Contracts and Capitalism
In discussing the current brouhaha over the University of Miami football program yesterday, local talk show host Chris Baker claimed that he thought it was "no big deal", that the booster was simply engaging in "capitalism". In response, I sent him the following message:
Yesterday on the air you were complaining about the negative attention directed at the University of Miami football program based on the booster giving players money, providing hookers, hosting yacht parties, and other gifts and perks banned by NCAA rules. You stated that this was merely capitalism, that it wasn't anyone's business how he spent his money.
Unfortunately, that is not the nature of capitalism, at least not in its intended form. One of the backbones of free market capitalism is adherence to contracts. When a team chooses to become a member of the NCAA — a voluntary association — it signs a contract stipulating that it will follow the NCAA rules. Among these rules is the banning of such gifts and perks as booster Nevin Shapiro is alleged to have provided.
Each NCAA member has a compliance office, which is charged with ensuring that the obligations are met — again, obligations that the school voluntary took upon itself by choosing to associate with the NCAA. Each coach signs a contract stating that he will abide by those rules and take action if they are violated. And finally, each player signs a letter of intent for their scholarship, and agrees in return not to break those rules.
I'm not sure what kind of contract you have in place to work for KSEV, but should you break the terms of that contract — even if engaging in activity that is in and of itself legal — your employer has a right to sanction you as per the terms of that contract. When you — or the University of Miami — breaks a contract, you are essentially engaging in fraud and theft, two activities that go against the tenets of free market capitalism.
Sincerely,
Dave Smith
Houston, TX




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