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The Financial and Competitive Value of NCAA Basketball Recruits

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  • Richard Borghesi

Abstract

In this article, we examine the value of high school basketball prospects, and results indicate that each five-star (four-star) recruit generates US$625,000 (US$178,000) in marginal revenue for his university. Additionally, university academic donations are strongly related to basketball performance and five-star recruits bring in an additional US$5,800,000 in funding on average as a result of their contribution to team success. Calculations indicate that if five-star players were to be fairly compensated, their earnings would be approximately US$613,000. Four-star prospects would be paid roughly US$166,000, three-star recruits US$91,000, and two- and one-star players US$50,000.

Suggested Citation

  • Richard Borghesi, 2018. "The Financial and Competitive Value of NCAA Basketball Recruits," Journal of Sports Economics, , vol. 19(1), pages 31-49, January.
    • Handle: RePEc:sae:jospec:v:19:y:2018:i:1:p:31-49
    DOI: 10.1177/1527002515617510
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    References listed on IDEAS

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    Cited by:

    1. Brent A. Evans & Christopher Clark & Joshua D. Pitts, 2024. "The Effects of Marijuana Legalization on NCAA Men's Basketball Recruiting," Journal of Sports Economics, , vol. 25(2), pages 200-216, February.
    2. Craig Garthwaite & Jordan Keener & Matthew Notowidigdo & Nicole Ozminkowski, 2020. "Who Profits from Amateurism? Rent-Sharing in Modern College Sports," Working Papers 2020-117, Becker Friedman Institute for Research In Economics.
    3. E. Woodrow Eckard, 2019. "Does the NCAA’s Collegiate Model Promote Competitive Balance? Power-5 Conference Football Versus the NFL," Journal of Sports Economics, , vol. 20(5), pages 654-670, June.
    4. Richard Borghesi, 2017. "Pay for play: the financial value of NCAA football players," Applied Economics, Taylor & Francis Journals, vol. 49(46), pages 4657-4667, October.
    5. Brent A. Evans & Joshua D. Pitts, 2018. "Cross-Sport Recruiting Effects in NCAA D1 Football and Basketball," Journal of Sports Economics, , vol. 19(6), pages 820-842, August.

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