Is the Coach Paid Too Much?: Coaching Salaries and the NCAA Cartel

22 Pages Posted: 10 Aug 2010

See all articles by Amy Farmer

Amy Farmer

University of Arkansas - Department of Economics

Paul Pecorino

University of Alabama - Department of Economics, Finance and Legal Studies

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Abstract

Recently, a great deal of controversy has been generated from the salaries earned by head coaches in the NCAA. Although many figures in the world of sports earn high salaries, one important difference in the case of the NCAA is that the players do not get paid. We develop a model that shows that a cartel agreement to not pay the players raises the coach's salary if some players choose where to play based on the identity of the coach. The agreement not to pay the players improves competitive balance in the baseline model, but this result does not generalize.

Suggested Citation

Farmer, Amy and Pecorino, Paul, Is the Coach Paid Too Much?: Coaching Salaries and the NCAA Cartel. Journal of Economics & Management Strategy, Vol. 19, Issue 3, pp. 841-862, Fall 2010, Available at SSRN: https://ssrn.com/abstract=1654652 or http://dx.doi.org/10.1111/j.1530-9134.2010.00271.x

Amy Farmer (Contact Author)

University of Arkansas - Department of Economics ( email )

Fayetteville, AR 72701
United States
501-575-6093 (Phone)
501-575-3241 (Fax)

Paul Pecorino

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-0379 (Phone)
205-348-0590 (Fax)

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