Jay Paterno Thinks College Football Players Have a Sweet Deal
Jay Paterno responded to the fanciful notions of Delany and Spurrier with an argument that players are already being paid through the value of their scholarship and room and board. Let’s look closer at that.
If Penn State football brings in around $70 million in revenue and $50 million in profit. That’s $597,000 per scholarship football player in profit. Out of State tuition plus Room and Board costs $38,000. Let’s add an extra $5,000 for special food and facilities use. That’s $43,000. Most students would take that deal. Most students aren’t paying for their scholarships 14 times over, and that’s assuming PSU is footing the full cost (they probably are not). PSU players are doing 100 percent of the entertaining, yet “earning” seven percent of profits.
That’s assuming Penn State is writing players a check. They are provided with assets and services the University controls the values for. The “income” consists of on-site (or a stipend for off-site) housing and food, necessary for their labor. By that logic slaves earn an income. The rest of this “income” consists of an education they might not want or be capable of using. They don’t receive discretionary income they can exchange for necessary goods and services, hence they loan money from agents and barter or sell belongings.
Why do they need discretionary income? JayPa asks. When they can exploit a “needy student fund” to buy clothes. Each player generates an average of $597,000 in profit for the school, and they should have to resort to charity to buy clothes. (Guessing he periodically googles to make sure the prisons and workhouses still provide useful course).
Football players have no free market for their labor. They are forced into a system that exploits them without a viable alternative. There’s no minor league option, as there is in baseball or hockey. Football and basketball have rules against players joining the league directly, ostensibly to prop up profitable college games.
Viewing college football solely through a labor lens is insane. As in professional sports, an entirely free-market would be unworkable, but no one is arguing for that slippery slope scenario. What has been proposed is around $3,000 per year per athlete to cover ancillary costs of attendance. Consider what that means.
Players get eight weeks off in football. They need to be there 44 weeks. That’s $68 per week. That’s not tattoos or outlandish jewelry money. That’s a tank of gas, a few groceries, condoms, pizza or a moderate night at the bar. Things that would allow one to function normally on a college campus. That doesn’t tackle large-scale corruption, but it would combat small loans from agents, and impulses to barter belongings and to hang out with drug traffickers or douches to use their PS3.
This isn’t much money compared to what coaches and ADs are making. Top schools generating $20 million plus in tax-free TV rights fees, can afford to provide it for all students. It doesn’t affect the balance of power greatly, as these schools already have enormous recruiting advantages and it would help weed out some of the small-scale corruption.
Even if there isn’t a full-proof plan yet, Lloyd Carr told ESPN. “It’s the right thing to try to figure out.”
[Photo via Getty]

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51 Responses to “Jay Paterno Thinks College Football Players Have a Sweet Deal”
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June 2nd, 2011 at 6:18 PM
Earlier today we get a post about Fulmer and paying/not-paying players which included…
And now we need another post about paying/not-paying players?
/face, meet palm, again
June 2nd, 2011 at 6:18 PM
hey don’t receive discretionary income they can exchange for necessary goods and services, hence they loan money from agents and barter or sell belongings.
Duffy, I take it you’re not familiar with Pell Grants, Athletic Department player stipends, and the NCAA Special Assistance Fund.
Jay Paterno Thinks College Football Players Have a Sweet Deal
And he’s right.
/drops mic.
June 2nd, 2011 at 6:23 PM
The rest of this “income” consists of an education they might not want or be capable of using.
I stopped here.
June 2nd, 2011 at 6:24 PM
I stopped here.
The world needs ditch diggers too, Geeezeus.
/Duffy.
June 2nd, 2011 at 6:26 PM
Booooooooooooo
June 2nd, 2011 at 6:28 PM
College Football tyduffy June 2nd. 2011, 6:15pm
I stopped here…
June 2nd, 2011 at 6:30 PM
Jay Paterno
/Stopped there
June 2nd, 2011 at 6:30 PM
That’s a tank of gas, a few groceries, condoms, pizza or a moderate night at the bar.
