There has been talk for at LEAST ten years from the "faculty senate" about privatizing the greek system at Alabama. It will never happen. Here's why...
1. Wealthy alums--those who donate lots of money to the University--are usually alums of greek organizations. The University doesn't want to risk angering the folks who subsidize scholarships and give money for new buildings. Also, they want the children of these alums to attend the University as well. If Daddy's fraternity is not on campus, Junior may decide to go to Auburn or Ole Miss. Then Daddy's money will go to Auburn or Ole Miss. Do you follow?
2. By having GLOs as campus organizations, the University can regulate their behavior to a certain degree. (For example, fraternities who wish to hold parties at their houses must register the party with the University weeks in advance.) If the University stops recognizing GLOs as campus organizations, they will no longer have any control over their behavior, parties or even rush. The University doesn't want that.
3. Despite what has been posted here, the University does not subsidize GLOs in any way. The organizations already own their own houses. The only thing the University owns is the land that the houses sit on. The University isn't going to risk losing money and angering alums by tearing down their houses. In fact, after tearing down the Pi Phi, Gamma Phi Beta and Alpha Kappa Alpha houses several years ago to make room for the staduim expansion, Pi Phi and AKA were built new houses and Gamma Phi Beta was allowed to move to a nice house (formerly Sigma Kappa's) all on sorority row. On the other hand, the University also isn't going to give up that land where the houses are sitting. There is no chance that UA is going to sell off that very valuable land!
4. The faculty senate is just a group of professors who make suggestions to the administration. They have very little real power and, over the years, they have made a wide variety suggestions on many topics... very, very few of which have come to fruition.
I won't even go into the whole "segregation" thing. That's a whole other thread, and most of you have probably read all that I've said about the situation in the past. I will say that it has been blown completely out of proportion by the media.