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Should College Athletes Be Paid? An Expert Debate Analysis

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The argumentative essay is one of the most frequently assigned types of essays in both high school and college writing-based courses. Instructors often ask students to write argumentative essays over topics that have “real-world relevance.” The question, “Should college athletes be paid?” is one of these real-world relevant topics that can make a great essay subject! 

In this article, we’ll give you all the tools you need to write a solid essay arguing why college athletes should be paid and why college athletes should not be paid. We'll provide:

• An explanation of the NCAA and what role it plays in the lives of student athletes
• A summary of the pro side of the argument that's in favor of college athletes being paid
• A summary of the con side of the argument that believes college athletes shouldn't be paid
• Five tips that will help you write an argumentative essay that answers the question "Should college athletes be paid?" 

The NCAA is the organization that oversees and regulates collegiate athletics. 

What Is the NCAA? 

In order to understand the context surrounding the question, “Should student athletes be paid?”, you have to understand what the NCAA is and how it relates to student-athletes. 

NCAA stands for the National Collegiate Athletic Association (but people usually just call it the “N-C-double-A”). The NCAA is a nonprofit organization that serves as the national governing body for collegiate athletics. 

The NCAA specifically regulates collegiate student athletes at the organization’s 1,098 “member schools.” Student-athletes at these member schools are required to follow the rules set by the NCAA for their academic performance and progress while in college and playing sports. Additionally, the NCAA sets the rules for each of their recognized sports to ensure everyone is playing by the same rules. ( They also change these rules occasionally, which can be pretty controversial! ) 

The NCAA website states that the organization is “dedicated to the well-being and lifelong success of college athletes” and prioritizes their well-being in academics, on the field, and in life beyond college sports. That means the NCAA sets some pretty strict guidelines about what their athletes can and can't do. And of course, right now, college athletes can't be paid for playing their sport. 

As it stands, NCAA athletes are allowed to receive scholarships that cover their college tuition and related school expenses. But historically, they haven't been allowed to receive additional compensation. That meant athletes couldn't receive direct payment for their participation in sports in any form, including endorsement deals, product sponsorships, or gifts.  

Athletes who violated the NCAA’s rules about compensation could be suspended from participating in college sports or kicked out of their athletic program altogether. 

The Problem: Should College Athletes Be Paid? 

You know now that one of the most well-known functions of the NCAA is regulating and limiting the compensation that student-athletes are able to receive. While many people might not question this policy, the question of why college athletes should be paid or shouldn't be paid has actually been a hot-button topic for several years.

The fact that people keep asking the question, “Should student athletes be paid?” indicates that there’s some heat out there surrounding this topic. The issue is frequently debated on sports talk shows , in the news media , and on social media . Most recently, the topic re-emerged in public discourse in the U.S. because of legislation that was passed by the state of California in 2019.

In September 2019, California governor Gavin Newsom signed a law that allowed college athletes in California to strike endorsement deals. An endorsement deal allows athletes to be paid for endorsing a product, like wearing a specific brand of shoes or appearing in an advertisement for a product.

In other words, endorsement deals allow athletes to receive compensation from companies and organizations because of their athletic talent. That means Governor Newsom’s bill explicitly contradicts the NCAA’s rules and regulations for financial compensation for student-athletes at member schools.

But why would Governor Newsom go against the NCAA? Here’s why: the California governor believes that it's unethical for the NCAA to make money based on the unpaid labor of its athletes . And the NCAA definitely makes money: each year, the NCAA upwards of a billion dollars in revenue as a result of its student-athlete talent, but the organization bans those same athletes from earning any money for their talent themselves. With the new California law, athletes would be able to book sponsorships and use agents to earn money, if they choose to do so. 

The NCAA’s initial response to California’s new law was to push back hard. But after more states introduced similar legislation , the NCAA changed its tune. In October 2019, the NCAA pledged to pass new regulations when the board voted unanimously to allow student athletes to receive compensation for use of their name, image, and likeness. 

Simply put: student athletes can now get paid through endorsement deals. 

In the midst of new state legislation and the NCAA’s response, the ongoing debate about paying college athletes has returned to the spotlight. Everyone from politicians, to sports analysts, to college students are arguing about it. There are strong opinions on both sides of the issue, so we’ll look at how some of those opinions can serve as key points in an argumentative essay.

Let's take a look at the arguments in favor of paying student athletes!

The Pros: Why College Athletes Should B e Paid

Since the argument about whether college athletes should be paid has gotten a lot of public attention, there are some lines of reasoning that are frequently called upon to support the claim that college athletes should be paid. 

In this section, we'll look at the three biggest arguments in favor of why college athletes should be paid. We'll also give you some ideas on how you can support these arguments in an argumentative essay.

Argument 1: The Talent Should Receive Some of the Profits

This argument on why college athletes should be paid is probably the one people cite the most. It’s also the easiest one to support with facts and evidence. 

Essentially, this argument states that the NCAA makes millions of dollars because people pay to watch college athletes compete, and it isn’t fair that the athletes don't get a share of the profits

Without the student athletes, the NCAA wouldn’t earn over a billion dollars in annual revenue , and college and university athletic programs wouldn’t receive hundreds of thousands of dollars from the NCAA each year. In fact, without student athletes, the NCAA wouldn’t exist at all. 

Because student athletes are the ones who generate all this revenue, people in favor of paying college athletes argue they deserve to receive some of it back. Otherwise, t he NCAA and other organizations (like media companies, colleges, and universities) are exploiting a bunch of talented young people for their own financial gain.

To support this argument in favor of paying college athletes, you should include specific data and revenue numbers that show how much money the NCAA makes (and what portion of that actually goes to student athletes). For example, they might point out the fact that the schools that make the most money in college sports only spend around 10% of their tens of millions in athletics revenue on scholarships for student-athletes. Analyzing the spending practices of the NCAA and its member institutions could serve as strong evidence to support this argument in a “why college athletes should be paid” essay. 

I've you've ever been a college athlete, then you know how hard you have to train in order to compete. It can feel like a part-time job...which is why some people believe athletes should be paid for their work!

Argument 2: College Athletes Don’t Have Time to Work Other Jobs

People sometimes casually refer to being a student-athlete as a “full-time job.” For many student athletes, this is literally true. The demands on a student-athlete’s time are intense. Their days are often scheduled down to the minute, from early in the morning until late at night. 

One thing there typically isn’t time for in a student-athlete’s schedule? Working an actual job. 

Sports programs can imply that student-athletes should treat their sport like a full-time job as well. This can be problematic for many student-athletes, who may not have any financial resources to cover their education. (Not all NCAA athletes receive full, or even partial, scholarships!) While it may not be expressly forbidden for student-athletes to get a part-time job, the pressure to go all-in for your team while still maintaining your eligibility can be tremendous. 

In addition to being a financial burden, the inability to work a real job as a student-athlete can have consequences for their professional future. Other college students get internships or other career-specific experience during college—opportunities that student-athletes rarely have time for. When they graduate, proponents of this stance argue, student-athletes are under-experienced and may face challenges with starting a career outside of the sports world.

Because of these factors, some argue that if people are going to refer to being a student-athlete as a “full-time job,” then student-athletes should be paid for doing that job.  

To support an argument of this nature, you can offer real-life examples of a student-athlete’s daily or weekly schedule to show that student-athletes have to treat their sport as a full-time job. For instance, this Twitter thread includes a range of responses from real student-athletes to an NCAA video portraying a rose-colored interpretation of a day in the life of a student-athlete. 

Presenting the Twitter thread as one form of evidence in an essay would provide effective support for the claim that college athletes should be paid as if their sport is a “full-time job.” You might also take this stance in order to claim that if student-athletes aren’t getting paid, we must adjust our demands on their time and behavior.

Argument 3: Only Some Student Athletes Should Be Paid

This take on the question, “Should student athletes be paid?” sits in the middle ground between the more extreme stances on the issue. There are those who argue that only the student athletes who are big money-makers for their university and the NCAA should be paid.  

The reasoning behind this argument? That’s just how capitalism works. There are always going to be student-athletes who are more talented and who have more media-magnetizing personalities. They’re the ones who are going to be the face of athletic programs, who lead their teams to playoffs and conference victories, and who are approached for endorsement opportunities. 

Additionally, some sports don't make money for their schools. Many of these sports fall under Title IX, which states that no one can be excluded from participation in a federally-funded program (including sports) because of their gender or sex. Unfortunately, many of these programs aren't popular with the public , which means they don't make the same revenue as high-dollar sports like football or basketball . 

