It moves the unit up the scale by one IIRC. Uncontrolled, normal, disciplined, (elite?). I do not know if the effect of building a disciplined troop in a town with the academy is an elite troop or not.

I haven't checked the morale effect, but take two units, one trained a turn before the academy is built and one trained after the academy is built and check the difference using f1 before a battle joins and both the same distance to any morale boosters.

mfberg