Running Head: A PROBLEM EXISTS 1

A Problem Exists

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Introduction

The college sports industry has been generating billions of revenues in every year for

National Collegiate Athletic Association (NCAA) member colleges. These revenues are

collected from numerous sources such as ticket sales, the sale of broadcast rights and

sponsorship rights (Sanderson & Siegfried, 2015). Interestingly, these revenues are shared

among NCAA executives, coaches, and athletic directors without giving a share to the college

students who participates in games as players (Kaburakis, 2007). Besides, NCAA member

colleges continue to oppose the idea if sharing revenues with student-athletes. This study will be

discussing arguments provided by NCAA member colleges on not pay student-athletes. The

main aim will be to determine whether it is necessary for student athletes to be paid. The study

will be targeting NCAA member colleges and student bodies. Hence, the NCAA member

colleges should reform their rules to ensure that student-athletes whose labor they depend on get

their share of revenues collected from NCAA games. Student Athletes should be paid in relation

to what they earn for their colleges. This paper examines the economics of college sports to

establish if college athletes should be compensated after play. Included will be some restrictions

that the NCAA imposes on payments to athletes. Moreover, the paper will try to determine the

profitability of various athletic programs and the current revenues generated by student-athletes.

Some of the arguments to pay student-athletes will be highlighted, followed by arguments to or

not to pay student-athletes.

College sport is a lucrative venture that rakes in a lot of money from ticket sales,

merchandise offsetting and broadcast rights to the games. The fact that the players dont get a

share of the revenue is worrisome. Hence, it is critical to understand the modalities of the

finances and how the funds are shared. Next, it is imperative to understand the commercial value
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and subsequent remuneration of the players who happen to be students on their role while

playing. In essence, it rests on the National Collegiate Athletic Association (NCAA) member

colleges should reform their rules to ensure that student-athletes whose labor they depend on, get

their share of revenues collected from NCAA games. In the world of athletics, college athletics

has proved to be beneficial to large financial benefits to NCAA member colleges, executives,

coaches, and athletic directors. This issue has led to many debates regarding the payment of the

athletes. The NCAA member colleges and proponents think that scholarship awarded to the

student athletes is enough while others assert that the payments might compel them to leave the

college early for taking part in the athletics. The NCAA has historically and currently plays a

decisive role in the compensation of amateur athletes and its limitations it places on them. The

NCAA limits payment for play and the number of grants-in-aid that a school can offer.

A misunderstanding relating to student athlete compensation is scholarships. Many consider

scholarships cover all aspects of costs of attending an institution, but can leave college students

shorthanded. There is almost a $14,529 gap between a students collegiate expenses and

scholarship (Edmunds, 2014). By understanding the financial stress on an athlete, one might

realize why an athlete may seek extra compensation, particularly if they come from a low-

socioeconomic background. Another misunderstanding comes from misjudging the profitability

of athletic departments. For example, in 2010, only twenty-two NCAA member schools turned a

profit (Miller, 2012). The budget of many athletic departments goes into recruiting and coaching.

Moreover, the money acquired through profitable sports, i.e. basketball and football, does not

entirely stay in those departments. The funds go to assist, and sometimes totally supplement, the

rest of athletics on the college. The NCAA makes most profit in the world of college athletics,

which in 2010 made approximately $845.9 million dollars in revenue (Miller, 2012). This
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approach by the NCAA can be regarded as an attempt to create a cartel. The NCAA believes

they are trying to preserve amateurism by imposing these rules on student athletes.

Problem

Firstly, the NCAA believes athletes do not deserve to be paid because the learning is the

main that brought them to college and many other member students take part in various school

activities like student organizations, sports, and theater. The NCAA thinks that every group is

equally important to the colleges and should be treated fairly and equally. The other students will

demand payment as well if athletes are paid for playing sports because they take part in different

activities. As a result, this issue will lead to student conflicts. However, the college athletes

generate a lot of money to their colleges. The players deserve receive some share of this money

because it is through them that the colleges have the popularity and money. College athletes

generate a considerable amount of income for their colleges and would be ethical to pay student-

athletes for their services.