In this line of thinking, since there isn’t realistically enough revenue to pay every single college athlete in every single sport, the ones who generate the most revenue are the only ones who should get a piece of the pie. 

To prove this point, you can look at revenue numbers as well. For instance, the womens' basketball team at the University of Louisville lost $3.8 million dollars in revenue during the 2017-2018 season. In fact, the team generated less money than they pay for their coaching staff. In instances like these, you might argue that it makes less sense to pay athletes than it might in other situations (like for University of Alabama football, which rakes in over $110 million dollars a year .) 

There are many people who think it's a bad idea to pay college athletes, too. Let's take a look at the opposing arguments. 

The Cons: Why College Athletes Shouldn't Be Paid

People also have some pretty strong opinions about why college athletes shouldn't be paid. These arguments can make for a pretty compelling essay, too! 

In this section, we'll look at the three biggest arguments against paying college athletes. We'll also talk about how you can support each of these claims in an essay. 

Argument 1: College Athletes Already Get Paid

On this side of the fence, the most common reason given for why college athletes should not be paid is that they already get paid: they receive free tuition and, in some cases, additional funding to cover their room, board, and miscellaneous educational expenses. 

Proponents of this argument state that free tuition and covered educational expenses is compensation enough for student-athletes. While this money may not go straight into a college athlete's pocket, it's still a valuable resource . Considering most students graduate with nearly $30,000 in student loan debt , an athletic scholarship can have a huge impact when it comes to making college affordable . 

Evidence for this argument might look at the financial support that student-athletes receive for their education, and compare those numbers to the financial support that non-athlete students receive for their schooling. You can also cite data that shows the real value of a college tuition at certain schools. For example, student athletes on scholarship at Duke may be "earning" over $200,000 over the course of their collegiate careers. 

This argument works to highlight the ways in which student-athletes are compensated in financial and in non-financial ways during college , essentially arguing that the special treatment they often receive during college combined with their tuition-free ride is all the compensation they have earned.

Some people who are against paying athletes believe that compensating athletes will lead to amateur athletes being treated like professionals. Many believe this is unfair and will lead to more exploitation, not less. 

Argument 2: Paying College Athletes Would Side-Step the Real Problem

Another argument against paying student athletes is that college sports are not professional sports , and treating student athletes like professionals exploits them and takes away the spirit of amateurism from college sports . 

This stance may sound idealistic, but those who take this line of reasoning typically do so with the goal of protecting both student-athletes and the tradition of “amateurism” in college sports. This argument is built on the idea that the current system of college sports is problematic and needs to change, but that paying student-athletes is not the right solution. 

Instead, this argument would claim that there is an even better way to fix the corrupt system of NCAA sports than just giving student-athletes a paycheck. To support such an argument, you might turn to the same evidence that’s cited in this NPR interview : the European model of supporting a true minor league system for most sports is effective, so the U.S. should implement a similar model. 

In short: creating a minor league can ensure athletes who want a career in their sport get paid, while not putting the burden of paying all collegiate athletes on a university. 

Creating and supporting a true professional minor league would allow the students who want to make money playing sports to do so. Universities could then confidently put earned revenue from sports back into the university, and student-athletes wouldn’t view their college sports as the best and only path to a career as a professional athlete. Those interested in playing professionally would be able to pursue this dream through the minor leagues instead, and student athletes could just be student athletes. 

The goal of this argument is to sort of achieve a “best of both worlds” solution: with the development and support of a true minor league system, student-athletes would be able to focus on the foremost goal of getting an education, and those who want to get paid for their sport can do so through the minor league. Through this model, student-athletes’ pursuit of their education is protected, and college sports aren’t bogged down in ethical issues and logistical hang-ups. 

Argument 3: It Would Be a Logistical Nightmare

This argument against paying student athletes takes a stance on the basis of logistics. Essentially, this argument states that while the current system is flawed, paying student athletes is just going to make the system worse. So until someone can prove that paying collegiate athletes will fix the system, it's better to maintain the status quo. 

Formulating an argument around this perspective basically involves presenting the different proposals for how to go about paying college athletes, then poking holes in each proposed approach. Such an argument would probably culminate in stating that the challenges to implementing pay for college athletes are reason enough to abandon the idea altogether. 

Here's what we mean. One popular proposed approach to paying college athletes is the notion of “pay-for-play.” In this scenario, all college athletes would receive the same weekly stipend to play their sport . 

In this type of argument, you might explain the pay-for-play solution, then pose some questions toward the approach that expose its weaknesses, such as: Where would the money to pay athletes come from? How could you pay athletes who play certain sports, but not others? How would you avoid Title IX violations? Because there are no easy answers to these questions, you could argue that paying college athletes would just create more problems for the world of college sports to deal with.

Posing these difficult questions may persuade a reader that attempting to pay college athletes would cause too many issues and lead them to agree with the stance that college athletes should not be paid. 

5 Tips for Writing About Paying College Athletes

If you’re assigned the prompt “Should college athletes be paid," don't panic. There are several steps you can take to write an amazing argumentative essay about the topic! We've broken our advice into five helpful tips that you can use to persuade your readers (and ace your assignment).

Tip 1: Plan Out a Logical Structure for Your Essay

In order to write a logical, well-organized argumentative essay, one of the first things you need to do is plan out a structure for your argument. Using a bare-bones argumentative outline for a “why college athletes should be paid” essay is a good place to start. 

Check out our example of an argumentative essay outline for this topic below: 

• The thesis statement must communicate the topic of the essay: Whether college athletes should be paid, and 
• Convey a position on that topic: That college athletes should/ should not be paid, and 
• State a couple of defendable, supportable reasons why college athletes should be paid (or vice versa).
• Support Point #1 with evidence
• Explain/interpret the evidence with your own, original commentary 
• Support Point #2 with evidence
• Explain/interpret the evidence with your own, original commentary
• Support Point #3 with evidence
• New body paragraph addressing opposing viewpoints
• Concluding paragraph

This outline does a few things right. First, it makes sure you have a strong thesis statement. Second, it helps you break your argument down into main points (that support your thesis, of course). Lastly, it reminds you that you need to both include evidence and explain your evidence for each of your argumentative points. 

While you can go off-book once you start drafting if you feel like you need to, having an outline to start with can help you visualize how many argumentative points you have, how much evidence you need, and where you should insert your own commentary throughout your essay. 

Remember: the best argumentative essays are organized ones! 

Tip 2: Create a Strong Thesis 

T he most important part of the introduction to an argumentative essay claiming that college athletes should/should not be paid is the thesis statement. You can think of a thesis like a backbone: your thesis ties all of your essay parts together so your paper can stand on its own two feet! 

So what does a good thesis look like? A solid thesis statement in this type of argumentative essay will convey your stance on the topic (“Should college athletes be paid?”) and present one or more supportable reasons why you’re making this argument. 

With these goals in mind, here’s an example of a thesis statement that includes clear reasons that support the stance that college athletes should be paid: 

Because the names, image, and talents of college athletes are used for massive financial gain, college athletes should be able to benefit from their athletic career in the same way that their universities do by getting endorsements. 

Here's a thesis statement that takes the opposite stance--that college athletes shouldn’t be paid --and includes a reason supporting that stance: 

In order to keep college athletics from becoming over-professionalized, compensation for college athletes should be restricted to covering college tuition and related educational expenses.

Both of these sample thesis statements make it clear that your essay is going to be dedicated to making an argument: either that college athletes should be paid, or that college athletes shouldn’t be paid. They both convey some reasons why you’re making this argument that can also be supported with evidence. 

Your thesis statement gives your argumentative essay direction . Instead of ranting about why college athletes should/shouldn’t be paid in the remainder of your essay, you’ll find sources that help you explain the specific claim you made in your thesis statement. And a well-organized, adequately supported argument is the kind that readers will find persuasive!

Tip 3: Find Credible Sources That Support Your Thesis

In an argumentative essay, your commentary on the issue you’re arguing about is obviously going to be the most fun part to write. But great essays will cite outside sources and other facts to help substantiate their argumentative points. That's going to involve—you guessed it!—research. 

For this particular topic, the issue of whether student athletes should be paid has been widely discussed in the news media (think The New York Times , NPR , or ESPN ). 

For example, this data reported by the NCAA shows a breakdown of the gender and racial demographics of member-school administration, coaching staff, and student athletes. These are hard numbers that you could interpret and pair with the well-reasoned arguments of news media writers to support a particular point you’re making in your argument. 