Booooooooooooo
/Antonio Cromartie’d?
June 2nd, 2011 at 6:32 PM
I’ve started to type out arguments twice for this bad boy, but I’m over it. These circular arguments are going nowhere.
June 2nd, 2011 at 6:34 PM
Spencer, if you’re around, there’s a new badass of the week for you: http://news.blogs.cnn.com/2011/06/02/soldier-cited-for-holding-off-up-to-30-taliban-by-himself/?hpt=hp_t2
June 2nd, 2011 at 6:37 PM
Winnipeg up to 4,170 season ticket sales as of this afternoon, still only available to presale groups.
June 2nd, 2011 at 6:39 PM
They are forced into a system that exploits them without a viable alternative.
Forced? Take your free God damn education and get a job after college.
June 2nd, 2011 at 6:42 PM
I have no doubt they’ll reach their target. Though it’s a big commitment to sign up – 3 years minimum.
See that Dallas has said they’re not making any more offers to Richards?
June 2nd, 2011 at 6:44 PM
See that Dallas has said they’re not making any more offers to Richards?
I did. They should have moved him at the deadline (hindsight, I know), they knew the ownership situation was an issue.
June 2nd, 2011 at 6:47 PM
I know little to nothing up this sport they play on ice, but why did they lose a team in the first place?
June 2nd, 2011 at 6:47 PM
For sure. Dallas is a pretty good market, hope they can settle things down there. Question is where does he go? Can’t see TO being an option with him.
June 2nd, 2011 at 6:48 PM
Reposted from the last one because I missed all the fun. Apologies for the rant and the run-ons….
Always in interesting discussion. I’m sort of in the middle. One, they are in fact getting paid. Anyone who has had to foot the bill for their own education knows how valuable a full ride is. Two, it’s not the athlete that earns this money it’s the brand. People keep bringing up Cam Newton like Auburn just scored Harvard’s endowment because Cam Newton played for them. Fact is, Jordan Hare was packed before Cam Newton was there and it will be packed long after he’s gone. Kids will still be rocking Auburn jerseys and buying EA Video games. The brands have value because america is obsessed with football and these school’s are graduating and accepting new fans every year and will continue to do so into perpetuity. Three, what sports get to participate, does each athlete get the same take, if not how in the hell do you quantify it? If you recruit a 5 star RB and agree to pay him X, can you nullify that contract when he blows his knee 1st week of fall ball? What about the walk-on that becomes an all-american? How about USC all-american vs. UCLA all-american? Do you pay the USC guy less because he is already being compensated more by attending a more expensive private school? The complexity needed to provide a fair market value would make the US tax code blush.
My solution, one or two things have to change. One, let athletes have jobs, currently they are only allowed jobs in the summer. However, since sports is such a time commitment that isn’t necessarily feasible so instead pay them what a typical student could earn working a part time job. Let say your typical college waiter/bartender gets 10-15/hr and works 20-30 hours a week so on the low end $800/mo with a high of $1800/mo, reality is probable somewhere in between. Think that’s unfair? Tough shit. Go take a look at what a minor league baseball player that wasn’t one of the few that cashed a Bryce Harper bonus check. Those dudes aren’t rolling in dough and they certainly don’t have a free education to fall back on when they eventually fail.
As for Duffy’s future loan plan? Get out of here with that. Do you have any idea how many bad loans that would lead to? Go look at recruiting ranking and compare that with actual success. I can only assume Duffy didn’t spend a lot of time around athletes over there at big blue. I did, and I can assure you as freshman every single one of them thought they were first round draft picks. If given the option a large majority of those idiots would have taken out a huge loan, bought a range rover and a rolex and most would have been broke as can be come graduation or drop out time and running from debt collectors and hiding from the repo man. I consider myself a free market capitalist but I do believe that sometimes you need to protect the stupid from themselves.
