Jon Chait on the Marketization of College Sports

Submitted by jbibiza on

The estimable UM graduate Jon Chait has used his New York Magazine column to weigh in on the subject of financial benefits for college athletes:

 http://nymag.com/daily/intelligencer/2013/08/johnny-football-shouldnt-sell-his-autograph.html

The catalyst is Manziel's autograph-gate, and how major college sports would lose their appeal if they effectively became a minor league.  He does not go into the deeper levels of possible compensation that Brian has discussed, but he does cite MgoBlog!

Note: For those who do not know, Chait is a very avid and knowledgeable UM football fan... and obviously reads the best blog.

Brandon_L

August 23rd, 2013 at 2:02 PM ^

I dont like change, but its innevitable. As a lifelong fan of college sports that never participated at the collge level. I do not have a player perspective. I have thought deeply about how this will end up ruining the game. I have come up with the sponsorship Idea. Every team, conference to conference do a sponsorship profit share. Every team in the big can go out in the off season with their respective teams and collect sponsors. Sponsors can be registered boosters, businesses in the area, etc. They can raise the money needed to meet their cap and boom every player on each team receives their allowance mothly during the season.   

LB

August 23rd, 2013 at 2:07 PM ^

not be a popular view. I am a very casual fan of pro sports. If that is what college athletics become, I have other interests that can fill the gap.

I would support stipends for athletes on full scholarship, as long as they are available to every athlete on a full scholarship. Moving very far past that will make ticket prices, questions about what color yellow is, and who ran RR off a moot point as far as I am concerned.

GoBlueInNYC

August 23rd, 2013 at 2:25 PM ^

This is one of those topics that fills me with a very deep ambivalence. I love college football and wish it would never change, but I fully recognize that it has already changed in many fundamental ways. A lot of facets of the sport just haven't caught up yet.

I'm not sure how football will change in the near or distance future, but I just know that there are going to be some seismic shifts. Between the boost in money flowing through the college sport and the looming brain trauma controversies at all levels, there's no way for things to stay the way they are. I just don't even know how I'd want it to change, let alone have any idea how it will change.

French West Indian

August 23rd, 2013 at 2:28 PM ^

Saying that colleges would become a "minor league" if they paid players is a bit misleading.  College sports would become professional sports if they paid their players and it is quite possible given the loyalties involved that they would be as every bit as "major "as the NFL,NBA, etc.

But, thankfully, colleges do not want to field professional teams so it will never happen.

As to the marketization of college sports, it is unfortunate and probably too late to turn back now.  But if I were to make a single recommendation to restore the original appeal of college sports it would be this:

-Get rid of the massive television money that has been flooding into it by taking the televised games off of private networks and put them on taxpayer funded public television instead.  Sounds crazy at first but if it can be argued that the results of games involving the University of Michigan and Michigan State University are in the public interest (and I think it can) then why shouldn't these games be available to all free-of-charge and without advertisements?  Instead some E$PN execs are getting rich off of the public's interest in college football.

MI Expat NY

August 23rd, 2013 at 2:29 PM ^

I'm not sure about everything he says in the article, but this statement is 100% accurate: "I can’t think of a single example anywhere in the world of a minor-league sport that even approaches the popularity of the major-league version."

I think there's a very real risk that college football is moving towards being just another minor league.  When that happens, it'll be a precipitous fall back to earth for college athletic departments.  

vablue

August 23rd, 2013 at 2:41 PM ^

If college sports went pro, so to say, it would not be nearly as popular. It's likely that a large majority of the teams would be even less competitive than they are now, if they even existed. And all those things this board would hate to see like ads in the big house would be impossible to avoid. To be frank, I question whether Michigan would be able to compete. I suspect the Big Ten would have trouble and the TV money from the BTN would start shrinking, this would make it tough to compete with southern schools whose boosters mark there whole identity by the way their team performs. Essentially, it is my belief that if we paid players, the players would end up far worse off in the end. In 10-15 years few program's would remain and those likely would end up making less money. Thus you would have less scholarships and less money being paid out when all is said and done.

Sons of Louis Elbel

August 23rd, 2013 at 3:11 PM ^

First of all, I'm dubious (to put it mildly) that, e.g, Bama and Auburn fans would suddenly stop caring if their players got (openly) paid. Ditto for us. We love the university and want to see it succeed, regardless of the setting. But more importantly, the *possibility* of this happening is simply no justification for denying athletes the access to the free market that pretty much everyone else has, Chait included. "Amateur" athletics is just a made up concept that allows someone else to keep the $ the athletes generate. It is also, in the case of the NCAA a way to take $ generated by a heavily (if not exclusively) African-American group of athletes and transfer it to a bunch of white folks (coaches, administrators, NCAA officials, non-revenue athletes).

French West Indian

August 23rd, 2013 at 4:02 PM ^

"I'm dubious (to put it mildly) that, e.g, Bama and Auburn fans would suddenly stop caring if their players got (openly) paid. Ditto for us."

You're right, fans wouldn't stop caring if the players got paid.  But the fans will be furious when those players start going on strike for an ever-increasing piece of the pie.  It's a slippery slope once any compensation is allowed.  And the universities really hold the upper hand because with a large pool of able-bodied young men on campus willing to play for nothing but pride, that's an ample supply of scab players.  College sports is all about the jersey, not the name on the back of it.

grumbler

August 23rd, 2013 at 7:07 PM ^

Players have absolutely open access to the free market in football skills.  part of that market is the college game, but those graduating high school can try out for semi-pro teams if they like, and earn what the market will bear.

