Skip to content
ADVERTISEMENT
Sign In
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Virtual Events
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
  • More
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Virtual Events
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
    Upcoming Events:
    Hands-On Career Preparation
    An AI-Driven Work Force
    Alternative Pathways
Sign In
The Review

Eliminate the Profit Motive

By C. Thomas McMillen December 11, 2011
Eliminate the Profit Motive 1

The real problem with major intercollegiate sports programs is that the NCAA is powerless to effect meaningful change in the finances of college athletics. If it tried to exercise its dwindling power to seek real transformation rather than short-term palliative measures, the most powerful conferences and colleges could simply leave the organization—and college sports would devolve into a Darwinian struggle in which only the richest programs would survive. But, in truth, there isn’t much interest in change—there is just too much money involved in salaries for coaches and administrators.

So, despite the horrific events coming to light at Penn State (and apparently less egregious scandals on other campuses), I don’t think the way the NCAA functions will change until one of these three catastrophic events occurs:

1. Multiple athletics programs go bankrupt because of escalating costs.

2. Student-athletes win court cases that give them full rights as employees, including the right to hire counsel.

3. A multicollege gambling scandal that involves players, coaches, and boosters is exposed.

I am convinced that one, maybe all, of those will eventually happen—and that the system will consequently implode. Then it will be a question not of what the NCAA will choose to do, but of what it will be forced to do.

Once it becomes clear that problems are systemic, and that the NCAA cannot institute fundamental change, Congress must force the issue. It has intervened in this way before, when, with the Amateur Sports Act of 1978, it granted the U.S. Olympic Committee a monopoly—so there is precedent. I would like to see legislation—with provisions for mandatory reforms—enacted to reinstate for five years the antitrust exemption the NCAA had before a Supreme Court decision overturned it, in 1984. This is the ruling that, in his dissent, Justice Byron White, a former college athlete himself, accurately recognized would lead to an escalating race for money: “No single institution could confidently enforce its own standards, since it could not trust its competitors to do the same.”

Such legislation would require revenue sharing among all members of the NCAA in the collectivist model that has worked so well for the NFL, whereby a significant portion of the pooled revenue is shared among the 32 teams.

It would allow the NCAA to again become a benevolent dictator, by giving it the power to approve all TV and radio contracts for basketball and football. In return for this power, the NCAA must enact major reforms, such as a fairer distribution of revenue that would depend not on win-loss records, but on efforts to control costs, including coaches’ salaries; the academic performance of student-athletes; and compliance with the provisions of the federal Title IX law.

If, within a year, the NCAA is unwilling to enact those reforms, then the Internal Revenue Service should treat and tax college sports as the big, cutthroat businesses they are.

What has happened at my alma mater, the University of Maryland, points directly at the dead end where college sports is headed. Recently the university cut eight sports teams because the cash-devouring giants of basketball and football could not keep up with the escalating costs of intercollegiate athletics.

Choices like that signal that the true purpose of college sports is to make money; such decisions will eventually destroy the grass-roots sports infrastructure in this country, and only the major sports will survive at the college level. Eventually, the United States will be unable to field a strong Olympic team. Maybe when, in a future Olympics, America wins no gold medals, we will have our “sputnik moment” and realize that college sports should not produce highly paid coaches and administrators in just one or two sports, but should provide opportunities for many. Sports for all, not sports for money, should be our national mission.

C. Thomas McMillen is a former college and professional basketball player and a former member of Congress. He served on the Knight Commission on Intercollegiate Athletics and is secretary of the University System of Maryland board of regents.

To continue reading for FREE, please sign in.

Sign In

Or subscribe now to read with unlimited access for as low as $10/month.

Don’t have an account? Sign up now.

A free account provides you access to a limited number of free articles each month, plus newsletters, job postings, salary data, and exclusive store discounts.

Sign Up

The real problem with major intercollegiate sports programs is that the NCAA is powerless to effect meaningful change in the finances of college athletics. If it tried to exercise its dwindling power to seek real transformation rather than short-term palliative measures, the most powerful conferences and colleges could simply leave the organization—and college sports would devolve into a Darwinian struggle in which only the richest programs would survive. But, in truth, there isn’t much interest in change—there is just too much money involved in salaries for coaches and administrators.

So, despite the horrific events coming to light at Penn State (and apparently less egregious scandals on other campuses), I don’t think the way the NCAA functions will change until one of these three catastrophic events occurs:

1. Multiple athletics programs go bankrupt because of escalating costs.

2. Student-athletes win court cases that give them full rights as employees, including the right to hire counsel.

3. A multicollege gambling scandal that involves players, coaches, and boosters is exposed.

I am convinced that one, maybe all, of those will eventually happen—and that the system will consequently implode. Then it will be a question not of what the NCAA will choose to do, but of what it will be forced to do.

