NCAA - again

Sorry for coming back to NCAA football yet again, but the latest headlines dealing with the University of Miami scandal really deserves to be mentioned here. The dust has not yet settled on the Miami case, but there seems to be a lot going on behind the shining surface of the NCAA. And it is all about the fact that collegiate players do not get what they deserve. They have value, they generate revenues for their colleges and they are not even allowed to sell their trophies from championships or other memorabilia (see Ohio State case).

So the NCAA does not only restrict all internal compensation to regulated scholarships, it also deprives players of their right to turn their value into money. In short the NCAA also prohibits all external compensation. While this is against all principles of economics, it is also highly questionable in terms of constitutional rights of the players. The NCAA uses its monopoly power to negotiate sponsorship contracts, TV contracts and media relations. Colleges make a lot of money selling TV rights for their games. Top NCAA coaches can easily match with NFL coaches in terms of salaries. At whose cost? Yes, the players'.

In a recent panel discussion presented on ESPN, dealing with possible changes of the current collegiate athletics system (Blueprint of Change), Alabama coach Nick Saban stated that the NCAA "was no business" and nobody "was making money" as "no revenues were generated". I never heard something more cynical and false. Saban himself makes $4.1 million this season and his 8-year contract is worth $32 million. The contract of another discussant in the penal, Bob Stoops, who does not hesitate to emphasize the "value of education" is in the same area (see ESPN). Non-monetary compensation and bonuses not mentioned.

Universities reinvest their revenues generated from athletic programs. They do not make money, but they seek to improve their reputation and attract more students. Sounds like a business to me. Coaches are making big time money while arguing in favor of a strict zero compensation policy for players. Maybe the current NCAA system is collapsing in the wake of all the scandals. Players should be given their fair share and a change is needed.