One of the predictions from pre-NIL was that the rents teams enjoyed from unpaid labor were being allocated toward (1) coach salaries and (2) facility improvements and would diminish as money flowed to players instead. I'm not sure we're seeing that as coaches seem to be getting more money than ever, and teams continue to renovate stadiums.
I'm curious where the money coming into college sports used to be allocated.
I agree — is it that more money is now flowing into college football/basketball? And is that has what’s helped increase coaches salaries more? We’re still early, so we may not have hit equilibrium, but it sure looks like I was wrong in thinking coaches salaries might fall because of NIL.
One of the predictions from pre-NIL was that the rents teams enjoyed from unpaid labor were being allocated toward (1) coach salaries and (2) facility improvements and would diminish as money flowed to players instead. I'm not sure we're seeing that as coaches seem to be getting more money than ever, and teams continue to renovate stadiums.
I'm curious where the money coming into college sports used to be allocated.
I agree — is it that more money is now flowing into college football/basketball? And is that has what’s helped increase coaches salaries more? We’re still early, so we may not have hit equilibrium, but it sure looks like I was wrong in thinking coaches salaries might fall because of NIL.
Voluntary exchange, baby!