Financial Management For Student Athletes

Being a staffer in the strategic planning department of the Big XII Conference, it is expected that adjusting compensation can pose many issues. For instance, if compensation is adjusted to surpass the current maximum of full cost of attendance, then it will create a disparate division within the conference. The schools with deeper pockets will outcompete the schools within the conference that can’t afford the luxury to hand pick the best players and name their price. This division within the BIG XII is not healthy, nor will it comfort the schools that are hesitant to stay in the BIG XII.

The compensation should retain its limitation on paying a player a maximum of the full cost of attendance to prevent the wider spread between the rich and the poor. Apart from this, there would be a central fund that the conference would administer. Furthermore, the packages for the athletes would be equal in size and it would be the responsibility of the conference to enforce the packages with an expectation for more regulation to come in the future.

However, the size of the compensation package should also be based on the performance of the athletes. Incentives should be awarded for superb achievement on the field. This would create differentiation among the athletes and would keep the spirit of competition alive. Paying players will increase costs without increasing revenue to compensate for this. I believe the heightened payment to players will lead to more publicity and further sales, such as merchandise, to fund the extra compensation and incentives the players would receive.

Get quality help now
Dr. Karlyna PhD
Verified

Proficient in: Financial Management

4.7 (235)

“ Amazing writer! I am really satisfied with her work. An excellent price as well. ”

+84 relevant experts are online
Hire writer

Funding of the financial package and further financial management of the funds is an issue to be discussed. In order to fund the athletes, a central fund pool by the conference is a more appropriate answer to the problem and those funds should be provided to each school for payment to the athletes on the basis of their professional scale or upgradation irrespective of the financial strength of the school. If the funding option is limited to the revenues of the school, then the low revenue schools shall be left out and they should not have an equal opportunity to recruit the best players for their school. Therefore, a central financial pool of funds is recommended and the payment should be made to the schools according to the level granted to each player.

The financial package to be offered to the athletes should be based on the combination of various offers, such as payment in cash, insurance, educational credits, and sponsored education for the siblings of athletes. Generating a fund for the athlete to get the payment once they graduate from school is also logical when dealing with students and their first exposure to these sorts of benefits. Although, the athletes should have the option to select whatever suits them best. Another option for the financial package management would be to pool the payment in the form of fixed percentage. For example, some percentage of payment could be made in cash, insurance and a post-graduation fund. This would help athletes better manage their financial transactions and would benefit them in a long run. Therefore, these three options can be selected by the conference for ensuring the financial management for student athletes. A combination of the compensation packages would offer more lucrative options for the athletes to invest in their present and future. The financial security should be ensured for young players as it would make them financial independent. Moreover, a comprehensive compensation and financial management system would let them spend the money in a manner they wish, while restricting the use of funds for one element, such as education or insurance, would limit the use of the money awarded to athletes. They also may not feel comfortable in using the funds they intend to. The last option of the financial management, fixing the funds in percentage for insurance, education and cash payment, would give a dynamic aspect to the management of the package and funds earned by athletes.

The current membership of the Big XII is not only uneven, but has many flaws which make the financial management of the conference difficult and raise questions about the management of the activities as well. The conference currently holds geographically distant schools and ones that are economically weak. Analysis of the current situation reflects that the conference should focus on all sports that are being played by its member schools. Focusing on one game which is lucrative in a particular area may hamper the growth of talent and would lead to concertation of one sport in the region and an out-flux of athletes playing any other sport. Therefore, the focus of the conference should be on all lucrative and non-lucrative sport activities, and it should promote all sports equally. As far as addition of members is considered, the conference has to revamp its strategy to geographically align all of its members in one group. It would facilitate in the financial management, reduction of costs in travel and compensation.

The growth options for the conference should be based on both financial and geographical grounds. Swapping teams in other conferences within the Power Five can also give the BIG XII a boost and help to stabilize its staggering structure as it would increase the level of competition and attract higher revenues. There should be proper financial management among the schools in terms of group-based categorization, in which each school is allowed to participate on an equal basis. The categorization of the schools should be based on the sport they best promote. The financial compensation and support by the conference should be based on the performance of the school.

Cite this page

Financial Management For Student Athletes. (2022, Jun 10). Retrieved from https://paperap.com/financial-management-for-student-athletes/

Let’s chat?  We're online 24/7