Every young athlete has a dream to one day become a professional athlete and become famous one day. However, as you grow up some times those same kids that once dreamed of becoming a star athlete goes away. But, there are also a lot of kids that still want to live out their dream and one day become that star athlete they dreamed of as a kid. As you grow up and improve your athletic ability in high school you start to think about the next chapter in your life. Many high school athletes around graduation are showing their prospected Universities their skills and abilities. Some high school seniors are even able to get the chance to go straight to their professional sports career. In two empirical articles The Value of College: Drafted …show more content…
Winfree and Christompher J. Molitor wanted to analyze the decisions of drafted high school athletes weather to enter college or immediately go straight to the professional baseball career. Their objective was to analyze the decisions high school baseball players who are drafted to play in the professional league have to face, giving them the question as to whether to play professional baseball or to attend college. “Many players feel that their best chance to play major league baseball is to enter the professional ranks right after high school” (1). In this article solely on the basis of the information that is known at the time of the decision, they show how a player can maximize his expected lifetime earnings. Many parents will argue that athletes should go to college first to get an education just in case they get hurt or don’t perform as well as expected. To test their study they examined players drafted by the MLB between 1965 and 1980 giving them a sample of 7,800 high school baseball players. To test this they used the expected discounted present value of lifetime earnings (Freeman, 1975). In the controlled variable they used the round that the players were drafted because of the baseball ability of the player. The second variable is the position of the player. The third the number of years the player played in the minor league and the forth one is the first year the players played in the minor …show more content…
Groothuis, James Richard Hill, and Timothy J. Perri wanted to analyze why do the NBA draft players out of high school instead of waiting until they get out of college. In their study they used two models that predicted early entry into the draft which included human capital and option value. In the human capital model suggests players enter the NBA once a certain skill level is obtained. While the optional value model suggests that college basketball provides signals for players (3). Breaking the study up into three sections the first section focused on the history of the NBA collective bargaining agreement (CBA) to estimate how monopolistic exploitation has increased with the rookie contract. In the second section they modeld the early entry decision for both the players and firms and then focused on the testable implications of both human capital and option value models pf early entry. In the last section they concluded with policy implication. CBA is a process of negotiation between a team’s owner and the player agent coming to an agreement on a player’s contract. The new CBA was signed in 1999 allowing compromise agreement that established caps on individual players’ salaries, lowered the 3-year pay scale for rookies, added a 4th-year option, set minimum salaries, and added a median player salary exception to the list of other salary cap exceptions (3). Given