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    Sooner Starter mfosterftw's Avatar
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    NCAA Scholarship Limits and Competitive Balance in College Football

    Here is some more bye-week homework. This journal article is home grown.

    Update: I've been reminded of the need of permissions before reprinting articles such as this. As such I'll limit the content to the conclusions and references.





    NCAA Scholarship Limits and Competitive Balance in College Football
    Journal of Sports Economics - February 2003

    DANIEL SUTTER - University of Oklahoma
    STEPHEN WINKLER - The Oklahoma Publishing Company

    CONCLUSIONS

    Conventional wisdom holds that parity is greater in college football today than ever before and that scholarship limits have fostered today’s competitive balance. A variety of measures indicate that the stylized fact is false; indeed, several measures indicate that college football has been less balanced since the imposition of scholarship limits. Regression analysis of time series measures indicates that the relationship between scholarship limits and parity is complicated. Scholarship limits seem to have reduced within-year parity while increasing parity as measured with the AP Top 20. Only 4 out of 16 scholarship-limit coefficients were significantly consistent with greater parity, so again the conventional wisdom is without support. The effect of scholarship limits suggests they serve to limit resources spent on football. An examination of the NCAA vote reducing the scholarship limit to 85 finds that recent success on the field made schools more likely to vote for the lower limit, but success over the entire postwar period did not affect voting. These results support the interpretations that the limits were to protect incumbent football powers or perhaps to protect rents generated by amateur status; the interpretation that weaker schools voted to level the playing field is rejected.

    Our results raise the question, Why do scholarship limits not produce greater parity? Three explanations seem possible: (a) Scholarship limits have not been enforced or have been evaded, (b) the current limit of 85 scholarships is too high for limits to weaken strong programs, or (c) limits negatively impact both strong and weak programs, leaving competitive balance unchanged. The NCAA can easily measure the number of scholarships awarded, and athletes with scholarships for other sports cannot play football, so lack of enforcement of the current limit seems inadequate. Our research does not allow us to discriminate between the other two explanations. Future research on this question might focus on the relative impact of nonscholarship, walk-on players. If traditional powers attract more and better walk ons than also-rans, this would suggest that marginally lower scholarship limits will not increase parity and may even entrench incumbents.


    REFERENCES

    Barro, R. J. (1996). Getting it right: Markets and choices in a free society. Cambridge,MA:MIT Press.

    Becker, G. S. (1987). The NCAA: A cartel in sheepskin clothing. Business Week, September 14, p. 24.

    Bennett, R. W., & Fizel, J. (1995). Telecast deregulation and competitive balance: Regarding NCAA Division I football. American Journal of Economics and Sociology, 54(2), 183-199.

    Borland, M. V., Goff, B. L., & Pulsinelli, R. W. (1992). College athletics: Financial burden or boon? Advances in the Economics of Sports, 1, 215-235.

    Butler, M. R. (1995). Competitive balance in Major League Baseball. American Economist, 39(2), 46-50.

    Byers, W. (with Hammer, C.). (1995). Unsportsmanlike conduct: Exploiting college athletes. Ann Arbor: University of Michigan Press.

    Coase, R. (1960). The problem of social cost. Journal of Law and Economics, 3, 1-44.

    Daly, G., & Moore,W. J. (1981). Externalities, property rights and the allocation of resources in Major League Baseball. Economic Inquiry, 19, 77-95.

    DeBrock, L., & Hendricks,W. (1997). Setting rules in the NCAA cartel. Advances in the Economics of Sport, 2, 179-201.

    Eckard, E. W. (1998). The NCAA cartel and competitive balance in college football. Review of Industrial Organization, 13, 347-369.

    Fizel, J., & Bennett, R.W. (2001). College sports. InW. Adams&J. Brock (Eds.), The structure of American industry (10th ed., pp. 323-350). Upper Saddle River, NJ: Prentice Hall.

    Fleisher, A. A., III, Goff, B. L., Shughart, W. F., & Tollison, R. D. (1988). Crime or punishment? Enforcement of the NCAA football cartel. Journal of Economic Behavior and Organization, 10, 433-451.

    Fleisher, A. A., III, Goff, B. L., & Tollison, R. D. (1990).NCAAvoting on academic requirements: Public or private interest? In B. L. Goff & R. D. Tollison (Eds.), Sportometrics (pp. 173-178). College Station: Texas A&M University Press.

    Fleisher, A. A., III, Goff, B. L., & Tollison, R. D. (1992). The National Collegiate Athletic Association. Chicago: University of Chicago Press.

    Frank, R. H., & Cook, P. J. (1995). The winner-take-all society. New York: Penguin Books.

    Hylan, T. R., Lage, M. J., & Treglia, M. (1996). The Coase theorem, free agency, and Major League Baseball: A panel study of pitcher mobility from 1961 to 1992. Southern Economic Journal, 62(4), 1029-1042.

    McCormick, R. E., & Tinsley, M. (1987). Academics versus athletics? Evidence from SAT scores. Journal of Political Economy, 95(5), 1103-1116.

    McCormick, R. E., & Tinsley, M. (1990). Athletics and academics:Amodel of university contributions. In B. L. Goff & R. D. Tollison (Eds.), Sportometrics (pp. 193-204). College Station: Texas A&M University Press.

    Olson, M. (1965). The logic of collective action. Cambridge, MA: Harvard University Press.

    Scully, G. (1989). The business of Major League Baseball. Chicago: University of Chicago Press.

