This paper analyses the financial problem of universities. We first look at two basic theoretical models: the private and public provision. In the former case everything is decide by the market: demand, supply and equilibrium prices. In the latter case the State decides the quality and quantity of the supply, even if teaching freedom is normally guaranteed by Constitutions. A more interesting model is the one mixing the previous two. The Italian system is mixed. Its general financial rules are defined. The paper then looks at the academic situation in Italy in the beginning of the 90s and describes in detail the contents of art. 5 of the bill n.537/1993 (financial bill). This article reformed the finance of the universities, simplifying it and guaranteeing more transparency. This work analyses the implementation of the reform drawing some conclusions.