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.

2 comments:

Matt said...

In my opinion college athletes are getting paid and they don't even see it. The college is paying for them to attend their school and play football by awarding that athlete a scholarship and also all the equipment that is given to the athlete. I do think that it would be good for the college to put some money in an account for each athlete that would help them pay for groceries and other important items. Although the college athlete needs to learn how to earn things on their own. There are many arguments you can make about this topic.

JonathanW said...

I completely agree Matt. Most of these players that are on scholarships cannot afford to buy food and spending money for other necessities so if a booster or an alumni pays for it, I believe it is ok but if the college itself is paying players, they should undergo serious consequences. As for the post, I don't think we can just assume that every college pays their players. I do think that the majority do but there is not enough evidence to prove that all of the major powerhouses pay their players

-Jonathan Wells