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Players could make big money under plan

TIM DAHLBERG
AP Sports Writer

OAKLAND, Calif. (AP) — Football players at big schools could make several hundred thousand dollars in their college careers if they were paid a portion of the broadcast rights to games similar to what NFL players now get, under a model suggested by a sports economist.

Basketball players would do even better, with some earning more than $1 million over four years if schools split their broadcast revenues equally with athletes. That figure could rise even higher as billions of dollars in new television contracts for the rights to games are negotiated.

University of San Francisco economist Daniel Rascher testified Friday that the figures are at the high end of his model because they come close to the 55 percent of broadcast revenue the NFL shares with its players. He pointed out on the witness stand that he did other models that would give players as little as 10 percent of revenues if they were allowed to share in broadcast rights.

Rascher’s testimony came under cross examination in a landmark antitrust trial brought in federal court against the NCAA by former UCLA basketball star Ed O’Bannon and 19 others. They are seeking an injunction that would allow players to band together and sell the rights to their names, images and likenesses (NILs), with the money likely being put in a trust fund and given to them after they leave college.

Just how much that money would be would likely be the subject of long negotiations and other court fights. The NCAA has already indicated it will take the take the issue all the way to the Supreme Court if it loses in a bench trial before U.S. District Judge Claudia Wilken, saying current model of “amateurism” is the best for both the football and Division I basketball players as well as the thousands of other athletes in other college sports.

On a trial day dominated by talk about big money, Rascher spent nearly five hours on the stand laying out — and then defending — his studies on behalf of the plaintiffs. Most of them centered on how much money is being made in college sports and Rascher’s contention that colleges would not be hurt if they used some of the money now spend on facilities and coach’s salaries to pay athletes.

“We’ve seen the NCAA change its rules over decades on how much they should be paying athletes,” he said. “The fanaticism and the demand continue to rise during that time period.”

He defended his studies against suggestions by NCAA attorneys that the competitive balance in college sports would be upset if the richer schools paid athletes more than the ones with smaller budgets, saying his research shows that athletes recruited by both big and medium-sized universities almost always go to the bigger school anyway.

Rascher said his studies showed that big schools are making money — and lots of it — while running programs that are in many cases more profitable than their professional counterparts. He cited data submitted to the U.S. Department of Education that showed Division I basketball schools and FBS football programs took in $4.5 billion in revenue in the 2012-13 school year, which he said didn’t include another $1.5 billion that should have been allocated to the sports.

Rascher said 65 of the 69 schools that were in the former Bowl Championship Series conferences had profitable football programs, with a net surplus of $1.3 billion on revenue of $2.7 billion. The University of Texas along made $81 million on revenue of $109 million in its football program, which Rascher said likely didn’t include many millions more donated to the program but not specifically allocated to it in the financial filings.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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