Wonder how they square this with the concept of "amateur athletics"? :lol:
"Big Time" college athletics is such an ingenious scam when you think about it. Labor is very cheap and artificially kept at a low rate and there are really no shareholders or equity holders that expect a financial return on their investment. That means that management can effectively capture all profits.
This structure has been in place for a while, but what has really moved the needle is the impact of technology on the entertainment market. Historically, the entertainment market (TV primarily) has been an advertiser driven revenue model. With the conversion to digitally available content, most TV, movies, etc. can be watched without advertisements or with a high likelihood of the advertisements being ignored (DVR). The single largest exception has been live sporting events. Since finding a return has become so difficult for advertisers they have funneled their marketing funds towards live sporting events. This has created an enormous demand for most sports properties.
In professional leagues such as the NFL and NBA this results not only in massive profits for the ownership groups, but also rapidly increasing salary caps as the percentage shared with players is usually set (something like 53% or something). Intercollegiate athletics has neither of these. No owners to pay and athlete compensation remains flat (or indexed to tuition inflation, which is high but nowhere near the rate of inflation in media revenue for sports properties). That allows management (coaches and administrators) to capture those gains.
The really amazing thing is that the consumers of this entertainment (I am included in this group) have such a high level of brand loyalty that we will actually go as far as to brag about how much we are paying our coaches. How insane is that? What possible benefit is there to me, the University of Wyoming, or the student-athletes that Dave Christensen made over a million dollars?
Anyway, UW is no different than Missouri really. We refuse to play on the road at FCS schools (which is a good decision I believe), and they have decided to refuse to play at other FBS schools outside of the P5 leagues. Probably a good decision as well. Due to the value of their media rights, home games are worth some serious coin. How is Pinkel going to get to $5M a year if they can't schedule 8 home games?