Secondly, the NCAA claims that athletes receive support and scholarships from their

colleges. The money generated from athletics get is constantly given back to the students them in

the form of scholarships and grants. Also, even if athletics generate billions of money in revenue

for colleges, expenses go hand in hand which indirectly or directly assist the college athletes

Proponents however believe that most of college athletes are not financially stable because they

mostly depend on money given to them by their parents which is not sufficient enough to cater

for their basic necessities and expenses. Also, the NCAA thinks that that more than half of the

student athletes do not graduate on the required time and others even fail to graduate (Joseph,

2006). For those that graduate, they have a shortcoming because they did some courses that are

less competitive that requires little effort. Therefore, the athlete students do not deserve to be
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paid. However, athletes that graduate from colleges remain because of their continued support

from their parents, guardians, or sponsors that send money to them. Moreover, if they are paid,

the graduation rates for college athletes would increase. Paying athletes would be beneficial for

the college and players would be forced to go for college education rather than only focusing on

the sports. Most of the athletes that have the prospect to leave school and turn professional do so,

because college athletes live in poverty. To avoid all the negative gains, the athletes need to be

paid.

Thirdly, the NCAA states that paying students will have a low concentration on education

as compared to sports. The student-athletes at many American colleges get the benefits of the

high quality education system to have a good life in future. Student-athletes amuse and entertain

people with their talents and if the college decides to pay athletes, they will move the colleges

main stated objectives and goals further away by disrupting the main point of college which is to

learn. Moreover, the college athletes will be forced to start thinking about other things that will

eventually prevent them from academic and athletic schedules. Additionally college athletes

leave the college earlier to take part in professional sports which forces them to drop their

education because they have a stable source of income which makes them not to think about

completing their courses or graduating. As a result, colleges should guarantee the players that

they can come back and complete their college programs. It would go a long way in providing

additional compensation and benefits as well as providing the same assistance for players that

they receive while playing.

A very small percentage of the football or basketball players make it to the professional

level so their educational program should be extended to account for the demanding and time

consuming four years of playing. The time they spend practicing, traveling, and playing should
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be compensated for not just by money but allowing them the extra years it will take to finish

their college education free of charge. Considering the amount of money they produce for the

college; this would be the least they could do to prepare them for the real world of work. They

should provide the same resources they were offered to maintain their eligibility. The counseling,

tutoring, and assistance should continue. Currently, they are cut off as soon as their college

career is over.

The opposition this position, however, has a fair point. Nevertheless, college athletes fill

stadiums and fetch record profits for colleges without receiving a penny for it. Athletes give up

most, if not all, of their energy and time to their sport and still have to perform up to standard in

the classroom; so they deserve some compensation. The athletes devote so much time to practice,

traveling and training; it leaves little time for education. A high majority does not graduate and

only a small minority makes it to the professional level. They tend to take less demanding

programs to maintain their eligibility. However, opponents believe that college athletes already

get more than enough compensation in the form of world-class fitness training as well as

scholarships. They also consider that payment incentives will lead to inequality, athletes

attending college to be paid to play, and smaller schools not being able to contend with bigger

schools that have more money to spend on players.

However, other opponents think that college athletes do not need extra cash do not

consider the psychological aspect. For example, talented college athletes are torn between the

opportunity to start playing and earn money, and furthering their education which maybe makes

them not to complete college. Being in such situation, athletes experience a lot of tension from

parents, potential sponsors, and friends. Therefore, college athletes should be paid some cash and

allowances that allow them to decide freely and continue their college and athletic career.
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However, the NCAA fines them for this because they believe majority of student athletes regard

themselves as more as athletes than as students. The NCAA considers the consequences of an

athlete after graduation and enters into the real world. In the struggling economy, smart people

are needed to find new solutions to old economic problems that propel the countrys economy. If

some college athletes enroll college only to get paid and not to receive a good education, then

they are limiting their future.

Solutions and Advantages

I believe NCCA and member colleges and universities should compensate their college

athletes for the potential and apparent benefit they bring to the institution. Institutions should

give athletes a living stipend that is supervised by the school. The college would be responsible

for checking the numerous expenses that the athletes make. Currently, the concept of amateurism

is declining and will ultimately be eliminated in college basketball and football. The market to

increase revenues at colleges based on their talent and athletic programs is becoming

progressively competitive and everyone wants a cut of the cake. The NCAA restructure, adapt,

and determine ways to give student-athletes more say in the issue of benefits they get. There are

several diverse ideas for a potential solution to this debatable matter.

Additionally, student-athletes should be given a cost of living allowance or living stipend,

include a portion of new revenues into an student-athlete education lockbox, they should also be

allowed more access to the commercial free market, use new TV revenues to offer

accommodations for female athletes in harmony with Title IX, enact scholarships that are

corresponding to the total cost of attendance, and have the National Government as well as
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Congress examine all aspects of collegiate athletic changes to insure university presidents

approve the allocated reforms.

