Thursday, October 27, 2011
Business Side of paying collegiate athletes
Recently in college sports, especially football, there have been many cases of collegiate players being paid. In this article it talks about how some of the biggest power houses of college football that are being punished for their involvement of paying players. It has mainly been the boosters and alumni that are responsible for paying these players. This aspect brings into question what are the business aspects of paying players. In my opinion, these universities and boosters are paying these players to increase the demand in their football teams. The amount of revenue that these high ranking teams bring in for playing in big time bowl games and primetime games is enormous. An example would be Texas in the 2009 fiesta bowl; for their win they received around 3 million dollars. Also a high powered football team creates a great incentive for students to attend the school; TCU is a prime example of this. When their football team started doing well, and became ranked, their applications grew about 40 %. All of these factors create great revenue for the school, and the easiest way for some school to get these high powered teams is to bring in players by paying them. I'm not saying that paying collegiate athletes is the right thing to do, but for some schools it may be the solution to bring in huge amounts of total revenue.