Problem Statement
There is currently a large divide between the money that Division I universities make from student athletes, and the small stipends that are given to students to pay for daily living expenses, especially in conjunction with the physical risks they take.
Problem Question
Under current NCAA guidelines, student athletes are not allowed to be reimbursed for appearances, performance, or likenesses. What can be done to ensure that universities still earn enough to cover their expenses, while student athletes are compensated fairly for the amount of money they generate?
Simple Statement of Purpose
To provide a set of guidelines and practices that universities can have to ease financial burdens on student athletes.
Scope
This report will help to outline the dilemma faced by universities and their student athletes alike: how to fairly compensate students for their time, skill, and athleticism, while protecting the interests
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Prior to an amendment made in 1996, student athletes were not compensated in any way for their actions and commitment to their university. On average, a student is compensated between $2,000 and $2,500 per year to cover their expenses. However, the top 40 Division I schools turned over revenues averaging out to $78,023,732, with many schools recording revenues exceeding $100,000,000. Students often are left scraping together the remainders of their stipends after rent, bills, gas, parking, and other expenses, just to pay for food at the end of the semester. Many of these students have higher expenses, as Division I schools are generally located in larger cities with higher costs of living. Additionally, the NCAA currently has a ban on student-athletes having a job during the school year. This equates to students who often times circumvent the NCAA protocol in order to have enough money to cover their living