Cartel behavior: Amateurism in college sports Instructor: Cartel behavior: Amateurism in college sports Executive Summary This paper will explore the existing cartel behaviors portrayed in college sports as characterized by Amateurism…
Some people continue to argue that such restrictions are likely to boost the quality of sports or product by maintaining aspect of amateurism. According to National sport body’s (NCAA), compensation constrain on sport student or athletes leads to unfavorable rent rates from the entertainment income generated by the athletes, a characteristic consistent with the cartel behavior. Rents from these competitions are utilized on purchasing and maintaining sport facilities, compensation of head coaches, and others support non-revenue generating sports. Major men’s football and basketball competitions generate accounting profits, while ironically the sports departments in which they are based continue to portray losses on generally. However, much evidence shows that notwithstanding and not disputed, that athletics produce alumni revenues, national appropriations, and additional applications of students. However, open considerations argues that the society continue to gain out of overall restrictions on college and universities sports. On the side of NCAA itself, the main goal of the association is to stabilize intercollege sports as a central part of the educational curriculum and not to encourage cartel behavior as stipulated in its constitution. Critique The NCAA has in many times received public criticism for displaying non-competitive or cartel behavior by utilizing monopolistic behaviors to enforce constraining rules and regulations, which directly reduce or eliminate competition from other associations and allow it alone to have overall say over college athletic income. Since many schools realized loss of revenues from competitions, they started using NCAA in major intercollege revenue generating sports to create and maintain attendance standards and basic requirements that limit unpopular schools from upper Division status. When more colleges or universities entered major competitions such as division one level, they reduce the potential to raise high revenues compared to when popular division one schools. However, neither the National Athletic Association nor the school’s management is the main problem, but amateurism in college sports is the fundamental problem (Kahn, 2007). The perception that individual athletes should never receive any financial compensation for their talent in sports except for school tuition sponsorship, accommodation and board denies those students the basic financial freedom enjoyed by all the athletes, actors and coaches elsewhere, in the United States. Because the potential to bid for sport students outright and not via incidental recruitment incentives like grand training programs might lead to huge spending, athletics from giant schools are given a direct chance to play in national championships, while those from smaller institutions are left to play in the lower divisions. Amateurism is lie, insincere and creates a gap for corrupt ideal. Amateurism as a bad ideal will pave way for unfair rules and regulations and will eventually lead to inappropriate implementation and in the end produce bad results (Kahn, 2007). Due to Amateurism, many college talented athlete and schools are playing by their own rules away from NCAA’s laid down rules. In its website, NCAA stipulates clearly that promoting amateurism is very necessary to protecting and stabilizing academic environment since attaining quality education in the United Stat ...
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