No idea how it would impact athletics at all.
I wouldn't imagine that would impact MSU overall in the very least. Places like Harvard and Yale, sure.
I am as liberal as it comes, but to me college admission should be based purely on achievement. The admission requirements should be clearly stated by each university, if you qualify you are in. If you don't, you are not in. Let the chips fall where they may.
Race, Religion, gender, and for that matter names should not even be used during the admission process. Just remove all that bias on the front end.
Best qualified potential students get in, nothing else matters.
Now if you want to give a certain number of spot to under-privilaged students, you need to do it across the board. Race shouldn't factor. Maybe socio/economic.
Your admissions policy is certainly the ideal. In an ideal world, where bias didnt exist(race bias, financial bias, donor bias, alum bias, etc), your suggested admissions policy would rock.
A big issue with your suggested policy is that many of these universities cant admit everyone that qualifies. Northwestern received over 52,000 applications last year. The class size is only 2,100. That doesnt mean only 2,100 met the admissions standards. And that doesnt even mean the top 2,100 were admitted.
When you have 6,000 students all with a 4.0 or higher, all with a 33 ACT or higher, and all with extracurriculars and National Merit Finalist claims- who is denied admissions?
You could even increase ACT to 34 if you really think that makes someone more qualified and you would still have a group that is larger than the admitted size(3600) which leads to the 2100 class size.
University of Chicago is in the same boat, along with countless other nationally elite universities and colleges, in addition to countless small elite private colleges. University of Chicago had more applicants with over 4.0 and 34 ACT than they had spots for this past year's incoming class.
Heck UC Berkeley had almost 130,000 applicants. They cant possibly have clear set admissions standards and then accept all who meet/exceed said standards. There is literally no room for the university to expand- its a long standing issue with the town.
To be very clear, I am not saying race based admissions are right or the best or should continue. I am only saying it is not anywhere close to as simple as 'admit those who qualify'.
I used Northwestern and University of Chicago because one of my kids is hyperfocused on those two places right now because she views higher education as elite = guaranteed success after college. I have spoken with admissions and financial aid at both places multiple times and we have visited both. The numbers above are from employees and the internet- not just hypothetical.