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7 Ent. & Sports Law. 3 (1988-1990)
Rubber Sole: Should College Basketball Coaches Accept Sneaker Money

handle is hein.journals/entspl7 and id is 27 raw text is: Georgia Tech's Bobby Cremins is paid over $150,000
a year by the Nike shoe company. Villanova's Rollie
Massimino receives an estimated $125,000 annually
from Puma, as do Eddie Sutton of Kentucky and Jim
Valvano of North Carolina State (both from Nike).
North Carolina's Dean Smith (Converse), Louis-
ville's Denny Crum (Converse), Indiana's Bobby
Knight (Adidas) and Georgetown's John Thompson
(Nike) are all paid in excess of $100,000 per year by
shoe companies. About seventy-five National Col-
legiate Athletic Association (NCAA) Division I
coaches have deals averaging $30,000 to $40,000
annually.'
Acting upon the recommendations of the Special
Council Subcommittee to Review Coaches' Outside
Income, the NCAA in January 1987 adopted meas-
ures restricting these lucrative deals. The adopted
measures, aimed primarily at men's basketball
coaches, require all coaches to gain approval from
their educational institution's chief executive officer
(CEO) before accepting any form of compensation
from manufacturers and to report all athletically re-
lated outside income to their CEO as well.2 While
these provisions mark the NCAA's first attempt at
regulation in this area, in the opinion of many schools
they have simply not gone far enough. Indeed, a
fundamental question remains: Should the shoe
companies pay this money, which often exceeds the
amounts received by the basketball coaches in salary
payments from their respective schools, to the
coaches or to the educational institutions they rep-
resent?
A $750 million basketball shoe market exists in the
United States each year.3 Consequently, the com-
petition among the shoe companies for the consum-
er's money is intense. Representatives of the shoe
companies are convinced that the decision of the pri-
marily teenaged consumers about which brand of
sneakers to purchase is influenced by the basketball
stars and teams they see wearing them.4
Further, notes Tom McLaughlin, formerly the

V

head basketball coach at the University of Massa-
chusetts and a sneaker representative for the Con-
verse Shoe Company, paying a prominent college
basketball coach to have his team wear our brand of
shoes is a relatively inexpensive means of advertis-
ing. It may cost us over $1 million a year to have an
NBA superstar of the magnitude of a Larry Bird or
Magic Johnson wear our sneakers, while it costs less
than $200,000 per year to have a team like Indiana
wear your equipment.5
Converse alone budgets an estimated $2 million
for college basketball each season, compared to
$100,000 to $200,000 for football.6 The reason for
that differential is simple, explains McLaughlin.
Kids play basketball year round and go through
several pairs of sneakers each year. They also wear
the sneakers as everyday foot attire. With football,
on the other hand, the cleats can only be worn while
playing football, which really only takes place a few
months each year.7
Converse and many other companies, however,
are scaling down, with the exception of industry
newcomer Reebok which pays top dollar to the likes
of Ohio State's Gary Williams and Iowa State's
Johnny Orr. Shoe firms have become more selective
as the price per top coach increases. McLaughlin says
this scaling down. is reflected in the movement to
find the nation's top programs and pay them ac-
cordingly, rather than trying to sign up as many
schools as possible. We now look for solid programs
with loyal coaches who won't leave you after one
year if offered a few extra dollars elsewhere.8
College basketball coaches fortunate enough to be
in demand enter a personal services contract with
the shoe company. The contract usually calls for the
company to provide free shoes and other gear in ad-
dition to the monetary compensation given to the
coach.
In return, coaches make appearances at clinics and
other company functions, offer input into shoe de-
sign, and, apparently most important of all, outfit

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