Unionizing NCAA College Football

Chief Legal Officer Donald Remy – “This union-backed attempt to turn student-athletes into employees undermines the purpose of college: an education,” Remy said in the statement. “Student-athletes are not employees, and their participation in college sports is voluntary. We stand for all student-athletes, not just those the unions want to professionalize.

My take:

In speech, they say its voluntary, but in reality it really isn’t. By holding a monopoly on opportunity for exposure and opportunity for draft positioning (especially for CBB or CFB), it isn’t quite as voluntary as they portray.

NCAA is like a major highway to the NFL – all other avenues are like single lane roads. Yes, you voluntarily choose the college route, but the choice is rigged. If your goal is the NFL, you choose the best possible route to achieve your goal.

I would be interested in knowing if alternative means to get to the NFL existed with the same opportunity for exposure, what the numbers would be like between CFB and the alternate means.

The other issue:

Student-athletes may not be direct employees. They sure are stakeholders in the team by competing and bringing in millions of dollars. The 2011 – 2012 top earners are listed below:

• Texas Longhorns – $77.9 million
• Michigan Wolverines – $61.6 milion
• Georgia Bulldogs – $52.3 million
• Florida Gators – $51.1 million
• Alabama Crimson Tide – $45.1 million
• LSU Tigers – $44.8 million
• Auburn Tigers – $43.8 million
• Notre Dame Fighting Irish – $43.2 million
• Arkansas Razorbacks – $39.9 million
• Nebraska Cornhuskers – $36.4

Sure, student-athletes receive full rides, which is a type of compensation. Let’s look at the average single year expenses for college. If the yearly tuition and fees are say $50,000 (accounting for only out of state since it is higher than in-state), and there is an 85 scholarship limit, we are looking at $4.3 million per year. Using the profits above, the schools scholarship cost ranged between 6% and 11% of the profits. In the very least, student-athletes are stakeholders of the team, and should share in the profits of the team. Don’t call it pay, call it a dividend.

Let me know your thoughts.