IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v19y2018i1p31-49.html
   My bibliography  Save this article

The Financial and Competitive Value of NCAA Basketball Recruits

Author

Listed:
  • Richard Borghesi

Abstract

In this article, we examine the value of high school basketball prospects, and results indicate that each five-star (four-star) recruit generates US$625,000 (US$178,000) in marginal revenue for his university. Additionally, university academic donations are strongly related to basketball performance and five-star recruits bring in an additional US$5,800,000 in funding on average as a result of their contribution to team success. Calculations indicate that if five-star players were to be fairly compensated, their earnings would be approximately US$613,000. Four-star prospects would be paid roughly US$166,000, three-star recruits US$91,000, and two- and one-star players US$50,000.

Suggested Citation

  • Richard Borghesi, 2018. "The Financial and Competitive Value of NCAA Basketball Recruits," Journal of Sports Economics, , vol. 19(1), pages 31-49, January.
    • Handle: RePEc:sae:jospec:v:19:y:2018:i:1:p:31-49
    DOI: 10.1177/1527002515617510
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002515617510
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002515617510?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meer, Jonathan & Rosen, Harvey S., 2009. "The impact of athletic performance on alumni giving: An analysis of microdata," Economics of Education Review, Elsevier, vol. 28(3), pages 287-294, June.
    2. Devin G. Pope & Jaren C. Pope, 2009. "The Impact of College Sports Success on the Quantity and Quality of Student Applications," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 750-780, January.
    3. Tucker, Irvin B., 2004. "A reexamination of the effect of big-time football and basketball success on graduation rates and alumni giving rates," Economics of Education Review, Elsevier, vol. 23(6), pages 655-661, December.
    4. 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.
    5. Robert Brown, 2011. "Research Note: Estimates of College Football Player Rents," Journal of Sports Economics, , vol. 12(2), pages 200-212, April.
    6. Lawrence M. Kahn, 2007. "Markets: Cartel Behavior and Amateurism in College Sports," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 209-226, Winter.
    7. George Langelett, 2003. "The Relationship between Recruiting and Team Performance in Division 1A College Football," Journal of Sports Economics, , vol. 4(3), pages 240-245, August.
    8. Stephen A. Bergman & Trevon D. Logan, 2016. "The Effect of Recruit Quality on College Football Team Performance," Journal of Sports Economics, , vol. 17(6), pages 578-600, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Brent A. Evans & Christopher Clark & Joshua D. Pitts, 2024. "The Effects of Marijuana Legalization on NCAA Men's Basketball Recruiting," Journal of Sports Economics, , vol. 25(2), pages 200-216, February.
    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.
    4. Richard Borghesi, 2017. "Pay for play: the financial value of NCAA football players," Applied Economics, Taylor & Francis Journals, vol. 49(46), pages 4657-4667, October.
    5. 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.
    6. Brent A. Evans & Joshua D. Pitts, 2018. "Cross-Sport Recruiting Effects in NCAA D1 Football and Basketball," Journal of Sports Economics, , vol. 19(6), pages 820-842, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brent A. Evans & Joshua D. Pitts, 2018. "Cross-Sport Recruiting Effects in NCAA D1 Football and Basketball," Journal of Sports Economics, , vol. 19(6), pages 820-842, August.
    2. Richard Borghesi, 2017. "Pay for play: the financial value of NCAA football players," Applied Economics, Taylor & Francis Journals, vol. 49(46), pages 4657-4667, October.
    3. Daniel R. Marburger, 2015. "How Are Athletic Directors Rewarded in the NCAA Football Bowl Subdivision?," Journal of Sports Economics, , vol. 16(3), pages 254-267, April.
    4. 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.
    5. 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.
    6. Candon Johnson & Bryan C. McCannon, 2022. "Athletics and Admissions: The Impact of the Penn State Football Scandal on Student Quality," Journal of Sports Economics, , vol. 23(2), pages 200-221, February.
    7. Trey Dronyk-Trosper & Brandli Stitzel, 2017. "Lock-In and Team Effects," Journal of Sports Economics, , vol. 18(4), pages 376-387, May.
    8. Robert W. Brown & R. Todd Jewell, 2013. "Revenues and subsidies in collegiate sports: an analysis of NCAA Division I women’s basketball," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 10, pages 213-232, Edward Elgar Publishing.
    9. Philip L. Hersch, 2012. "Does the NCAA Coaching Carousel Hamper the Professional Prospects of College Football Recruits?," Journal of Sports Economics, , vol. 13(1), pages 20-33, February.
    10. Michael L. Anderson, 2012. "The Benefits of College Athletic Success: An Application of the Propensity Score Design with Instrumental Variables," NBER Working Papers 18196, National Bureau of Economic Research, Inc.
    11. 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.
    12. Brent A. Evans & Christopher Clark & Joshua D. Pitts, 2024. "The Effects of Marijuana Legalization on NCAA Men's Basketball Recruiting," Journal of Sports Economics, , vol. 25(2), pages 200-216, February.
    13. 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.
    14. Michael L. Anderson, 2017. "The Benefits of College Athletic Success: An Application of the Propensity Score Design," The Review of Economics and Statistics, MIT Press, vol. 99(1), pages 119-134, March.
    15. Matthew Philip Makofske, 2018. "Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football," Applied Economics, Taylor & Francis Journals, vol. 50(22), pages 2415-2430, May.
    16. Daniel C. Hickman & Andrew G. Meyer, 2017. "Does Athletic Success Influence Persistence At Higher Education Institutions? New Evidence Using Panel Data," Contemporary Economic Policy, Western Economic Association International, vol. 35(4), pages 658-676, October.
    17. Jill S. Harris, 2018. "State of Play: How Do College Football Programs Compete for Student Athletes?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 269-281, March.
    18. Mulholland, Sean E. & Tomic, Aleksandar (Sasha) & Sholander, Samuel N., 2014. "The faculty Flutie factor: Does football performance affect a university's US News and World Report peer assessment score?," Economics of Education Review, Elsevier, vol. 43(C), pages 79-90.
    19. Behera, Sarthak & Sadana, Divya, 2022. "The Impact of Visibility on School Athletic Finances: An Empirical Analysis using Google Trends," MPRA Paper 114818, University Library of Munich, Germany.
    20. Jerome Segura III & Jonathan Willner, 2019. "Athleticism in NCAA D-III: It Ain’t Only Football That Matters," Journal of Sports Economics, , vol. 20(7), pages 929-958, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:19:y:2018:i:1:p:31-49. See general information about how to correct material in RePEc.

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

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

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

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

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