Interesting article on Cleveland.com relating to the overall revenue gain by the university based on the number of stars a football recruit has. The study was completed by Ohio State economics professor Trevon Logan and former student Stephen Bergman.
According to the study:
Five-star recruits increased their schools’ revenue by an average of $650,000, according to a study accepted for publication in the Journal of Sports Economics.
Using the Rivals.com rankings and analyzing the years 2002-12, the study determined that four-star recruits ($350,000) and three-stars ($150,000) increased their schools’ revenues. Two-star recruits decreased revenues by $13,000.
While not surprising that elite recruits are good for the bottom line, putting a number to it is definitely compelling in regards to the debate on college athlete compensation.