Posted September 24, 2013

Business Insider: Texas football player worth $578,000 per year

NCAA Reform, Texas Longhorns
Based on the revenue of the football program, a Texas player is worth more than $500,000.

Because the Longhorns generate so much revenue, their players have the highest Fair Market Value in the country. (Cal Sport Media via AP)

The debate about whether or not to pay college football players isn’t going away. Every week it seems that another publication joins the discussion. On Tuesday, Business Insider dropped a chart which shows what it calls the Fair Market Value for players. BI determined this value applying the rules in the NFL’s collective bargaining agreement (in which the players receive a minimum of 47% of all revenue) to the top 25 revenue producing schools, and then dividing that figure by 85, the total number of scholarship players on each team. Written out, the equations for Fair Market Value is: ([Football Revenue × 0.47] ÷ 85).

The chart is well worth a look. Texas tops it with a Fair Market Value of $578,000 per player. The scholarship of each Longhorns player, on the other hand, is worth only $37,600, according to Business Insider writer Cork Gaines. That makes the Mack Brown situation especially interesting with regards to the Longhorns. The school is bringing in a ton of revenue, so it’s clearly at a higher standard than a lot of other programs.

Rounding out the top ten of Fair Market Value (per player, per year):

Texas: $578,000

Michigan: $470,000

Alabama: $453,000

Auburn: $428,000

Georgia: $416,000

Florida: $412,000

Notre Dame: $381,000

LSU: $378,000

Penn State: $365,000

Arkansas: $353,000

Obviously this is just one way of looking at the data, and it’s by no means perfect. But it is another data point that can be used to establish a system that ensures scholarship players eventually do receive “fair value” from the schools for which they play.

MANDEL: In restoring PSU scholarships, the NCAA beings to right its wrong

43 comments
Steve851
Steve851

Of course, federal law is going to require that all scholarship players for all sports be equally paid, or at least that as much e paid to female athletes as male athletes..  Won't add up to much at the richest school and will bankrupt most schools' athletic departments.

WrecksNEffect
WrecksNEffect

Lots a racists bigots in here that accept a HC or an AD getting "fair market value", but want the players to get only an education for their services.

I think that should get an additional "education stipend" and not a salary where starters get more than back-up; give them all the same stipend and make the non-revenue sports go into the free market and generate their own popularity and their own money to support themselves.

Suteki73
Suteki73

If they want money, go play in Canada or Europe.  No one is forcing them to play college football.  They play because college coaches, trainers and other staff excel at preparing them for the NFL where they will get rewarded financially for their work.  Think of it as an internship.  If you take an internship at Google, you get reduced salary, but in exchange you get valuable training and experience so when you apply for a real job, you can make more money. If you calculate how much money Google makes and divide 47% of it's revenue  amongst  its employees, I guarantee they are not making "fair market value". This is ludicrous, and will kill college football.  If I want to see a bunch of spoiled overpaid idiots, I will watch the NFL.  Give them all a monthly stipend ($500-$1,000) so the Arian Fosters can get their Taco Bell on the weekends and get back to football.......

AZgeo
AZgeo

Another dope with a calculator...while it's true that both the NFL and many publicly traded corporations, employee expenses are about 47%, Fair Value" would be determined by subtracting expenses, which would result in players "Fair Values" being negative, or in plain English, the kids owe the school money !! If the majority of college football players are NOT receiving "fair value", as you prescribe, do what real people in society are forced to do...go somewhere else ! 

maknoblauch
maknoblauch

Paying players will lead to holdouts just like in the pros.  Starters will demand more than reserves.  What happens when a player is injured and has to sit out?  What about Olympic sports?  Women's sports?  Will FBS pay the same as FCS, D-III, NAIA, and junior college?  Only the largest schools could afford it.  

I'm all for granting them a stipend given the time demands.  But as for paying them (on top of the $35-50K a Division-I full-scholarship athletes receives and is applied to books, tuition, and housing), no way.  

Blinker
Blinker

Money should not be the issue.  College is for learning.  It's sad that there are so many football players (that probably do not qualify to be there academically) look right past the education part of the deal made by the university to them.  A small portion of college football player make it to the "easy millionaire club" of the NFL.  Why not take the opportunity GIVEN to players to better their minds.  I know you have to be talented to play football at the college level and I do not want to take anything away from that.  I'm just saying  USE YOUR BRAIN and learn things that could last a lifetime verses 10-15 years (when your body will wear out through age).

