Efficient Remuneration of Power-5 College Football Players

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Abstract/Contents

Abstract: A growing body of literature attempts to estimate the economic impacts of the NCAA’s monopsony power in the labor market for college athletes in the revenue-generating sports of football and, to a lesser extent, men’s basketball. This literature is becoming increasingly pertinent as pending legislative and judicial action threatens to disrupt the NCAA’s ability to suppress wages to zero. This paper expands on past empirical research using the most comprehensive set of Power-5 college football recruiting, performance, and finance data ever compiled to first replicate two prior models estimating the marginal revenue products of players. That dataset is then used to execute a two-stage revenue-above-replacement model utilizing marginal revenue product estimations derived from a direct performance measure and position categorizations. We find significant variation in revenue-above-replacement figures between performance level and position, with a top percentile quarterback generating nearly $600k above a walk-on replacement player. We produce a matrix reporting revenue-above-replacement figures by position and percentile of performance, and make recommendations for AB 252, a bill currently moving through the California State Legislature which seeks to mandate remuneration of college athletes in revenue-generating sports.

Author	Anderson, Liam
Thesis advisor	Noll, Roger
Degree granting institution	Stanford University
Department	Public Policy Program

Subject	College Football
Subject	College Athletics
Subject	NCAA
Subject	Student-Athletes
Subject	College Athletes
Subject	College sports > Economic aspects
Subject	Sports Economics
Subject	Marginal Revenue Product
Subject	Stanford University
Subject	Humanities and Sciences
Subject	Public Policy Program
Genre	Text
Genre	Thesis

DOI	https://doi.org/10.25740/wx498km4203
Location	https://purl.stanford.edu/wx498km4203

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License: This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).

Preferred citation: Anderson, L. (2023). Efficient Remuneration of Power-5 College Football Players. Stanford Digital Repository. Available at https://purl.stanford.edu/wx498km4203. https://doi.org/10.25740/wx498km4203.

Stanford University, Public Policy Program, Undergraduate Honors Theses and Practicum Projects

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