Measuring cartel rents in the college basketball player recruitment market

The National Collegiate Athletic Association (NCAA) prohibits direct payments to college atheltes and limits the value of a scholarship to $20,000. These rules restrict competition among schools for players so that players will not be paid their marginal revenue product. Therefore, rents are redistributed from players to schools. The rent generated by a premium college basketball player is measured. The empirical results show that a top college player may generate up to $1000000 in annual rents for the team.