California’s Decision to Forgo SAT/ACT Spells More Trouble for the NCAA

It has been a tough year for the NCAA and its president, Mark Emmert. In September of 2019, California passed the “Fair Pay to Play Act,” allowing college athletes to profit from their likeness and forcing the NCAA to allow all athletes in every state the same concession. Though the details of how this will be managed across the national landscape are sparse so far, many have predicted this as the death of the amateur student athlete model and eventually, the NCAA itself. The hits keeping coming.

In October of 2019, the NCAA issued payments in excess of $200 million to former student athletes for their participation in the college football playoffs and the NCAA basketball tournament. This further validated those who’ve questioned the concept of “student athlete” and added fuel to the fire for many who think the NCAA is merely an economic cartel — engaging in hypocrisy — as amateur athletics generates billions. The debate rages on, but it’s clear the NCAA is now playing defense.

In the beginning of 2020, COVID-19 hit the U.S. and forced the cancellation of March Madness before the first jump ball. This resulted in the NCAA and its members missing a payday of roughly $900 million. Forced to drain already depleted reserves, the NCAA executive leadership in Indianapolis informed athletic directors around the country that their payouts would be about 60% of the previous year. We now see just how much all collegiate sports depend on catching a ride on the campus bus of football and basketball payouts in order to fund “Olympic” sports. The shortfall is now forcing many colleges and universities to cancel some sports all together.

If that wasn’t enough, here comes the University of California system announcing it will no longer accept or require SAT or ACT test results. This is in defiance of the U.S. Department of Education dictates and in direct violation of NCAA guidelines for eligibility. Just imagine a top basketball prospect deciding between becoming a Cal Bear or a UNC Tar Heel. He was likely only planning to be around for one year regardless, but now — instead of spending his junior year with a tutor and prepping for the SAT — he can concentrate on his AAU summer schedule knowing that Cal will not look at his standardized test scores as part of his transcript and eligibility requirements. This creates a clear advantage for those public institutions in the Golden State.

As with the player likeness issue, legislators in Sacramento are forcing the NCAA’s hand. At some point, the NCAA either pushes its chips in or it folds again and continues its descent into obscurity.

We’re not sure where the notion originated that standardized tests, like the SAT and ACT, were no longer necessary in deciding the readiness of a high school student to accept the rigors of college, but it’s likely you can find part of its genesis in the sociology department at Cal Berkeley. We doubt they knew their ideas would actually assist the Golden Bears department of athletics, but that will be one of the effects.

Where does the NCAA go next? What card does Emmert play now? Hundreds of colleges, and their local economies, depend on the revenue from sporting events and media contracts. Thousands of students depend on the athletic scholarship to afford the college education. Media companies need the live content that major college football and basketball provide. And we now understand how much of the U.S. economy is connected to sports and entertainment.

Can the NCAA find a way to preserve its role as the arbiter of media contracts, championship events, and rules enforcement while the earth literally shifts under its feet? The NCAA has never been a fast-moving organization and it has long counted on congressional support, favorable fan attitudes, and disorganized student athletes. All three appear to be rapidly disintegrating. The NCAA and its leadership team in Indy need a new game plan, and they need it now.

Jon L. Pritchett is CEO of the Mississippi Center for Public Policy. He previously worked as an investment banker, executive, and entrepreneur over a 28-year career in private business. 

Ed Tiryakian is co-founder of Fandex and in his 10th year teaching at Duke University as a visiting associate professor, teaching corporate finance, business economics, and the “Business of Sports” class.