The Unlucky Investor's Guide to Options Trading guides readers through the world of options and teaches the crucial risk management techniques for sustainable investing.
Paying College Athletes
Jan 14, 2022
The debate over paying college athletes is almost as old as college sports. Programs like football and basketball bring in millions of dollars in revenues each year thanks to the players on those teams. The NCAA historically did not allow athletes to get paid for playing. But in a ruling earlier this year, it was decided athletes could be paid for use of their name, image and likeness. This week, Dylan and Josh have opposing views as to whether or not this is good.
I say pay them! Schools like Notre Dame sign massive contracts with NBC to air football games and the kids on those teams deserve to participate in that windfall. Their talents individually and collectively drive demand for TV rights, tickets and memorabilia sales to name just a few.
Now, we know these kids are already being paid under the table or in round about ways that allow for compliance with NCAA regulations. Top players always have a nice car, nice apartment and spending money. So how about instead of playing that game, we just pay these kids. I don’t know if you pay them varying amounts depending on their “stardom” or if everyone should get the same amount. Bottomline though, pay them.
I think paying college athletes is a huge mistake. First off, you’re going to water down the competition. A guy like Deon Sanders, who is turning around Jackson State, might have a great pitch to a top recruit. But what if that top recruit lives in a two bedroom house, where he shares a bedroom with his two younger brothers while his sisters take the other bedroom. Dad hurt his back working some manual labor job and has to sleep on a recliner and the mom is stuck sleeping on the couch when she isn’t working two jobs to make ends meet. When Nick Saban walks in offering $100K a year to that kid and Deon can’t match, it’s not a tough call.
I’m also opposed to it as a former college athlete in a non-revenue generating sport. Take my word for it that there is some animosity between athletes in non-revenue generating sports and revenue generating sports. There’s an inequality in terms of school support to begin with. The divide will only be exacerbated by paying some kids while others get nothing.
If colleges want to do the right thing, they should offer courses to promising student athletes on how to handle finances once they go pro. How to prepare for stardom. How to not get taken advantage of by family and friends they didn’t know they had. More importantly, encourage those kids to go pro as soon as possible. There’s nothing worse than a future star blowing out his knee in college. Get him to turn pro quickly, get paid, and encourage him to go to school in the off-season. But paying them before they go pro is a mistake.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com.
tastytrade is a trademark/servicemark owned by tastytrade.
tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).
Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.
Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.