Though this may seem like a topic that wouldn’t generate much scholarly research, it’s worth a shot to check your library database for peer-reviewed studies of student athletes’ experiences in college to see if anything related to paying student athletes pops up. Scholarly research is the holy grail of evidence, so try to find relevant articles if you can. 

Ultimately, if you can incorporate a mix of mainstream sources, quantitative or statistical evidence, and scholarly, peer-reviewed sources, you’ll be on-track to building an excellent argument in response to the question, “Should student athletes be paid?”

Having multiple argumentative points in your essay helps you support your thesis.

Tip 4: Develop and Support Multiple Points

We’ve reviewed how to write an intro and thesis statement addressing the issue of paying college athletes, so let’s talk next about the meat and potatoes of your argumentative essay: the body paragraphs. 

The body paragraphs that are sandwiched between your intro paragraph and concluding paragraph are where you build and explain your argument. Generally speaking, each body paragraph should do the following: 

• Start with a topic sentence that presents a point that supports your stance and that can be debated, 
• Present summaries, paraphrases, or quotes from credible sources--evidence, in other words--that supports the point stated in the topic sentence, and
• Explain and interpret the evidence presented with your own, original commentary. 

In an argumentative essay on why college athletes should be paid, for example, a body paragraph might look like this: 

Thesis Statement : College athletes should not be paid because it would be a logistical nightmare for colleges and universities and ultimately cause negative consequences for college sports. 

Body Paragraph #1: While the notion of paying college athletes is nice in theory, a major consequence of doing so would be the financial burden this decision would place on individual college sports programs. A recent study cited by the NCAA showed that only about 20 college athletic programs consistently operate in the black at the present time. If the NCAA allows student-athletes at all colleges and universities to be paid, the majority of athletic programs would not even have the funds to afford salaries for their players anyway. This would mean that the select few athletic programs that can afford to pay their athletes’ salaries would easily recruit the most talented players and, thus, have the tools to put together teams that destroy their competition. Though individual athletes would benefit from the NCAA allowing compensation for student-athletes, most athletic programs would suffer, and so would the spirit of healthy competition that college sports are known for. 

If you read the example body paragraph above closely, you’ll notice that there’s a topic sentence that supports the claim made in the thesis statement. There’s also evidence given to support the claim made in the topic sentence--a recent study by the NCAA. Following the evidence, the writer interprets the evidence for the reader to show how it supports their opinion. 

Following this topic sentence/evidence/explanation structure will help you construct a well-supported and developed argument that shows your readers that you’ve done your research and given your stance a lot of thought. And that's a key step in making sure you get an excellent grade on your essay! 

Tip 5: Keep the Reader Thinking

The best argumentative essay conclusions reinterpret your thesis statement based on the evidence and explanations you provided throughout your essay. You would also make it clear why the argument about paying college athletes even matters in the first place. 

There are several different approaches you can take to recap your argument and get your reader thinking in your conclusion paragraph. In addition to restating your topic and why it’s important, other effective ways to approach an argumentative essay conclusion could include one or more of the following: 

While you don’t want to get too wordy in your conclusion or present new claims that you didn’t bring up in the body of your essay, you can write an effective conclusion and make all of the moves suggested in the bulleted list above. 

Here’s an example conclusion for an argumentative essay on paying college athletes using approaches we just talked about:

Though it’s true that scholarships and financial aid are a form of compensation for college athletes, it’s also true that the current system of college sports places a lot of pressure on college athletes to behave like professional athletes in every way except getting paid. Future research should turn its attention to the various inequities within college sports and look at the long-term economic outcomes of these athletes. While college athletes aren't paid right now, that doesn’t necessarily mean that a paycheck is the best solution to the problem. To avoid the possibility of making the college athletics system even worse, people must consider the ramifications of paying college students and ensure that paying athletes doesn't create more harm than good.

This conclusion restates the argument of the essay (that college athletes shouldn't be paid and why), then uses the "Future Research" tactic to make the reader think more deeply about the topic. 

If your conclusion sums up your thesis and keeps the reader thinking, you’ll make sure that your essay sticks in your readers' minds.

Should College Athletes Be Paid: Next Steps 

Writing an argumentative essay can seem tough, but with a little expert guidance, you'll be well on your way to turning in a great paper . Our complete, expert guide to argumentative essays can give you the extra boost you need to ace your assignment!

Perhaps college athletics isn't your cup of tea. That's okay: there are tons of topics you can write about in an argumentative paper. We've compiled 113 amazing argumentative essay topics so that you're practically guaranteed to find an idea that resonates with you.

If you're not a super confident essay writer, it can be helpful to look at examples of what others have written. Our experts have broken down three real-life argumentative essays to show you what you should and shouldn't do in your own writing.

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Ashley Sufflé Robinson has a Ph.D. in 19th Century English Literature. As a content writer for PrepScholar, Ashley is passionate about giving college-bound students the in-depth information they need to get into the school of their dreams.

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Home / Blog

Should College Athletes Be Paid? Reasons Why or Why Not

January 3, 2022 

Tables of Contents

Why are college athletes not getting paid by their schools?

How do student athlete scholarships work, what are the pros and cons of compensation for college athletes, keeping education at the center of college sports.

Since its inception in 1906, the National Collegiate Athletic Association (NCAA) has governed intercollegiate sports and enforced a rule prohibiting college athletes to be paid. Football, basketball, and a handful of other college sports began to generate tremendous revenue for many schools in the mid-20th century, yet the NCAA continued to prohibit payments to athletes. The NCAA justified the restriction by claiming it was necessary to  protect amateurism  and distinguish “student athletes” from professionals.

The question of whether college athletes should be paid was answered in part by the Supreme Court’s June 21, 2021, ruling in  National Collegiate Athletic Association v. Alston, et. al.  The decision affirmed a lower court’s ruling that blocked the NCAA from enforcing its rules restricting the compensation that college athletes may receive.

• As a result of the NCAA v. Alston ruling, college athletes now have the right to profit from their  name, image, and likeness  (NIL) while retaining the right to participate in their sport at the college level. (The prohibition against schools paying athletes directly remains in effect.)
• Several states have passed laws  that allow such compensation. Colleges and universities in those states must abide by these new laws when devising and implementing their own policies toward NIL compensation for college athletes.

Participating in sports benefits students in many ways: It helps them focus, provides motivation, builds resilience, and develops other skills that serve students in their careers and in their lives. The vast majority of college athletes will never become professional athletes and are happy to receive a full or partial scholarship that covers tuition and education expenses as their only compensation for playing sports.

Athletes playing Division I football, basketball, baseball, and other sports generate revenue for their schools and for third parties such as video game manufacturers and media companies. Many of these athletes believe it’s unfair for schools and businesses to profit from their hard work and talent without sharing the profits with them. They also point out that playing sports entails physical risk in addition to a considerable investment in time and effort.

This guide considers the reasons for and against paying college athletes, and the implications of recent court rulings and legislation on college athletes, their schools, their sports, and the role of the NCAA in the modern sports environment.

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The reasons why college athletes aren’t paid go back to the first organized sports competitions between colleges and universities in the late 19th century. Amateurism in college sports reflects the “ aristocratic amateurism ” of sports played in Europe at the time, even though most of the athletes at U.S. colleges had working-class backgrounds.

By the early 20th century, college football had gained a reputation for rowdiness and violence, much of which was attributed to the teams’ use of professional athletes. This led to the creation of the NCAA, which prohibited professionalism in college sports and enforced rules restricting compensation for college athletes. The rules are intended to preserve the amateurism of student participants. The NCAA justified the rules on two grounds:

• Fans would lose interest in the games if the players were professional athletes.
• Limiting compensation to capped scholarships ensures that college athletes remain part of the college community.

NCAA rules also prohibited college athletes from receiving payment to “ advertise, recommend, or promote ” any commercial product or service. Athletes were barred from participating in sports if they signed a contract to be represented by an agent as well. As a result of the NIL court decision, the NCAA will no longer enforce its rule relating to compensation for NIL activities and will allow athletes to sign contracts with agents.

Major college sports now generate billions in revenue for their schools each year

For decades, colleges and universities have operated under the assumption that  scholarships are sufficient compensation  for college athletes. Nearly all college sports cost more for the schools to operate than they generate in revenue for the institution, and scholarships are all that participants expect.

But while most sports don’t generate revenue, a handful, notably football and men’s and women’s basketball, stand out as significant exceptions to the rule:

• Many schools that field teams in the NCAA’s Division I football tier  regularly earn tens of millions of dollars  each year from the sport.
• The NCAA tournaments for men’s and women’s Division I basketball championships  generated more than $1 billion in 2019 .

