You don't have sports without players playing them. Regardless of the chicken/egg argument (which I totally get where you're at with), the players on the field are responsible for the revenue coming in and should be sharing in it a lot more than they are. Frankly a $20M cap is insultingly low considering most everybody at the P2/M2 level is pulling at least $100M in revenue every year and many several multiples of that.
I think your point applies much better to true NIL. There are maybe a dozen college athletes that are marketable enough to make what they're making if we just allowed the free market to do it's thing and not disguise pay for play as NIL.
I agree that it’s a bit of a chicken/egg situation.
I disagree that $20 million is “insultingly low.”
I think coach salaries probably are a little high, particularly compared with player compensation, but good luck putting that genie back in the bottle.
ISU pays roughly $10 million per year for tuition, summer school, and other education related expenses (all sports).
ISU pays roughly $15 million per year for travel, uniforms, and game day expenses (all sports).
ISU pays roughly $15 million per year on student athlete meals, medical expenses, and “other operating expenses” (which includes non-team travel for conferences, team banquets, and other similar expenses).
ISU pays roughly $20 million per year for coaching salaries (all sports).
ISU pays roughly $20 million per year for non-coaching staff (from JP down to janitors).
ISU pays roughly $20 million per year for things like risk management, utilities, facilities maintenance, administrative fees (charged by university to athletics), and other “direct overhead” expenses.
ISU pays roughly $10 million per year for debt service.
It also costs the university a few million bucks to send the team and support to a bowl game.
From my count (note: this is from FY2024, so before the big extra $20 mil per year from the 2025 settlement).
It looks like from a ~120 million in operating expenses, $40 mil goes to salaries/benefits (coaches + admin). $40 mil goes indirectly to students (travel/unis + food + education expenses), and the last $40 mil is stuff like debt servicing and operational expenses with the facilities.
Who do you think we should fire to pay the student athletes an extra 30 or 40 million? Or should we sell the stadium?
To me, roughly 1/3 of expenditures being directly on student athletes (even if not literally cash-in-hand) isn’t exactly out of line.