The Indicator from Planet Money Why are college coaches paid so much?
May 28, 2025
Discover why college football coaches are often the highest paid employees at universities, sometimes earning close to $11 million a year. The podcast explores the economic implications of these hefty salaries, questioning if they truly make sense. Learn how a successful football team boosts university revenues and attracts students, while also uncovering the complex financial structures behind coaching salaries. Tune in to understand the balance that university leaders must strike between athletics and academics.
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Alabama's High-Paid Coach Story
- Greg Byrne, Alabama's athletic director, hired football coach Kalen DeBoer for $11 million yearly.
- Byrne described football as an "engine that pulls the train," funding broad sports programs and engagement.
Coach's Impact Beyond the Game
- A top football coach boosts ticket sales and nationwide buzz, increasing student enrollment.
- Greg Byrne cited Alabama's growth from 25,000 to 40,000 students after Nick Saban's championship win.
Coach Salaries Often Don't Pay Off
- Many colleges don't economically benefit from paying massive coach salaries.
- Sports economist Andrew Zimbalist finds most athletic departments lose $20 million or more annually.