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Unionization of College Athletes - Peter Morici

Apr 14, 2014|

Pt I

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Automatically Generated Transcript (may not be 100% accurate)

We open up to WB a live line and welcome our next guest Peter -- economist and professor. With the Smith school of business. At the University of Maryland. Professor Marisa thank you for joining us aren't there we're you know we're talking about the student athletes of Northwestern University have gone the first step. They've organized union knows so they can negotiate with the university they wanna get paid what do you think of this. Well consider the values that some of these student athletes create they've put 80000 people in the stands. And so forth. We hear about how valuable. Football listed these universities well there forever that. That this this student athletes in the top five conferences the Big Five. Most of them do not have pro careers. This is it. They work forty to sixty hours a week. It's probably impairs their ability to get an education doesn't it doesn't a compliment that. They should be paid. The National Labor Relations Board has determined that there -- employees now. I did not make that determination and no matter what any northwestern alumni determined -- his mind. Or at the university determines the government is determined there alumni that makes them agents in the labor market. If they refuse to negotiate them because of the NCAA agreement. That's gonna get these students a lot. Leverage in a couple of antitrust suits which. Challenges the NCAA rules very similar to the way to reserve course was challenged in baseball and free agency in football and so forth. By its gonna be very very difficult for the university not to negotiate with these people. On top of that probably upset the whole structure. Of intercollegiate athletics in the non revenue sports where salaries and -- likely. They have to negotiate but do they have to be paid. And the university counter and say hey we're giving you free tuition in some cases. Well if they refused to negotiate with them and they refused to you know they continue to operate under the NCAA agreement. There's two things one is you can't knock you care as an employee can't refuse to not negotiate with the union under federal law protects. That this students can't strike they can decide not to play. And then win over northwestern and he -- concepts come Labor Day there's no football. Now if this does stick and this goes on to become reality doesn't mean that the rich and wealthy schools are gonna get the best high school players. The question is what does the coaches -- -- -- million dollars a year and somebody like Johnny football it's -- thing. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The directors in Hollywood. Three times as much but we didn't pay the child actors. We already have laws against that. The child actors have to be paid the money has been put the trust fund now I did these folks are adult. And employees. What this student and kind of like children but either way our society has. You know a legal traditions of -- paying these people they created enormous value. What I think should be done. Is that we take the top. 406080. Schools. Let them aligned themselves with the pro franchises has become sort of a minor league in and set up separate corporation U three under. I don't mind. Which is you get the law. With this conflict the objectives we have to pay the it would pay dispute male student athletes have to pay an equivalent number females the same amount of money. And that's absurd because there isn't enough money to do that and I generating any revenue over there. They'll probably have to be taken outside the university structure separate a separate corporation like a football club. And earn a basketball club and paid that way and then the rest the university athletics go back to but it should be you know he did not -- student activity. Can one more quick question goes -- other time a professor what about students are in school. On the scholarship. Means they're getting a free education in exchange for their athletic ability. That presumed that getting an education. Many of them really don't and the way they are managed. All the time being tightly controlled as it is at northwestern which is -- one of the better places and less successfully depends status. The students a tightly controlled in this. Inhibits their development as fully functioning adults a lot of it is to not develop executives still that's placing the ones -- make the pros but it's so badly sometimes. If they really never -- tour. Being a student athlete is not good for your education other than that you get a scholarship. And very often that's scholarship isn't worth nearly the values some of these athletes create. They're being short changed. And the coaches and schools are getting rich at the expense of exploiting 1819 and 21 year old. Professor thank you for your time this morning great to chat with you about this. Professor. Peter Morrissey is with the Smith school of business of the University of Maryland. And a commentary from him is online at WB and outcome you can follow him on Twitter. At.