2. Introduction

In 2012, the top 10 athletic programs each earned over 75
million dollars in total revenue in just the major sports of
men’s basketball and football.

T.V. broadcast revenues of college sports has soared to over
2 billion in 2012.

College sports merchandise licensing revenue from items
such as t-shirts, jerseys, hats, shoes and video games was
estimated at $4.6 billion in 2012.

Average athletic scholarship including room and board,
books and travel expenses is $41,000 per year.

3. Proposal to Congress

The distribution of athletic revenue should include more
than simply scholarship payments for student athletes.

The NCAA and individual universities should include
stipends to the college athletes who earn this revenue
through exploits in the schools television exposure and
advertising the players/teams.

4. Advertising Individual
Players

Every year at most major universities, the football and
basketball program feature individual jersey numbers.

Individual players are shown frequently on television and
on the internet. Advertisements for the school feature
individual athletes.

Past and current games are repeatedly shown on television,
again providing the school with free promotion without
compensation to the players.

5. Similar Lawsuit

Class action lawsuit led by former UCLA and NBA
basketball player Ed O’Bannon. Trial for July 2014.

Seeking a suit that states the NCAA violated anti-trust laws
and seek revenue from live and taped TV broadcasts of
college and football games along with merchandise licensing
profits from video games and clothing.

Seeking payment for past and future collegiate athletes
whose images appear in any media and want to establish a
trust fund for after they leave school.

Ruling would go against NCAA distinction of college
athletes as amateurs rather than professionals.

6. NCAA defines
“Amateurism”

College amateurism refers to the fact that athletes perform
their sport without compensation.

Rule was set in forth in 1940 through the Sanity Code.

Sanity Code established college athletes as strictly amateur
and not professional.

Sanity Code also allowed for the school to provide other
benefits other than monetary for individual students such as
room and board.

7. NCAA Control

NCAA has the right to use individual players names and
images for commercial purposes, yet the student athlete is
not allowed any compensation.

NCAA and the NFL have a rule that states athletes must be
3 years removed high school before entering the draft.

NCAA and NBA came to the agreement in 2005 to change
the entrance level to the draft from high school graduate to
at least one year removed.

8. Players Use/Lose
Marketability

Football is an injury prone game. Players must capitalize on
their peak entertainment value some of which is a younger
age.

Freshman QB Johnny Manziel won Heisman trophy in 2012
and generated $37 million in media exposure for Texas
A&M , of which he was paid $0.

Maurice Clarett case

9. Basketball Players Use
Advertising/Marketability

With forced one year out of high school rule many players
are taking advantage of marketability and entering the NBA
after just one year.

Others are signing contracts with foreign professional teams
such as Brandon Jennings in Italy and Acquille Carr in
China.

Players sign endorsement deals and professional contracts
by taking advantage of their high marketability at the time.
Something that a college basketball player currently cannot
do.

10. Who receives
compensation?

Football and Men’s Basketball programs at schools that
receive a high revenue from these programs.

Up to NCAA, Conferences, Universities, and Players
Association to decide how much each athlete and team is
paid per season.

Compensation would share some of the revenue with the
individual athletes that are helping bring it to the school.

Paying these athletes would also increase the level of play in
college and therefore increase marketability for themselves
and the schools.