First, I just pointed out that no one is obligated to take a Division-I scholarship. The problem is that there is no great economic value for the athletic labor of 99.99% of age 18-21 athletic labor, just as there isn’t for most regular labor in that age group without a college degree. If there was, someone would have started a professional league for those players. The best they could hope for is probably something akin to Canadian Junior Hockey which at least covers room & board and a very small stipend). Most would probably be playing for virtually zero.
I do, however, get your argument that the big schools can afford to pay. Are you arguing for a fixed stipend (how big?) or a true free market? If the latter, will the players have agents? Will they have enforceable contracts with the school or will the Jets be able to sign the next Baker Mayfield when their QB is hurt mid-season? Alternatively, could the school sell Mayfield’s contract to the Jets? Will colleges have four year contracts with players and end up selling their best players after each year to pro teams to generate more revenue? Similarly, if teams are “stashing” players in college will they be able to call them up? If not, why not? Shouldn’t players be able to start accruing major league service time and value toward their new contract as soon as possible?
Of course, such a truly open market plan will not only wipe out UConn athletics as we know it, but most P5 programs as well. As soon as they are treated like minor leagues, with placement of players at the whim of professional organizations, the fans will start to treat them like minor league teams. No minor league team in any sport draws 60,000 fans or significant TV ratings.
What you refuse to acknowledge is that the schools are generating most of the economic value (by sponsoring teams for good ‘ole State U) and, in a free market, most of the players would actually do worse. Now, I understand if you were to say, “That’s the price of a free market. Few free markets support the number of competitors we have in college sports so most will go away. Furthermore, big-time college sports masquerading as amateurism is a sham anyway.” If that’s your argument it’s at least philosophically and economically consistent. I could even agree with it (although I’ll miss most college sports) because it is a sham. Just don’t think that you can make them into low-level professional leagues and nothing will change except a re-distribution of wealth, because that’s fantasy.
There’s a continuum. On a small scale (small stipends) it will just wipe out most second and third tier sports (particularly with Title IX impacts, which you ignore but that’s the law of the land). On a larger scale (“free market pay”), it will wipe out all but the largest schools -and those will eventually suffer if they are ad hoc minor leagues. Then again, with fewer current students going to games even at P5 schools maybe a collapse is inevitable in the next 20-30 years anyway.