Many major colleges and universities generate a considerable amount of money from their athletic teams:

• The Power Five college sports conferences — the Atlantic Coast Conference (ACC), Big Ten, Big 12, Pac 12, and Southeastern Conference (SEC) —  generated more than $2.9 billion  in revenue from sports in fiscal 2020, according to federal tax records reported by  USA Today .
• This figure represents an increase of $11 million from 2019, a total that was reduced because of restrictions related to the COVID-19 pandemic.
• In the six years prior to 2020, the conferences recorded collective annual revenue increases averaging about $252 million.

What are name, image, likeness agreements for student athletes?

In recent years some college athletes at schools that field teams in the NCAA’s highest divisions have protested the restrictions placed on their ability to be compensated for third parties’ use of their name, image, and likeness. During the 2021 NCAA Division I basketball tournament known familiarly as March Madness, several players wore shirts bearing the hashtag “ #NotNCAAProperty ” to call attention to their objections.

Following the decision in NCAA v. Alston, the NCAA  enacted a temporary policy  allowing college athletes to enter into NIL agreements and other endorsements. The interim policy will be in place until federal legislation is enacted or new NCAA rules are created governing NIL contracts for college athletes.

• Student athletes are now able to sign endorsement deals, profit from their use of social media, and receive compensation for personal appearances and signing autographs.
• If they attend a school located in a state that has enacted NIL legislation, they are subject to any restrictions present in those state laws. As of mid-August 2021,  40 states had enacted laws  governing NIL contracts for college athletes.
• If their school is in a state without such a law, the college or university will determine its own NIL policies, although the NCAA prohibits pay-for-play and improper recruiting inducements.
• Student athletes are allowed to sign with sports agents and enter into agreements with school boosters so long as the deals abide by state laws and school policies.

Within weeks of the NCAA policy change, premier college athletes began signing NIL agreements with the potential to  earn them hundreds of thousands of dollars .

• Bryce Young, a sophomore quarterback for the University of Alabama, has nearly $1 million in endorsement deals.
• Quarterback Quinn Ewers decided to skip his last year of high school and enroll early at Ohio State University so he could make money from endorsements.
• A booster for the University of Miami pledged to pay each member of the school’s football team $500 for endorsing his business.

How will the change affect college athletes and their schools?

The  repercussions of court decisions and state laws  that allow college athletes to sign NIL agreements continue to be felt at campuses across the country, even though schools and athletes have received little guidance on how to manage the process.

• The top high school athletes in football, basketball, and other revenue-generating college sports will consider their potential for endorsement earnings while being recruited by various schools.
• The first NIL agreements highlight the disparity between what elite college athletes can expect to earn and what other athletes may realize. On one NIL platform, the average amount earned by Division I athletes was $471, yet one athlete made $210,000 in July alone.
• Most NIL deals at present are for small amounts, typically about $100 in free apparel, in exchange for endorsing a product on social media.

The presidents and other leaders of colleges and universities that field Division I sports have not yet responded to the changes in college athlete compensation other than to reiterate that they do not operate for-profit sports franchises. However, the NCAA requires that  Division I sports programs  be self-supporting, in contrast to sports programs at Division II and III institutions, which receive funding directly from their schools.

Many members of the Power 5 sports conferences have reported shortfalls in their operations, leading analysts to anticipate  major structural reforms  in the governing of college sports in the near future. The recent changes have also caused some people to believe the  NCAA is no longer relevant  or necessary.

How do highly competitive athletic scholarships work? According to the NCAA and Next College Student Athlete: $3.6 billion+ in athletic scholarships are awarded annually, and 180,000+ student athletes receive scholarships every year. Additionally, about 2% of athletes win a sports scholarship; college coaches award scholarships based on athletic ability; full scholarships are given for the top six college sports categories; and athletic scholarships are renewable each year.

The primary financial compensation student athletes receive is a scholarship that pays all or part of their tuition and other college-related expenses. Other forms of financial assistance available to student athletes include  grants, loans, and merit aid .

• Grants  are also called “gift aid,” because students are not expected to pay them back (with some exceptions, such as failing to complete the course of study for which the grant was awarded). Grants are awarded based on a student’s financial need. The  four types of grants  awarded by the U.S. Department of Education are  Federal Pell Grants ,  Federal Supplemental Educational Opportunity Grants ,  Iraq and Afghanistan Service Grants , and  Teacher Education Assistance for College or Higher Education (TEACH) Grants .
• Loans  are available to cover education expenses from government agencies and private banks. Students must pay the loans back over a specified period after graduating from or leaving school, including interest charges. EducationData.org estimates that as of 2020, the  average amount of school-related debt  owed by college graduates was $37,693.
• Merit aid  is awarded based on the student’s academic, athletic, artistic, and other achievements.  Athletic scholarships  are a form of merit aid that typically cover one academic year at a time and are renewable each year, although some are awarded for up to four years.

Full athletic scholarships vs. partial scholarships

When most people think of a student athlete scholarship, they have in mind a  full-ride scholarship  that covers nearly all college-related expenses. However, most student athletes receive partial scholarships that may pay tuition but not college fees and living expenses, for example.

A student athlete scholarship is a nonguaranteed financial agreement between the school and the student. The NCAA refers to full-ride scholarships awarded to student athletes entering certain Division I sports programs as  head count scholarships  because they are awarded per athlete. Conversely, equivalency sports divide scholarships among multiple athletes, some of whom may receive a full scholarship and some a partial scholarship. Equivalency awards are divided among a team’s athletes at the discretion of the coaches, as long as they do not exceed the allowed scholarships for their sport.

These Division I sports distribute scholarships per head count:

• Men’s football
• Men’s basketball
• Women’s basketball
• Women’s volleyball
• Women’s gymnastics
• Women’s tennis

These are among the Division I equivalency sports for men:

• Track and field
• Cross-country

These are the Division I equivalency sports for women:

• Field hockey

All Division II and National Association of Intercollegiate Athletics (NAIA) sports programs distribute scholarships on an equivalency basis. Division III sports programs do not award sports scholarships, although other forms of financial aid are available to student athletes at these schools.

How college athletic scholarships are awarded

In most cases, the coaching staff of a team determines which students will receive scholarships after spending time scouting and recruiting. The NCAA imposes  strict rules for recruiting student athletes  and provides a guide to help students  determine their eligibility  to play college sports.

Once a student has received a scholarship offer from a college or university, the person may sign a national letter of intent (NLI), which is a voluntary, legally binding contract between an athlete and the school committing the student to enroll and play the designated sport for that school only. The school agrees to provide financial aid for one academic year as long as the student is admitted and eligible to receive the aid.

After the student signs an NLI, other schools are prohibited from recruiting them. Students who have signed an NLI may ask the school to release them from the commitment; if a student attends a school other than the one with which they have an NLI agreement, they lose one full year of eligibility and must complete a full academic year at the new school before they can compete in their sport.

Very few student athletes are awarded a full scholarship, and even a “full” scholarship may not pay for all of a student’s college and living expenses. The  average Division I sports scholarship  in the 2019-20 fiscal year was about $18,000, according to figures compiled by ScholarshipStats.com, although some private universities had average scholarship awards that were more than twice that amount. However, EducationData.org estimates that the  average cost of one year of college  in the U.S. is $35,720. They estimate the following costs by type of school.

• The average annual cost for an in-state student attending a public four-year college or university is $25,615.
• Average in-state tuition for one year is $9,580, and out-of-state tuition costs an average of $27,437.
• The average cost at a private university is $53,949 per academic year, about $37,200 of which is tuition and fees.

Student athlete scholarship resources

• College Finance, “Full-Ride vs. Partial-Ride Athletic Scholarships”  — The college expenses covered by full athletic scholarships, how to qualify for partial athletic scholarships, and alternatives to scholarships for paying college expenses
• Student First Educational Consulting, “Athletic Scholarship Issues for 2021-2022 and Beyond”  — A discussion of the decline in the number of college athletic scholarships as schools drop athletic programs, and changes to the rules for college athletes transferring to new schools

According to College Strategic, Fansided, and Future of Working, reasons why paying college athletes is fair include: 1. Playing sports resembles a full-time job. 2. Sports take time away from studies. 3. Sports generate corporate profits. 4. Pay minimizes athlete corruption. 5. Pay provides spending money. 6. Playing sports creates injury risk. 7. Sports elevate school brands. 8. Pay motivates performance. 9. Scholarships reduce poverty.

