Business insider player fair value model

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Posted by Big Ron on July 22, 20 at 06:57:54:

In Reply to: Done by someone w/Journalism not Finance backround posted by mDEVIL! on July 21, 20 at 17:24:39:

We calculated the so-called fair market value of college football players at the 20 most profitable programs using data provided by the Department of Education and based on the work of Ellen Staurowsky, a professor at Drexel.

We used the NFL's most recent collective bargaining agreement, in which the players receive a minimum of 47% of all revenue. Each school's football revenue was split between the school and the athletes, with the players' share divided evenly among the 85 scholarship players.

This method allows us to estimate that the average college football player at Texas is worth $666,029 each year, based on the program's average annual revenue over the past three years of $120.5 million. The average player at Alabama, the top program in the country, is second, at $545,357 a year.
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Also note that the table states average fair market value for roster players.

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