11 REASONS $TUDENT-ATHLETE$ DESERVE TO BE PAID

The business model of the N.C.A.A. or the NOT CLEARLY AMATEUR ASSOCIATION is extremely imbalanced with the student-athletes being on the short-side of the financial equation - specifically in the money generating sports of football and men’s basketball. There is a tremendous college sports economy prospering that uses amateurism as a divisive tactic to devalue the student-athlete’s worth.

Please find listed below insights outlining why D-1 men’s basketball and football student-athletes should be paid.

?1. THE NCAA IS A FULL FLEDGE FINANCIAL EMPIRE

A. In 2017 the NCAA generated more than $1 billion in revenue.

B. The President of the NCAA, Mark Emmert 2017 salary =. $2.4 million a year.

C. The Big Ten Conference has a massive six-year, $2.64 billion deal in exchange for exclusive media rights with CBS, Fox and ESPN for football and men’s basketball.

D. The Big Ten Commissioner Jim Delaney 2017 compensation =. $2.4 million/salary + $20 million/bonus.

2. COLLEGE ATHLETIC DEPARTMENTS ARE A BUSINESS

A. 27 College Athletic Departments generate at least $100 million in revenue.

B.University of Texas generated the largest revenue in 2017 at $215 million.

3. IMBALANCE OF WORTH: Coaches vs. Student-Athletes

A. When the NCAA was founded in 1905, there was opposition to paying student-athletes and coaches.

• Unfortunately, the student-athletes are still being held to the old standards in the new college athletic economy.

B. Facts on College Head Coach Salaries:

• In 40 out of 50 U.S. states, the highest paid public official is the college head coach in either football or men’s basketball team. 
• Nick Saban, head football coach of the University of Alabama is the highest paid coach at nearly $12 million per year representing 11% of the $108 million in revenue generated by his team.
• Ten NCAA head football coaches make over $5 million/annually. The Average Salary of a College Head Football Coaches = $2.4 million/annually
• John Calipari head basketball coach of University of Kentucky is the highest paid coach at $7.9 million per year representing 28% of the team’s $28.9 million generated revenue.
• Twenty NCAA head basketball coaches make over $5 million/annually. The Average Salary of a College Basketball Head Coach = $1.64 million/annually

.C. Athletic Scholarship Expenditure

• University of Alabama football team's scholarships collectively account for approximately 2-3.4% of the revenue generated by the team split between 85 players. 
• University of Kentucky basketball team’s scholarships collectively account for approximately 1.5%-2.4% of the revenue generated by the team split between 15 players.
• The Average Athletic Scholarship = $35,000/annual

4. PROS VS THE BEING CONNED

A. Highest Paid Professional Coaches Compensation

• Bill Belichick of the New England Patriots is the highest paid NFL coach at $12.5 million per year representing 2.1% of the team’s $575 million annual revenue.
• Gregg Popovich of the San Antonio Spurs is the highest paid NBA coach at $11 million per year representing 4.2% of the team’s $249 million annual revenue.

B. Professional Athletes Revenue Share

• The New England Patriots players receive 32% of the revenue split between 58 players.
• And San Antonio Spurs receive 47% of the revenue split between 18 players.

C. Student-Athlete Fair Market Value

• Using the revenue-sharing system used by the NFL, the "average" Alabama football player is worth $545,357 annually.
• There is a financial gap of over $500,000 per player based on their current scholarship compensation - the athletic department’s cost per scholarship is either $26,000 for in-state players and $44,000 for out-of-state players.
• The fair market value of the average football and basketball player is estimated to be $120,048 and $265,027.

5. TIME COMMITMENT

A. Student-Athletes Spend well over the Maximum 20 hours per week allotted by the NCAA in-season and eight hours per week during the off-seasons on their perspective sport.

• Student-Athletes surveyed in football and basketball shared they spend an average of 40 plus hours a week on their sport alone.

Activities of Student-Athlete include travel time required to competitions, treatment of injuries, hosting recruits, pre-practice activities and extra time preparing that is expected but not technically required, if you know what I mean (wink, wink).