June 2nd, 2011 at 6:50 PM
but why did they lose a team in the first place?
Canadian dollar was worth in the range of $0.70 against the US dollar, old arena, escalating player costs, owners with limited resources.
June 2nd, 2011 at 6:55 PM
You need to get a real job. If I could could take home 7% of the profit on my deals I would have retired at 25. The best prop traders on wall street are usually making $250 grand a year plus 10% of their profits and a few of those cats have pulled in 9 figures. We should all be so lucky.
June 2nd, 2011 at 6:59 PM
is this the part of the year where everyone leaves and or gets banned
June 2nd, 2011 at 7:05 PM
Fuck Jay Paterno.
June 2nd, 2011 at 7:05 PM
This site is truly becoming a self-parody.
June 2nd, 2011 at 7:08 PM
I can’t stop looking at that pic of Jay Peterno. Mesmerizing.
TexansFan -
Bowl season is when people get banned. This time of year is just slow.
June 2nd, 2011 at 7:09 PM
I didn’t read your thesis above, but your logic didn’t work on this one. The entire workforce (read: slaves) is taking in 7%, not each individual.
June 2nd, 2011 at 7:10 PM
I would lean towards leaving, especially if there’s more osu and pay the players posts. And as CFB gets closer, you know more BCS/playoff posts are in the works too…
June 2nd, 2011 at 7:10 PM
PSU players are doing 100 percent of the entertaining, yet “earning” seven percent of profits.
You need to get a real job. If I could could take home 7% of the profit on my deals I would have retired at 25. The best prop traders on wall street are usually making $250 grand a year plus 10% of their profits and a few of those cats have pulled in 9 figures. We should all be so lucky.
Holy jebus. Is that a Duffy quote, Codename? Is that an actual argument our silver spoon fed Duffy just made? I guess they don’t require J majors at Michigan to take any sort of business classes. There is so much wrong with that quote.
June 2nd, 2011 at 7:14 PM
And as CFB gets closer, you know more BCS/playoff posts are in the works too…
I love college football. Besides mute female supermodels, it is the greatest thing the great God invented. There are so many angles that we could be talking about now, but we are stuck on CFB playoffs and paying players. However, TBL didn’t get rich by not paying attention to which posts get the most pageviews. If we boil it all down, this is all our fault for clicking and commenting.
June 2nd, 2011 at 7:15 PM
PSU players are doing 100 percent of the entertaining, yet “earning” seven percent of profits.
Dumb……
The rest of this “income” consists of an education they might not want or be capable of using.
Dumbest thing that has ever come out of this dumbass’s mouth.
June 2nd, 2011 at 7:18 PM
This site is truly becoming a self-parody.
This.
Congrats to the guys who got stinkin’ rich off of this site, but you’ve lost your original audience. I rarely posted, but read all the time. I don’t seem to enjoy this site anymore. I only come here out of habit, but I’ll wise up soon.
June 2nd, 2011 at 7:21 PM
As a PSU alum, 50% of my gameday entertainment was getting shit faced before the game. I might be an exception to the norm since I’m a drunk.
/pours some rum
June 2nd, 2011 at 7:26 PM
Jay Paterno has a sweet deal because how many other schools would actually hire this guy?
June 2nd, 2011 at 7:28 PM
Same, but I do enjoy Lisk, CRM and TSH.
It’s this agenda-driven/page view crap that is beyond insufferable.
June 2nd, 2011 at 7:30 PM
Congrats to the guys who got stinkin’ rich off of this site, but you’ve lost your original audience. I rarely posted, but read all the time. I don’t seem to enjoy this site anymore. I only come here out of habit, but I’ll wise up soon.
Your statement reeks of self-importance.
KC is right. If we started ignoring these posts they would stop happening.
June 2nd, 2011 at 7:31 PM
What posts?