There are many reasons why student athletes should be paid, but there are also valid reasons why student athletes should not be paid in certain circumstances. The lifting of NCAA restrictions on NIL agreements for college athletes has altered the landscape of major college sports but will likely have little or no impact on the majority of student athletes, who will continue to compete as true amateurs.

Reasons why student athletes should be paid

The argument raised most often in favor of allowing college athletes to receive compensation is that  colleges and universities profit  from the sports they play but do not share the proceeds with the athletes who are the ultimate source of that profit.

• In 2017 (the most recent year for which figures are available), the NCAA recorded $1.07 billion in revenue. The organization’s president earned $2.7 million in 2018, and nine other NCAA executives had salaries greater than $500,000 that year.
• Elite college coaches earn millions of dollars a year in salary, topped by University of Alabama football coach Nick Saban’s $9.3 million annual salary.
• Many of the athletes at leading football and basketball programs are from low-income families, and the majority will not become professional athletes.
• College athletes take great physical risks to play their sports and put their future earning potential at risk. In school they may be directed toward nonchallenging courses, which denies them the education their fellow students receive.

Reasons why student athletes should not be paid

Opponents to paying college athletes rebut these arguments by pointing to the primary role of colleges and universities: to provide students with a rewarding educational experience that prepares them for their professional careers. These are among the reasons they give for not paying student athletes.

• Scholarships are the fairest form of compensation for student athletes considering the financial strain that college athletic departments are under. Most schools in Division I, II, and III spend more money on athletics than they receive in revenue from the sports.
• College athletes who receive scholarships are presented with an opportunity to earn a valuable education that will increase their earning power throughout their career outside of sports. A Gallup survey of NCAA athletes found that  70% graduate in four years or fewer , compared to 65% of all undergraduate students.
• Paying college athletes will “ diminish the spirit of amateurism ” that distinguishes college sports from their professional counterparts. Limiting compensation for playing a sport to the cost of attending school avoids creating a separate class of students who are profiting from their time in school.

According to Best Colleges, Salarship, and CollegeVine, reasons why paying college athletes is less than ideal include: 1. Money may harm students. 2. Pay diminishes love of the game. 3. Pay deemphasizes academic purpose. 4. Secondary sports struggle. 5. Rich schools monopolize talent. 6. The financial benefit is marginal. 7. Setting salaries can be messy. 8. Academic requirements are substandard. 9. Other program budgets are reduced.

How do college athlete endorsements work?

Soon after the Supreme Court released its decision in NCAA v. Alston, the NCAA issued  guidelines for schools  that allow college athletes to make money from product endorsements, social media accounts, autographs, and other uses of their name, image, or likeness. This counters the NCAA’s longstanding opposition to student athletes profiting from endorsements. At present, implementation of the guidelines varies from school to school and state to state, which means athletes at some institutions may benefit more from NIL agreements than those attending other schools.

Several  NIL consultancy firms  are actively soliciting endorsements from college athletes in the aftermath of the rule change.

• Highly touted 19-year-old basketball recruit Hercy Miller, who joined the Tennessee State University basketball team in 2021, signed a $2 million endorsement deal with Web Apps America.
• University of Michigan quarterback Cade McNamara has entered into an endorsement deal with cryptocurrency company More Management that will  pay him in cryptocurrency .
• Twin sisters Haley and Hanna Cavinder of the Fresno State University basketball team have  marketing agreements  to promote Boost Mobile and Six Star Pro Nutrition to the 3.3 million followers of their TikTok account.
• Gable Steveson, a wrestler for the University of Minnesota, entered into an endorsement deal with the delivery service Gopuff; Steveson has 245,000 followers on Instagram and 30,000 on Twitter.

Despite the rush of high-profile college athletes signing endorsement deals, some educators and analysts express concern about the  impact of the endorsements  on schools, athletes, and college sports.

• Schools with more favorable endorsement rules may entice student athletes away from the schools they are currently attending.
• Likewise, states that have enacted endorsement laws that provide more earning potential for college athletes may see more top recruits choosing to attend schools in those states.
• The time college athletes spend meeting the requirements of their endorsement contracts could detract from study and practice time. This can have an adverse effect on their education and athletic careers — if they are unable to maintain grade requirements, for example, they may be disqualified from playing.
• If a college athlete’s performance in the sport declines, they may be less likely to attract and retain endorsement deals. While the NCAA has banned NIL agreements based on the athlete meeting specific performance criteria, the group acknowledges that a student’s athletic performance  may enhance their NIL value .
• Because of complicated contracts and tax laws, student athletes will have to rely on agents, advisers, and managers, which may leave them vulnerable to exploitation.

From the onset of intercollegiate sports, students have benefited from their participation by learning dedication to their sport, building relationships, and being part of a team. Sports allow students to acquire many important values, such as fair competition and physical and mental health. Education should remain at the forefront of all aspects of college, including sports, whether or not collegiate athletes are paid.

Infographic Source

Best Colleges, “Should College Athletes Be Paid?”

College Strategic, “Why College Athletes Should Be Paid”

CollegeVine, “Should College Athletes Be Paid? Pros and Cons”

Fansided, “64 Reasons College Athletes Need to Be Paid”

Future of Working, “17 Advantages and Disadvantages of Paying College Athletes”

NCAA, “Scholarships”

Next College Student Athlete, “What Are the Different Types of Offers I Could Get?”

Salarship, “Should College Athletes Be Paid: Pros and Cons”

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Should College Athletes Be Paid? Pros and Cons

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What’s Covered:

History of the debate: should college athletes be paid, why college athletes should be paid.

• Why College Athletes Shouldn’t Be Paid
• Where To Get Your Essay Edited For Free

College athletics provide big benefits for many schools: they increase their profile, generate millions of dollars in revenue, and have led to one of the most contentious questions in sports— should college athletes be paid? Like other difficult questions, there are good arguments on both sides of the issue of paying college athletes. 

Historically, the debates over paying college athletes have only led to more questions, which is why it’s raged on for more than a century. Perhaps the earliest group to examine the quandary was Andrew Carnegie’s Foundation for the Advancement of Teaching, which produced a mammoth study in 1929 of amateur athletes and the profits they generate for their universities. You don’t have to get past the preface to find questions that feel at home in today’s world:

• “What relation has this astonishing athletic display to the work of an intelligence agency like a university?”
• “How do students, devoted to study, find either the time or the money to stage so costly a performance?” 

Many of the questions asked way back in 1929 continue to resurface today, and many of them have eventually ended up seeking answers in court. The first case of note came in the 1950s, when the widow of Fort Lewis football player Ray Dennison took the college all the way to the Colorado Supreme Court in an effort to collect a death benefit after he was killed playing football. She lost the case, but future generations would have more success and have slowly whittled away at arguments against paying athletes. 

The most noticeable victory for athletes occurred in 2019, when California Governor, Gavin Newsom, signed legislation effectively allowing college athletes in the state to earn compensation for the use of their likeness, sign endorsement deals, and hire agents to represent them.

The court fights between college athletes and the NCAA continue today—while not exactly about payment, a case regarding whether or not schools can offer athletes tens of thousands of dollars in education benefits such as computers, graduate scholarships, tutoring, study abroad, and internships was heard by the U.S. Supreme Court in March 2021. A decision is expected in June 2021. 

There are a number of great reasons to pay college athletes, many of which will not only improve the lives of student-athletes, but also improve the product on the field and in the arena. 

College Athletes Deserve to Get Paid

In 2019, the NCAA reported $18.9 billion in total athletics revenue. This money is used to finance a variety of paid positions that support athletics at colleges and universities, including administrators, directors, coaches, and staff, along with other employment less directly tied to sports, such as those in marketing and media. The only people not receiving a paycheck are the stars of the show: the athletes. 

A testament to the disparate allocation of funds generated by college sports, of the $18.9 billion in athletics revenue in 2019, $3.6 billion went toward financial aid for student-athletes, and $3.7 billion was used for coaches’ compensation. A February 2020 USA Today article found that the average total pay for Football Bowl Subdivision (FBS) college football head coaches in 2020-21 was $2.7 million. The highest-paid college football coach—the University of Alabama’s Nick Saban—earns $9.3 million a year and is the highest-paid public employee in the country. He is not alone, college coaches dominate the list of public employees with the largest salaries. 

If there’s money to provide college coaches with lavish seven-figure salaries (especially at public institutions), why shouldn’t there be funds to pay college athletes? 

