The Shame of College Sports

A litany of scandals in recent years have made the corruption of college sports constant front-page news. We profess outrage each time we learn that yet another student-athlete has been taking money under the table. But the real scandal is the very structure of college sports, wherein student-athletes generate billions of dollars for universities and private companies while earning nothing for themselves. Here, a leading civil-rights historian makes the case for paying college athletes—and reveals how a spate of lawsuits working their way through the courts could destroy the NCAA.
The Big Bluff

In 1951, the NCAA seized upon a serendipitous set of events to gain control of intercollegiate sports. First, the organization hired a young college dropout named Walter Byers as executive director. A journalist who was not yet 30 years old, he was an appropriately inauspicious choice for the vaguely defined new post. He wore cowboy boots and a toupee. He shunned personal contact, obsessed over details, and proved himself a bureaucratic master of pervasive, anonymous intimidation. Although discharged from the Army during World War II for defective vision, Byers was able to see an opportunity in two contemporaneous scandals. In one, the tiny College of William and Mary, aspiring to challenge football powers Oklahoma and Ohio State, was found to be counterfeiting grades to keep conspicuously pampered players eligible. In the other, a basketball point-shaving conspiracy (in which gamblers paid players to perform poorly) had spread from five New York colleges to the University of Kentucky, the reigning national champion, generating tabloid “perp” photos of gangsters and handcuffed basketball players. The scandals posed a crisis of credibility for collegiate athletics, and nothing in the NCAA’s feeble record would have led anyone to expect real reform.

But Byers managed to impanel a small infractions board to set penalties without waiting for a full convention of NCAA schools, which would have been inclined toward forgiveness. Then he lobbied a University of Kentucky dean—A. D. Kirwan, a former football coach and future university president—not to contest the NCAA’s dubious legal position (the association had no actual authority to penalize the university), pleading that college sports must do something to restore public support. His gambit succeeded when Kirwan reluctantly accepted a landmark precedent: the Kentucky basketball team would be suspended for the entire 1952–53 season. Its legendary coach, Adolph Rupp, fumed for a year in limbo.

The Kentucky case created an aura of centralized command for an NCAA office that barely existed. At the same time, a colossal misperception gave Byers leverage to mine gold. Amazingly in retrospect, most colleges and marketing experts considered the advent of television a dire threat to sports. Studies found that broadcasts reduced live attendance, and therefore gate receipts, because some customers preferred to watch at home for free. Nobody could yet imagine the revenue bonanza that television represented. With clunky new TV sets proliferating, the 1951 NCAA convention voted 161–7 to outlaw televised games except for a specific few licensed by the NCAA staff.

All but two schools quickly complied. The University of Pennsylvania and Notre Dame protested the order to break contracts for home-game television broadcasts, claiming the right to make their own decisions. Byers objected that such exceptions would invite disaster. The conflict escalated. Byers brandished penalties for games televised without approval. Penn contemplated seeking antitrust protection through the courts. Byers issued a contamination notice, informing any opponent scheduled to play Penn that it would be punished for showing up to compete. In effect, Byers mobilized the college world to isolate the two holdouts in what one sportswriter later called “the Big Bluff.”

Byers won. Penn folded in part because its president, the perennial White House contender Harold Stassen, wanted to mend relations with fellow schools in the emerging Ivy League, which would be formalized in 1954. When Notre Dame also surrendered, Byers conducted exclusive negotiations with the new television networks on behalf of every college team. Joe Rauh Jr., a prominent civil-rights attorney, helped him devise a rationing system to permit only 11 broadcasts a year—the fabled Game of the Week. Byers and Rauh selected a few teams for television exposure, excluding the rest. On June 6, 1952, NBC signed a one-year deal to pay the NCAA $1.14 million for a carefully restricted football package. Byers routed all contractual proceeds through his office. He floated the idea that, to fund an NCAA infrastructure, his organization should take a 60 percent cut; he accepted 12 percent that season. (For later contracts, as the size of television revenues grew exponentially, he backed down to 5 percent.) Proceeds from the first NBC contract were enough to rent an NCAA headquarters, in Kansas City.

Only one year into his job, Byers had secured enough power and money to regulate all of college sports. Over the next decade, the NCAA’s power grew along with television revenues. Through the efforts of Byers’s deputy and chief lobbyist, Chuck Neinas, the NCAA won an important concession in the Sports Broadcasting Act of 1961, in which Congress made its granting of a precious antitrust exemption to the National Football League contingent upon the blackout of professional football on Saturdays. Deftly, without even mentioning the NCAA, a rider on the bill carved each weekend into protected broadcast markets: Saturday for college, Sunday for the NFL. The NFL got its antitrust exemption. Byers, having negotiated the NCAA’s television package up to $3.1 million per football season—which was higher than the NFL’s figure in those early years—had made the NCAA into a spectacularly profitable cartel.