    Stassen, C. (2001). College football information. Available from http://www.stassen.com

    Stigler, G. S. (1975). The citizen and the state: Essays on regulation. Chicago: University of Chicago Press.

    Daniel Sutter earned his Ph.D. from George Mason University and is currently associate professor of economics at the University of Oklahoma. His research interests include sports economics, constitutional economics, the urban land assembly problem, the economics of the news media, and the economic impact of weather and natural hazards.

    Stephen Winkler holds an MBA in finance from the University of Oklahoma. He is currently a financial analyst with the Oklahoma Publishing Company.
    Last edited by mfosterftw; 9/18/2008 at 08:23 AM.
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    Sooner Starter mfosterftw's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    nm
    Last edited by mfosterftw; 9/18/2008 at 08:22 AM.
    The Oklahoma City Blazers of the 1990's could not have done a worse job with their accounting if they had kept their ledgers on Big Chief tablets...

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    Sooner Starter mfosterftw's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    nm
    Last edited by mfosterftw; 9/18/2008 at 08:21 AM.
    The Oklahoma City Blazers of the 1990's could not have done a worse job with their accounting if they had kept their ledgers on Big Chief tablets...

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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Which journal is this from and when was this published?
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    Sooner Starter mfosterftw's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Sorry, should have added... Journal of Sports Economics - February 2003
    The Oklahoma City Blazers of the 1990's could not have done a worse job with their accounting if they had kept their ledgers on Big Chief tablets...

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    SoonerFans.com Elite Member Leroy Lizard's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Do you have permission from the journal to reprint the article?
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    Sooner Starter mfosterftw's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Actually, I don't... I don't know what I was thinking yesterday when I got on that kick. I'll trim the articles down to the conclusions and references...
    The Oklahoma City Blazers of the 1990's could not have done a worse job with their accounting if they had kept their ledgers on Big Chief tablets...

  8. #8
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    I think football continues to be the hardest sport to get a national championship in. You have to not only win, but have to be perceived as the best in order to win. You can win all of your games but still not be champions. Of course, that has nothing to do with schollys

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    SoonerFans.com Elite Member Leroy Lizard's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    I think football continues to be the hardest sport to get a national championship in. You have to not only win, but have to be perceived as the best in order to win.
    The fact that college football has so many teams is the only thing that makes it tough to win a national title. Other than that, why would it be tougher in any one sport than another?
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    Ready for Baseball Season tulsaoilerfan's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Quote Originally Posted by Leroy Lizard View Post
    The fact that college football has so many teams is the only thing that makes it tough to win a national title. Other than that, why would it be tougher in any one sport than another?
    1. It takes many more good players than any other sport.
    2. No Playoff system

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    SoonerFans.com Elite Member OU_Sooners75's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Quote Originally Posted by tulsaoilerfan View Post
    1. It takes many more good players than any other sport.
    2. No Playoff system
    I couldn't have said it any better.

    If I could spek, you I would.


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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Quote Originally Posted by tulsaoilerfan View Post
    1. It takes many more good players than any other sport.
    2. No Playoff system
    Ja, as well as the fact that it requires more resources to field a team. George Mason can make the Final Four, a few NCAA trips can put Gonzaga basketball on the map, a solid nine can bring Rice a national baseball championship... but we have yet to see in this BCS era a non-big conference team get championship consideration. When was the last time a non-BCS team got the championship? Was it 1984's BYU? (which, btw, should have been MINE MINE MINE! ... I mean... OURS OURS OURS!)

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    Sooner All-Big XII-2-1+1-1+1 Statalyzer's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Quote Originally Posted by tulsaoilerfan
    1. It takes many more good players than any other sport.
    2. No Playoff system
    Those both affect your competition as much as they affect you, so they don't make championships any tougher to achieve.

    The real reason football is the hardest sport to win a National Championship in is that football has no real National Championship.

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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Quote Originally Posted by Statalyzer View Post
    Those both affect your competition as much as they affect you, so they don't make championships any tougher to achieve
    Of course, a more competitive field would make championships tougher to achieve, so what you just said is a tad contradictory

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    I'm a shootist Curly Bill's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    The very best high school players are still going to the top programs, that's why the top programs stay at the top. Sure those top programs can't sign the huge numbers they once did, but they're still getting the pick of the litter.
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    SoonerFans.com Elite Member Leroy Lizard's Avatar
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    1. It takes many more good players than any other sport.
    2. No Playoff system
    But if it's true for your opponents, then it doesn't make it any harder on you. Every year, SOME team has to win the national title.

    It's like saying that winning a national championship in one-handed golf is harder because you only get to use one hand. But if your opponents have the same handicap, it all evens out.

    Of course, a more competitive field would make championships tougher to achieve
    For stronger teams it's harder. For weaker team's its easier.

    If you have 32 teams in a field, then your chances are 1 in 32 if all teams are equal in strength. If the field is uneven, then your chances are easier if you are a great team and worse if you are a lousy team. That is true if you are playing football or badminton.

    I hear all the time that "The Daytona 500 (or choose whichever race you wish) is a hard race to win." No more than any other race as long as one of the drivers must win.
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    Sooner All-Big XII-2-1+1-1+1
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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Heh... here's another can of worms that someone ought to throw in the mix... what if there were racial quotas on the 85 scholarships given out?

    Wonder what the Dept of Justice would think about that?

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    Re: NCAA Scholarship Limits and Competitive Balance in College Football

    Damn you Title IX
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