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5/10/2021 11:08 am  #1


Question About Compensating Athletes

We have had an interesting discussion about what appears to be the inevitable move of paying athletes for their likeness, images, etc and whether this could and should lead further to the direct compensation of NCAA athletes for competing in their sport.  To neatly sum up the discussion, I'll refer to two posters who have been active on the subject.  There is the GWRising camp who is very concerned with potential financial ramifications that could forever change college sports as we know them.  This school of thought seems to suggest that this will lead to haves and have-nots, with GW likely winding up as part of the latter.  It's also worth noting that this camp maintains that the costs of scholarships, room and board, etc., are tangible benefits that should not be dismissed.  There are many athletes who do take advantage of receiving an education and who would never be able to afford to do so without an athletic scholarship.  This is not a small point.

I'll call the other camp the DanjSport camp who has steadfastly lobbied (at least here) that players should of course receive compensation beyond their scholarship and beyond what they may earn for their likeness.  Participants in Division 1 basketball simply do not have enough hours in the day to go to classes, study, participate in practices, film sessions and games, AND hold down a paying job (unlike other students who often have part-time jobs).  The current system is inherently unfair to athletes.

So, I started thinking about renewing Mark Emmert's contract and it led me to ask the following:

The NCAA television contracts are literally bringing in billions of dollars and there are a number of people earning very nice livings as a result.  NCAA officials.  School administrators, athletic directors, and coaches.  Bowl game organizers.  One might objectively look at someone making say $600,000/year and think that the job really ought to be paying more like $200,000/year.  Inflated salaries exist because the money is there.  And part of the reason why the money is there is because the athletes aren't seeing any of it.

Let's say in an alternative universe, the NCAA was not this money-making behemoth but rather the modest non-profit it was intended to be.  In other words, nobody was getting rich from college sports.  Under this scenario, would the DanjSport camp still feel as strongly that athletes need to be paid beyond their scholarship and current perks?    The sacrifices on the part of athletes would be no less; their abilities to hold part-time jobs would not change.  Or, put another way, how much of your position that athletes need to be compensated  beyond the current level (yes, I do see a scholarship as a form of compensation) is based on the NCAA presently making more money than it knows what to do with (2020-21 being a notable exception)?

And to the GWRising camp, is there a financial point where you will ever say that the players deserve more than they are receiving?  Look at these figures for the NCAA basketball tournament alone:

1994          7 years $1.73 billion
2003        11 years $6 billion
2010        14 years $10.6 billion
2016         8 year extension, additional $8.8 billion (though the 2020 payout was substantially less due to not having
                                                                                   an NCAA tournament)

So, we've gone from under $250 million annually to over $1 billion annually over a 22 year period.  Does the GWRising camp feel the very same way about athlete compensation today than it did in 1994?

 

 

5/10/2021 11:35 am  #2


Re: Question About Compensating Athletes

This is really nice context!

I happen to hold sort of a fusion view. I don't believe that Universities themselves should have to compensate athletes beyond the offered scholarship. In fact, I think that they shouldn't, as I agree that such a scenario creates haves and have-nots. Not to mention the near-impossibility of establishing an equitable pay structure between sports and between players within a single sport. Do starters get more? How much more? What if their minutes change? Etc forever.

That said, I firmly believe that there should be no limit on the ability of players to profit off of their name and likeness. If your name and likeness is valuable on an open market, the idea that you cannot profit from that is absurd to me. For similar reasons, I don't think that eligibility should be tied to paying opportunities in any way. Even if it is something like a paid basketball tournament, I feel your ability to participate should be between you and your coach. 

If we allow the market to simply work, we will find ourselves with players who are able to capitalize, and those who can't. If you cannot capitalize on your name and likeness, well, then your education and the potential to grow your skills (and therefore your brand) becomes equivalent to the compensation you command.

Under this system, the NCAA can look at some sort of exclusive licensing agreement with players around name and likeness. But they aren't making schools directly beholden to further compensating each and every student athlete.

 

5/10/2021 11:42 am  #3


Re: Question About Compensating Athletes

I think the rules for college athletes and compensation should just be the same as any other student on campus.  Students can work paid internships in college, work at an ice cream stand in the summer, or can become "influencers" and get paid for their Instagram posts.  It doesn't impact their status as students or jeopardize their scholarships and likewise it shouldn't impact an athlete's eligibility.   If athletes want compensation from schools directly, they can organize to do so and maybe some schools will offer it, but like in the case of Graduate Assistants, it will be an uphill battle for them to argue that they are employees in any meaningful legal sense.

As it relates to NIL, I don't know what the rules are for students who are included in campus brochures and other promotional materials.  Are they typically paid for being more or less models for the school?  If so, what's the going rate?  NCAA athletes are pretty much models for the school just in a different medium than print brochures.  Players could try to negotiate outside agreements with video game manufacturers and sue if they feel like their NIL are infringed, but good luck footing that legal bill.  I'm thinking about how Jordan and Bonds famously were not in certain video games.  Once NIL is allowed I don't think the school is under any obligation to negotiate on the individual player's behalf.  

