Abstract
The Ed O’Bannon (O’Bannon v. National Collegiate Athletic Association, 2015) case has brought student athlete compensation to the national spotlight. While the NCAA continues to defend its policy of amateurism, the time for college athlete compensation may soon become a reality. College athlete compensation models have previously included a revenue sharing model similar to that of professional sports leagues. While this model was worthwhile, it only took into account basketball and football. The current paper will argue for a market-economy based compensation model. This model takes into account the revenues generated by each university team, while also accounting for a player and team’s performance. Justifications for this model will be explored, as this model will allows for various options for athlete compensation. This paper will conclude with an example of the model’s utility through using publically accessible data for a major Division-1 college program.
Highlights
IntroductionThe current research argues for a more applied, marketeconomy compensation model to offer fair compensation to collegiate athletes
Moreno and Lozano (2015) found that team efficiency has started to become the new norm for athlete compensation in the National Basketball Association (NBA) as the more successful teams use their funds efficiently to get the most production for their investments. These findings suggest that NBA franchises are going more towards a sabermetrics approach for developing their team rosters
The Ed O’Bannon case was not heard by the Supreme Court, this case brought the idea of athlete compensation to the public arena
Summary
The current research argues for a more applied, marketeconomy compensation model to offer fair compensation to collegiate athletes This model takes into account the revenues generated by each university team, while accounting for both the student-athlete and team’s performances on and off the field. Justifications for this model are explored, as this model will allow for a new way to compensate athletes via on and off-field metrics. Emmert’s address in 2012 included a statement that noted the NCAA was at a fork in the road regarding the vast revenues involved in college sport (Southall & Staurowsky, 2013). This stance on amateurism has allowed for various lawsuits to threaten the current state of the NCAA, including the Ed O’Bannon case
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