Controversy: The Role Of NCAA And Higher Education

The Role of NCAA and Higher Education
The National Collegiate Athletic Association (NCAA) was formed in 1906 as non-profit organization with the purpose of protecting students and setting official guidelines for sports. Ever since the NCAA was established in 1906, there has grown to be a controversy of whether sports should be associated with universities and colleges. There are some that argue that the NCAA takes the conflict approach, and claim that student-athletes are only used to make money for the institutions rather than be students, because they generate millions of dollars in revenue each year for the industry. Others argue that there should be more money invested into the athletic department compare to other departments in the school.

In 2010, the attendance for NCAA division one football topped 50 million people for its customary season games (Clotfelter, 2010, p. 49). This does not include the hundreds of thousands who have attended bowl games as well as the hundreds of millions people who visually examined these games through television or web stream. In 2010, the NCAA signed a 14-year deal with CBS worth $10.8 billion dollars for them to broadcast the NCAA March Madness tournament, demonstrating the magnitude of NCAA. This contract alone engenders $740 Million annually for the members of the NCAA (The Chronicle of Higher Inculcation, 2010). The statistics and contracts of the NCAA exhibits that it is far more than an average neophyte sports league. It is in fact a highly competitive industry in the category of regalement, which competes with many of today's favorite television programs. There are definitely many economic factors that are consider when the NCAA athletic departments face critical decisions. There are numerous decisions that need to be made but, departments often fixate on how to price tickets, how to capitalize on consumer surplus, making the best and most fitting recruiting decisions, how to operate, as well as making profit sharing techniques concrete. Subsequently schools that are in the regalement business must treat their athletic programs as a business and use business and

A star athlete in the study was relegated as someone who plays professionally upon graduation. The marginal revenue product for integrating a star athlete to a NCAA D-1 football roster engenders adscititious revenues of $539,000- $646,000 per year to the school, as well as an adscititious $871,000 - $1,000,000 in revenue from the integration of a star athlete for NCAA D-1 basketball (Brown, 1993, p. 679). With the value of high caliber players being so great, and the genuine cost of tuition and boarding of the individual players, universities receive a high caliber of economic rent from these star athletes (Allmen, Leeds, 2011, p.359). Another way to analyze this is by a supply and authoritatively mandate figure of recruiting, because the market-clearing price for a star athlete is set below the balance, which engenders a great demand for high caliber players. Recruiting for star athletes is a process that is very competitive between universities, which sometimes lead to NCAA breaches of recruitment in universities. Those violations can include team operations offering to pay players under the table or give payments to family members. The process of this resembles other industries in which the market-clearing price is set below the equilibrium, which creates a black market. This formation of a black market is similar to what happens when recruitment