NCAA Athletes Could Make $ 2 Million Per Year If Paid Fairly, Study Says
A new study published by the National Bureau of Economic Research found that less than 7% of the revenue generated by the National Collegiate Athletic Association, or more than $ 8 billion a year, reaches male football and basketball players through scholarships and subsistence allowances.
Top NCAA Division 1 Schools Earn Around $ 8.5 billion in annual revenue, 58% of that revenue comes directly from men’s football and basketball programs.
But less than 7% income generated by these two sports goes to its athletes in the form of scholarships and living expenses allowances.
“Intercollegiate amateur athletics in the United States largely prohibits student-athletes from sharing in the profits generated by their participation, which creates substantial economic rents for universities,” according to the National Bureau of Economic Research study. States.
Under the collective agreements in force in the NFL and the NBA, professional athletes in these two leagues receive approximately 50% of the income generated by their sports activities in the form of wages.
the study estimates that if male basketball and soccer players in the most prestigious conferences shared 50% of the income equally, each soccer player would receive $ 360,000 per year, and each basketball player would earn nearly 500 $ 000 per year.
The two highest paid football positions (starting quarter and wide receiver) would win $ 2.4 and $ 1.3 million, respectively, and novice basketball players would be paid between $ 800,000 and $ 1.2 million per year.
The ban on college athletes being compensated while in school has long been a controversial and controversial issue. In April 2020, the NCAA finally bowed to public pressure and took a small step forward by announcing that it supported rule changes that allow athletes to be compensated for the use of their names, images and similarities. However, such agreements would have to come from a third party, as universities will still not be allowed to pay athletes directly, so athletes will not be considered university employees. The revised NCAA rules are not expected to officially come into effect until the start of the 2021-2022 academic year.
Large number :
260%: Combined revenue from Power 5 conferences increased by nearly 260% from 2008 to 2018, based on IRS-990 declarations. Over the same 10-year period, NFL and NBA revenues have grown by around 90 and 110 percent, respectively. As of 1999, total revenue from NCAA football and basketball tickets exceeded total sales of professional baseball, football and hockey tickets.
“While varsity sports are often described as student activities undertaken by amateurs, the economic reality is that sports departments have become complex business ventures that are much more like professional sports organizations,” he added. study states.
According to in the study, the NCAA model “effectively transfers resources from students who are more likely to be black and more likely to come from poor neighborhoods to students who are more likely to be white and to come from wealthier neighborhoods.”