College Economics: And Why College Athletes Need to Be Paid

1021 Words 5 Pages
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 large amounts of money that they earn for their university.
In business dealings around the world, the economists use the fair market value formula to see how much market value a person, property, or business currently has. In today’s college athletic landscape major programs have players with a fair market value that exceed hundred of thousands of dollars. For example, the University of Texas football players have a fair market value of $578,000 per year and Duke University basketball players have a fair market value that exceeds $1 million per year(Rickman, 2013). With the fair market value the players receive forty percent of all revenue that the college brings in that calendar year through scholarships and other benefits from…