's Parking Facility and Health-Fee Revenue Bonds. At the same time, S&P assigned AA- to the university's Dormitory Revenue Bonds. The outlook is stable on both.
- S&P affirmed Clemson University's AA rating. The outlook is stable.
- S&P affirmed Mercy College's A rating. The outlook is stable.
- S&P affirmed Nova Southeastern University's A- rating. The outlook is stable.
- S&P assigned AA- to Florida College System's Series 2018A Revenue Bonds. The outlook is stable.
- S&P affirmed Wayland Baptist University's A- rating. The outlook is stable.