IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v24y2017i4p233-237.html
   My bibliography  Save this article

Estimating the market value of collegiate football players from professional factor shares

Author

Listed:
  • Brian L. Goff
  • H. Youn Kim
  • Dennis P. Wilson

Abstract

Although the level and growth of revenue in college football has drawn increasing public attention, reliable estimates of the value of college and associated rents remain elusive. Many players do not have easily observable performance statistics and there are significant complementarities. Using a simple estimation strategy based on professional factor shares and rooted in economic theory, we generate estimates of market value for college players across seven National Collegiate Athletic Association conferences using professional football and basketball salaries from 2011 to 2013 as shadow prices. With this method, market value of an average starting football player in a Bowl Championship Series (BCS) conference ranges from $120,000 to $1.7 million per year. The value of superstar players may exceed $4 million per year. We find that rents can flow from the institutions to players in some cases at relatively low-revenue institutions outside the BCS.

Suggested Citation

  • Brian L. Goff & H. Youn Kim & Dennis P. Wilson, 2017. "Estimating the market value of collegiate football players from professional factor shares," Applied Economics Letters, Taylor & Francis Journals, vol. 24(4), pages 233-237, February.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:4:p:233-237
    DOI: 10.1080/13504851.2016.1178842
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2016.1178842
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2016.1178842?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lawrence M. Kahn, 1993. "Managerial Quality, Team Success, and Individual Player Performance in Major League Baseball," ILR Review, Cornell University, ILR School, vol. 46(3), pages 531-547, April.
    2. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    3. Lawrence M. Kahn, 2007. "Markets: Cartel Behavior and Amateurism in College Sports," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 209-226, Winter.
    4. Andrew Zimbalist, 2010. "Reflections on Salary Shares and Salary Caps," Journal of Sports Economics, , vol. 11(1), pages 17-28, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeremy M. Losak & Benjamin J. Posmanick & Raymond D. Sauer, 2024. "On the Value of a Premium College Football Player: Evaluating the Literature," Journal of Sports Economics, , vol. 25(4), pages 472-506, May.
    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. Watanabe, Nicholas M. & Yan, Grace & Soebbing, Brian P., 2019. "Market disruption as a regime for athlete activism: An economic analysis of college football player protests," Sport Management Review, Elsevier, vol. 22(5), pages 600-612.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee, Travis, 2020. "Competitive Balance in the National Hockey League after Unrestricted Free Agency and the Salary Cap," MPRA Paper 108400, University Library of Munich, Germany.
    2. Travis Lee, 2010. "Competitive Balance in the National Football League After the 1993 Collective Bargaining Agreement," Journal of Sports Economics, , vol. 11(1), pages 77-88, February.
    3. Jarle Moen, 2005. "Is Mobility of Technical Personnel a Source of R&D Spillovers?," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 81-114, January.
    4. Frick, Bernd & Barros, Carlos Pestana & Prinz, Joachim, 2010. "Analysing head coach dismissals in the German "Bundesliga" with a mixed logit approach," European Journal of Operational Research, Elsevier, vol. 200(1), pages 151-159, January.
    5. Nicolas Lepage-Saucier & Juliette Schleich & Etienne Wasmer, 2013. "Moving Towards a Single Labour Contract: Pros, Cons and Mixed Feelings," OECD Economics Department Working Papers 1026, OECD Publishing.
    6. Donatella Gatti & Christophe Rault & Anne-Gael Vaubourg, 2012. "Unemployment and finance: how do financial and labour market factors interact?," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 464-489, July.
    7. Simon DEAKIN & Jonas MALMBERG & Prabirjit SARKAR, 2014. "How do labour laws affect unemployment and the labour share of national income? The experience of six OECD countries, 1970–2010," International Labour Review, International Labour Organization, vol. 153(1), pages 1-27, March.
    8. Robert Brown, 2011. "Research Note: Estimates of College Football Player Rents," Journal of Sports Economics, , vol. 12(2), pages 200-212, April.
    9. Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2006. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 472-481, August.
    10. Zwick, Thomas, 1999. "Innovations induce asymmetric employment movements," ZEW Discussion Papers 99-24, ZEW - Leibniz Centre for European Economic Research.
    11. Michael Gerfin, 2003. "Work-Related Training and Wages: An empirical analysis for male workers in Switzerland," Diskussionsschriften dp0316, Universitaet Bern, Departement Volkswirtschaft.
    12. Pardesi, Mantej, 2024. "Productivity convergence and firm’s training strategy," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    13. Aepli, Manuel & Kuhn, Andreas & Schweri, Jürg, 2021. "Culture, norms, and the provision of training by employers: Evidence from the Swiss language border," Labour Economics, Elsevier, vol. 73(C).
    14. repec:lan:wpaper:3702 is not listed on IDEAS
    15. Caliendo, Marco & Cobb-Clark, Deborah A. & Obst, Cosima & Uhlendorff, Arne, 2023. "Risk preferences and training investments," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 668-686.
    16. Jill S. Harris, 2018. "State of Play: How Do College Football Programs Compete for Student Athletes?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 269-281, March.
    17. Walde, Klaus, 2000. "Egalitarian and elitist education systems as the basis for international differences in wage inequality," European Journal of Political Economy, Elsevier, vol. 16(3), pages 445-468, September.
    18. Wolter Stefan C. & Schweri Jürg & Mühlemann Samuel, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, De Gruyter, vol. 7(3), pages 249-264, August.
    19. B Frick & R Simmons, 2005. "The impact of managerial quality on organizational performance: evidence from German soccer," Working Papers 566927, Lancaster University Management School, Economics Department.
    20. Richard Blundell & Monica Costa-Dias & David Goll & Costas Meghir, 2021. "Wages, Experience, and Training of Women over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 275-315.
    21. Arnaud Chéron & Anthony Terriau, 2023. "On-The-Job Search, Life-cycle Training, and the Role of Transfer Fees," TEPP Working Paper 2023-06, TEPP.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:24:y:2017:i:4:p:233-237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.