I do think that some of the perversion of the money generated by college athletics has happened because of the non-profit nature of schools and also schools being ok with letting such a large sum of money stay earmarked for specific sports.  I realize I would never be hired as President of Alabama or Ohio State because it would be unconscionable to me that I'd be letting students go into life-crippling debt while at the same time oversee the construction of some new football lounge with a spa and arcade because some donor said I could only use it for that purpose.

Last edited by GW0509 (5/10/2021 11:49 am)

 

5/11/2021 8:59 am  #4


Re: Question About Compensating Athletes

Great post, Mayhem.  I have lots to say but not enough time to say it right now!  More to follow!

 

5/11/2021 1:13 pm  #5


Re: Question About Compensating Athletes

I have a lot to say on this topic. However, before I do, I think it would be most helpful if everyone reviewed the following ...

https://www.ncaa.org/about/resources/research/finances-intercollegiate-athletics

 

5/11/2021 3:33 pm  #6


Re: Question About Compensating Athletes

Pardon my skepticism, GWRisimg, but if all but 65 schools are losing substantial amounts of money on athletics, why are these schools continuing to keep their athletic programs?

Every single school teaches students somewhere on campus that business succeeds when revenue exceeds expenses.  If the vast majority of schools are losing money, why do they still keep doing it?

 

5/11/2021 7:16 pm  #7


Re: Question About Compensating Athletes

danjsport wrote:

Every single school teaches students somewhere on campus that business succeeds when revenue exceeds expenses. If the vast majority of schools are losing money, why do they still keep doing it?

Probably because they view it like a form of marketing, to attract athletes and non-athletes alike to attend their school as opposed to a pure money making enterprise.  However, taking the business metaphor further, businesses will track what sort of ROI they are getting for their marketing dollars and what marketing campaigns work better than others.  I'm sure we'll see in the coming years that there are a few schools that don't think the costs associated with marketing through intercollegiate athletics is worth the expense.

 

5/12/2021 8:35 am  #8


Re: Question About Compensating Athletes

GW0509 wrote:

danjsport wrote:

Every single school teaches students somewhere on campus that business succeeds when revenue exceeds expenses. If the vast majority of schools are losing money, why do they still keep doing it?

Probably because they view it like a form of marketing, to attract athletes and non-athletes alike to attend their school as opposed to a pure money making enterprise.  However, taking the business metaphor further, businesses will track what sort of ROI they are getting for their marketing dollars and what marketing campaigns work better than others.  I'm sure we'll see in the coming years that there are a few schools that don't think the costs associated with marketing through intercollegiate athletics is worth the expense.

Very much in agreement with this.  You see admission applications rise quite often immediately after a school performs above expectation in particularly college football and college basketball.  GW's own admission applications soared after making the Sweet 16 and again after the 2005-06 season.

This explains why it's not practical to view college athletics strictly within a P&L statement.  When schools can either accommodate additional students and/or raise academic profiles which is done through both admitting a more academically qualified student base as well as having better credentialed faculty teach these students, this translates into greater profitability which transcends the revenues and expenses of athletics. 

The key is the ability to capitalize on one's success.  As DrMike pointed out, UH was unprepared to do this.   
 

     Thread Starter
 

5/12/2021 10:41 am  #9


Re: Question About Compensating Athletes

It does seem like they were unprepared AND uninterested, which is the real shame. Feels a lot like an inability by their leadership to synthesize new information and be agile in adjusting plans to new circumstances. 

 

5/12/2021 11:34 am  #10


Re: Question About Compensating Athletes

GW0509 wrote:

danjsport wrote:

Every single school teaches students somewhere on campus that business succeeds when revenue exceeds expenses. If the vast majority of schools are losing money, why do they still keep doing it?

Probably because they view it like a form of marketing, to attract athletes and non-athletes alike to attend their school as opposed to a pure money making enterprise.  However, taking the business metaphor further, businesses will track what sort of ROI they are getting for their marketing dollars and what marketing campaigns work better than others.  I'm sure we'll see in the coming years that there are a few schools that don't think the costs associated with marketing through intercollegiate athletics is worth the expense.

Exactly. Otherwise, why would D3 programs even have athletics? Almost a straight expense line. They do it because it attracts students to enroll. Activities benefit the entire campus vibe even if you don't actually participate. That's why college athletics is not a business in a traditional sense.

In D1, the bigger money sports (football and basketball) pay for the no money/less money sports and increase participation which in turn attracts students. That is the primary mission of the institution to attract and educate students. 90-95+% of the student population do not play intercollegiate sports. But at some point, the price of that will become too prohibitive for most and we are nearing that point.

 

5/12/2021 5:16 pm  #11


Re: Question About Compensating Athletes

Never bothered to look,but barring great A 10 NCAA performances,do we make much money,if at all,from our one flagship sport?

