“We’re not using you, but if you want to help your career you have to make us millions of dollars for free”.
I’d say they’re still getting used
How many are really used though? Less than 5 per year. AKA those kids that would be top 5 picks out of HS, and would then go on to excel.
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Take Kyrie Irving. After his Senior year of HS ended, he'd have been a first round pick. Probably late lottery or just after that. Instead, he goes to Duke and abuses folks at the pro-am, and has 11 games of brilliance. He goes 1st overall and signs a 10 million dollar shoe deal (over 3 years). Out of HS he'd have gone 10-15 picks later, and been lucky to get 500K for 2-3 years on a shoe deal. So, his year at Duke probably earned him an extra 10-15 million just over the course of rookie deal.
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Nolan Smith wouldn't have been taken into the G league out of HS. He wouldn't have made a top league in Europe out of HS. Over 4 years he turned into a lottery pick and made millions of dollars over his rookie deal, and playing at Duke will probably set him up for a career as a coach that will last 2-3 decades. So, he did OK.
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Bagley would have been a top 5 pick whenever he came out. Regardless, he's going to make more money off endorsements now that the pros (and advertisers) know what they are getting from him.
And running a college basketball team ain't cheap. People throw out names like Duke, or Kansas, or UNC, or UK. And yes, we make tons of money. Most of the ACC does. But those teams spend a ton of money to run the team (many of which enjoy amenities only slightly less than those of NBA players), to say nothing of the incredible cost in time and money on recruiting.
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And yes, at the end of the day, some top kids are "hosed." They make the schools far more money than the schools spend on those players. But that money funds the athletic scholarships for a lot of poor kids who play non-revenue sports. Money earned by hoops/FB programs don't stay with those teams. It is spread around, a lot.