Dr. Ellen J. Staurowsky, full professor of Sport Management, co-authored a report that made AP headlines this week. “The Price of Poverty in Big-Time College Sport” examines “full” scholarships athletes are given to attend colleges and universities. The report reveals a difference in total expenses and what is covered by the scholarship. As a result, the average collegiate athlete is living below the federal poverty line.
Staurowsky, who co-authored the report with Ramogi Huma, a former UCLA linebacker who heads the National College Players Association (NCPA), determined that the average fair market value of top-tier college football and men’s basketball players is more than $100,00. The authors argue that with the large revenues generated by these sports, athletes should be compensated to cover their out-of-pocket costs to attend their institution, which can range anywhere from $952 to $6,127, depending on the university.
The report offers potential solutions to the compensation issue, including reserving revenue generated from outside sources, such as TV contracts, for an “educational lockbox.” Players could dip into those reserves if they exhaust their allotted funds before graduation. Another suggestion is having the NCAA release restrictions on student-athletes and allow them to seek endorsements and other commercial deals, contributing some money to the lockbox and keeping some.
In the report, Staurowsky and Huma calculate that if college sports distributed revenues the way pro sports do, the average Football Bowl Subdivision (FBS) athlete would be worth approximately $121,000 per year, and the average basketball player at that level would be worth $265,000. The study states that federal reform is necessary, and urges Congress to act toward these possible solutions.