FredFlintsone
FredFlintsone

Graduation rate above 50% would be a good start to fair value. I can still remember Dexter Manley, former all pro defensive end for the redskins holding up a copy of the washington post in front of the US congress. Dexter could not read the headline. He was illiterate. he also graduated with a 4yr degree from Oklahoma state

AaronDunckel
AaronDunckel

The problem with this that paying players a "market value" opens up a whole market for players.  In which case we might as well just make the NFL draftee age 18 so we dont have to bother with all of this "college" stuff


If you're paying athletes, you need to divide the revenue among all athletes - not just the most productive ones.  Take that 47% and divide it among all the sanctioned sports at the university, and among all the players of those sports.  Everything must be fair regardless of sports otherwise the football team might as well split off, be simply "sponsored" by a university - but be essentially a minor-league NFL system.   Even though they effectively act as that now,  thats a whole level up that I dont think most people are really ready to see - and its not in the best interests of college sports in any way. 

ABS
ABS

Nitpicking now, the equation is not quite right:  there should not be a closed paren after the 85.  

Korvyn
Korvyn

I do find it funny that this debate rages while corporate america does the same thing. Companies make billions of profit while their average employee may make 50k in a year. no one seems to be upset that average joe may make hundreds of thousands in revenue for his company yet receives only a small percentage of that in return. in fact the value of a college scholarship is worth more per year than most people in this country make. 

btsambirsky
btsambirsky

What are the unintended consequences of paying football players: all other sports except basketball likely go away.  What a shame that would be.  If the college football player isn't aware of what they are signing up for when they agree to their scholarship, do we really think they were smart enough to get into university in the first place.  There is a professional football league north of the border in Canada that could be an outlet for college players that would rather play for money (~$40,000) than the glory of being the big man on campus who can have the pick of the sorority girls with the hope of making it in the NFL.

Nedatthegrove
Nedatthegrove

@SInow Texas players are worth over $55 k per year in scholarship money that covers room, board, tuition, books,etc...don't pay athletes

eddie767
eddie767

That has got to make the starters mad. The 85th man is making as much as a starter. If that's the case,they all might as well really get that degree they're supposedly working towards. $500+ thou a yr not to even play a game. Sign me up coach.

JimKirkwood1
JimKirkwood1

Man. Think what those dudes would be worth if they were winning !!

OhShit...
OhShit...

As a Longhorn I can tell you with confidence no one on our D is worth that

muser
muser

Based on revenue, not wins....

RecDawg34
RecDawg34

@SInow why exclude walk on? They play pivotal role too. if they do choose to pay college athletes, I will just start watching the NFL.

w3R1337
w3R1337

LOL. The texas defense is worth maybe $5 per player...


drunkLobster
drunkLobster

@Suteki73 Not sure about Europe, but Canada has minimum college requirements like the NFL does.

WrecksNEffect
WrecksNEffect

@Blinker 

Money is an issue, always will be, when the stadiums hold between 80K and 100K at $40-$50 dollars per ticket on average, then you add in millions in TV revenue, then at that point the players should get more than tuition, room and board, give them a stipend and then make the non-revenue sports generate their own money.


Can anybody explain WHY the non-revenue sports get to suck up money forever when they don't generate any money on their own?

OlsonKevin
OlsonKevin

@AaronDunckel how about you just let the free market dictate who should be paid what? All these conservative hypocrites praise the strength of the free-market, and then look the other way when a monopoly of slave-traders exploit a base of young aspiring professionals that have no other recourse to pursue what they are best qualified to pursue. This is a scandal, and it's always been a scandal, and anyone who thinks otherwise is just not looking at it rationally

clu
clu

@AaronDunckel I would take it further than this...  all sports, both genders (obviously), and all schools pooled and divided evenly.  It's supposed to be amateur and about education first, right?  You should be free to choose the best school for your actual career...

mystafugee
mystafugee

@AaronDunckel At least it's all kosher at that point better than depriving people of their value

HerschelAnderton
HerschelAnderton

@ABS ... but, by your reckoning there should be one before "[Football..."...?  

mystafugee
mystafugee

@Korvyn So I guess since others are screwed over, it makes it okay to screw others over.  

