Are college coaches paid so much because college athletes are paid so little? I don’t believe in the wages fund, but I do think even a neoclassical model can hypothesize a link.

When the NCAA attempted to restrict assistant coach’s salaries, the courts determined that this violated the Sherman Act. (I don’t think the NCAA ever attempted to restrict the salaries of head coaches.) However, the same court finds no problem with restricting college athletes to a hot meal and a room. Nevertheless, colleges compete for exceptional athletes with offers of hidden perks and a discounted product, a college education that many players don’t want. A true amateur sport would have amateur coaches instead of million dollar managers who profit from players who are paid less than their marginal worth to the university. Underpaid athletes support a hierarchy of wealthy beneficiaries that shamelessly espouse the benefits of amateur sports. This hypocrisy promotes fraud and cheating in the college recruitment of athletes and detracts from the university’s educational mission.

Why doesn't the NCAA restrict coaches to room, board and tuition?