Memorandum: Student Athlete Compensation

Memo

To: Dr. Lee Cerling, Director of Research

From: Reid Budrovich

Date: 12/5/16

Re: Student-Athlete Compensation

The purpose of this memo is to

In this document, I will cover the following:

(1) Problem Overview (2) Solution: Part 1 (3) Solution: Part 2 (4) Pros and Cons

Introduction

Being a student-athlete at a U.S. collegiate institute is a dream that most children have as they grow up. College athletic programs around the country recruit high school athletes to participate in their sports programs. However, athletes are not always able to afford attending these universities. Thus, athletic scholarships at a collegiate institute provide a student-athlete with the opportunity to attend a University for no expense of their own. Receiving

This scholarship is supposed to cover all of the essientials that a student-athlete would financially need during his/her career. However, with the cost of living varying greatly across the country, some student-athletes are left with a lot less money after paying for rent. Along with the increased rent expenses, for student-athletes to compete at a high level they require a greater amount of food than the average person would consume to counteract for the loss of calories through exertion. This problem raises concerns for a pro-rated stipend check in order for student-athletes to receive the correct payment from the school to ensure the essential living expenses of the athlete are paid

However, these rules are unjust because student-athletes should be able to promote themselves just like any other student at the school is allowed to promote their own accomplishments. Allowing an athlete the ability to access the free market to promotional and marketing deals is a reasonable solution to this ethical problem. With the increasing demand for superior college athletes, there is an equivalent increase in the worth of these athletes to the school due to the money that they can bring in. A study done by Drexel University found that football players with the top 10 highest estimated fair market values were each worth between $351,000- $568,000 in 2011-2012 but lived below the federal poverty line by an average of $1,571 (Huma). The common theme throughout the study is that college athletes are under-compensated and are not allowed to benefit from their fair market value, which would allow them to live above the poverty line. With this being a reality throughout the college world today, there is much that needs to be addressed in terms of college athletes being paid a percentage of what they make for their university. The ethical dilemma is that universities are allowed to sell a player’s jersey while the player received no compensation, while having to put in the time and