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Cost of Goods Sold

Blue Kahuna

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May 29, 2001
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Central Florida
There’s been conversation on how much the players should get from the amount distributed to each school by the Big Ten. Jim Harbaugh has suggested that the conference pay the players directly, but he hasn’t been specific. Let me give it a try.

There are estimates that the B1G will pay each school $57.2 mil in 2022. I think it’s fair to say that part of each school’s “cost” of those earnings should be payments to the players whose skill and effort produced the income—about 10% of the annual payments. This year that would be about $67,000 for each scholarship player.

The current payoff for getting into the playoffs is $6 mil per team. It seems fair that the players who achieved the high ranking that leads to being named a semi-finalist should get a major share of that payout, say 50% or an additional $35,000 per player.

Making a New Years Six bowl game pays each school $4 mil. If the players are also paid 50% of the NY6 payout, they make an additional $24,000.

There’s been lots of conversation about the players getting paid. Nothing will ever get done unless something specific is proposed. C’mon coach, get specific—how about this for a start?
The players should get a similar cut of the TV rights payments from the new 12-team playoff. The players are providing this valuable entertainment—they should be paid! It would be a big number, but so is the income which the schools will be paid for the entertainment provided by their student-athletes. If the value of the entertainment provided by the players increases, those percentages are still OK as part of the cost of goods sold.
 
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