Analysis and Decision-Making Case Niko, a good friend of yours from high school, is attending Sheldon University, where he enjoys playing on the school's Division III soccer team. You love going to his games to cheer him on. Unfortunately, the school is experiencing financial stress, and it recently shared its plan to discontinue its soccer program, along with a few other sports, beginning next academic year. Obviously, Niko is upset about this news, as are many of his friends. You wonder how bad the financial situation must be for the university to even consider making this move. Required a. Make a list of any and all relevant factors (qualitative or quantitative) that would play into this decision, keeping in mind that at a Division III school, no athletic-specific scholarships are awarded. b. You recently found an inside track to some of the other assumptions the university used in making its decision, including the following. All current athletes in these programs will stay at Sheldon to complete their degrees. All coaches specific to these sports will be laid off. All current athletic facilities specific to these sports will be kept and minimally maintained in the hope that the sports will be reinstated in the future, when the university's financial health returns. Based on these assumptions and the following additional information, calculate the financial impact of this decision for one year. Specify whether you believe the university was justified in its decision to close these programs. Number of student-athletes directly affected 120 Number of non-athlete students that attend Sheldon because their 150 friends are athletes Average years to graduation for affected students, above 2 Average annual tuition, fees, and room and board per student $ 22,000 Lost athletic event admission fees annually $ 19,200 Salaries and benefits of directly affected coaches $320,000 Athletic director annual salary $250,000 c. You believe that some of the above assumptions are not reasonable. For example, you know already that Niko is transferring to your college so he can play soccer there, and you are certain that many of the other athletes are thinking about a similar move. You believe that at least 50% of Sheldon's current student- athletes will leave Sheldon University, and 25% of the non-athlete friends will leave, as well. If these new assumptions are used, does it change your view of the university's decision? In other words, is the univer- sity justified in its decision to discontinue these sports based on quantitative analysis only at this point? d. Quantitative considerations are an incredibly important aspect of decision-making, but sometimes qual- itative considerations are just as important, if not more so. Are there any qualitative considerations that would suggest that these athletic programs should not be dropped, regardless of how much money it might save the university? Given its financial predicament, where else might you suggest that the university look for cost savings? Analysis and Decision-Making Case Niko, a good friend of yours from high school, is attending Sheldon University, where he enjoys playing on the school's Division III soccer team. You love going to his games to cheer him on. Unfortunately, the school is experiencing financial stress, and it recently shared its plan to discontinue its soccer program, along with a few other sports, beginning next academic year. Obviously, Niko is upset about this news, as are many of his friends. You wonder how bad the financial situation must be for the university to even consider making this move. Required a. Make a list of any and all relevant factors (qualitative or quantitative) that would play into this decision, keeping in mind that at a Division III school, no athletic-specific scholarships are awarded. b. You recently found an inside track to some of the other assumptions the university used in making its decision, including the following. All current athletes in these programs will stay at Sheldon to complete their degrees. All coaches specific to these sports will be laid off. All current athletic facilities specific to these sports will be kept and minimally maintained in the hope that the sports will be reinstated in the future, when the university's financial health returns. Based on these assumptions and the following additional information, calculate the financial impact of this decision for one year. Specify whether you believe the university was justified in its decision to close these programs. Number of student-athletes directly affected 120 Number of non-athlete students that attend Sheldon because their 150 friends are athletes Average years to graduation for affected students, above 2 Average annual tuition, fees, and room and board per student $ 22,000 Lost athletic event admission fees annually $ 19,200 Salaries and benefits of directly affected coaches $320,000 Athletic director annual salary $250,000 c. You believe that some of the above assumptions are not reasonable. For example, you know already that Niko is transferring to your college so he can play soccer there, and you are certain that many of the other athletes are thinking about a similar move. You believe that at least 50% of Sheldon's current student- athletes will leave Sheldon University, and 25% of the non-athlete friends will leave, as well. If these new assumptions are used, does it change your view of the university's decision? In other words, is the univer- sity justified in its decision to discontinue these sports based on quantitative analysis only at this point? d. Quantitative considerations are an incredibly important aspect of decision-making, but sometimes qual- itative considerations are just as important, if not more so. Are there any qualitative considerations that would suggest that these athletic programs should not be dropped, regardless of how much money it might save the university? Given its financial predicament, where else might you suggest that the university look for cost savings