Pay for play
The Economy Of College Sports
“Fairness, academics and equitable competition” is the mission statement for the National Collegiate Athletic Association. The National Collegiate Athletic Association, also known as the NCAA, is an association that regulates major areas of college athletics for members and student athletes. The organization is defined as a non-profit, and as proclaimed by the president Dr. Mark A. Emmert, “…is committed to providing opportunity for more than 430,000 college students who compete annually in intercollegiate athletics” (NCAA). Recently the NCAA published their financial report for the 2011-2012 fiscal years. The report features a pie chart displaying a revenue breakdown, and distribution of revenue breakdown. I will examine the economic impact in these categories and consider how a possible change in distribution of the revenue to players affects the NCAA purpose and amateurism of the sport. The NCAA vows that “revenue supports intercollegiate athletics opportunities on national and local levels” and provides a chart with a revenue breakdown for the NCAA for the 2011-2012 fiscal year. It is separated into percentages based on: Contributions, Sales and Services, NIT and Eligibility, Investments, Championships, and Television and marketing. Conclusively the data from the NCAA illustrates that a majority of the revenue is from the television/marketing sector as well as championships.
With a generous contract secured with Turner/CBS Sports, “the total rights payment for 2011-12 was $705 million or 81 percent of all NCAA revenue” (NCAA). CBS Sports is a large and well-known broadcaster for sports locally and nationwide. Contracting with a network this large is beneficial for the school, advertising and an important aid in the advancement for the career of athletes. The large profit margin is proof that college athletics have a huge following and as mentioned in the article “projected NCAA revenue for 2012-13 is $797
“Fairness, academics and equitable competition” is the mission statement for the National Collegiate Athletic Association. The National Collegiate Athletic Association, also known as the NCAA, is an association that regulates major areas of college athletics for members and student athletes. The organization is defined as a non-profit, and as proclaimed by the president Dr. Mark A. Emmert, “…is committed to providing opportunity for more than 430,000 college students who compete annually in intercollegiate athletics” (NCAA). Recently the NCAA published their financial report for the 2011-2012 fiscal years. The report features a pie chart displaying a revenue breakdown, and distribution of revenue breakdown. I will examine the economic impact in these categories and consider how a possible change in distribution of the revenue to players affects the NCAA purpose and amateurism of the sport. The NCAA vows that “revenue supports intercollegiate athletics opportunities on national and local levels” and provides a chart with a revenue breakdown for the NCAA for the 2011-2012 fiscal year. It is separated into percentages based on: Contributions, Sales and Services, NIT and Eligibility, Investments, Championships, and Television and marketing. Conclusively the data from the NCAA illustrates that a majority of the revenue is from the television/marketing sector as well as championships.
With a generous contract secured with Turner/CBS Sports, “the total rights payment for 2011-12 was $705 million or 81 percent of all NCAA revenue” (NCAA). CBS Sports is a large and well-known broadcaster for sports locally and nationwide. Contracting with a network this large is beneficial for the school, advertising and an important aid in the advancement for the career of athletes. The large profit margin is proof that college athletics have a huge following and as mentioned in the article “projected NCAA revenue for 2012-13 is $797