As mentioned earlier, the idea of imposing a living stipend for college athletes is a good

solution too. The colleges should control what is included as a living necessity and have a

compliance department to monitor student-athlete expense accounts. They should have the

stipend set so money can only be spent at particular locations such as restaurants etc. Colleges

must find a way to come up with a number value, to decide on to how much to give each athlete

and which athletes get benefits within the NCAA and Title IX guidelines. If schools establish a

model for a living stipend then the colleges that are less profitable than others will have to drop

some athletics.

There are various ways in which colleges can compensate the college-athletes, but I

believe this way would be the most effective and that a major transition would have to be taken

step by step because no one knows what the ramifications are to implementing such an idea.

Because of the changing world of business and sports, this issue will be very widespread in the

near future and we must think of ways of adaptability to brainstorm the greatest options for a

solution. Thus, there are many arguments for and against why student athletes should be

compensated in some form or way. My personal opinion is that they should receive some

compensation and benefits since they help bring in revenue to the college and universities around

the country should start thinking about possible ways to give student-athletes benefits and other

means to cut costs to create a more efficient athletic administration.

Stakeholders can explore solutions to address student athlete concerns in manner that is

reasonable to the colleges budget, only in terms of compensation, but in specialized support for

athletes and student programming. Student Affairs departments can partner to provide these
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services and further incorporate student athletes into the college community outside of athletics,

at a reduced cost to the athletic department. Moreover, the NCAA needs to redefine amateurism

to address the issue of reality of college sports today. An organization that accrues profit from

college sport and inhibits students from getting it is appears problematic. There should joint

conversations between the NCAA, colleges, and athletes to create clear definition amateurism in

the present day, and to examine if students are actually benefitting from their time in athletics.

Research should go beyond high grossing sports to examine sports in a holistic way. A

representative range of students can give an inclusive picture into the student athlete experience.

A lot of emphasis should be laid on womens sports, since women work just as hard as men, but

get less public support than mens sports. Longitudinal research demonstrating student spending

outside of a scholarship may help stakeholders in coming up with the right amount of additional

funding to equalize the college experience. Filling in these gaps will allow the NCAA, colleges,

and administrators to support students irrespective of sport, and will improve the student athlete

experience generally.

Conclusion

Since there are many opinions the issue of athletes' payment, the NCAA member colleges

should create and implement more rational decisions in the near future that will assist the overall

student body as well as the college athletes to come up with the right decisions regarding their

future in a free manner, without any restrictions. Whatever the NCAA decides, it should

particularly consider needs and rights of the college athletes the available opportunities in their

future. This policy proposition framework is directed and aimed to influence the official

standpoint and ensure that forthwith all the players will be covered regarding wages earned from

their labor. It means that the NCAA as the official agency on the matter should develop an
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official position that would legalize the payment of the student players. Secondly, it is aimed to

spark a critical shift in decision making arms of the individual or member colleges regarding

their viewpoint and perception of handling the student players. Thirdly, it is important to mention

that college sports are wide fraternity of different units of people who must be covered or

included in the financial or commercial decision-making mechanism of how to set the

remuneration level. In principle, the players, coaches, colleges, supporters, sponsors and the

media are all fundamental components of college sports. As such, it would be fair to obtain their

opinion and suggestions on the matter regarding the question of pay and the subsequent level to

be set. It goes without saying and mentioning that the labor and value of work of the students

make commercial value to the NCAA and other relevant agencies. However, the main workers or

laborers do not get compensated for their efforts hence the scope of the paper would be to

articulate a fair debate and inspire the notion of payment to the student. At the very least,

compensation of the different sections of the NCAA membership must be pegged on marginal

output and productivity.

References

Edmunds, M. (2014). The financial gap between athletic scholarships and athlete expenses. Saint

John Fisher College Online Publications, 45-67. RetrievedNovember 12, 2014, from

http://fisherpub.sjfc.edu/cgi/viewcontent.cgi?article=1006&content=sport_undergrad

Joseph N. C. (2006). In the Arena: The NCAA's First Century. Indianapolis, IN: National

Collegiate Athletic Association.

Kaburakis, A. (2007). International Prospective Student-Athletes and NCAA Division 1

Amateurism. International Journal of Sport Management and Marketing 2(1).

Miller, M. (2012). NCAA and the Student-Athlete: Reform is on the Horizon. University

of Richmond Law Review, 46(1141).

Sanderson, A. R., & Siegfried, J. J. (2015). The case for paying college athletes. The Journal of

Economic Perspectives, 29(1), 115-137.