Vital Support for Athletes 

A 2011 study published by the National College Players Association (NCPA) found that an overwhelming number of students on full athletics scholarships live below the federal poverty line—85% of athletes who live on campus and 86% athletes who live off-campus. “Full scholarship” itself is a misnomer; the same study found that the average annual scholarship for FBS athletes on “full” scholarships was actually $3,222. Find out more information about athletic scholarships . 

Paying student-athletes would help eliminate the need for these student-athletes to take out loans, burden their families for monetary support, or add employment to their already busy schedules. The NCAA limits in-season practice time to 20 hours a week, but a 2008 NCAA report shows that in-season student-athletes commonly spent upward of 30 and 40 hours a week engaged in “athletic activities.” 

Encouraged to Stay in College Longer

A report produced by the NCPA and Drexel University estimated the average annual fair market value of big-time college football and men’s basketball players between 2011 and 2015 was $137,357 and $289,031, respectively, and concluded that football players only receive about 17% of their fair market value, while men’s basketball players receive approximately 8% of theirs.

If colleges paid athletes even close to their worth, they would provide an incentive for the athletes to stay in college and earn degrees, rather than leaving college for a paycheck. This would also help keep top talents playing for college teams, improve the level of competition, and potentially lead to even higher revenue. On a side note, this would incentivize athletes to complete their degree, making them more employable after the end of their athletic career. 

Limit Corruption 

Just because there are rules prohibiting the compensation of college athletes doesn’t mean it doesn’t happen, and over the years there have been numerous scandals. For example, in 2009, six ex-University of Toledo players were indicted in a point-shaving scheme , and in 2010, Reggie Bush returned his Heisman Trophy after allegations that he was given hundreds of thousands of dollars from sports agents while he played for USC.  

Paying college athletes will likely not totally eliminate corruption from college sports, but putting athletes in a less-precarious financial position would be a good step toward avoiding external influence, especially when you consider some of the players involved in the University of Toledo point-shaving scandal were paid as little as $500. 

It’s a Job (and a Dangerous One) 

As mentioned before, college athletes can put in upward of 40 hours a week practicing, training, and competing—being a “student-athlete” is a challenge when you’re devoting full-time hours to athletics. A New York Times study found a 0.20-point difference in average GPA between recruited male athletes and non-athletes. The difference is less pronounced among females, with non-athletes averaging a 3.24 GPA and recruited women athletes at 3.18.

It’s not just the time commitment that playing college athletics puts on student-athletes, it’s the risk to their health. A 2009-2010 CDC report found that more than 210,000 injuries are sustained by NCAA student-athletes each year. Full athletic scholarships are only guaranteed a year at a time, meaning student-athletes are one catastrophic injury away from potentially losing their scholarship. That is to say nothing of the lasting effects of an injury, like head traumas , which made up 7.4% of all injuries in college football players between 2004 and 2009.

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Why College Athletes Should Not Be Paid

There are a lot of great reasons why college athletes should be paid, but there are also some compelling reasons why college athletes should not be paid—and why not paying athletes is actually good for both the institutions and athletes. 

Compensation Conundrum 

One of the most common reasons cited against paying college players is compensation. Will all college athletes get compensated equally? For example, will the star quarterback receive the same amount as the backup catcher on the softball team? A 2014 CNBC article estimated that Andrew Wiggins, a University of Kansas forward (and soon-to-be first-overall draft pick), had a fair market value of around $1.6 million.

Similarly, will compensation take into account talent? Will the All-American point guard get the same amount as the captain of the swim team? In all likelihood, paying college athletes will benefit big-time, revenue-generating sports and hurt less popular sports. 

Eliminate Competitive Balance 

According to the NCAA , in 2019, the 65 Power Five schools exceeded revenue by $7 million, while all other Division I colleges had a $23 million deficit between expenses and revenue. If college athletes were to get paid, then large, well-funded schools such as those of the Power Five would be best positioned to acquire top talent and gain a competitive advantage. 

From a student’s point of view, paying college athletes will alter their college experience. No longer would fit, college, university reputation, and values factor into their college decisions—rather, choices would be made simply based on who was offering the most money. 

Professionalism vs. the Classroom

There’s a feeling that paying college athletes sends the wrong message and incentivizes them to focus on athletics instead of academics, when the reality is that very few college athletes will go on to play sports professionally. Just 1.6% of college football players will take an NFL field. NCAA men’s basketball players have even slimmer odds of playing in a major professional league ( 1.2% ), while the chances of a professional career are particularly grim for women basketball players, at a mere 0.8% . 

Although the odds of a college athlete turning pro are low, the probability of them earning a degree is high, thanks in part to the academic support athletes are given. According to data released by the NCAA, 90% of Division I athletes enrolled in 2013 earned a degree within six years. 

It Will End Less-Popular, Unprofitable Sports 

If colleges and universities pay their athletes, there is a fear that resources will only go to popular, revenue-generating sports. Programs like football and men’s basketball would likely benefit greatly, but smaller, unprofitable sports such as gymnastics, swimming and diving, tennis, track and field, volleyball, and wrestling could find themselves at best cash-strapped and, at the worst, cut altogether. 

It’s just not less-popular sports that paying athletes could threaten—women’s programs could also find themselves in the crosshairs of budget-conscious administrators. Keep in mind, it was just in March 2021 that the NCAA made national news for its unequal treatment of the men’s and women’s NCAA basketball tournaments. 

Financial Irresponsibility 

Former ESPN, and current FOX Sports, personality Colin Cowherd made news in 2014 when he voiced a popular argument against paying college athletes: financial irresponsibility. In Cowherd’s words:

“I don’t think paying all college athletes is great… Not every college is loaded, and most 19-year-olds [are] gonna spend it—and let’s be honest, they’re gonna spend it on weed and kicks! And spare me the ‘they’re being extorted’ thing. Listen, 90 percent of these college guys are gonna spend it on tats, weed, kicks, Xboxes, beer and swag. They are, get over it!”

A look at the professional ranks bolsters Cowherd’s argument about athletes’ frivolous spending. According to CNBC , 60% of NBA players go broke within five years of departing the league and 78% of former NFL players experience financial distress two years after retirement.

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Related CollegeVine Blog Posts

What Should College Athletes Be Paid? Market Structure and the NCAA

College athletic programs are an integral part of many college campuses. Colleges earn revenue from ticket sales, merchandise, and licensing agreements. But should the athletes themselves be given a portion of these earnings? There is a long tradition of unpaid amateur athletics in the United States, and many argue that the scholarships offered to student athletes are fair compensation for their time and talent. But recent court cases and subsequent rule changes by bodies governing college athletics have highlighted the underlying market structure of college athletics in the United States—and have begun to change it.

Monopoly vs. Monopsony: What Is the Difference?

Many of us are familiar with the concept of a monopoly , where a market is controlled by a single firm or producer. Monopolies mean that consumers have no choice when shopping for a product or service, because there is only one supplier. Without competition for buyers, a monopolist can essentially control the market price. Monopolies are generally created when there is some barrier to entry that prevents other producers from joining the market.

But what if, instead of there being only one producer in a market, there was only one consumer? What if you produced a good or service but had only one option when it came time to try and sell your product or service? This is a monopsony (Figure 1).

Figure 1: Monopoly vs. Monopsony

In discussing the labor market, there is only one buyer of a specific type of labor. In other words, there is only one employer. This gives the buyer (employer) the ability to influence (and usually depress) the wage/income of the seller (worker/employee).

NCAA as a Monopsony

The National Collegiate Athletic Association (NCAA) was originally founded to set standards and safety practices for college athletics. Today the NCAA has more than 1,000 member colleges and universities organized into three divisions. Many of the standards and regulations the NCAA established have to do with how member schools can recruit and compensate athletes for participating in college athletics. Colleges and universities are primarily educational institutions, not athletic franchises or companies, so how did the NCAA (and its member schools) end up being defendants in an antitrust claim before the U.S. Supreme Court?

As college athletics increased in popularity, they created more and more revenue for both the NCAA and the colleges and universities. In 2022, the NCAA reportedly earned $1 billion in revenue from March Madness alone. Blinder, Alan and Draper, Kevin. “Topping $1 Billion a Year, Big Ten Signs Record TV Deal for College Conference.” The New York Times, August 18, 2022; https://www.nytimes.com/2022/08/18/sports/ncaafootball/big-ten-deal-tv.html . The increased revenue the NCAA and member schools received, driven by the increased popularity of college sports, left many questioning if the athletes were still being fairly compensated for their labor.

