Abstract

We explore the financial value of NCAA football recruits and establish a wage schedule based on the star ratings assigned to high school athletes by an independent talent evaluation agency. Evidence suggests that these ratings are highly informative measures of collegiate athletic performance and that the contribution of higher-ranking recruits to team wins significantly increases revenues. While the NCAA currently prohibits universities from paying student-athletes, we estimate that if amateurism rules were rescinded and college football players were compensated according to their revenue-generating abilities then five-, four-, three-, and low-star players would be entitled to annual salaries of $776,000, $357,000, $101,000, and $3,000, respectively, in addition to athletic scholarships covering tuition, books, and room and board.

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