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Athlete Pay and Competitive Balance in College Athletics

Author

Listed:
  • Brian Mills

    (University of Florida)

  • Jason Winfree

    (University of Idaho)

Abstract

In this paper we analyze the argument—which has been used by both the National Labor Relations Board and the National Collegiate Athletic Association—that unionization and/or player pay will hurt competitive balance in college sports. We present a theoretical analysis of universities that recruit athletes and examine the assumptions that are needed for player compensation to decrease competitive balance. We also empirically illustrate the differences in balance between professional and college sports. Given the theoretical and empirical analysis, we argue that unionization and/or player pay is unlikely to hurt competitive balance.

Suggested Citation

  • Brian Mills & Jason Winfree, 2018. "Athlete Pay and Competitive Balance in College Athletics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 211-229, March.
    • Handle: RePEc:kap:revind:v:52:y:2018:i:2:d:10.1007_s11151-017-9606-8
    DOI: 10.1007/s11151-017-9606-8
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    References listed on IDEAS

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    1. Brian M. Mills & Steven Salaga, 2015. "Historical Time Series Perspectives on Competitive Balance in NCAA Division I Basketball," Journal of Sports Economics, , vol. 16(6), pages 614-646, August.
    2. James Quirk, 2004. "College football conferences and competitive balance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 63-75.
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    4. Peter K. Hunsberger & Seth R. Gitter, 2015. "What is a Blue Chip Recruit Worth? Estimating the Marginal Revenue Product of College Football Quarterbacks," Journal of Sports Economics, , vol. 16(6), pages 664-690, August.
    5. Steven Salaga & Rodney Fort, 2017. "Structural Change in Competitive Balance in Big-Time College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(1), pages 27-41, February.
    6. Fleisher, Arthur III & Shughart, William II & Tollison, Robert D. & Goff, Brian L., 1988. "Crime or punishment? : Enforcement of the NCAA football cartel," Journal of Economic Behavior & Organization, Elsevier, vol. 10(4), pages 433-451, December.
    7. Daniel Sutter & Stephen Winkler, 2003. "Ncaa Scholarship Limits and Competitive Balance in College Football," Journal of Sports Economics, , vol. 4(1), pages 3-18, February.
    8. Craig A. Depken II & Dennis P. Wilson, 2006. "NCAA Enforcement and Competitive Balance in College Football," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 826-845, April.
    9. Brown, Robert W, 1993. "An Estimate of the Rent Generated by a Premium College Football Player," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 671-684, October.
    10. Robert Brown, 2011. "Research Note: Estimates of College Football Player Rents," Journal of Sports Economics, , vol. 12(2), pages 200-212, April.
    11. E. Eckard, 1998. "The NCAA Cartel and Competitive Balance in College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(3), pages 347-369, June.
    12. Steven Salaga & Alan Ostfield & Jason Winfree, 2014. "Revenue Sharing with Heterogeneous Investments in Sports Leagues: Share Media, Not Stadiums," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(1), pages 1-19, August.
    13. David J. Berri & Stacey L. Brook & Bernd Frick & Aju J. Fenn & Roberto Vicente-Mayoral, 2005. "The Short Supply of Tall People: Competitive Imbalance and the National Basketball Association," Journal of Economic Issues, Taylor & Francis Journals, vol. 39(4), pages 1029-1041, December.
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    Cited by:

    1. Craig Garthwaite & Jordan Keener & Matthew Notowidigdo & Nicole Ozminkowski, 2020. "Who Profits from Amateurism? Rent-Sharing in Modern College Sports," Working Papers 2020-117, Becker Friedman Institute for Research In Economics.
    2. Craig Garthwaite & Jordan Keener & Matthew J. Notowidigdo & Nicole F. Ozminkowski, 2020. "Who Profits From Amateurism? Rent-Sharing in Modern College Sports," NBER Working Papers 27734, National Bureau of Economic Research, Inc.
    3. E. Woodrow Eckard, 2019. "Does the NCAA’s Collegiate Model Promote Competitive Balance? Power-5 Conference Football Versus the NFL," Journal of Sports Economics, , vol. 20(5), pages 654-670, June.

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