FROM STATE SUPPORTED TO STATE TOLERATED TO STATE LOCATED. That's an administrative cliche popular in the land grants and mid-majors. It might also be the future of the University of Michigan.

The University of Michigan gets only about one tenth of its budget from the state. Eliminating state status would probably be a net wash financially for the college, because the school could increase out of state enrollments more (they are constrained somewhat politically from doing so now) and the out-of-state tuition is triple the in-state rate.

State legislatures, in Michigan and elsewhere, seek to influence more than ten percent of university decisions (more research, less research, more teaching, more access, lower tuitions).

Michigan, released from legislative constraints on out-of-state tuition, might well price in such a way as to exploit some of that excess demand for perceived prestige. (I'm surprised Professor Vedder, who wrote the post, hasn't recognized that phenomenon.)

On the other hand, a privatization could involve an audit of the sports program, which risks turning up potential deal-breakers for any private operator. And who would the private operator be? A non-profit staffed by the current Michigan administrators? The Harvard Corporation? Apollo Group? The mind boggles.