Re: College Football Players---Students or Employees?
But a good coach makes a huge revenue difference, so if you reduce the coach's pay, another school will step in and offer more, as if the other school offers $3 million, but the coach adds $10 million in revenue, it's still a bargain. A top football coach brings a lot of value to a college football program, and their pay inevitably will reflect that.I think it's inevitable. If your coach is running a program that is netting $50M to the university, he probably really is worth $5M per year. However, if you have to start paying your players, sharing in marketing revenue, etc, so the program's net return to the general fund is only $10M, would you really pay your coach $5M? Or, put differently, if the school does continue to pay the coach $5M, you can bet that they're going to be pressuring him to cut costs in order to preserve as much as possible profit for the university (i.e. increase the $10M return).