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Posted

How will these kids respond when the IRS states their scholarship is a benefit of their employment at the university they choose? Taxes on that education to Northwestern or Stanford may have them second guessing their committment to these expensive schools.

You really think the IRS is gonna go after a scholarship benefit from a university? In the current political landscape, that isn't going to happen. Education, especially higher education of a lot of poor kids isn't going to get taxed...

Posted

if the players are going to get paid...why require them to go to school...why even require them to enroll...if they are paid employees, let them decide if they want to go to school???

the whole student/athlete thingy is a farce anyways...look at all the academic fraud that goes on with athletes...just pay players to play...

  • Upvote 1
Posted

if the players are going to get paid...why require them to go to school...why even require them to enroll...if they are paid employees, let them decide if they want to go to school???

the whole student/athlete thingy is a farce anyways...look at all the academic fraud that goes on with athletes...just pay players to play...

Just because fraud happens does not mean it is a farce. There are plenty of student-athletes who take their education seriously, and go on to successful careers outside of playing sports after graduation.

Eliminate the student-athlete from college athletics, and you will lose a very large base of its support. That might not apply at places like Alabama and a few others, but by and large that would make college sports into nothing more than minor league professional sports.

Posted

You really think the IRS is gonna go after a scholarship benefit from a university? In the current political landscape, that isn't going to happen. Education, especially higher education of a lot of poor kids isn't going to get taxed...

If the players are considered employees, then I do expect the IRS to want to reach into those pockets. If they are employees, it will no longer be a scholarship and it will become a benefit. Whether it is a pretax benefit would still need to be established.

  • Upvote 2
Posted (edited)

You really think the IRS is gonna go after a scholarship benefit from a university? In the current political landscape, that isn't going to happen. Education, especially higher education of a lot of poor kids isn't going to get taxed...

My assistant money and ROTC stipend at OSU during my graduate work was taxed! And I was a darn poor grad student funding the full costs of may graduate education. You darn sure better bet if athletes are considered employees that their scholarship, meal money, shoes and everything else will be taxed. Your "poor kid" argument is a staw man argument. The IRS has no soul...it is amoral. These players better be careful what they ask for in this deal.

Edited by KRAM1
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Posted

My assistant money and ROTC stipend at OSU during my graduate work was taxed! And I was a darn poor grad student funding the full costs of may graduate education. You darn sure better bet if athletes are considered employees that their scholarship, meal money, shoes and everything else will be taxed. Your "poor kid" argument is a staw an argument. The IRS has no soul...it is amoral. These players better be careful what they ask for in this deal.

That's kind of what I was thinking. Of course if most of it is considered "pre-tax benefits" then they may only tax everything other than the tuition, fees, and books...and if they're housed on campus that might be exempt too. There are ways to skirt around getting most of it taxed but I do think that it's kind of a dangerous bet to hedge.

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Posted

That's kind of what I was thinking. Of course if most of it is considered "pre-tax benefits" then they may only tax everything other than the tuition, fees, and books...and if they're housed on campus that might be exempt too. There are ways to skirt around getting most of it taxed but I do think that it's kind of a dangerous bet to hedge.

Not if they are classified employees. Housing, tuition, fees, etc. all open to taxation as income. Especially if they get paid. It is going to be really interesting to see how this plays out because it has the potential to impact all scholarship and non-scholarship athletes. All the sports, revenue and non-revenue could well be impacted. Pay the football players? Think title IX...hello soccer, softball, swimming, golf, tennis and on and on. Yikes!

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Posted

Though that's not necessarily out oion based on this ruling, note that they've determined that the compensation package (tuition, room, books, etc.) counts as pay for the service provided (football). Sounds like some of the other replies are based on this assumption too. I'm hoping the primary reason for the unionization is to ensure proper medical care like Harry pointed out. There's no reason to think that their compensation package is inadequate, but for them to end up paying for their medical care after the initial coverage by the University is crap if it's a football injury. I know, we all have old sports injuries that bug us as we get older but that's not what I'm talking about.

THIS is exactly correct. I KNOW that for a fact that players get EVERYTHING down to the free contact lense, though....

