> ## Content Index > Fetch the complete content index at: https://www.techcanbebetter.com/llms.txt > Use this file to discover other available public pages before exploring further. # Universities and Money - URL: https://www.techcanbebetter.com/universities-and-money/ - Published: 2026-08-27T16:13:57.000Z - Updated: 2026-08-27T16:13:57.000Z - Author: John Ludwig > This university has made a Faustian bargain with Silicon Valley, one that has enabled its meteoric ascent and allowed for its corruption. – Theo Baker, [How to Rule the World](https://www.goodreads.com/book/show/244970115-how-to-rule-the-world?ref=techcanbebetter.com) I’ve been reading [How to Rule the World](https://www.goodreads.com/book/show/244970115-how-to-rule-the-world?ref=techcanbebetter.com), the inside story of power and networking at Stanford in the past decade. It is an ugly read. Students, professors, and the institution are all corrupted by massive flows of money coupled with ambition and human frailty. It is so different than my educational experience 40-50 years ago. Back in the dark ages, in my first term in college, I was required to take an Introduction to Engineering class. This class was not about the math and science side of engineering, but about the role of the engineer in society. We discussed [engineering ethics](https://www.nspe.org/sites/default/files/resources/pdfs/Ethics/CodeofEthics/NSPECodeofEthicsforEngineers.pdf?ref=techcanbebetter.com) and what it would mean to be certified as a professional engineer. We covered the [engineering honor code](https://ecas.engin.umich.edu/honor-council/honor-code/?ref=techcanbebetter.com) and how it would apply to our classes and instruction. We discussed notable and famous engineering failures — and I must have revisited some of this content later in my educational career because I certainly remember talking about the [Hyatt Regency walkway collapse](https://en.wikipedia.org/wiki/Hyatt%5FRegency%5Fwalkway%5Fcollapse?ref=techcanbebetter.com) and the fault-finding around that disaster. When I transferred to Ohio State the next year, I was required to repeat this material. And later in graduate school, we repeated this content. And in business graduate school, we were required to read about famous antitrust cases and other examples of businesses breaking their contract with society. We were not some super altruistic monks. We were in engineering and business programs; we wanted to make money and be successful. But our definition of success was modest — we hoped to have jobs that paid well, to work on interesting products, to work with good people, and to be proud of what we worked on. We didn’t want to cheat, or push the boundaries of legality, or misuse the trust of our customers or coworkers. Of course, we didn’t have stunning amounts of startup and venture money flowing around our campuses, pervading the leadership and professors of the universities. Would we have behaved any better than today’s students? Doubtful; human nature hasn’t changed much. I don’t really take issue with some of the overambitious behavior of students who crossed the line — they are a product of a system designed by and run by adults, all of whom have fostered corruption and influence-pandering. I am sure that this environment of money, influence, and corruption is not unique to Stanford, but exists at every elite institution. Scott Galloway argues that we should expect our elite institutions to broaden their enrollment base and admit more people. After reading this, I am more inclined to starve these institutions of money and growth; we do not need more of this behavior in society. The greatest service of the Theo Baker work is to provide transparency. I’m not sure how to corral the behavior at these institutions, but exposing what is going on is a necessary first step. The adults and institutions involved must create processes that put service and honor at the forefront; the leaders must model these values. The book has many stories of students, professors, and investors who accrue tremendous wealth. And the startup culture in the US is powerful, and we want to encourage it. But the outcomes seem very unfairly distributed. None of these startups could exist without the education system, the public safety system, transportation infrastructure, utilities, sanitation workers, health workers, and all the other unsung heroes of our society. And yet all these people don’t participate in the success of startups. I don’t know what the right answer is — but if I were starting a company again, I would consider how to allocate some of our cap table to these essential workers. ### Shorts [The Drucker Drift](https://seths.blog/2026/08/the-drucker-drift/?ref=techcanbebetter.com) is about corporate purpose, but applies to universities as well: > Corporations are a cultural fiction, something we created and permit to exist because it serves the community. In exchange for leverage and insulation, the corporations are expected to be of use and to improve conditions for those they serve–not to be a tool to enrich a few shareholders. --- Startup money isn’t the only money swirling around universities. Consider college football, and Ohio State for example — in FY2025 the school collected $336.1M in total revenue, almost all of it directly or indirectly due to football broadcast and streaming rights. Payments to the athletes have gone up tremendously, but still total only about $40M this year per [College Front Office](https://www.collegefrontoffice.com/football/teams?ref=techcanbebetter.com); in contrast, in pro sports about 48% of revenues go to the athletes. The bulk of the revenue is being siphoned off to coaches, administrators, the universities, and other sports, and [the universities and the NCAA are trying to hang on to the firehose of cash via political means](https://www.congress.gov/bill/119th-congress/senate-bill/4668?ref=techcanbebetter.com). Lawsuits will abound; I suspect payments to revenue-sport athletes will rise until they reach the 48% of revenue that is typical of pro leagues. --- [Pick your forebears](https://www.honest-broker.com/p/what-is-my-american-identity-really?utm%5Fsource=post-email-title&publication%5Fid=296132&post%5Fid=192122650&utm%5Fcampaign=email-post-title&isFreemail=false&r=22lh9&triedRedirect=true&utm%5Fmedium=email) — we can decide who our heroes are, our influencers are; we are not locked into our family tree. I like this idea a lot! I don’t know who my full set would be. I’ve always admired [Eisenhower’s Farewell Address](https://www.archives.gov/milestone-documents/president-dwight-d-eisenhowers-farewell-address?ref=techcanbebetter.com) and his warnings about the amassing of power by the military-industrial complex. And I’ve admired Neil Armstrong’s dedication to living a quiet life of service despite his fame. --- [Bill Gates AI Warning](https://www.gatesnotes.com/work/make-ai-work-for-everyone/reader/a-turbulent-ai-era-and-critical-choices-to-make?WT.mc%5Fid=20260826%5Fai-overture-2026-med-med&ref=techcanbebetter.com) — I need to read this a few more times; perhaps I will write about next week. I’d welcome any thoughts.