 

5/12/2021 5:32 pm  #12


Re: Question About Compensating Athletes

jf wrote:

Never bothered to look,but barring great A 10 NCAA performances,do we make much money,if at all,from our one flagship sport?

 The answer is a resounding no.

 

5/13/2021 9:43 am  #13


Re: Question About Compensating Athletes

I did not invent the phrase that you have to spend money to make money and I suspect we all know there is at least some truth to this.  When you view GW's most successful seasons from an attendance standpoint, you will find that the school did spend real dollars on promoting the program and that by and large, the team was enjoying success on the court.  (There have been occasional outliers where the team drew well but performed somewhat poorly.)  What wasn't made publicly available was the additional expenditure amounts and whether the bump in attendance resulted in a positive return on investment.

What's been said about Hartford has also been true at GW even if for different reasons.  Namely, that the men's basketball program has been unable to capitalize upon its own success.  This ranges from excuses over not being able to attract power conference opponents to the Smith Center, a myth that was exposed by ML's ability, or perhaps willingness, to schedule these types of programs, to higher-ups failing to back Karl Hobbs/Omargate or Mike Lonergan/Nerogate.  What has been clear through the years is that GW's administration does not rise to the occasion once the going gets tough.  It is less risky to not spend money on the program than to spend money on the program.  It is easier to move away from controversy even if this means reversing your position, as in throwing the program under the bus when it was revealed that the Hobbs staff was recruiting NCAA eligible players who attended questionable/fraudulent prep schools, or simply finding a way to rid itself of an alleged "abuser" while tacitly backing the efforts of an alleged "sexual predator" who undoubtedly committed a number of NCAA violations.

On the other hand, let's assume for argument's sake that ours was a controversy-free program.  The cards would still likely be stacked against us.  Only a small percentage of students follow the team while the majority have zero interest.  Our history has us going to 1 Sweet 16, the farthest the school has ever advanced.  The donor pool is limited.  Media exposure is limited.  Games can be seen on tv but very few if any are on ESPN or CBS where a casual fan would be more likely to find a game than on the soon to be defunct NBCSN or CBSSN.  Streaming on ESPN+ requires a payment that anyone outside of a committed fan of the program will bypass.  So yes, even in a perfect world, we are a tough sell.

That all said, the answer is not to abandon sports or hopefully, not become a "have-not."  Success in sports elevates the GW brand and those residual effects show up in application bumps which leads to a stronger academic pool.   

 

     Thread Starter
 

5/13/2021 12:56 pm  #14


Re: Question About Compensating Athletes

Mayhem is absolutely right.

The GW Administration has proven inept and dysfunctional over the last 30+ years. Not only is our athletic department and sports teams terrible but our academic standing has been falling for years.

I was initially impressed with President LeBlanc when he first took over - first thing he did was settle with Lonergan and get rid of Nero. Now, like JC, he's probably regretting his decision to come here. The faculty just gave him a vote of "no confidence" and he's dealing with a budget disaster that is forcing cuts across the spectrum.

I'm still confident we can turn this thing around by 2030!

 

5/13/2021 1:29 pm  #15


Re: Question About Compensating Athletes

That moment you realize that the only names left posting, all saying to each other "you are absolutely right" are one person.

Seems at the very least, if that one person is going to spread daily bile about the school, the program the coaches, the players, and other posters, he'd be limited to one poster name. 

Mayhem/Rising
Mailvan/BlueSeats
MV/BoKnows  - why do you keep changing the 2 names? does anyone believe every new Coach brings with it two new people playing the same trite back and forth? Remember when Herve proved they were the same person? 

and then the negative name, always buttressed by more attack dog fake names like "Joel Joseph" 

hard to imagine anything more cowardly, on a niche anonymous fan site with like 8 quasi regular posters hving to use so many fake anonymous names... cowardly and pointless "JJ"

you've made quite clear on this thread Mayhem that you are also JJ, shocking! who could've guessed that!



 

Last edited by The Dude (5/14/2021 3:27 pm)

 

5/13/2021 2:46 pm  #16


Re: Question About Compensating Athletes

The Dude wrote:

That moment you realize that the only names left posting, all saying to each other "you are absolutely right" are one person.

Seems at the very least, if that one person is going to spread daily bile about the school, the program the coaches, the players, and other posters, he'd be limited to one poster name. 




 

Thou doth protest WAY, WAY, too much.

     Thread Starter
 

5/14/2021 8:57 am  #17


Re: Question About Compensating Athletes

On the theory that a broken clock is right twice a day, I agree with Brian Paul on this one.

 

5/14/2021 1:11 pm  #18


Re: Question About Compensating Athletes

Problem with America today is there's too many out of work attorney's. I'm beginning to see why GW Law's ratings are so shitty for a school that is always ranked tops in cost of tuition.

Shouldn't these people be out looking for work instead of posting on a basketball blog 20 times a day!

I have posted 184 times. Our most "prolific" poster is at 1153 and climbing. Can anyone guess who that dude might be?

 

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