College Economics: And Why College Athletes Need to Be Paid

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Due to National Collegiate Athletic Association (NCAA) rules and regulations no college athlete is able to receive any compensation or endorsement while participating in college athletics. These rules have long been challenged, however, the NCAA does not make any changes. With universities grossing close to $200 million a year, college athletics has turned into one of the top industries in the world. The NCAA, a governing body of college athletics, currently holds all power in college athletics. Without people questioning the NCAA and demanding changes to the monopoly that the NCAA holds nothing will happen to the unfairness to college athletes in college sports today. College athletes deserve to receive compensation in some way for the…show more content…
As previously stated, Texas football players’ fair market value yields at $578,000 per year. At the very least there remains a total of $567,000 per player that remains unknown as to where it goes. College athletes do not deserve all the money they bring in, but if one really thinks about it, nowhere else in the world of economics does a person spend over forty hours a week and brings in $500,000 per year for their institution, yet they receive compensation of $11,000. The numbers do not match up. (Frommer, 2013) These numbers definitely do not match up when one takes into account coaches’ salaries. (Berkowitz, 2012) The average coach NCAA division 1 basketball acquires a salary of $1.47 million per year. With Duke’s head coach, Mike Krzyzewski, making the large sum of $7.2 million per year . While Duke’s athletic director, Kevin White, brings in close $1 million per year. After looking over these stats, one quickly realizes why college athletes do not get paid. In 80% of states the head coach of a college football or basketball team has the highest salary. In North Carolina the average income per household comes in at $45,570 while the tax rate comes in at 5.8%. This means that on average each person in North Carolina pays a little over $2,600 in state income taxes each year. Enough money goes into the officials of colleges and college athletics. The NCAA does not pay the people actually doing the service just so these high-ranking
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