Determinants Of A College Basketball Team

With college basketball and football originating in the 1800’s, the game has had much time to adapt. Over the years, the sports have become more and more popular, gaining a bigger fan base, which has resulted in substantial profits from the sale of merchandise representing the teams and players. There is one thing that has not changed; all of the athletes are still not being paid. The National Collegiate Athletic Association, or NCAA, is an organization that regulates most aspects of

Collegiate athletics have long played an integral role in higher education in the United States. The popularity of collegiate football in America is unprecedented. “The fan frenzy surrounding teams, games, and the sport itself, is borderline barmy. Aptly described as the thrill of victory and the agony of defeat, fan emotions in college football are rampant” (Moore, B., 2010). Football programs are able to generate a great deal of revenue through gate receipts (Groza, M. D., 2010). Football game day attendance is also an excellent proxy for other revenues such apparel sales and concessions.

Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs, such as construction payment and players’ salaries, did not equal to the marginal revenue, since attendance was severely dropping. To pay for the marginal cost, the sports team needed to capitalize on things that they were sure of, like increasing attendances to games between major sporting rivals.

Should college student-athletes be paid has become a much debated topic. The incentive for a student-athlete to play a college sport should not be for money, but for the love of the game. It has been argued that colleges are making money and therefore the student-athlete should be compensated. When contemplating college income from sporting events and memorabilia from popular sports, such as football and basketball, it must not be forgotten that colleges do incur tremendous expense for all their sports programs. If income from sports is the driving factor to pay student-athletes, several major problems arise from such a decision. One problem is who gets a salary and the second problem is how much should they be paid. Also, if the income

Colleges bring an incredible amount of money by their sport teams alones. According to John Brill, a sports journalist writer, “College football and basketball generate more than the National Basketball Association, a total of more than $6 billion yearly.” The money made from these sporting events are not being used correctly which is frustrating many college athletes. The money that is being

March Madness collegiate basketball tournament, hosted by the National Collegiate Athletic Association’s (NCAA) tournament, generated “7.5 billion dollars in revenue over the past decade,” through advertising alone (Chupka, 2016). Currently, this year 's 2016 March Madness tournament is projected to make over “1 billion dollars” (Chupka, 2016). The NCAA is counting the cash, lots of it,” stated financial analyst Kevin Chupka. Does this solicit the view that the NCAA is a money-hungry organization? Through extensive research as a group, we will be collectively addressing the intrinsically paternalistic view that the NCAA has portrayed to all athletes and spectators alike. We will be focusing on the origin of the organization, motivation for implementation, specific divisional separation, financial asset allocation analysis, and the social stratification of the National Collegiate Athletic Association.

Each season college students and fans support their sports team in hopes of a National Championship Title. They purchase season tickets, team clothing, and expensive sports packages from television providers in order to watch their team from afar. This generates a lot of cash for universities and retailers.

As profits from college sports continuously surge each year, people fail to realize that the school's athletic program wouldn't be prosperous without the many achievements of its elite athletes. Athletes deserve the credit in how much publicity a school gets; has effects on the ticket sales and purchase of sports merchandise.

Ticket sales, advertising, and merchandise help colleges produce hundreds of millions of dollars through college sports (Nocera and Williams). College-athletes, especially from D1 universities, are there to help the school produce money. A major part of a school’s profit is coming from the athletic department and they are even saving money too. Athletic departments are considered part of the educational system and do not need to pay taxes on sponsors, tv broadcasting, and season tickets (Eitzen). For example, March Madness is a popular event that is televised every year; some teams have even created their own broadcasting systems. Universities and coaches are supplying enough money that the athletes could receive some pay as well.

College sports are a highly paid business. It is produced sold just like all other commercial products. The NCAA generated over $70 million in the basketball tournaments. Schools who made it to the finale instantly earned over $1.3 million. $275 thousand was given to those who were invited to the tournament. Football is just the same. The (1988-89) seasons produces $53 million and $66 million and was split between all participating schools.

The argument of whether or not the NCAA should pay its athletes has been debated for around 8 years now, and right when it seems like there may be a breakthrough another reason comes up for the issue to be put on hold. College athletic programs are multimillion dollar programs and the athletes who make this revenue possible are getting the bare minimum to make it by in these college programs. Last year the Texas A&M athletic program was at the top of the NCAA revenue list bringing in $192,608,876. A third of that revenue comes from ticket sales alone, which leaves the rest to television rights, licensing and other donations. In the NCAA there are 26 colleges which are bringing in over 100 million dollars in NCAA revenue (USA Today 1). But still, Horace claims that “there is a misconception that athletic programs in general are profitable and are making hand-over fist. While truly most operate at a cost to the institution”.

Supply and demand is a very simple economic principle, one that very much plays in the favor of college athletes. The demand for high school aged athletes (some not attending school), is astoundingly high. Top recruits may be approached by dozens of college coaches, several agents, and potentially even a professional league. Not only do teams want their name across a player 's chest, fans want nothing more than to see their favorite team’s jersey donned by the best players. In 2006, fans spent an astounding $4.2 billion dollars on college basketball. Between coaches, agents, and fans, the number of people trying to get to an “amateur” athlete is seemingly infinite.

Sports teams, or professional athletic organization, are extremely important institutions within a city or region. They can help connect people with places, and through this loyalty, a sense of civic pride can be seen. Furthermore, the multi-billion dollar industry sports produces effects that can impact individuals and communities. In recent years dozens of new sports stadiums have been built throughout the country, with major funding coming from public subsidies. The aim of this paper is to analyze the positive and negative impacts that come with these subsidies.

Generating profits from athletics is what drives a universities’ ability to keep their programs thriving. Football and basketball programs are one of the top money making sports in the United States. From the NCAA “college athletics as a whole pulls in about $12 billion annually,” (Gerencer). This revenue comes from ticket and merchandise sales, along with TV and marketing. The average annual revenue from a Division I football program is around $56 million and men’s basketball is around $23 million. These two college sports bring in the majority of the revenue while numerous others bring in the remainder.

The NCAA’s greatest fear about paying student athletes is the money itself. They worry it will be spread thin between all the sports departments, but with all the money circulating around the college sports industry, they should not have any concerns. The two most popular college sports, football and men’s basketball, generate over $6 billion in annual revenue combined; more than the amount the National