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1. The players earn money that is then plowed into their coaching, their training, their tutoring, their facilities, their travel, etc . . .
2. If you paid the players, do you think the school would then NOT compete for coaches (top dollar) or build top notch facilities? . . .
3. The cost of other college athletics argument is effectively irrelevant these days. Budgets are approaching $150m at schools. Most schools run their entire Olympic athletic programs for $5-10m tops. It is a very small part of the budget.
Of course schools would still compete for coaches and build facilities, but those would become secondary forms of competition. What’s going on now is what happened with the airlines during price regulation. They couldn’t gain extra customers by offering lower fares, so they offered extravagent meals, free drinks, upgraded the cabins, etc. Did people like those things? Sure! That’s why the airlines did them. But once prices price regulation ended, we’ve seen what’s happened because most people would rather have an extra $200 in their pocket than a “gourmet” meal and an extra-wide seat.
If schools are allowed to pay players, paying players will become the FIRST thing schools focus on doing to attract talent and the budget will bite in other areas. They will still spend on upgrading coaches and facilities going forward, but they will spend less. This is just how markets work.