According to the university's Internal Revenue Service Form 990, men's basketball coach Mike Krzyzewski once again received the most compensation from the school among those who are not officers, directors or trustees of the university. Kryzewski, who like many other famous collegiate coaches also receives money from outside sources for endorsements, took home $3.6 million from Duke during the fiscal year that ended June 30, 2008. His compensation was $1,482,532 more than he received the previous fiscal year, an increase of 68 percent [thanks to a renegotiation of his contract due to talks with the Lakers].
This information comes from Durham's Herald Sun. It might not surprise you that Coach K receives the highest salary at Duke, but this is not unusual even for schools with smaller basketball programs and lesser-known coaches. I remember reading somewhere that George Mason University's basketball coach earns more than both their Nobel Laureates and their President.
Could a basketball coach possibly bring more value to a university than a Chancellor or Nobel Prize winner? I suppose it's possible if the coach's performance affects the demand for incoming students more than these academics or university administrators. Imagine if the NCAA did not restrict schools' ability to compensate athletes -- it's quite possible that the highest earners at the university would be a couple of 18 year olds!
But, the value a coach/academic/administrator/athlete brings to the university is not equal to the value they bring to the world. Universities and academics offer serious positive externalities; this is to say that they produce more value than what is reflected in their salaries. While coaches and athletes bring entertainment value and public recognition that may sway students from one university to another, it is the professors who are changing students' lives and occasionally making giant discoveries that produce more value than any entertainer ever could.
Bottom-line: Subsidize educators! (Or tax entertainers.)
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Related:
Q & A with sports economist Skip Sauer
Salary distribution of NFL players
