Can the NCAA afford to pay athletes?
NCAA Schools Can Absolutely Afford To Pay College Athletes, Economists Say.
In response to a federal judge's mandate, the NCAA changed its rules in August 2020 to allow schools to pay each of their athletes up to $5,980 per year as a reward for academic performance.
The NCAA still prevents universities and colleges from paying college athletes, unlike in professional sports leagues (with consistent salaries and benefits). However, this ruling will enable student athletes to seek endorsem*nts, sell merchandise, and use their social media accounts to make money.
The NCAA has long prohibited athletes from accepting any outside money. It did this to preserve “amateurism,” the concept that college athletes are not professionals and therefore do not need to be compensated. The NCAA believed that providing scholarships and stipends to athletes was sufficient.
If a university starts paying student-athletes, it could negatively affect other sports programs. There would not be enough funds to pay every single student-athlete equally and to be able to keep every single sport. The smaller sports that do not generate enough revenue to sustain the program would definitely get cut.
The NCAA still does not allow colleges and universities to pay athletes like professional sports leagues pay their players—with salaries and benefits—but the new changes will allow college athletes to solicit endorsem*nt deals, sell their own merchandise, and make money off of their social media accounts.
A class of 2023 five-star football recruit has reportedly signed a name, image and likeness deal with a school's collective that could be worth more than $8 million by the end of junior year of college, according to The Athletic. This is believed to be the largest NIL deal by a non-professional athlete.
2022 Needs To Be The Year That Student Athletes Start Getting Paid What They Are Worth. On July 1st, 2021, the college athletics landscape changed forever. For the first time ever, college athletes were allowed to make money off of their name, image and likeness (NIL).
Since all student-athletes would likely earn a paycheck for their activities, walk-ons could earn an opportunity to reduce the financial impact of their tuition, room, and board. That means the cost of going to college would go down if you were willing to take up a sport and make the team.
Paying college athletes is a way to encourage students to play sports. Colleges willing to pay for their players could attract talented athletes. Students may want to go out for a sport if they know they will be paid, which could also bring talent to the field or court.
How many college athletes Cannot afford college?
A 2019 study conducted by the National College Players Association found that 86 percent of college athletes live below the federal poverty line.
According to the NCAA's published accounts, its overall 2019 income across all sports was $1.12bn.
The NCAA policy, which took effect in July 1, will allow college athletes and recruits to make money off of activities like autograph signings, endorsem*nts and personal appearances as long as they are consistent with any applicable state law where the athlete's school is located.
Football NIL deals tend to be hefty, with an average of $3,390.95 on Athliance and $3,396 on INFLCR. Opendorse broke down average compensation per football position, ranging from $403 for a specialist, $758 for the defensive line and $2,128 for quarterback.
College football recruits are signing NIL deals ranging from $500,000 to more than $1 million, according to contracts reviewed by The Athletic. The Athletic reviewed three recently signed name, image and likeness contracts, each with a different school collective.
Thus from a licensing standpoint, the annual NIL value per student-athlete could range from $1,000 – $10,000, whereas professional athletes garner between $50,000 – $400,000 for the same group usage licenses.
On July 1, after a decades-long fight, student-athletes across the country gained the right to make money from their names, images, and likenesses (NIL) thanks to a flurry of new state laws and an NCAA policy change.
The NCAA receives most of its annual revenue from two sources: television and marketing rights for the Division I Men's Basketball Championship and ticket sales for all championships.
While ZipRecruiter is seeing annual salaries as high as $78,500 and as low as $12,500, the majority of NCAA Football salaries currently range between $23,000 (25th percentile) to $38,500 (75th percentile) with top earners (90th percentile) making $51,500 annually across the United States.
A growing number of states have passed legislation allowing athletes to receive compensation for their names, images or likenesses. Under these laws, student-athletes could earn money for endorsem*nts, advertising and events such as autograph signings.
Why colleges should pay athletes?
Paying College Athletes Provides Relief For Their Families
Since college athletes can not involve themselves in any income-generating activities, they depend on their families for upkeep. These students are not allowed to sell any personal memorabilia or autograph items to generate revenues.
US college sports body sees income bounce back from pandemic to grow from US$519 million in 2020. The National Collegiate Athletic Association (NCAA) generated record revenues of US$1.16 billion for the 2021 fiscal year ending 31st August, marking an increase from US$519 million in 2020.
Paying college athletes is a way to encourage students to play sports. Colleges willing to pay for their players could attract talented athletes. Students may want to go out for a sport if they know they will be paid, which could also bring talent to the field or court.
The NCAA still does not allow colleges and universities to pay athletes like professional sports leagues pay their players—with salaries and benefits—but the new changes will allow college athletes to solicit endorsem*nt deals, sell their own merchandise, and make money off of their social media accounts.
2022 Needs To Be The Year That Student Athletes Start Getting Paid What They Are Worth. On July 1st, 2021, the college athletics landscape changed forever. For the first time ever, college athletes were allowed to make money off of their name, image and likeness (NIL).
A class of 2023 five-star football recruit has reportedly signed a name, image and likeness deal with a school's collective that could be worth more than $8 million by the end of junior year of college, according to The Athletic. This is believed to be the largest NIL deal by a non-professional athlete.
- Pro: College athletes put their bodies on the line each game they play.
- Pro: Student-athletes generate serious revenue.
- Pro: Paying college athletes would help to begin creating a sense of financial awareness.
- Con: Many student-athletes already receive scholarships and other benefits.
4. More People Would Go to College. The idea of college being free could actually decrease the value of a college degree. Since everyone can afford one, it may become more commonplace and could lower salaries for those who already have a bachelor's.
The money is used to fund NCAA sports and provide scholarships for college athletes. Distributed to Division I schools to assist with academic programs and services. Distributed to Division I conferences for programs that enhance officiating, compliance, minority opportunities and more.
First, despite universities and the NCAA receiving $18.9 billion in annual revenue, big-time college football is shockingly unprofitable. Even though the nation's top conferences lose money, coaches are the highest-paid public employee in 44 states.
Where does NCAA get its money?
The NCAA, the governing body of college sport in the US, makes almost all of its money from the yearly Division I Men's Basketball Tournament.
42% of U.S. adults believe schools should pay players, compared with 36% who oppose such a model. 56% of U.S. adults say college athletes should be compensated equally, regardless of which sport they play or how much revenue that sport generates.
Lowering athlete's salaries could also reduce the cost of going to see them play and buying concessions at games and if the prices don't change, the money could go to charities. An extra million is enough for some players to switch teams, so lower salaries could make players more loyal to their team and community.
