Literature Review #5

John J. Siegfried 

Allen R. Sanderson                                              

Citation:

Sanderson, Allen R., and John J. Siegfried. "The Case For Paying College Athletes." Journal Of Economic Perspectives 29.1 (2015): 115-138.Business Source Premier. Web. 14 Apr. 2015.

Summary:

This article discusses the how all those involved in college athletics are making huge amounts of money, except the players. It shows how television and licensing deals have been increasing and how the enterprise is becoming more focused on money. It argues that price fixing the players creates an unfair environment where the NCAA can control output. It goes on to provide some ways to compensate players beyond the current tuition, room, board and fees that players are currently given under the NCAA.

About the Authors:

Allen R. Sanderson is a professor at the University of Chicago in the Economics Department and has written many articles concerning economics. John J. Siegfried is a Professor Emeritus at Vanderbilt University who has studied various economic topics over the course of his career. These two men give good insight into the issues which collegiate athletes face with regards to compensation. They also give great insight into how compensation for these players could be carried out in a fair way so that everyone makes money. 

Key Terms:

Grants-in-aid:  education a grant provided by the central government or local education authority to ensure consistent standards in buildings and other facilities

Intercollegiate sports: a sport played at the collegiate level for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of collegiate athletics

Quotes:

"Television ratings and media dollars have never been higher, owing largely to the popularity of two major revenue sports (football and men’s basketball)" Page 115

"Because few viewers record games and delete advertisements before watching and live games retain the uncertainty of outcome that recorded games lack, the demand for live sports content commands substantial broadcast rights fees, which in turn generate premium advertising rates" Page 119-120

"...participation in and success at intercollegiate athletics might attract larger appropriations from state legislators concerned about their constituents’ perceptions of the public universities in their states, especially considering the fact that the median voter in virtually every state is not a college graduate and might be more interested in the flagship state university’s football team than its library."

Page 121

"...university athletics may increase private donations. More than a dozen studies have investigated the effects of commercialized intercollegiate athletics on private contributions to colleges and universities: some find no effect, while others report a modest positive effect." Page 121

Value:

The article explores some ways which the athletic departments gain money for the college which is helpful when discussing if players should be given more compensation. It shows how colleges receive lots of money from athletic departs through many more ways than I previously considered, such as donations and favorable laws form law makers. It also gives some ideas for how to compensate them such as guaranteed, multi-year scholarships so that players have more security, which some schools have already begun doing.