Cartel behavior: Amateurism in college sports - Assignment Example

Moreover the problem of limiting input benefits and limiting output also raises questions about sports administration in colleges acting like monopolists. The players don’t get enough compensation for their hardwork in the filed compared to the revenue generated in ticket sales. The National Collegiate Athletic Association NCAA is the main administration body that manages these games and they have the sole responsibilities for managing the huge revenues that these games bring to the college.

They can either refuel their college football and basketball teams or they can give it back to the academics of the college. Big college sports programs bear a conflict of interest in training and promoting college players. The players don’t get a proportionate share from the revenues they generate plus they are kept as amateurs as a retention strategy. The money generated by these players is used to hold big game events, to fund non-revenue sports and most controversially to cover the coaches’ salaries.

Even if the college sports associations have these ‘tactics’, the revenues generated far exceed the costs to cover all the expenses but still non-revenue sports show a loss and star; the societal gains need to be weighed against the movement down the supply curve for star athletes. CRITIQUE Markets: Cartel Behavior and Amateurism in College Sports Lawrence M. . These players are the real revenue earners but they are bound and helpless in the hands of these powerful associations. The formation of National Collegiate Athletics Association (NCAA) was formed as a protection for the college players.

No one can deny the fact that NCAA provides shelter and promotion for college players. However, when this promotion remains within college premises and they are kept ‘amateurs’ on purpose then players will not be happy to play for their colleges. They would rather go and somehow fit in the professional team where the money making opportunities are endless. When organizations like the NCAA made “collusive restrictions” on players’ salaries, factors of production, recruiting expenses, this move limited the output.

Kahn says that this move also leveled the competition; colleges that wanted to pay more to their players simply couldn’t. They would have violated the rules of NCAA and would have to see expulsion from the club. And there is hardly any doubt that NCAA does have credibility and power in the public. Lawmaking bodies usually have such powers. One thing that Khan doesn’t highlights are the benefits of these limitation about salaries and financial benefits. The NCAA has prevented colleges from becoming sports centers.

It is only in the interest of the whole society to at least assume that student go to colleges to become academic scholars and not sports celebrities. There is already so much glamor in the sports industry and the kind of money that professional players make from TV appearances and TVCs is mind blowing. It is in fact intimidating for an average student who is trying to learn physics, mathematics or philosophy so he could