The College Sports Cartel
By JOE NOCERA
NYT
Twice a year in Vienna, the members of the Organization of Petroleum Exporting Countries gather to decide on the short-term direction of oil prices. Sometimes, O.P.E.C. agrees to cut back on oil production, pushing up the price of oil. Other times, it decides to boost production. Always, the goal is to fix the price of oil, rather than allow it to be set by the competitive marketplace. Indeed, collusion and price-fixing are the main reasons cartels exist — and why they are illegal in America.
Yet, in Indianapolis a few weeks from now, a home-grown cartel will hold its annual meeting, where it, too, will be working to collude and fix prices. This cartel is the National Collegiate Athletic Association. The N.C.A.A. would have you believe that it is the great protector of amateur athletics, preventing college athletes from being tainted by the river of money pouring over college sports.
In fact, the N.C.A.A.’s real role is to oversee the collusion of university athletic departments, whose goal is to maximize revenue and suppress the wages of its captive labor force, a k a the players. Rarely, however, will the cartel nature of the N.C.A.A. be so nakedly on display as at this year’s convention.
In The Times Magazine this weekend, I lay out a proposal to pay the players in the two big revenue sports, college football and men’s basketball, something the N.C.A.A. won’t countenance. In the course of my reporting, I gained a new appreciation for the cartel characteristics of sports leagues.
(More here.)
NYT
Twice a year in Vienna, the members of the Organization of Petroleum Exporting Countries gather to decide on the short-term direction of oil prices. Sometimes, O.P.E.C. agrees to cut back on oil production, pushing up the price of oil. Other times, it decides to boost production. Always, the goal is to fix the price of oil, rather than allow it to be set by the competitive marketplace. Indeed, collusion and price-fixing are the main reasons cartels exist — and why they are illegal in America.
Yet, in Indianapolis a few weeks from now, a home-grown cartel will hold its annual meeting, where it, too, will be working to collude and fix prices. This cartel is the National Collegiate Athletic Association. The N.C.A.A. would have you believe that it is the great protector of amateur athletics, preventing college athletes from being tainted by the river of money pouring over college sports.
In fact, the N.C.A.A.’s real role is to oversee the collusion of university athletic departments, whose goal is to maximize revenue and suppress the wages of its captive labor force, a k a the players. Rarely, however, will the cartel nature of the N.C.A.A. be so nakedly on display as at this year’s convention.
In The Times Magazine this weekend, I lay out a proposal to pay the players in the two big revenue sports, college football and men’s basketball, something the N.C.A.A. won’t countenance. In the course of my reporting, I gained a new appreciation for the cartel characteristics of sports leagues.
(More here.)
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