Once it becomes clear that problems are systemic, and that the NCAA cannot institute fundamental change, Congress must force the issue. It has intervened in this way before, when, with the Amateur Sports Act of 1978, it granted the U.S. Olympic Committee a monopoly—so there is precedent. I would like to see legislation—with provisions for mandatory reforms—enacted to reinstate for five years the antitrust exemption the NCAA had before a Supreme Court decision overturned it, in 1984. This is the ruling that, in his dissent, Justice Byron White, a former college athlete himself, accurately recognized would lead to an escalating race for money: “No single institution could confidently enforce its own standards, since it could not trust its competitors to do the same.”

Such legislation would require revenue sharing among all members of the NCAA in the collectivist model that has worked so well for the NFL, whereby a significant portion of the pooled revenue is shared among the 32 teams.

It would allow the NCAA to again become a benevolent dictator, by giving it the power to approve all TV and radio contracts for basketball and football. In return for this power, the NCAA must enact major reforms, such as a fairer distribution of revenue that would depend not on win-loss records, but on efforts to control costs, including coaches’ salaries; the academic performance of student-athletes; and compliance with the provisions of the federal Title IX law.

If, within a year, the NCAA is unwilling to enact those reforms, then the Internal Revenue Service should treat and tax college sports as the big, cutthroat businesses they are.

What has happened at my alma mater, the University of Maryland, points directly at the dead end where college sports is headed. Recently the university cut eight sports teams because the cash-devouring giants of basketball and football could not keep up with the escalating costs of intercollegiate athletics.

Choices like that signal that the true purpose of college sports is to make money; such decisions will eventually destroy the grass-roots sports infrastructure in this country, and only the major sports will survive at the college level. Eventually, the United States will be unable to field a strong Olympic team. Maybe when, in a future Olympics, America wins no gold medals, we will have our “sputnik moment” and realize that college sports should not produce highly paid coaches and administrators in just one or two sports, but should provide opportunities for many. Sports for all, not sports for money, should be our national mission.

C. Thomas McMillen is a former college and professional basketball player and a former member of Congress. He served on the Knight Commission on Intercollegiate Athletics and is secretary of the University System of Maryland board of regents.

  • Don’t Treat Athletes Like Gladiators
    Oscar Robertson

  • Bust the Amateur Myth
    Frank Deford

  • Get Out of Show Business
    William C. Friday

  • Eliminate the Profit Motive
    C. Thomas McMillen

  • Share the Wealth
    Harry Edwards

  • Tie Money to Values
    Nancy Hogshead-Makar

  • Kiss the BCS Goodbye
    Richard H. Thaler

  • Exempt the NCAA From Antitrust
    Len Elmore

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Tags
Opinion
Share
  • Twitter
  • LinkedIn
  • Facebook
  • Email
ADVERTISEMENT
ADVERTISEMENT

More News

Graphic vector illustration of a ship with education-like embellishments being tossed on a black sea with a Kraken-esque elephant trunk ascending from the depth against a stormy red background.
Creeping concerns
Most Colleges Aren’t a Target of Trump (Yet). Here’s How Their Presidents Are Leading.
Photo-based illustration of calendars on a wall (July, August and September) with a red line marking through most of the dates
'A Creative Solution'
Facing Federal Uncertainty, Swarthmore Makes a Novel Plan: the 3-Month Budget
Marva Johnson is set to take the helm of Florida A&M University this summer.
Leadership & governance
‘Surprising': A DeSantis-Backed Lobbyist Is Tapped to Lead Florida A&M
Students and community members protest outside of Coffman Memorial Union at the University of Minnesota in Minneapolis, on Tuesday, April 23, 2024.
Campus Activism
One Year After the Encampments, Campuses Are Quieter and Quicker to Stop Protests

From The Review

Glenn Loury in Providence, R.I. on May 7, 2024.
The Review | Conversation
Glenn Loury on the ‘Barbarians at the Gates’
By Evan Goldstein, Len Gutkin
Illustration showing a valedictorian speaker who's tassel is a vintage microphone
The Review | Opinion
A Graduation Speaker Gets Canceled
By Corey Robin
Illustration showing a stack of coins and a university building falling over
The Review | Opinion
Here’s What Congress’s Endowment-Tax Plan Might Cost Your College
By Phillip Levine

Upcoming Events

Ascendium_06-10-25_Plain.png
Views on College and Alternative Pathways
Coursera_06-17-25_Plain.png
AI and Microcredentials
  • Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Virtual Events
    • Chronicle Store
    • Chronicle Intelligence
    • Jobs in Higher Education
    • Post a Job
  • Know The Chronicle
    • About Us
    • Vision, Mission, Values
    • DEI at The Chronicle
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • Accessibility Statement
  • Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Group and Institutional Access
    • Subscription & Account FAQ
  • Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Higher Education
The Chronicle of Higher Education is academe’s most trusted resource for independent journalism, career development, and forward-looking intelligence. Our readers lead, teach, learn, and innovate with insights from The Chronicle.
Follow Us
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin