An Estimate of the Rent Generated by a Premium College Football Player

Robert W Brown

Economic Inquiry, 1993, vol. 31, issue 4, 671-84

Abstract: The National Collegiate Athletic Association limits the payments athletes can receive for their services. Colleges are effectively monopsony employers so players will not be paid their marginal revenue product. Therefore, colleges capture an economic rent from players. This paper measures these rents by estimating the marginal revenue product of a top college football player. The empirical results suggest that a premium college player generates over $500,000 in annual revenues for his team. Copyright 1993 by Oxford University Press.

Date: 1993
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