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Big revenues and low profits in college sports

In: Sports Economics Uncut

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Abstract

During the 2015 season, evidence surfaced that the University of Louisville basketball program had been luring recruits with an escort service offering sexual enticements. While very sensational, the Louisville episode merely heads a long list of schools and sordid scandals over the last 70 years. Chapter 9 exposes how this long-standing pattern of scandals is a built-in feature of a system founded upon a convoluted mix of sports entertainment, collusive restrictions on player payments, and the not-for-profit world of higher education. Using the revenues and values of the NFL as a shadow market, average players at big time programs would receive millions of dollars per year if paid close to market value. In spite of the large revenues and diversion of revenue, major athletic programs frequently exhibit low “profitability.†This dissonance is merely another offshoot of the college sports system.

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  • ., 2018. "Big revenues and low profits in college sports," Chapters, in: Sports Economics Uncut, chapter 9, pages 139-156, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18305_9
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