Could an NBA-style luxury tax curb spending in college athletics? The flurry of high-priced football coaching hires in the last few days had me contemplating the idea. The NCAA cannot place limits on salaries, but the governing body can control how its revenue is distributed, based on criteria like financial responsibility.
That’s the concept behind a tax on those programs that spend the most on coaching salaries, just as the NBA taxes franchises with the largest payrolls. New Southern Cal coach Lincoln Riley and LSU coach Brian Kelly, both highly successful coaches who had to be wooed out of their old situations, each signed deals reportedly worth $100 million or more in total value.
In the Knight Commission’s latest statement on restructuring Division I, it calls for a new values-based distribution of revenue that is less dependent on winning and rewards broad-based sports programs. The $3.5 billion in revenue comes from the NCAA, CFP and conference payouts.
This was one of the ideas discussed in an SBJ report on the biggest issues facing the NCAA as it undergoes a wholesale transformation. Knight Commission CEO Amy Perko: “This connects athletic revenue to the educational model. We believe Division I needs a new financial framework that requires more funding for the health, education and safety of the athletes and at the same time puts constraints on runaway spending.”
