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Student Athletes Should Be Paid

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Recently, the topic of compensating student athletes has become a popular subject of debate within the media. Deciding whether or not to pay student athletes may seem simple at first glance; however, further research into the debate reveals many economic studies that provide persuasive information benefitting one side over the other. Paying student athletes would be more economically efficient and to not allow payment would be considered price fixing, also this would reduce the negative externalities faced by the student athletes in the future. Although paying players would have economic benefits, it would also have high costs to the fans in the form of higher ticket prices and a loss of competition within college sports. Student athletes should …show more content…

There are countless economic reasons why college athletes should get compensated for their time and effort; however, none may be as important as the fact that it would lead to economic efficiency. Economic efficiency is accomplished when every resource is allocated to serve each person in the best way possible while diminishing waste and inefficient spending. Without payment to players, universities must currently spend millions of dollars on athletic program facilities in order to attract the most coveted prospects. Spending this money on paying players to attend their university rather than on facilities is a much more economically efficient method of attracting athletes, assuming ceteris paribus. By redirecting the outflow of cash from athletic facilities to the athletes themselves decreases both wasteful spending and inefficiency. Competition for top athletic recruits is being created through over-spending by universities, when in reality the student athletes would likely take payments considerably lower than the price of building new athletic infrastructure. Former Stanford economics professor, Roger Noll stated that, “It’s much more efficient to pay people for what they’re producing than it is to create a competition for the right to exploit them,” (qtd. In Strauss, 2014) which rings true for all industries including collegiate sports where the …show more content…

Lower ticket prices have always been part of the appeal of attending an amateur sporting event rather than spending the incredibly high ticket prices for professional sporting events. If the NCAA allowed college athletes to receive payment than college athletics programs would need to find a way to replace the expense of player salaries and one easy way would be to increase ticket prices and merchandise prices. Although it is commonly believed that college athletics programs make vast amounts of annual profit, the truth is that “…only 14 Division 1 schools broke even or made money in their athletic department last year [2010] without institutional support,” (Dosh, 2011) meaning that most athletic departments cannot afford to pay their student athletes. Without an existing budget to fund player salaries, the athletic department must generate more revenue through sales, often meaning ticket sales. Inflated ticket prices could lead to a decrease in total attendance which in turn would only hurt the department more. Students are the group that would primarily experience cost of a rise in ticket prices, schools that offer free or discounted tickets to the school sporting events, such as Florida State University, would

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