In 2021, a group of both current and former student athletes filed an antitrust lawsuit against the NCAA (NCAA v. Alston) . The Supreme Court ultimately ruled in favor of the students against the NCAA’s rules that restricted education-related benefits, such as scholarships for graduate or vocational school or payments for academic tutoring. These types of caps on education-related benefits had kept costs down for member schools who would have otherwise bid up these types of payments to attract potential star athletes.

The U.S. government has several antitrust laws in place that are designed to prevent monopolies from forming and that require competition be maintained in the market. It has been long held in the U.S. that monopolies hurt the consumer by reducing output, raising prices, and limiting innovation. (When producers do not compete, there is less incentive to innovate or lower costs.) The Sherman Anti-Trust Act (1890) prohibits “contract[s], combination[s], or conspiracy[ies] in restraint of trade or commerce.” The Sherman Anti-Trust Act, July 2, 1890; Enrolled Acts and Resolutions of Congress, 1789-1992; General Records of the United States Government; Record Group 11; National Archives.

When a person or group files an antitrust claim, the court must determine if the parties involved are limiting competition in a way that is detrimental to consumers. But would the same reasoning be applied to a monopsony? According to the Supreme Court in the NCAA case, yes. No. 20-512 National Collegiate Athletic Association v. Alston, 2021 .

College athletes are in essence “selling” their labor to colleges/universities in exchange for scholarships, tuition, and other education-related expenses. If you are an amateur athlete, there is no other viable “buyer” in this labor market beyond colleges and universities. In short, the NCAA has established a monopsony labor market for amateur athletes (Figure 2).

Figure 2: NCAA System Monopsony

In the labor market for college athletes there is only one buyer of a specific type of labor. In other words, there is only one employer. This gives the NCAA member schools the ability to influence (and usually depress) the wage/income of the college athletes.

Because there is no other labor market for these amateur athletes to sell their talent and skills, the NCAA guidelines determine how student athletes are compensated. The Supreme Court found that because member schools compete against each other to recruit student athletes, the NCAA, through rules like limiting education-related benefits, used its monopsony power to “cap artificially the compensation offered to recruits.” NCAA v. Alston, 2021 . (See footnote 3.)

The Court ruled that these caps violate antitrust law, which has opened the door to further debate and rule changes related to student athlete compensation. We are already seeing policy changes that have begun to reduce the monopsony power of the NCAA.

Opening the Door for Name, Image, Likeness

Following the ruling in NCAA v. Alston , the NCAA made a major policy change that has reshaped the way student athletes are compensated for their talent. Starting in July 2021, the NCAA allows all Division I-III student athletes to be compensated for use of their name, image, likeness (NIL). Examples of using NIL include a university selling jerseys with an athlete’s name on them or licensing an avatar in an athlete’s likeness for a video game.

This change reversed previous policy that strictly forbade college athletes from earning “benefits linked to their participation in a sport.” Blinder and Draper, 2022. (See endnote 1.) That is, colleges and universities could earn income by selling merchandise and licensing featuring an athlete, but the individual would not receive any compensation based on sales of these items. Nor could college athletes participate in any individual endorsement or advertising contracts.

With the new NIL policy, college athletes are now able to accept endorsement deals with both large national brands and smaller local businesses. Big-ticket endorsements can earn players upward of $1 million per year, while smaller sums of money or free products from smaller local businesses are often available for college players.

Long-Term Consequences

Monopsonies are less common and certainly less visible than monopolies; but monopsony labor markets still have a large impact on the income and wages of laborers within those markets. While colleges and universities are not your typical profit-making businesses, and so unique circumstances must be considered, we can see in the college athletics example how monopsony power can depress earnings and compensation for athletes within these markets.

With changes in policies around NIL and education-related compensation for student athletes, the landscape of college sports is changing. NIL has created opportunities for athletes to profit from endorsements and advertising contracts and is already impacting the way colleges recruit, as schools are offering programs and partnerships internally to help student athletes make the most of their NIL opportunities. Less than 2% of NCAA athletes move on to play professional sports; so, the opportunity for NIL compensation during their college years is important for the vast majority of these athletes who may not have similar opportunities in the future. National Collegiate Athletic Association. “NCAA Recruiting Fact Sheet” (PDF). August 2021; https://ncaaorg.s3.amazonaws.com/compliance/recruiting/NCAA_RecruitingFactSheet.pdf

While the debate over college athlete compensation goes on, reducing the monopsony power of the NCAA and expanding earnings competition among college athletes will definitely change the way these institutions recruit, manage, promote, and retain athletes. The complex relationship between higher education, sports, and money won’t become any less complex anytime soon.

Antitrust law: Legislation that prohibits practices that restrain trade, such as price fixing and business arrangements designed to achieve monopoly power.

Barriers to entry: Obstacles that make it difficult for a producer to enter a market. Examples might include control of a scarce resource or high fixed or start-up costs.

Competition: Competition takes place in markets. Sellers compete with other sellers for sales to consumers. Sellers compete on the basis of price, product quality, customer service, product design and variety, and advertising. Buyers compete with other consumers for goods and services. This often results in higher prices.

Incentives: Perceived benefits that encourage certain behaviors.

Market: Buyers and sellers coming together to exchange goods, services, and/or resources.

Monopoly: A market for a good or service where there is only one supplier, or that is dominated by one supplier. Barriers prevent entry to the market and there are no close substitutes for the product.

Monopsony: A market for a good or service where there is only one buyer, or that is dominated by one buyer.

• Blinder, Alan and Draper, Kevin. “ Topping $1 Billion a Year, Big Ten Signs Record TV Deal for College Conference. ” The New York Times, August 18, 2022.
• The Sherman Anti-Trust Act, July 2, 1890; Enrolled Acts and Resolutions of Congress, 1789-1992; General Records of the United States Government; Record Group 11; National Archives.
• No. 20-512 National Collegiate Athletic Association v. Alston, 2021 .
• NCAA v. Alston, 2021 . (See endnote 3.)
• Blinder and Draper, 2022. (See endnote 1.)
• National Collegiate Athletic Association. “NCAA Recruiting Fact Sheet” (PDF). August 2021.

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Amanda is a St. Louis Fed senior economic education specialist with an M.A. in economics and entrepreneurship. She previously served as an AP Macroeconomics exam reader and table leader.

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Amanda Geiger, " What Should College Athletes Be Paid? Market Structure and the NCAA ," Federal Reserve Bank of St. Louis Page One Economics , July 13, 2023.

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Guest Essay

At Notre Dame, We Believe ‘Student’ Should Come First in ‘Student-Athlete’

By John I. Jenkins

Father Jenkins is the president of the University of Notre Dame.

We college presidents have learned to tread lightly when it comes to the passions of alumni and other fans for our athletic teams, whether it is one competing for a national championship or a less heralded group playing a rivalry game.

Recently, though, we have seen passions aroused in other quarters, as state legislatures have passed bills enabling our student-athletes to profit from the use of their name, image and likeness (often referred to as “N.I.L.”). Now, the N.C.A.A. has approved a historic change to allow student-athletes to be compensated for use of their N.I.L., with schools and conferences allowed to adopt their own additional policies. The Supreme Court recently issued a ruling against N.C.A.A. regulations limiting education-related funds a school can provide to its student-athletes. Such developments will undoubtedly, in the short term at least, create disruption and uncertainty for college sports.

Rather than treading lightly around this situation, we should seize the opportunity for reform and improvement. As we consider the shape of such reform, I propose the following as a guiding principle: Any changes adopted should support and strengthen the educational purpose central to our institutions, and enhance the educational outcomes for our student-athletes.

In an interview with The Times six years ago, I expressed support for relaxing prohibitions against student-athletes profiting from use of their own names, images and likenesses for one simple reason — other students are allowed to do so. For example, a student writing a popular fashion blog may earn money by endorsing a product, or another in a rock band may try to profit from a poster with his or her image. We should allow our student-athletes similar opportunities. Certainly, there is potential for abuse here. Institutions or their boosters may offer what are actually recruiting or other enticements under the guise of payments for the use of N.I.L. We must fashion regulations to prevent such abuses, while still allowing student-athletes to earn fair market value for the use of their N.I.L. I believe that regulations currently under consideration by the Senate Committee on Commerce, Science and Transportation are on the right track.

There are other steps the N.C.A.A. and its member institutions should take to enhance the educational experience for and well-being of our students who play on athletic teams.

A disturbing disparity exists in the graduation rates from sport to sport, and too often the sports with lower graduation rates are those, such as football and basketball, with a high number of Black student-athletes. The most regrettable exploitation occurs when a student plays her or his sport for the full extent of eligibility and then leaves the institution without a college degree. We must take all reasonable steps to ensure that student-athletes, at the end of their college career, leave with a degree.

