Markets: Cartel Behavior and Amateurism in College Sports (original) (raw)

2007, Journal of Economic Perspectives

This feature explores the operation of individual markets. Patterns of behavior in markets for specific goods and services offer lessons about the determinants and effects of supply and demand, market structure, strategic behavior, and government regulation. Suggestions for future columns and comments on past ones should be sent to James R. Hines Jr., c/o Journal College football and college men's basketball generate professional-level revenues. Total ticket revenues for football and men's basketball were 757millionin1999,whichexceededticketsalesforprofessionalbaseball,football,andhockeythatyear(SandyandSloane,2004,p.88).ThebroadcastrevenuefromtheNCAAmen′sbasketballtournamentalonewas757 million in 1999, which exceeded ticket sales for professional baseball, football, and hockey that year (Sandy and Sloane, 2004, p. 88). The broadcast revenue from the NCAA men's basketball tournament alone was 757millionin1999,whichexceededticketsalesforprofessionalbaseball,football,andhockeythatyear(SandyandSloane,2004,p.88).ThebroadcastrevenuefromtheNCAAmen′sbasketballtournamentalonewas564 million in 2005, which exceeded the broadcast revenues for Major League Baseball. Add in the broadcast revenues for regular-season college games, along with college football and its end-of-season bowl games, and the combined college basketball/football revenue exceeded the broadcast revenues for professional basketball-although it would fall well short of the $2.2 billion in broadcast revenues earned by professional football in 2005 .