6. RISK & DANGERS

A. The risk of injury and dangers especially in the violent sport of football is substantial.

• The recent death of University of Maryland football player Jordan McNair of a heatstroke is proof of the fatal possibilities.Long term injuries caused by concussions including CTE have become increasely prevalent.

7. THE MARKETING TEAM: Power of Sports

A. Student-Athletes in the key sports are core members of their university’s marketing department from my perspective. Successful teams and student-athletes are marketing tools that are optimized by universities.

• Studies have proven student applications increase when the school’s athletic programs are winning, which is really football & basketball.
• This elevates the school’s prestige, caliber of students applying and often leads to increased tuition. 
• Winning athletic programs also play a vital role in the school’s fund-raising efforts outside of the athletic department.

8. DIFFERENT STANDARDS

• The coaches sign multi-year contracts.
• The student-athlete's scholarships are renewed annually.
• The coaches are allowed to exit athletic departments to take new jobs
• The student-athletes are typically required to sit out a season if they transfer schools.
• Some coaches have multi-millions dollar buyouts clauses that require the school to payout large sums if they are fired for not meeting expectations.

Currently, nine college football coaches have buyout clauses in excess of $20 million. 

9. SWEAT EQUITY: Funding Other Sports

A. Most major college football and basketball teams generate excess revenue that funds the other team sports at their university.

• For example, 66% of University of Alabama’s athletic department’s $174 million in revenue was generated by the football team. Over 75% of the $45.9 million in profits made by the football team is used to fund other sports.

10. EDUCATION IS NOT THE PRIORITY 

A, The NCAA and Conferences schedule competitions during the week based on TV contracts conflicting with the STUDENT-athlete’s class schedule.

If it is truly about amateurism and the student-athlete getting an education, why is this allotted?

11. MERCH MONEY

A. The athletic departments sign major sponsorship deals with sportswear brands like the record setting 15 year $280 million agreement between UCLA and Under Armour.

• The schools also purchase the products at wholesale and sells them at one of their many retail/commerce outlets including players’ jerseys. Can you say double dipping?
• The student-athletes do not receive a dime, not even from their own jersey sales.

If this is truly just about providing a stage for amateur competition and access to a free higher education - than the NCAA must act accordingly on all fronts. But it is not, so it is time to establish ways to enhance the indentured servants or student-athlete’s position in the business of college athletics. The NCAA must "Cut It Out" and acknowledge they are a Monopsony. Time to make it an even playing field and court.

“I don't know all the rules and regulations about it. But I do know what 5-star athletes bring to a campus, both in basketball and football. I know how much these college coaches get paid. I know how much these colleges are gaining off these kids I've always heard the narrative they get a free education. But you guys aren't bringing me on campus to get an education. You guys are bringing me on it to help you get to a Final Four or to a National Championship.”  LEBRON JAMES

11 REASONS SERIES:

• 11 REASONS FILA ONCE RULED MEN'S SPORTSWEAR
• 11 REASONS BRANDS MUST BE PURPOSE-DRIVEN AND STAND FOR SOMETHING
• 11 REASONS THE NFL IS STILL AMERICA’S PROFESSIONAL SPORT OF CHOICE
• 11 REASONS DIVERSITY & INCLUSIVENESS ARE VITAL FOR THE ADVANCEMENT OF THE SNEAKER INDUSTRY
• 11 REASONS SNEAKER BRANDS MUST FULLY EMBRACE eSPORTS, ASAP
• 11 REASONS INTELLIGENT VENDING MAKES CENTS FOR THE SNEAKER INDUSTRY

Drew L. Greer is a disruptive brand and product management executive who has held leadership roles at Nike, Ralph Lauren and Under Armour. Known for introducing disruptive market concepts including one of the original experiential brand spaces, influencer/brand sneaker collaborations as well as the early architect of the Nike Sportswear business. Drew is also credited with developing the product strategy that propelled the Nike Air Force 1 to the best selling sneaker of all-time. This former collegiate football player and Southern California native has a unique understanding of product, consumers and the art of storytelling.

.