{"id":52074,"date":"2020-04-30T00:33:53","date_gmt":"2020-04-30T07:33:53","guid":{"rendered":"http:\/\/world.edu\/?p=52074"},"modified":"2020-04-30T00:33:53","modified_gmt":"2020-04-30T07:33:53","slug":"top-football-recruits-bring-in-big-money-for-colleges-covid-19-could-threaten-revenue","status":"publish","type":"post","link":"https:\/\/world.edu\/top-football-recruits-bring-in-big-money-for-colleges-covid-19-could-threaten-revenue\/","title":{"rendered":"Top football recruits bring in big money for colleges \u2013 COVID-19 could threaten revenue"},"content":{"rendered":"

\"\"<\/p>\n

Colleges and universities are spending more than ever to land the nation\u2019s top football recruits, with some schools having boosted their recruiting budgets by\u00a0more than 300%<\/a>\u00a0in the last five years.<\/p>\n

These budgets can surpass\u00a0US$2 million for schools like the University of Tennessee<\/a>. Is it worth it?<\/p>\n

I study\u00a0economics<\/a>.\u00a0Research<\/a>\u00a0I recently did shows just how big the payoff for spending money to recruit the best players can be.<\/p>\n

\"\"

Teams like the Alabama Crimson Tide regularly recruit multiple top-tier players<\/p><\/div>\n

Half a million dollars<\/strong><\/h4>\n

The schools that secure five-star recruits \u2013 the 30 or so players judged to be in the\u00a0top one-hundredth of the top 1%<\/a>\u00a0of high school football players \u2013 can\u00a0increase total revenue by over $500,000<\/a>\u00a0for a university\u2019s athletic department. Most football teams never secure a five-star recruit. Others, such as the University of Alabama and Louisiana State University,\u00a0recruit three or four every year<\/a>.<\/p>\n

My research team came to this $500,000 figure by linking 10 years\u2019 worth of football recruiting information from\u00a0Rivals.com<\/a>\u00a0and\u00a0Scout.com<\/a>, two of the top recruiting services for prospective college football players, with\u00a0federal data<\/a>\u00a0on how much colleges take in and spend on athletics, win-loss records for individual schools and post-season bowl appearances.<\/p>\n

The data shows revenue and expenditures for each sport separately, which made it possible to determine what a football recruit added to football revenue at each university.<\/p>\n

Schools like the University of Oklahoma, the University of Michigan and Notre Dame, which on average bring in over a dozen four- or five-star recruits every year, bring in millions of dollars more in revenue when they land more of the top recruits in a given year.<\/p>\n

For instance, my estimates suggests that Clemson University\u2019s five-star recruits, of which there were five, and 12 four-star recruits \u2013 also in top one-quarter of 1% of all players \u2013 in the\u00a02020 recruiting class<\/a>\u00a0will increase the school\u2019s football revenue by well over $3 million,\u00a0well above its $1.8 million recruiting budget<\/a>.<\/p>\n

The reason is simple: Top recruits help teams win.<\/p>\n

Since a top recruit correlates strongly with increases in the number of victories, they help determine the type of post-season play. Five-star recruits are not the deciding factor in whetehr a school gets to a bowl game, the mark of a winning season \u2013 the big-time programs will have winning records every year without fail.<\/p>\n

But they do push them to the upper echelon of post-season play \u2013 the College Football Playoffs or its forerunner, the Bowl Championship Series. Reaching the championship level in college football\u00a0contributes to lucrative broadcast contracts<\/a>,\u00a0corporate partnerships<\/a>\u00a0and even more successful recruiting.<\/p>\n

Very few schools are consistently successful in the race to recruit top football talent and win at the highest levels. Just as nine schools have been responsible for\u00a020% of all players drafted into the NFL<\/a>\u00a0over the past two decades, only six schools have made it to the College Football Playoff championship game.<\/p>\n

Financing other sports<\/strong><\/h4>\n

There is more than hoisting football trophies at stake.<\/p>\n

College football is a key driver of athletic department revenue as well, helping to pay for other sports programs. Athletic departments that field more than 30 varsity teams do so understanding that fewer than five varsity teams generate enough revenue to cover the entire athletics department\u2019s expenses.<\/p>\n

In fact, some critics argue that big-time college sports, which feature rosters made up\u00a0primarily of black student-athletes<\/a>,\u00a0pay for the sports programs that include overwhelmingly white student-athletes<\/a>, such as lacrosse and swimming, which receive far less media attention but are the bulk of athletes in major collegiate sports programs.\u00a0Sixty-one percent<\/a>\u00a0of all student athletes are white.<\/p>\n

Football revenue also helps finance athletic recruiting efforts and amenities, such as\u00a0state-of-the-art facilities<\/a>. All of that takes money, which takes recruits, which takes money. Every recruiting video, campus visit and hosted meal is a line item on an athletic department\u2019s budget.<\/p>\n

COVID-19 repercussions<\/strong><\/h4>\n

The possibility of there being no college football season in the fall of 2020 is\u00a0making athletics departments fear<\/a>\u00a0big budget cuts.<\/p>\n

Already, some schools are dropping sports that were subsidized by college football revenues,\u00a0like men\u2019s soccer<\/a>\u00a0and\u00a0wrestling<\/a>. Smaller schools that depend on a few $1 million paydays in September from the major programs, may be left with gaping holes in their athletic budgets, threatening all sports.<\/p>\n

There is little doubt that changes are coming to the current model of athletic department operations through a variety of converging forces. COVID-19 is unleashing\u00a0widespread job losses<\/a>,\u00a0business closures<\/a>\u00a0and\u00a0declining consumer spending<\/a>\u00a0that will limit what fans and advertisers can spend on football.<\/p>\n

Another factor could be a change by the National Collegiate Athletic Association \u2013 which governs college athletics \u2013 that could allow student-athletes to get paid from their\u00a0name, image and likeness<\/a>.<\/p>\n

While schools rich with talent may continue to get richer, those schools further down the recruiting pecking order will be left to wonder how they can survive at all.<\/p>\n

Author Bio:<\/strong> Trevon Logan is a Professor of Economics at The Ohio State University<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Colleges and universities are spending more than ever to land the nation\u2019s top football recruits, with some schools having boosted their recruiting budgets by\u00a0more than 300%\u00a0in the last five years. These budgets can surpass\u00a0US$2 million for schools like the University of Tennessee. Is it worth it? I study\u00a0economics.\u00a0Research\u00a0I recently did shows just how big the […]\n… learn more→<\/a><\/p>","protected":false},"author":33,"featured_media":52075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[351665],"coauthors":[],"class_list":["post-52074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-higher-education","tag-football-recruiting"],"acf":[],"yoast_head":"\nTop football recruits bring in big money for colleges \u2013 COVID-19 could threaten revenue - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/top-football-recruits-bring-in-big-money-for-colleges-covid-19-could-threaten-revenue\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Top football recruits bring in big money for colleges \u2013 COVID-19 could threaten revenue - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"Colleges and universities are spending more than ever to land the nation\u2019s top football recruits, with some schools having boosted their recruiting budgets by\u00a0more than 300%\u00a0in the last five years. These budgets can surpass\u00a0US$2 million for schools like the University of Tennessee. Is it worth it? 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