HerschelAnderton
HerschelAnderton

@btsambirsky the idea that all these sports would "go away" is flawed.  intramural sports exist now.  would THEY go away too?  no.    intramural women's softball or intra/intercollegiate baseball or (insert whatever sport you want)  will continue to exist.  i don't need the ncaa to run football or basketball for that matter either.  why in the hell would you think these sports would  magically disappear without the rules of the ncaa?  oh, i know why. you've just never really thought about it.  well, now's your chance.

Hola
Hola

@btsambirsky I have no problem with your comment as long as CBS, ESPN, etc get ALL of their money back from the conferences and schools.

ammon44
ammon44

@Nedatthegrove @SInow Please read the article.  Scholarship is worth 37,600, that is total.  Tuition, room board and books

Hola
Hola

@Nedatthegrove @SInow  $578,000 - $55,000 = $523,000 (PROFIT)  You can't beat that.

LoveYouBlue
LoveYouBlue

@WrecksNEffect @Blinker Numerous reasons why . . . you can start by researching Title IX, the concept of the non-profit organization, and how universities strive to minimize their taxes.

Suteki73
Suteki73

@OlsonKevin @AaronDunckel It is not a monopoly.  Canada, Europe, or the US arena league  will allow 18 year olds to play.  So where is the "slave trading monopoly"? Who is making them play college football?  No one.  NFL won't take them because an 18 year old kid needs the experience of college football to prepare them for the NFL.  Without the college coaching staff educating the player on how to play their position, strength and speed coaches making them faster and stronger, dietitians teaching them the importance of nutrition, most of these athletes would never make it to the NFL.  Someone thinking these kids are not getting more in return than just a free education is not looking at it rationally...........

maknoblauch
maknoblauch

@OlsonKevin @AaronDunckel >>monopoly of slave-traders exploit a base of young aspiring professionals that have no other recourse to pursue what they are best qualified to pursue<<

So what you're saying is, "I am only good at playing football, so pay me"  should be every college football player's mantra.  Why couldn't every student in that same college say the same thing, along the lines of "I'm smart--so pay me to study at your college".  Oh wait, they do--it's called a scholarship, just like most football players receive.  If going to college means you are getting exploited in order to pursue what one is best qualified to pursue (i.e. 'football'), have the players simply wait until they reach draft age and enter the NFL without going to college.  Surely that won't affect their draft status, right? It is a mutually benefiting system--the players gain from the college game and the college gain from the athlete's game.  

HerschelAnderton
HerschelAnderton

@mystafugee @Korvyn  sure. though that is a powerless and  impoverished way to look at it.  a more accurate way to see it is: people make their own choices in the context in which we are speaking.  no one is being physically coerced to play football from the cradle through college.  just as no one is coerced into taking the job they take.

Suteki73
Suteki73

@HerschelAnderton @btsambirsky It has nothing to do with the NCAA.  For almost all colleges, football is the only money maker (some schools turn a profit on basketball), and this funds the other sports.  All sports cost money to play.  Schools have to pay coaches, insurance, equipment, uniforms, maintenance, trainers, travel, etc..  Without the money generated from football, most of these sports WILL disappear.  You think these schools are just going to eat a 47% cut in revenue?  These are businesses.  They will shift the loss by raising prices for things like tickets, and concessions and cutting other programs to make up the rest.....  

HerschelAnderton
HerschelAnderton

@Korvyn @HerschelAnderton @mystafugee i agree with you.  but that is the world's system, and always has been. you're getting into a philosophical area that people here might frown on.  you had better be a (legit) Christian if you're going to be espousing those sorts of ideals.   otherwise, you'll be next in line to shoot those who disagree with your view of utopia.

Korvyn
Korvyn

@HerschelAnderton @mystafugee @Korvyn both are missing the point here why are people not outraged and calling for change at the fact mcdonalds and many other companies make millions if not billions by low balling their employees yet are upset because guys are getting a mostly free college education to play football. The value of which is more than many many americans yearly wages. just think it's funny that if you are entertaining people you're worth fighting for to get more money but the dude who makes your lunch just needs to suck it up and get a better job.


HerschelAnderton
HerschelAnderton

@Suteki73 @HerschelAnderton @btsambirsky sorry, but that's wrong. student fees pay for most of the things you mentioned.  this is well-established fact.  i'm not searching for links right now.  basically, by your logic, d-ii/d-iii/naia schools would have no sports teams.  that is simply not true.