The problem is that college athletes mainly dominate Division 1 basketball of football player are being poorly compensated for their services. For this post I will look at this situation from a business perspective. For this example I will be using the revenues and expenses of the 2011-2012 season from The Ohio State football program.
The current thinking is that athletes are fairly compensated. Athletes are required to put in approximately 50-60 hours in-season and -15-25 hours out of season; this is a year round time commitment with only a few weeks off in the entire year. In return for their services these athletes receive grant-in-aid (scholarship) for tuition, room, board, and books.
From the website http://businessofcollegesports.com/tag/ohio-state-university/ there is a chart showing the revenues and expenses of The Ohio State football program. The football program generated $ 48.7 million in revenue. With a number of different expenses the program also had $13 million in expenses. This left a profit of $35.7 million. The largest expense of $3.7 million is A & P which accounts for the yearly salaries for the coaches. There are three expenses that go directly to the football players which are meals $0.46 million, lodging $0.22 million, and grant-in-aid of $3.4 altogether totaling approximately $4.1 million. I must also mention the $3.4 million in grant-in-aid is paid right back to the University. Using these numbers of the $48.7 million dollars of revenue generated 8.4% goes back to the athletes and of that 8.4%, 82.9% of that goes right back to the University as the price of tuition room, board, and books.
The current thinking is that athletes are being fairly compensated, but from the information that I just showed I think it presents the argument that these athletes are not being fairly compensated. These athletes only receive 8.4% of the $ 48.7 million in revenue, and 82.9% of that goes right back to the University. Also these athletes are not considered employees and therefore cannot receive workers compensation for their injuries after their time at the college.
This information seems to be pretty reliable. I wouldn’t think that this website would just make up numbers for the revenues and expenses. I checked other sources and found that the revenues for The Ohio State football team for the 2011-2012 season were constantly around 50 million.
Source – http://businessofcollegesports.com/tag/ohio-state-university/
There is one instance that I can think of that continued to help build my sense of morality and it was made as a agreement so that I could play football. From the time I was little my mother made me go to church. When I was really young I enjoyed church because I only had to sit though the first couple minutes and then I was allowed to go with the other kids and play in the nursery. As I got older though church started to get more demanding on me. I can remember it like it was yesterday. I was going into the 3rd grade and just talked my parents into letting me play football. Getting on to the gridiron came with a price though. One of the agreements that was made, specifically by my mother, was that I would be required to start going to Sunday school every week before church. Sunday school helped me better understand the Bible, Christianity, and consisted of a lot of arts and crafts, but it was one of the last things that I wanted to do as a hyper youngster. As the years went on I was still required to go to both Sunday school and church and somewhere in my high school days I made an agreement with my mom that I would just go to church every other week. While going to Sunday school and church was not something that I particularly looked forward to it definitely helped me build a strong moral foundation. It also made my mom and grandma happy. I don’t necessarily agree with everything that I learned from Sunday school and church. I do believe in a higher power, but questioning things are how we develop as human beings, which goes against some aspects of church. Some of the most important things that I learned were the little things like treating others like you would like to be treated, lending a helping hand to those in need, being thankful for what you have, and how talking to old people can not only make their day, but also bring a smile to your face.
For someone to be considered a fallen hero they would have had to be a hero to begin with. While most high level executives are very respected people I do not consider them hero’s. With that being said I chose John Sculley. If you have seen the movie Jobs, then you most likely already know who John Sculley is. Sculley started working for Pepsi in 1967 at a bottling plant in Pittsburgh. Working his way up from the bottom Sculley became Vice President of marketing at the age of 30. From 1970 to 1983 Sculley served as the Vice President and then later President for Pepsi. At Pepsi Sculley was most well known for his expertise in marketing. While at Pepsi he introduced the Pepsi Challenge which was huge for Pepsi helping them gain market share on Coca-Cola.
In 1983 Sculley was offered and excepted the position of CEO at Apple. In his early years at Apple the company saw some success, although some say this success was caused by Steve Jobs. While at Apple Sculley made several mistakes like trying to compete directly with IBM, focusing to much on current products and profitability rather than innovation, Apple’s Newton, and most notably getting rid of Steve Jobs. After 10 years at Apple Sculley was forced to step down. Unlike these other executives Sculley’s downfall was not caused by fraudulent acts, but you could say that greed played a part in his move from Pepsi to Apple. Sculley went from being one of the best executives to one of the worst. In 2010 Business insider placed Sculley on the list of 15 worst CEO’s in America history. I think this is a little harsh considering sales at Apple rose from 800 million to 8 billion in Sculley’s time there. At the same time looking at where Apple is now and looking how much of a positive impact that Steve Jobs has made to the company it would be hard to say that John Sculley didn’t make some really bad decisions at his time at Apple.