June 2nd, 2011 at 7:32 PM
From Duffy’s numbers –
Per player annual profit – $597M ($50MM/85 scholarship athletes)
Per player annual profit participation – $43M (Annual estimation of room/board/etc at PSU)
That is 7%
The logic is fine.
June 2nd, 2011 at 7:33 PM
There will be riots on College Ave if this guy becomes head coach.
June 2nd, 2011 at 7:35 PM
Geezus-so they went with Manitoba Moose for their name? If they still have the colors I may have to be wearing that when they play their first game at Excel. Hopefully that will become a rivalry.
June 2nd, 2011 at 7:38 PM
Couldn’t agree more. Except the rum part, ugh. You are aware of the existence of scotch and bourbon correct?
Also, do not forget the 25% of enjoyment that come’s from oogling college chicks and working on your night moves for after a game. Yeah I reference Bob Segar, piss off, true joy is lost on you.
June 2nd, 2011 at 7:42 PM
Bob Seger references are welcome in my book.
June 2nd, 2011 at 7:49 PM
Reggie, they aren’t officially announcing the name until they hit 13K season ticket sales.
June 2nd, 2011 at 7:58 PM
I love how bloggers/journalists(?) somehow have more insight than a guy who was born and raised inside a major college program.
Duchess is spot on, get a real fucking job then tell me how terrible it is to see an organization make bank while you’re working your ass off.
June 2nd, 2011 at 8:05 PM
As a PSU alum, 50% of my gameday entertainment was getting shit faced before the game. I might be an exception to the norm since I’m a drunk.
/pours some rum
Exactly. 100% of my entertainment is not generated by KU running the ball up the middle on 3rd and 15. Repeatedly.
Did the players invest money to build the stadium? Do they pay for marketing? As I did, are they paying their own money and loan money (that I’ll be paying off for fucking year) to get an education?
June 2nd, 2011 at 8:06 PM
that’d be, “for fucking ever.”
June 2nd, 2011 at 8:07 PM
Whiskey is not my favorite, but if someone gave me a free bottle, I’ll drink it all in one day.
June 2nd, 2011 at 8:08 PM
My favorite part of this post is the fact that it went up at 6:15 PM.
June 2nd, 2011 at 8:39 PM
“Whiskey is not my favorite, but if someone gave me a free bottle, I’ll drink it all in one day.” Mantis
I’m a bourbon and gin guy. Rum is good to shake things up every now and again in the summer. I enjoy tequila in a margarita if the mixer isn’t some overblown sugar syrupy shit. Vodka is fine, but not in my regular rotation. In short. I’m in my 30s and I have tried it all and have settled on favorites, oh fuck. I just booze.
June 2nd, 2011 at 8:41 PM
I agree with Jay Paterno…..
As a Penn State fan that makes my brain hurt.
Luckily the Single Batch Bulleit Rye will help me forget by tomorrow.
Although the Big Lead will undoubtedly not allow me to forget that some still foolishly think there is a tenable way to pay college athletes
June 2nd, 2011 at 9:01 PM
Reggie and Duchess are not the same person! I was never sure about that.
Congrats to the guys who got stinkin’ rich off of this site
He’s the Jets fan, right?
/which one is Fetch?’d
June 2nd, 2011 at 9:38 PM
This is effing ridiculous. 80% of the world’s population will never earn the equivalent of an Associates degree, and these guys are being “exploited” by being given an opportunity to earn a free B.A. from a world class research university?
Open enrollment colleges across the US are having to reconsider their policies because of budget crunches, and tens of thousands of people will probably have the door to a college education closed to them because of this. But yeah — the problem is these guys are only getting a free education.
Jesus.
June 3rd, 2011 at 1:36 PM
JayPa would be right if his kids were getting an education from Harvard…..but it’s PSU JayPa. Wake up pal.
June 3rd, 2011 at 4:43 PM
Joe Paterno is a senile old fuck.