What’s a top college football player worth to a university?
.
Past research indicates that top college football players generate over $500,000 annually in team revenues, well beyond the effective compensation of an athletic scholarship. This article supplements past empirical literature using the most comprehensive, detailed financial information yet compiled on college athletics. An alternative method estimates an equations system to account for the endogeneity of both a team’s premium players and its overall performance. Estimates show that the marginal revenue product of a premium college football player—one drafted into the National Football League (NFL)—exceeds $1 million in 2004-2005 football revenues, over 30% higher than in previous estimates from 1988-1989 revenues.
Source: “Estimates of College Football Player Rents” from Journal of Sports Economics
I’ve started posting extra content on the blog’s Facebook page. Don’t miss out; go here and hit the “Like” button.
You can also subscribe via email, RSS, or Twitter. Check out the site’s most popular posts of all time.
Related Posts:
What are the odds of a high school football player eventually going on to win the Super Bowl?
Does cheering really increase the likelihood your team will win?
How much football is in a football game?
Why do pro athletes play so badly so often?
Is there any truth to college football’s conventional wisdom?
Does the NFL Combine Actually Predict Performance in the National Football League?
The fix is in: what’s the best way to rig a sporting event?
When is the best month of the year to buy NFL tickets?
Does being smart benefit NFL players?
Are fans of the winning or losing team more violent?
Do bookmakers possess superior skills to bettors in predicting outcomes?
Do women find football players sexier than tennis players?
Which emotion is better at helping an athlete win: anger or happiness?
What would happen if economists were NFL and MLB coaches?
Does how far away an “away game” is affect how a sports team performs?
Do bookies take advantage of irrational preference for the home team?
What’s best for the roster of sports teams – new blood or stability?
Why wives need to stay out of the house on SuperBowl Sunday:
Does when you were born affect whether you’ll be a great athlete?
How accurate and effective is the NFL draft?
Does player enthusiasm predict team success?
Could proper use of statistics improve decison making in football?
Do pro athletes break the law more than the average person?
How smart are football players?
Are better looking athletes more likely to win?
How often do pro athletes go bankrupt?
Does betting on sports ruin the fun?
What’s the best way to motivate team owners?
Do negative emotions improve enjoyment while watching sports?