There is no incentive for colleges to hire professionals to play for the college, when the colleges can get amateur students to play for the price of the scholarship, facilities, coaching, etc.

That's the way the free market works, and if you really think that 19-to-22-year-old football players generate lots of money for their teams, you really should start a football team for those kinds of players.

 

Zone Left

August 23rd, 2013 at 7:50 PM ^

Sorry, the athletes are certainly not getting what the market will bear. The NCAA is a cartel in economic terms. Its members collude together to fix wages at an artificially low level. Players who could earn more accept this in part because it is the only road to becoming a top NFL draft pick. If players were in fact paid market rate, there would be no incentive to cheat by offering illicit benefits. Furthermore, the NFL players union has decided to exercise its monopoly power by restricting the age of its membership, preventing players like Maurice Clarett from entering the NFL at 19 years-old. This is basic economic theory.

grumbler

August 24th, 2013 at 6:46 AM ^

Sorry, you need to learn what words like "cartel" mean before you use them.  The NCAA is an association.  It doesn't try to influence what any other players in the market for sub-professional baseball charge or pay, and doesn't try to control supply.  It is the market equivelent of a homeowner's association:  "you don't have to buy a house here, but if you do, these are the rules you must follow."  What you call "illicit benefits" are only illicit by the association's rules; any college could drop out of the NCAA and pay those benefits openly.

No one is forced to play college football. If someone thinks the market offers a better opportunity outside college, they can take that opportunity, and the NCAA will say and do nothing.

The fact that the free market doesn't offer players a better opportunity than the scholarships, facilities, accomodations, food, and coaching offered by college football doesn't mean that there isn't a free market.  

Zone Left

August 24th, 2013 at 7:01 PM ^

No one is forced to buy oil either, yet OPEC is a cartel. There are other options available and we are free to use them, but we choose to use gasoline because its the only realistic alternative. At its heart, a cartel is a group of powerful players that collude together to enhance their market power. The NCAA schools have collectively decided to use their market power to limit "payment" to athletes. Whether or not there is freedom to choose other options or if you believe the NCAA is good or bad, it is a cartel. There is actually a lot of quality writing on this subject.

UMaD

August 23rd, 2013 at 3:38 PM ^

I don't know, but if I was a men's baseball, lacrosse, or cross country athlete, I wouldn't want to find out.  That money comes from somewhere and I don't think it's going to be the football program (coaches, and facilities - we'll still have to compete with the SEC teams) and I don't think it's coming from Dave Brandon, NCAA adminstration, or other executive types.

MGoBender

August 23rd, 2013 at 3:59 PM ^

I'm sorry, but this is still a crock.  99.999% of college athletes are compensated far better than what their universities make off of them.

Plus, those athletes could not make that money without the University's legacy, support, etc.

They are getting a free $150,000 education, at least.  They could potentially earn a Master's degree (ala Gardner) if they enroll early.  Now we're talking a quarter million dollar education.

They are getting an invaluable internship that can lead them to lucrative careers as professional athletes, coaches, etc.

They get free clothing, free food, and a living stipend if they live off campus that far exceeds their rent.

Go ask these athletes if they feel taken advantage of.  99.999% are not - just look at Tom Brady's speech.

French West Indian

August 23rd, 2013 at 4:10 PM ^

...it should probably be pointed out that for many of these student athletes the value of their scholarship extends past graduation because it allows them to graduate debt-free (unlike many of their classmates).

That might not sound like a big deal but many recent graduates struggle financially and sometimes miss out on good long-term career opportunites (e.g., unpaid internships, volunteer work, etc) because they've little choice but to take the best paying jobs available to them at that time.  Compared to an average student, it's very difficult to feel any sympathy for the scholarship athletes.

jmblue

August 23rd, 2013 at 4:24 PM ^

Honestly, I'm just tired of this issue at this point.  Yes, the current setup is unfair to the small number of superstars who actually do, individually, have market value.  But there's basically zero way to compensate them without either 1) running afoul of Title IX or 2) destroying the economic structure of college sports.  Life isn't fair.  

 

Tater

August 23rd, 2013 at 6:21 PM ^

I like Chait, but I couldn't get past the fourth paragraph here.  Chait cites the "purpose" of the rule as being to "prevent boosters of the programs from illicitly paying players," but teams are already buying players.  All the rule does is ensure that only dirty teams buy players, giving teams like Ohio State, Alabama, Oregon, and USC a huge advantage over the rest of college football.  

Zone Left

August 23rd, 2013 at 6:36 PM ^

The argument that the game would be less popular if players were paid is a loser. That can and should enter the equation for athletic directors and ESPN, but even if you agree with that premise, it's fundamentally wrong to base a decision on it. If players are being taken advantage of, they should be paid. If not, and their scholarship is adequate compensation, then they shouldn't.

Personally, I think athletes should be paid the full cost of attendance figure published by every university that accepts government loans as payment for tuition. There's no new metrics to publish and because it's very difficult to pad, because cost increases are a political minefield on and off campus. That money includes housing costs and provides very, very minimal living expenses.

Finally, the argument that most athletic departments lose money is a loser too. The football and basketball programs at every BCS conference school turn a profit. They go into the red because that money pays for non-revenue sports. Either way, I'd be a fan if lots of schools deemphasized sports. Universities and colleges, especially public ones, shouldn't draw student tuition money to pay for multi-million dollar programs open to only a small sliver of the general student population.