Players work for the school and the student-body don’t

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The students own the players as they are the ones who pay the freight. The school is nothing without the students. it don't exist.
Students own the players? No one owns anybody. Last time I checked, the players are students.

Secondly, you are correct in that many universities lose money on sports and therefore some of the funds come from outside the athletic department, but that's more about budget management than anything. However that is not true for the Power 5 conferences. Power 5 Football and Basketball bring in $7.6 Billion dollars annually. Sadly, only 12% of the revenue is spent on the 45,000 power 5 student athletes while 4,400 coaches account for 16% of the revenue. Athletic budgets spend 3.5 times more money on coaches salaries than on student athletes. Three percent of all the schools bring in 54% of the $14 Billion dollar annual revenue in college sports.

Lastly, the pandemic should make it painfully clear, the players generate the revenue. They generate revenue at least 8 times more than they receive. Without the student athletes, there are no college sports, and therefore no revenue.

Here's an interesting pdf from US Senator Chris Murphy on the "Cash Cow" of college sports.
 
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