Maybe small private colleges should throw a wrench into the entire system and treat athletes as employees. That might blow the entire thing up for everyone. At this point, that’s the only card left we have to play.
Why *wouldn't* colleges treat NIL players as employees? (Serious question, not sure if I'm missing something policy-wise or financially?). Isn't that the most obvious category at this point? It doesn't rule them out being students also or in some secondary way. There is plenty of precedent for people to be both employees and students in higher ed, where an employee is working for the university but also enrolled in some program or another. Usually that's older-adult employee+ Masters students but I don't see why that couldn't be NIL employee + undergrad students...
Edit: It just occurred to me, I guess universities would have to work out some distinction between NIL employee players vs. non-employee players (if there are some on the team without any NIL salary and so just playing as students). But that seems possible. Universities are already basically a caste system with lots of blatant inequalities with wildly different levels of security and compensation (administrators vs rank-and-file employees, business school vs other colleges, endowed faculty vs regular faculty, tenure stream vs. adjunct despite teaching many of the same classes). So given the rampant inequality of the entire system, it doesn't seem that crazy to me to have some kind of tiered system in the sports employee salaries where there is an upper echelon of employee players paid to play vs. amateur players doing it for free.
Louth to the portal. Down to two remaining scholarship players. Incredible really, sad is perhaps a better sentiment.
Shucks.
Roger Powell has been a warrior. Padilla's best move by far was hiring Powell Does the Padilla departure give him "room" to consider his own options only just two years? Sadly, I think so. He got a nice contract here, but Valpo simply won't have the resources he needs anytime soon for players or facilities.
@realist77 I don't think he is considering his options in year 2. You don't leave a cushy job in Spokane for one of the biggest brands in college ball to come to middle of nowhere Indiana for a school past it's prime unless you have long term goals in mind. This is the place he wants to be, he at least is going to finish out his contract.
Good points! I hope you're right. The 2 wins in St. Louis as an #11 seed really had me excited.
Maybe small private colleges should throw a wrench into the entire system and treat athletes as employees. That might blow the entire thing up for everyone. At this point, that’s the only card left we have to play.
Student athletes who receive future revenue sharing payments directly from their university may in fact be considered de facto employees. As indicated below, this could open up a whole new can of worms such as unionization, to name one.
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Potential Employee Status:This direct payment of athletes from the university's revenue raises the question of whether athletes may now be considered employees.
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Implications of Employee Status:If athletes are deemed employees, it could lead to issues of unionization and collective bargaining.
Maybe small private colleges should throw a wrench into the entire system and treat athletes as employees. That might blow the entire thing up for everyone. At this point, that’s the only card left we have to play.
Student athletes who receive future revenue sharing payments directly from their university may in fact be considered de facto employees. As indicated below, this could open up a whole new can of worms such as unionization, to name one.
From an employment law perspective, the NIL bucks are strengthening the legal claim for employee status.
It doesn't help the mid-majors. Nor does unionization. But we're already seeing that the combination of the transfer portal and NIL cash effectively makes this an annual free agent declaration for the players. They don't need union meetings, shop stewards, and collective bargaining agreements. They have all the bargaining power already. After all, it's not just the Cooper Schwiegers and the All Wrights who are hitting the portal, it's guys who barely got off the bench.
For the mid majors, eventually I think this system is going to crumble of its own weight, and what's left in its wake is anyone's guess. Mid-majors are typically regional private and public schools that are facing enormous budget challenges in a very challenging financial environment for higher education. The notion of raising NIL bucks to pay kids who may stay for a year regardless is going to get old fairly quickly.
@whvalpo More to think about. Why should a young man or women who provides a service (i.e., represents the university to the outside public in a uniform owned and supplied by the institution), exhibits a unique skill that literally generates revenue to that university, and in return is provided financial compensation over and above the cost of attending that institution NOT be considered an employee and, therefore, is required by law to receive a Form W2 for tax purposes for their work?
Look, for many years I was an independent IT security and Project Management consultant. Like our young basketball mercenaries, I moved from client to client providing needed services for which, at the conclusion of my engagement, I was compensated and that compensation was reported to the IRS. Any non-cash remuneration was also taxable.
So………. If I ran the IRS, I would demand: (a) W2s for any NIL compensation PLUS (b) W2s for the free educational benefits provided to said employees that are part of their overall “compensation package”. The fact that they might receive, after all that, a degree is irrelevant. This is business, man. Treat as such.
Bold of you to assume the IRS will still be around in a year.
VULB62 - Overall, I agree with your points. However, compare these two student-athletes. First, a basketball player who gets free tuition and housing worth $70K and NIL money (in some way) for $100K. The basketball player owes income tax on $170K - not an insignificant amount, but the player has $100K in cash to use for that. Second, a basketball player who goes to a small D1 school who gets free tuition woth $70K - but no NIL money. That player would also have to pay income tax on $70K of income, but would have no cash to cover probably $7K to $10K in state and federal income tax. If the government taxes tuition, room/board, NIL, etc. (and they probably should since it is income), I do not know how you avoid this since it is all really income.
Under IRS rules, Monies received for tuition, books etc are not taxable but monies for room/board etc ARE Taxable. NIL money has to be fully taxable unless it is somehow deemed a gift. Here is part of the language from the IRS:
"If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free."
"You must include in gross income:
- Amounts used for incidental expenses, such as room and board, travel, and optional equipment"
NIL money is indeed taxed. Even collective money seen as a "gift"
