A Debate Regarding College Student-Athletes and Whether They Should Be

Compensated for Their Participation in Sports

Over the past 20 years, numerous individuals and organizations involved in college
athletics have debated whether college athletes should be compensated for their participation
in sports above and beyond the academic, medical and financial assistance athletes in the Big
Five college conferences (Atlantic Coast Conference, Southeastern Conference, Big 12
Conference, Big 10 Conference, Pac 12 Conference) already receive. More recently, the debate
has reached a fever pitch because the Big Five conferences have renegotiated their media
rights contracts with ESPN and CBS that have reached astronomical levels. However, there is an
equally compelling argument that can be made on behalf of the Big Five conferences and their
member university athletic departments that the level of in-kind and financial assistance the
student athletes are already receiving is significantly higher than the level of compensation a 20
year old can earn on their own with no or some college education. For example, the average
annual income for a 20-year-old American with "some" college education is approximately
$29,500 according to recent US Census data. For this reason and many more presented in the
following paragraphs, I'm going to take the position that college student athletes in the Big Five
conferences should not be compensated for their participation in sports because they receive
almost 3 times that of somebody of the same age working full-time in the United States.
In the previous paragraph it was pointed out that 20-year-old individuals in the United
States with some college education will earn approximately $150,000 over a five-year period.
Student athletes in the Big Five conferences, on the other hand, earn the equivalent of
approximately $450,000 over the same five-year period. It's important to understand that most
student athletes in the Big Five conferences who play football and men's basketball generally
"redshirt" their freshman year (i.e., do not participate in sports to focus on academics and
acclimating to college life, leaving four years of sports eligibility) and so students average
approximately $90,000 per year in medical, athletic, educational and financial support during
their five-year stint with a major university athletic department. The following is a table that
explains the approximate compensation and approximate in-kind value (i.e., if a student
athletes family had to pay out of pocket) college student athletes receive that totals
approximately $450,000 over a five-year period:
Table 1. Financial and In-Kind Value for a Student Athlete Competing for a Big Five University
Athletic Department.
1. Out-of-state tuition - 5 years $35,000 = $175,000
2. Dormitory and dining hall 5 years $20,000 = $100,000
3. Textbooks and laboratory fees 5 years $1000 = $ 5000
4. Medical, physical therapy, athletic trainer value 5 years $20,000 = $100,000
5. Academic tutoring value 5 years $5000 = $ 25,000
6. Airline travel for away games 4 years $3500 = $ 14,000
7. Hotels for away games (minimum two day stay) 4 years $3000 = $ 12,000
8. Restaurants for away games (3 meals/day 2 days) 4 years $1400 = $ 5600
9. Access to high-level college coaches 5 years $5000 = $ 25,000
10. Thrill of playing in front of 20,000 to 100,000 fans on national TV - ??????????
11. Access to prominent university alumni and decision-makers - ??????????
$461,600
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According to Table 1, one can clearly see the level of academic, medical, athletic and
financial support student athletes receive while competing at a university in one of the Big Five
conferences. Granted, some of the numbers in Table 1 are estimates and can certainly vary
depending on the university athletic department where the athlete is competing. Whats also
noteworthy is the fact that it is very difficult to place any monetary value on bullets number 10
and 11, but the fact remains that for these student athletes, the thrill of playing in front of huge
crowds on national TV and being granted access to prominent alums creates immense value for
these athletes. For example, there are numerous reports of student athletes who do not end up
playing professionally, but have been hired and given very nice jobs following graduation
because they were granted access to university alumni who are in decision-making positions.
Lets assume that college and university athletic departments across United States
adopt rules that allow student-athletes to receive biweekly payments, a number of questions
will arise that must be addressed. For example, if student-athletes are going to earn upwards of
$5000 per year, do the students now fall under US employment laws? Will student-athletes be
required to pay taxes each year? If they do not pay taxes, will they be charged with tax evasion
that carries a monetary fine or prison sentence similar to other employees in the United States
who fail to pay their taxes? Will student-athletes be able to get fired after a 30 day notice from
their supervisor similar to other employees in the United States? Finally, will these biweekly
payments only be applied to revenue-generating sports such as hockey, basketball and football
or will these biweekly payments be applied to all student-athletes including sports such as
gymnastics, track and field, golf and tennis? If a University athletic department has 800 student
athletes times $5000 per year, where will this additional $4 million per year come from? Tuition
increases? Tax increases for state residents? University money earmarked for dormitories,
classrooms and laboratories will now be used to cover the $4 million payroll?
 The argument being presented in this paper would be remiss if it were not to mention
the fact that colleges and universities participating athletically in one of the Big Five
conferences have seen their athletic department revenues skyrocket over the last 10 years. In
fact, this revenue increase is generally whats used by those taking the opposite side of this
position paper. For example, the argument for paying student-athletes generally revolves
around the fact that because of these athletes, athletic departments have been able to
negotiate much better media contracts and the players should receive a piece of this growing
financial pie. Certainly, there is some validity to that comment. Here's the argument against
that and it's difficult to dispute. Nobody forces high school athletes to enroll in a college or
university in order to compete in football or basketball for one of these Big Five conference
athletic departments. High school student-athletes VOLUNTEER to participate in football or
basketball primarily for the thrill of competing in front of 20,000 to 100,000 people on national
TV which 99.99% of all US college students never have the opportunity to do. As has been
pointed out in Table 1, it's impossible to place a monetary value on what it's like to compete in
this incredibly exciting athletic environment, but we can all agree that there is some level of
value for these student athletes.
In closing, the information contained in this position paper clearly states that college
and university student athletes enrolled in a school in one of the Big Five conferences will
receive approximately $460,000 (plus the value of bullets #10 and #11) versus the $150,000
these same 20-year-old individuals would earn working full-time outside of college athletics.
Furthermore, considering many of these student athletes come from low income families in
urban metropolitan areas or very rural areas in the Midwest and Southern parts of our country,
the five years of athletic competition and college life are typically some of the best five years
for these student athletes. Finally, it's clear to the author of this position paper that these Big
Five conference athletic departments were successful before a given student athlete arrives
and they're going to continue to be successful after a given student athlete arrives. In other
words, it's not one group of student athletes that deserves more credit than any previous or
following group of athletes regarding why a university athletic department is generating more,
less or similar amounts of revenue from previous years. It's the strength of the university's
athletic brand that drives the higher revenues as opposed to the skill level of any one group of
student-athletes.
After youve read this paper, come to class having done some additional research to
support your position as part of this debate. Regardless of whether you choose the side to pay
student-athletes or not to pay student-athletes, you must present your position from the
perspective of the university athletic director. This debate is not to be presented from the
perspective of the student athlete because nearly all student-athletes are going to want to get
paid. This is a sport management department that trains students to be athletic directors and
as of 2015, many athletic directors around the United States are going to have to be able to
explain why they are for paying athletes or why they are against paying athletes.