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College Athletes Should Be Paid
Introduction


In 2012, the top 10 athletic programs each earned over 75
million dollars in total revenue in just the major sports of
men’s basketball and football.



T.V. broadcast revenues of college sports has soared to over
2 billion in 2012.



College sports merchandise licensing revenue from items
such as t-shirts, jerseys, hats, shoes and video games was
estimated at $4.6 billion in 2012.



Average athletic scholarship including room and board,
books and travel expenses is $41,000 per year.
Proposal to Congress


The distribution of athletic revenue should include more
than simply scholarship payments for student athletes.



The NCAA and individual universities should include
stipends to the college athletes who earn this revenue
through exploits in the schools television exposure and
advertising the players/teams.
Advertising Individual
Players


Every year at most major universities, the football and
basketball program feature individual jersey numbers.



Individual players are shown frequently on television and
on the internet. Advertisements for the school feature
individual athletes.



Past and current games are repeatedly shown on television,
again providing the school with free promotion without
compensation to the players.
Similar Lawsuit


Class action lawsuit led by former UCLA and NBA
basketball player Ed O’Bannon. Trial for July 2014.



Seeking a suit that states the NCAA violated anti-trust laws
and seek revenue from live and taped TV broadcasts of
college and football games along with merchandise licensing
profits from video games and clothing.



Seeking payment for past and future collegiate athletes
whose images appear in any media and want to establish a
trust fund for after they leave school.



Ruling would go against NCAA distinction of college
athletes as amateurs rather than professionals.
NCAA defines
“Amateurism”


College amateurism refers to the fact that athletes perform
their sport without compensation.



Rule was set in forth in 1940 through the Sanity Code.



Sanity Code established college athletes as strictly amateur
and not professional.



Sanity Code also allowed for the school to provide other
benefits other than monetary for individual students such as
room and board.
NCAA Control


NCAA has the right to use individual players names and
images for commercial purposes, yet the student athlete is
not allowed any compensation.



NCAA and the NFL have a rule that states athletes must be
3 years removed high school before entering the draft.



NCAA and NBA came to the agreement in 2005 to change
the entrance level to the draft from high school graduate to
at least one year removed.
Players Use/Lose
Marketability


Football is an injury prone game. Players must capitalize on
their peak entertainment value some of which is a younger
age.



Freshman QB Johnny Manziel won Heisman trophy in 2012
and generated $37 million in media exposure for Texas
A&M , of which he was paid $0.



Maurice Clarett case
Basketball Players Use
Advertising/Marketability


With forced one year out of high school rule many players
are taking advantage of marketability and entering the NBA
after just one year.



Others are signing contracts with foreign professional teams
such as Brandon Jennings in Italy and Acquille Carr in
China.



Players sign endorsement deals and professional contracts
by taking advantage of their high marketability at the time.
Something that a college basketball player currently cannot
do.
Who receives
compensation?


Football and Men’s Basketball programs at schools that
receive a high revenue from these programs.



Up to NCAA, Conferences, Universities, and Players
Association to decide how much each athlete and team is
paid per season.



Compensation would share some of the revenue with the
individual athletes that are helping bring it to the school.



Paying these athletes would also increase the level of play in
college and therefore increase marketability for themselves
and the schools.

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College Athletes Should Be Paid

  • 2. Introduction  In 2012, the top 10 athletic programs each earned over 75 million dollars in total revenue in just the major sports of men’s basketball and football.  T.V. broadcast revenues of college sports has soared to over 2 billion in 2012.  College sports merchandise licensing revenue from items such as t-shirts, jerseys, hats, shoes and video games was estimated at $4.6 billion in 2012.  Average athletic scholarship including room and board, books and travel expenses is $41,000 per year.
  • 3. Proposal to Congress  The distribution of athletic revenue should include more than simply scholarship payments for student athletes.  The NCAA and individual universities should include stipends to the college athletes who earn this revenue through exploits in the schools television exposure and advertising the players/teams.
  • 4. Advertising Individual Players  Every year at most major universities, the football and basketball program feature individual jersey numbers.  Individual players are shown frequently on television and on the internet. Advertisements for the school feature individual athletes.  Past and current games are repeatedly shown on television, again providing the school with free promotion without compensation to the players.
  • 5. Similar Lawsuit  Class action lawsuit led by former UCLA and NBA basketball player Ed O’Bannon. Trial for July 2014.  Seeking a suit that states the NCAA violated anti-trust laws and seek revenue from live and taped TV broadcasts of college and football games along with merchandise licensing profits from video games and clothing.  Seeking payment for past and future collegiate athletes whose images appear in any media and want to establish a trust fund for after they leave school.  Ruling would go against NCAA distinction of college athletes as amateurs rather than professionals.
  • 6. NCAA defines “Amateurism”  College amateurism refers to the fact that athletes perform their sport without compensation.  Rule was set in forth in 1940 through the Sanity Code.  Sanity Code established college athletes as strictly amateur and not professional.  Sanity Code also allowed for the school to provide other benefits other than monetary for individual students such as room and board.
  • 7. NCAA Control  NCAA has the right to use individual players names and images for commercial purposes, yet the student athlete is not allowed any compensation.  NCAA and the NFL have a rule that states athletes must be 3 years removed high school before entering the draft.  NCAA and NBA came to the agreement in 2005 to change the entrance level to the draft from high school graduate to at least one year removed.
  • 8. Players Use/Lose Marketability  Football is an injury prone game. Players must capitalize on their peak entertainment value some of which is a younger age.  Freshman QB Johnny Manziel won Heisman trophy in 2012 and generated $37 million in media exposure for Texas A&M , of which he was paid $0.  Maurice Clarett case
  • 9. Basketball Players Use Advertising/Marketability  With forced one year out of high school rule many players are taking advantage of marketability and entering the NBA after just one year.  Others are signing contracts with foreign professional teams such as Brandon Jennings in Italy and Acquille Carr in China.  Players sign endorsement deals and professional contracts by taking advantage of their high marketability at the time. Something that a college basketball player currently cannot do.
  • 10. Who receives compensation?  Football and Men’s Basketball programs at schools that receive a high revenue from these programs.  Up to NCAA, Conferences, Universities, and Players Association to decide how much each athlete and team is paid per season.  Compensation would share some of the revenue with the individual athletes that are helping bring it to the school.  Paying these athletes would also increase the level of play in college and therefore increase marketability for themselves and the schools.

Editor's Notes

  1. Former Ohio State running back Maurice Clarett, played one season at OSU before being dismissed from the team. He left college football for one year and declared for the NFL draft. By declaring he then found himself ineligible for both leagues. He sued and a lower court found the rule violates anti-trust laws. Higher court overruled in Clarett’s case makkng him wait 3 years.