COLLEGE ATHLETICS The Amateurism and Money Olympics Colleges and NCAA Monopsony Power Eligibility Rules Athletic Departments AMERICAN SCENE Commercialism and corruption from beginning 1st competition crew Harvard vs Yale 1852 sponsored by railroad 2nd competition brought first eligibility scandal Harvard s coxswain already graduated College Football 1st Rutgers vs Princeton 1869 25 players team round ball no running scandal 4 Rutgers players were flunking math SIMILAR TO PROS Corruption and market power profitable for schools scandals about pay and PED frequent Competitive balance measured with the same method Difference conferences unstable PAC 12 Big 10 and SEC rising SWC vanished 1996 WAC and MWC struggling THE OLYMPIC IDEAL Ancient Olympics 776 BC 393 AD winners well rewarded by home cities Athens 600 drachmas and daily meal for life Modern Olympics Pierre de Coubertin Athens 1896 anglophile miffed over Franco Prussian War amateurism reflects 19th century class snobbery ACADEMIC EMPIRE BUILDING Big time sports as a strategy John Hannah and Michigan State president of Michigan Agricultural College 1941 replaced University of Chicago in Big 10 1949 7 time champs had never lost to Notre Dame but shut out in 1939 football program cancelled Rufus von Kleinsmid and USC president of small California private school 1921 NCAA MONOPSONY ENFORCER Origin of student athlete label U of Michigan tramp athletes not enrolled in 1890s Recruiting violations and point shaving lead to sanctions death penalty for Univeristy of Kentucky 1952 Promote monopsony power athletic scholarships forbidden until 1956 Robert Brown Measuring cartel rents in the college basketball player recruitment market 1994 about 1M year Countervailing power prediction Collegiate Althetes Coalition National College Players Association UTAH RECRUITING GRADUATION RATES Grants in aid not considered pay for athletics skill UTAH ATHLETIC SCHOLARSHIPS TABLE 11 5 Graduation Success Rates GSR 2008 Sweet 16 NCAA Manual no Worker s Compensation claims Any athlete who graduates is overpaid Joe Paterno Graduation vary widely Consider 2008 Sweet 16 5 schools more than 33 below Sweet 16 average is 17 below average student athlete WOMEN DO BETTER HOW ABOUT U OF U 6 of the Women s 2008 Sweet 16 graduated 100 2003 U of U GSR is 56 for studentathletes compare to 51 nationwide U of U fall 2009 Gymnastics Skiing Tennis Volleyball Cross Country Track Women s Basketball Men s Basketball Softball Tennis Swimming Soccer Baseball Football Golf average GSR basketball 31 33 38 42 46 67 41 60 55 82 64 89 86 100 86 100 64 Texas Washington State Tennessee Louisville UCLA Stanford West Virginia Michigan State Memphis Xavier Kansas Villanova North Carolina Davidson Wisconsin Western Kentucky average GPA 3 58 3 57 3 22 3 20 3 10 3 10 3 09 3 08 3 01 3 00 3 21 2 95 2 83 2 46 2 32 2 94 GSR overall 72 73 78 75 79 95 68 79 72 92 70 95 85 97 79 80 81 IS GRADUATING RATIONAL Go to Alabama to get to NFL Go to Cal Tech to become a physicist Chance of pro career 82 06 of high school of NCAA to to NCAA professional men basketball 3 0 1 2 women s basketball 3 3 1 0 football 5 7 1 8 baseball 6 1 9 4 ice hockey 11 0 3 7 men s soccer 5 5 1 7 ELIGIBILITY STANDARDS Nothing uniform until 1 6 Rule 1965 needed projected 1 6 GPA to receive grant in aid Replaced with 2 0 Rule 1973 numerous abuses under this rule sad case of Chris Washburn Replaced by Proposition 48 1983 needed SAT 700 math english and GPA 2 00 in core courses disproportionately affected black athletes are SATs a valid instrument Partial qualifiers and Proposition 42 1989 can receive aid but not play if pass one criterion ARE ATHLETICS PROFITABLE Most men s sports are not only football and basketball make money only among Division I even the U of Michigan has had losses Almost all women s sports are not most women s basketball programs lose Utah Athletics breaks even MARCH MADNESS NCAA has 11 year 6 billion contract with CBS Tourney revenue 425 million 2009 389M in TV rights 35M from ticket sales 60 goes to Division I schools RECENT HISTORY Proposition 16 1992 Created sliding scale for SAT and GPA Allows partial qualifiers Students claimed disparate racial impact Faculty fear greater pressure to pass athletes Proliferation of garbage classes U of Georgia basketball players enrolled in class that never met 2003 Exercise and Sport Science is the most common major for U of U student athletes 2010 UTAH ATHLETIC DEPARTMENT 2010 11 REVENUES Budget Budget Student Fees University Support Facility Rental Support Ticket Sales FB Facility Fee Ticket Sales MBB Ticket Sales Other Donations National TV Utah Sports Property NCAA Suites MWC Distributions Concessions Novelties Away Games Miscellaneous Post Season Revenues Total Revenues 4 978 370 1 208 989 795 000 6 000 000 400 000 1 900 000 409 000 5 080 000 1 244 444 1 750 000 1 386 262 490 000 260 000 1 482 403 1 210 000 520 615 700 000 29 815 083 EXPENSES Budget Budget Compensation Tuition and fees Room and Board Travel Uniforms Equipment Office Expenses Insurance Public Relations Game Operations Stadium Rental Facility Fee Hourly Wages Housing Meals Miscellaneous Post Season Expenses 11 214 973 2 244 730 1 900 000 3 513 930 893 550 1 900 000 550 000 764 600 1 776 750 435 000 400 000 402 437 376 150 2 564 782 700 000 Total Expenses Net Operating Profit or Loss 29 636 902 178 181 NCAA FOOTBALL Division I I A Football Bowl Subdivision Bowl Championship Series I AA Football Championship Subdivision Division II Division III millions of Big 10 SEC Big 12 Pac 10 ACC Big East WAC MWC Conference USA Sunbelt Mid American Notre Dame BCS revenue 2007 08 22 8 22 8 22 8 18 3 18 3 18 3 9 2 3 7 2 6 2 1 1 5 1 3 average net operating income football 12 8 18 4 8 3 6 8 4 3 2 8 3 8 0 1 0 3 0 9 na na THE END