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I think it's fine too, and it is in the spirit of NCAA regulations. It's also what the University of Miami has done traditionally. Typically giving a full floor or half a floor to players. ie. "Seventh Floor Crew" in Mahoney/Pearson. However, there may be some negative recruiting about "But WE...

The reason being, is recruiting. The idea is give athletes, particularly football players, posh luxurious accomodations to get them to commit. The NCAA says you can't give better accomodations to athletes than the rest of the student body. So either separate the players from typical students...

Technically, they can't, but I hear the way around it is to let honor students get some of the dorms in the building.