To that end I believe — and our practices at Notre Dame reflect this — that once a scholarship is granted, it should stay with the student through graduation, regardless of injuries or performance on the field. Furthermore, if grant-in-aid student-athletes in good standing interrupt their education to go professional or for other reasons, we will cover their tuition at any time should they return to college to complete their degrees. Such guarantee of educational benefits should be standard at all of the N.C.A.A.’s colleges and universities. Doing so would keep the education of our student-athletes front and center.

Additionally, a national policy should be established to limit the number of days during any academic term in which an institution may require its students to be away from campus for athletic purposes. This is necessary because there are schools where classes are made available online for student-athletes, or class schedules are arranged so that a student-athlete attends classes, for example, only two days a week. In-person engagement with faculty members and fellow students on a regular basis is an essential part of the college experience. Competition schedules and off-campus practice trips that make students miss much of the academic term cheat those young people of a genuine college experience.

For similar reasons, universities should be prohibited from concentrating student-athletes in so-called athletic dorms (which the N.C.A.A. banned in the 1990 s but still endure in various forms at some schools ) and instead include them in the general student housing population. If students’ interactions and relationships are predominantly defined by their athletic programs, they are not receiving the educational experience they deserve.

For the well-being of our student-athletes, health care coverage for athletic injuries should be extended. Currently, the N.C.A.A. requires universities to extend health care coverage for any injuries to student-athletes for two years after they exhaust their eligibility. At Notre Dame, we provide coverage for 10 years after the injuries occur. We should extend the provision of coverage for athletic injuries to student-athletes across the nation, and find ways for schools with more limited resources to cover these added costs.

Some have called for compensating student-athletes for their athletic performance in college — sometimes called the “pay-for-play” model. I oppose this course. If we take it, our relationship to these young people will be that of an employer to an employee paid for services rendered, rather than to a student for whose education we, the institution, are responsible. There can be no doubt that our student-athletes — whether the star quarterback on our football team or the backup goalie on our women’s soccer team — receive something extremely valuable. They have their tuition, room and board underwritten, giving them the chance to earn a bachelor’s degree, which economists estimate is worth about $1 million in average earnings over the course of a lifetime. More than that, they can enjoy the many ways in which education can enhance one’s life that are not measured by greater earning power.

Of course, talented athletes who want to play professionally should not be forced to go to college to develop their talents in their sport. Every professional sport should create a minor or development league open to athletes with high potential. Professional baseball, hockey, basketball and many Olympic sports have systems in place that allow athletes to become professional while forgoing the opportunity to participate in intercollegiate athletics. Perhaps it is time for football to develop one as well. Young athletes would then have a choice: They could either sign up with a development league, or they could attend college and pursue a degree, while playing the sport they love.

Cynicism about college athletics is abundant and perhaps understandable, because some of its practices have given observers good reasons to be cynical. Still, I have spoken to many alumni who say the challenge of competing in their sport at a high level while attending college taught them invaluable lessons for their personal and professional lives. There is still reason to pursue that ideal of college sports, without making them into a semi-pro league.

Let’s seize the opportunity for reform, while focusing on the work that is at the heart of our mission: the education of young people.

John I. Jenkins is the president of the University of Notre Dame.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

Follow The New York Times Opinion section on Facebook , Twitter (@NYTopinion) and Instagram .

Home — Essay Samples — Life — Paying College Athletes — Leveling the Playing Field: An Argument for Paying College Athletes

Leveling The Playing Field: an Argument for Paying College Athletes

• Categories: Paying College Athletes Student Athletes

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Words: 730 |

Published: Mar 1, 2019

Words: 730 | Pages: 2 | 4 min read

Works Cited

• Edelman, M. (2016). Paying College Athletes: A Solution to the Problems Facing the NCAA. Seton Hall Journal of Sports and Entertainment Law, 26(2), 267-306.
• Eitzen, D. S., & Sage, G. H. (2015). Debating Issues in American Education: Should College Athletes Be Paid? SAGE Publications.
• Fleisher, A. A., Goff, B. L., & Tollison, R. D. (2013). The Case for Paying College Athletes. The Independent Review, 18(4), 537-553.
• Hawkins, B. (2018). The Case for Paying College Athletes. The Atlantic. Retrieved from https://www.theatlantic.com/education/archive/2018/09/why-college-athletes-should-be-paid/570981/
• McMurphy, B. (2019). Athlete Compensation: What's Fair and What's Legal? National Collegiate Athletic Association. Retrieved from http://www.ncaa.org/about/resources/media-center/news/athlete-compensation-whats-fair-and-whats-legal
• Miller, K. (2018). Should College Athletes Be Paid? Pros, Cons, and Perspectives. Frontiers: The Interdisciplinary Journal of Study Abroad, 30, 45-59.
• Sack, A. L. (2019). Pay for Play: A Historical Analysis of the Arguments Surrounding the Compensation of College Athletes. Virginia Sports & Entertainment Law Journal, 18(1), 1-37.
• Suggs, W. (2015). NCAA Athletic Departments and the Money They Make: Should College Athletes Be Compensated? Journal of Sport and Social Issues, 39(2), 106-128. doi:10.1177/0193723515576591
• Tulane University Law School. (n.d.). Pay for Play: The Ethics of Student-Athlete Compensation. Retrieved from https://scholarship.law.tulane.edu/cgi/viewcontent.cgi?article=1842&context=sportslaw
• Zimbalist, A. (2019). Unwinding Madness: What Went Wrong with College Sports and How to Fix It. Brookings Institution Press.

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Why should College Athletes be Paid

This essay about why college athletes should be paid argues for compensation based on the significant economic benefits they bring to their institutions and the intense commitment required of them. It highlights the massive revenues generated from college sports, emphasizing that athletes are at the center of this financial ecosystem yet receive none of the profits. The piece also tackles the argument that scholarships suffice as compensation, pointing out the professional-level demands placed on student-athletes that limit their ability to work or enjoy typical college experiences. Furthermore, it addresses recent changes allowing athletes to profit from their name, image, and likeness (NIL), but stresses this doesn’t cover direct compensation for their sports participation. The essay counters concerns about damaging the purity of amateur sports and financial imbalance, suggesting that structured compensation systems can be developed. Ultimately, it champions paying college athletes as a matter of fairness and equity, reflecting the commercialized reality of modern college sports.

How it works

For ages, the heated debate on whether college athletes should pocket some cash for their sweat and talent has raged on. It’s a conversation that’s echoed in dorm rooms, lit up sports forums, and even found its way to the higher echelons of justice. Strip it down to its basics, and you’ve got a classic tug-of-war between the love of the game and the hard, cold reality of economics. Here’s why tipping the scales in favor of paying these athletes isn’t just good sense—it’s downright necessary.

Let’s lay it out straight: college sports isn’t a quaint little side hustle. It’s a juggernaut industry that rakes in cash by the boatloads, especially when you look at the big guns like football and basketball. These programs aren’t just playing for trophies; they’re playing in a market where broadcasting rights, merch, and tickets translate to big bucks. Yet, while the cash flow turns universities into economic powerhouses, the athletes at the heart of this frenzy see none of it. Talk about a raw deal.

These student-athletes are doing way more than just juggling coursework and practice. They’re putting in hours that would make a pro athlete nod in respect, all while being expected to keep up academically and somehow manage to not be broke. The usual argument that scholarships are pay enough doesn’t cut it when you consider the personal and physical toll these athletes endure. It’s like saying, “Thanks for all the revenue and the national attention, here’s your textbook.” Hardly seems fair, right?

And yes, the winds of change are blowing with the NCAA cracking open the door for athletes to earn from their name, image, and likeness (NIL). It’s a step in the right direction but doesn’t quite tackle the elephant in the room: getting paid for the game itself. Creating a system where athletes get a slice of the revenue pie is about acknowledging their role in this multi-million dollar dance.

Now, there’s the chorus of naysayers warning that paying athletes will tarnish the purity of college sports or upset the financial apple cart among schools. But let’s be real—the sheen of amateurism got smudged the minute big money entered the chat. And as for financial fairness, well, professional leagues have been balancing those books with salary caps and shared revenues for years. It’s about time college sports figured out its version.

In essence, making sure college athletes get paid is about leveling the playing field and recognizing the blood, sweat, and tears they pour into their sports. It’s about transforming an industry that profits from their talents into one that also respects their contribution. This isn’t just about sports; it’s about fairness, equity, and maybe, just maybe, bringing a bit more honesty to the game.

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