EC 011 College Sports

EC 011 College Sports - The National College Athletic...

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The National College Athletic Associatoin (NCAA) is business that generates more than $4.4 billion in revenue per year. It was originally introduced in the late 1880’s in response to increased violence and a lak of standard playing rules within college football. It was highly effective but once the standardized rules and an intolerance for violence was established the association concentrated on converting itself into a cartel over college sports. One of the NCAA’s attempts to control industry output was through the control of contracts negotiations between college football and telecasts. It consisted of contracts with major television networks that limited the amount of telecasts and the number of appearances by certain college over a period of time. By restraining the output of the telecasts in the long run the they saw sufficient financial gains ranging from 1.15 million in 1952 to 59 million in 1992, as renewal of the contract increased in duration of the 10 year contract. With these new profits came tension pertaining to the distribution of fees
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