Pay for play: the financial value of NCAA football players

Richard Borghesi

Applied Economics, 2017, vol. 49, issue 46, 4657-4667

Abstract: We explore the financial value of National Collegiate Athletic Association (NCAA) football recruits and establish a wage schedule based on the star ratings assigned to high school athletes by an independent talent evaluation agency. Evidence suggests that the contribution of higher-ranking recruits to team wins significantly increases revenues. While the NCAA currently prohibits universities from paying student-athletes, we estimate that if amateurism rules were rescinded and college football players were compensated according to their revenue-generating abilities then five-, four-, three-, and low-star players would be entitled to annual salaries of $799,000, $361,000, $29,000, and $21,000, respectively, in addition to athletic scholarships covering tuition, books, and room and board.

Date: 2017
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DOI: 10.1080/00036846.2017.1287865

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