Because a collegiate athlete's education is paid for by the institution, the player is expected to be financially secure. As a result, players must agree not to accept payment for sponsorship deals, celebrity appearances, or communication with professional sports people. If they did, their schools would be forced to cut them loose, and that could affect their ability to continue playing.
The practice of not paying college athletes was originally intended as a way for schools to keep their best players on campus. Since the inception of the NCAA basketball tournament in 1939, all participants have been given an opportunity to win money in the form of prizes. However many top-flight college players prefer to avoid riskier opportunities before their final year, when they can enter the draft system.
In addition, some colleges believe that they should be allowed to give scholarships in exchange for playing time. This allows schools to pick and choose who plays for them, creating a level playing field for all athletes. Some universities including North Carolina, Oklahoma, and Tennessee allow coaches to offer such "partial" scholarships. However, other schools view this practice as unethical because it benefits the team ahead of others who might be able to pay their own way. For example, Florida does not permit partial scholarships because doing so would be considered recruiting students based on need rather than ability.
Finally, some college athletes use the extra money they make to help cover living expenses.
This implies that collegiate athletes cannot be paid to play a sport, get assistance to offset training expenditures, accept performance-based prize money, be represented or promoted by a sports agent or professional, promote or endorse commercial items, and much more. Some schools may be able to provide exceptions to these rules.
In fact, the legal definition of amateurism is "the status of not being a professional baseball player so as not to be obliged to give account for one's earnings" (amateurism was originally intended to keep men from taking money for fighting in front of kings and other royalty).
The term has been used to explain why college athletes can't be paid for playing football or basketball. However, because many colleges and universities generate revenue through advertising on its sports teams' apparel, equipment, and facilities (i.e., royalties), many individuals believe that college athletes should be allowed to receive compensation for their efforts.
The question of whether college athletes should be paid has been the subject of much debate among lawyers, politicians, and others. Some argue that doing so would undermine the purpose of maintaining an education for the benefit of the student; others say that allowing payments would be fair given the amount of time and effort they put into playing their respective sports.
Most collegiate athletes are not permitted to earn from brand sponsorships or other moneymaking efforts beyond what institutions give for their enrollment under the pretext of amateurism. These restrictions, which date back decades, govern the commercial use of a student-name, athlete's image, and likeness. Essentially, colleges don't want students or coaches trying to make an independent living off their names and images.
The NCAA has long maintained that these rules are necessary so that schools can maintain the cost-free nature of education. However, several courts have ruled that this is not true; instead, they say that schools can charge market rates if they choose to do so.
In addition, some athletes believe that by accepting money they are abandoning their amateur status and violating national anti-trust laws. Others claim that the restrictions violate civil rights laws by denying them the ability to make an independent living. Still others say that the restrictions force them into indentured servitude. Whether any of these claims is accurate cannot be determined based on the current information available.
The most common argument against paying for endorsements is that doing so would lead students to view athletics as a way to make money instead of focusing on studies or career goals.
This is the essence of the game in college, and playing it for any other motive, such as money, crushes the hopes of others who aspire to be in the same position. There is no equitable method to distribute funding to student athletes. When it comes to compensating collegiate players, there are two schools of thought. One believes that they should be paid because they contribute to their universities by promoting school spirit and attracting fans. The other view points out that they have families too and that paying them would be inappropriate since they risk injury and lose opportunities because of it.
The first team to offer a player a contract was the Columbia University Lions football team. In 1914 they agreed on terms with Walter Camp, then head coach of the Princeton Tigers, to pay $5,000 over three years for the right to hire his son as its quarterback. The player accepted the deal but soon after went to play for another university instead. In 1971, UCLA gave scholarships to its male students while keeping female students as guests at a hotel. The men were allowed to visit with girlfriends or wives at the hotel without being charged a room fee. Scholarships cost the university nothing because the women were provided free of charge. In 1980, Michigan offered scholarships to all of its athletes. It has continued this policy ever since. As of 2015, about one-third of the teams in the NCAA Division I Football Bowl Subdivision (FBS) provide full tuition scholarships to their players. This number is expected to rise when more large programs begin offering these awards.
However, several players have found ways around them.
In 1990, the National Collegiate Athletic Association (NCAA) ruled that school sponsorship of an athletic department employee could be granted if that person was not eligible to compete under the NCAA's amateurism rules. This exemption has been used by many schools to allow their employees to make money through business deals with apparel companies, financial planners, etc.
From 1994 to 2003, Miami Hurricane football player Andre Johnson received $1.6 million from Nike as part of a contract that also included income from Reebok and Gatorade. The NCAA initially banned Johnson from receiving any additional benefits, but it has since changed its policy and now allows student-athletes to receive compensation as long as it is within the boundaries set by the organization.
In July 2014, news surfaced that Ohio State University football player Joey Bosa had rejected a $3.5 million offer from San Diego Chargers to instead sign with Apple Inc. for a six-figure deal. The deal also included other services that could have brought his earnings to more than $7 million over four years.
Most collegiate sports programs in the United States do not produce any money, therefore most athletes would continue to be underpaid. Furthermore, the players would require a strong union to negotiate any revenue-sharing arrangement.
However, some colleges and universities may begin paying their athletes in 2019. This is because several schools have begun using portions of their annual recruiting budgets to pay student athletes. For example, Ohio State began providing $1 million per year to assist with educational expenses for its students who are involved in the school's athletic program. Additionally, North Carolina State has established a $10 million fund that will be distributed among current players based on length of career.
Not all schools have decided to pay their athletes, but many are considering it. For example, Florida State president Eric Barron said he believes his team should be "paying its players like other major college sports teams."
Even though college football players don't make any money now, that could change in the future. As long as schools continue to spend large amounts of money on athletics, then they should consider how they can ensure their programs are competitive while still being fair to their athletes.
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