In this episode, we explore the hotly debated topic of paying college athletes. We try to analyze it from both sides and shed some light on what arguments are the strongest for each side. We will also discuss the new Name, Image, and License (NIL) rules, which allow college athletes to profit from their own name, image, and likeness. We consider how these rules impact might impact college sports, and what will it mean for the economic landscape of collegiate athletics. We take a deep dive into these questions and more, examining the various economic implications that come with these changes.
In this episode, we discuss:
Our initial reactions to the bank run on Silicon Valley Bank that occurred just days before the recording
Changes in the way sports economics is taught in recent years
The Name, Image, Likeness (NIL) rules and restrictions for college athletes
Arguments for and against paying college athletes, and our perspectives on the debate
The potential impact of allowing college athletes to be paid more freely on coaches' salaries
Fun pop culture references to lighten the mood
Watch this episode on YouTube:
Some show notes:
Jadrian enjoyed a Majestic Mullet Krispy Kolsh from Parkway Brewing in Salem, VA, and even showed off his pint glass from Stone Brewing that he picked up in San Diego when having a drink with fellow economists Doug Norton and Mike Coon. Matt cracked open a cold Hazy Bones IPA from Flying Fish Brewery in Somerdale, NJ.
In planning for the podcast, we initially wanted to discuss the recent bank run on Silicon Valley Bank. However, we were concerned that by the time we published the episode, the event might be outdated and lose its relevance to our audience. A lot has changed since then and it looks like we probably made the right call.
As this episode is released during the midst of March Madness, we wanted to explore the ongoing debate surrounding college athletes and payments. Specifically, we will discuss the Name, Image, Likeness (NIL) rules that recently came into effect, and explore the potential economic implications of allowing college athletes to profit from their own image and likeness. We chat briefly about the recent news of Miami getting in trouble because of NIL offers from athletics boosters and then head into the pros and cons of paying athletics.
This week’s pop culture references:
Jadrian discussed ESPN’s 30 for 30 episode “Pony Excess” which documented the rise and fall of the Southern Methodist University football program in the 1980s, as they became one of the most dominant teams in college football through illegal recruiting practices. The documentary explores the corrupt culture of college football at the time and the devastating consequences that ultimately led to the program's downfall.
Season 4 of HBO’s Succession will be released soon, and Matt is excited to share how some older episodes highlight economic concepts. The show follows the Roy family, a wealthy and dysfunctional family that owns a global media and hospitality empire, as they navigate power struggles, family dynamics, and business dealings.
The show explores themes of wealth, privilege, and the corrupting influence of power in the corporate world, but also has some great examples of economic concepts that have been covered by the Foundation for Economics Education (here and here) and Matt himself:
It's worth noting that Matt will be releasing a series of videos on his YouTube channel each Friday before a new episode comes out. He will analyze a different economic situation depicted in "Succession" in order to provide viewers with a more in-depth understanding of the show's themes and how they relate to real-world economics.
If you're a fan of "Succession" or interested in the intersection of economics and popular culture, be sure to subscribe to Matt's YouTube channel so you don't miss out on this exciting series!
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#8: Economics of Paying College Athletes