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The Value of Recruiting

2008 October 16
by Phil Miller

Echoing Skip’s post below, I link to this article about Kansas State assistant basketball coach Dalonte Hill, about whose salary a recent stink was raised:

Michael Beasley made Kansas State basketball relevant for the first time in more than a decade last season, and his presence put a few extra dollars in the pocket of the man responsible for luring him to Manhattan, Kan.

Kansas State had been a perennial also-ran in the Big 12 during the 90′s and the early part of this decade. It was in large part due to Michael Beasley – with all due respect to Bill Walker – that KSU had the run they did last year. In a typical competitive labor market, Beasley would be able to capture his value through a salary. The same can be said of other top recruits throughout the nation.

But the labor market for college basketball talent, although very competitive, is anything but typical because the top players cannot receive payment anywhere close to their value. So their value gets captured somewhere down the line, most likely by the coaches with the ability to recruit them.

Cross-posted at Market Power

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