“We Eat What We Kill”

The NCAA’s control of college sports still rested on a fragile base, however: the consent of the colleges and universities it governed. For a time, the vast sums of television money delivered to these institutions through Byers’s deals made them willing to submit. But the big football powers grumbled about the portion of the television revenue diverted to nearly a thousand NCAA member schools that lacked major athletic programs. They chafed against cost-cutting measures—such as restrictions on team size—designed to help smaller schools. “I don’t want Hofstra telling Texas how to play football,” Darrell Royal, the Longhorns coach, griped. By the 1970s and ’80s, as college football games delivered bonanza ratings—and advertising revenue—to the networks, some of the big football schools began to wonder: Why do we need to have our television coverage brokered through the NCAA? Couldn’t we get a bigger cut of that TV money by dealing directly with the networks?

Byers faced a rude internal revolt. The NCAA’s strongest legions, its big football schools, defected en masse. Calling the NCAA a price-fixing cartel that siphoned every television dollar through its coffers, in 1981 a rogue consortium of 61 major football schools threatened to sign an independent contract with NBC for $180 million over four years.

With a huge chunk of the NCAA’s treasury walking out the door, Byers threatened sanctions, as he had against Penn and Notre Dame three decades earlier. But this time the universities of Georgia and Oklahoma responded with an antitrust suit. “It is virtually impossible to overstate the degree of our resentment … of the NCAA,” said William Banowsky, the president of the University of Oklahoma. In the landmark 1984 NCAA v. Board of Regents of the University of Oklahoma decision, the U.S. Supreme Court struck down the NCAA’s latest football contracts with television—and any future ones—as an illegal restraint of trade that harmed colleges and viewers. Overnight, the NCAA’s control of the television market for football vanished. Upholding Banowsky’s challenge to the NCAA’s authority, the Regents decision freed the football schools to sell any and all games the markets would bear. Coaches and administrators no longer had to share the revenue generated by their athletes with smaller schools outside the football consortium. “We eat what we kill,” one official at the University of Texas bragged.

A few years earlier, this blow might have financially crippled the NCAA—but a rising tide of money from basketball concealed the structural damage of the Regents decision. During the 1980s, income from the March Madness college basketball tournament, paid directly by the television networks to the NCAA, grew tenfold. The windfall covered—and then far exceeded—what the organization had lost from football.

Still, Byers never forgave his former deputy Chuck Neinas for leading the rebel consortium. He knew that Neinas had seen from the inside how tenuous the NCAA’s control really was, and how diligently Byers had worked to prop up its Oz-like façade. During Byers’s tenure, the rule book for Division I athletes grew to 427 pages of scholastic detail. His NCAA personnel manual banned conversations around water coolers, and coffee cups on desks, while specifying exactly when drapes must be drawn at the NCAA’s 27,000-square-foot headquarters near Kansas City (built in 1973 from the proceeds of a 1 percent surtax on football contracts). It was as though, having lost control where it mattered, Byers pedantically exerted more control where it didn’t.

After retiring in 1987, Byers let slip his suppressed fury that the ingrate football conferences, having robbed the NCAA of television revenue, still expected it to enforce amateurism rules and police every leak of funds to college players. A lethal greed was “gnawing at the innards of college athletics,” he wrote in his memoir. When Byers renounced the NCAA’s pretense of amateurism, his former colleagues would stare blankly, as though he had gone senile or, as he wrote, “desecrated my sacred vows.” But Byers was better positioned than anyone else to argue that college football’s claim to amateurism was unfounded. Years later, as we will see, lawyers would seize upon his words to do battle with the NCAA.

Meanwhile, reformers fretted that commercialism was hurting college sports, and that higher education’s historical balance between academics and athletics had been distorted by all the money sloshing around. News stories revealed that schools went to extraordinary measures to keep academically incompetent athletes eligible for competition, and would vie for the most-sought-after high-school players by proffering under-the-table payments. In 1991, the first Knight Commission report, “Keeping Faith With the Student Athlete,” was published; the commission’s “bedrock conviction” was that university presidents must seize control of the NCAA from athletic directors in order to restore the preeminence of academic values over athletic or commercial ones. In response, college presidents did take over the NCAA’s governance. But by 2001, when the second Knight Commission report (“A Call to Action: Reconnecting College Sports and Higher Education”) was issued, a new generation of reformers was admitting that problems of corruption and commercialism had “grown rather than diminished” since the first report. Meanwhile the NCAA itself, revenues rising, had moved into a $50 million, 116,000-square-foot headquarters in Indianapolis. By 2010, as the size of NCAA headquarters increased yet again with a 130,000-square-foot expansion, a third Knight Commission was groping blindly for a hold on independent college-athletic conferences that were behaving more like sovereign pro leagues than confederations of universities. And still more money continued to flow into NCAA coffers. With the basketball tournament’s 2011 television deal, annual March Madness broadcast revenues had skyrocketed 50-fold in less than 30 years.

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Taylor Branch is the author of, among other works, America in the King Years, a three-volume history of the civil-rights movement, for which he won the Pulitzer Prize and the National Book Critics Circle Award.

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