  • Upvote 1
Posted

Not if they are classified employees. Housing, all open to taxation as income.

I'm not gonna look this up, but I think there's a rule of company provided housing as a required geographic proximity to a job not being considered income. I could be wrong. Don't quote me on this, and do not take this as tax advice. Engage your local CPA for further details.

  • Upvote 2
Posted (edited)

This is all so disappointing....

My husband has a injury to his sternum and injuries to his rotator cuff that were due to college football. He knew about them thenbut they have grown increasingly worse in the past 10 years since he stopped playing football. I played college basketball for three years. My knees sound like bubble tape crackling everytime I sit down... should we sue the same institutions that paid for are very very expensive education after we knew the risks involved as far as playing these sports??

This is a kind of discussion that is opened up with topics like this...

Domino effect... as it always is when you get legislation involved.

Edited by SSP
  • Upvote 1
Posted

I'm not gonna look this up, but I think there's a rule of company provided housing as a required geographic proximity to a job not being considered income. I could be wrong. Don't quote me on this, and do not take this as tax advice. Engage your local CPA for further details.

Oh, you could very well be correct as well...but the operative words here just might be "as required". If colleges did not require that they lived in student housing yet provide funds for housing..well, what then? I am guessing that lots of rules will change if this goes to paying players. So...pay them, but make them pay their own tuition and housing and medical and food and on and on.... Sure pushing the window here, but the players could very well be killing the goose that laid the golden egg for them and screwing up a lot of other non-revenue team athlete's opportunities as well. Going to be awhile before all this works itself out, but for certain things are definitely going to change in the world of college athletics if the Union boys have their way.

  • Downvote 1
Posted

The bottom line on this is easy with regards to the average player. Football players are not allowed to work. Room and board is covered but without mom and dad helping out a player can't even buy a movie ticket or have money to go out on a date. Then they tell guys to apply for grants. Laughable at best. The NCAA by its own policies ensures players will violate the rules. Scholarships are awesome. I'm not saying they deserve gobs of money but enough get by isn't asking a lot.

Additionally, Manziel is a good example for the elite players. The NCAA made money off his name, A&M made money off his name, however, Johnny Football can't make money off his own name? Totally ridiculous. Regardless on your opinion of the kid, it's pathetic. College football is big business and there are a lot of fat cats getting rich off it. I have zero problem with anyone getting paid for being marketable. If Nike wants to pay the Heisman winner for being in a commercial then so be it.

Posted (edited)

So let student athletes work. Let them sign their own endorsement deals. If video games use their likeness, pay them a royalty.

But universities should not pay them.

Edited by UNTflyer
  • Upvote 3
Posted

So let student athletes work. Let them sign their own endorsement deals. If video games use their likeness, pay them a royalty.

But universities should not pay them.

Good god, could you imagine 19, 20, and 21 year olds trying to keep up with the influx of 10/99 forms they would receive? Do you think they would be mature enough to set up a savings account in order to pay the about 33 percent tax rate (?? Ball parking it) that will come due April 15 the following year?

My guess is that many would be prosecuted for tax evasion or leave college heavily indebted to the IRS.

Things people don't think about.

  • Upvote 1
Posted (edited)

This article from SI hits the nail on the head. If you have the time PLEASE read this as it is an excellent summary of what got us into this state of affairs.

Here is an excerpt, with link below:

"One or all of these challenges will ultimately succeed because the people in charge of college sports didnt heed the old saw about what happens to pigs and what happens to hogs. The conference commissioners, athletic directors, coaches, and NCAA officials have had a great run of about 15 years in which their revenues have soared while their labor costs remained mostly flat. A lot of that money went into their pockets. And bless the $4 million football coach or the $1 million athletic director. They were only being good capitalists. Its great that Ohio State athletic director Gene Smith negotiated a contract on the open market that pays him a $940,484 base salary and includes bonuses such as the $18,447.94 hell receive because Buckeyes wrestler Logan Steiber won the NCAA title in the 141-pound class this past weekend. It kind of stinks that Steiber doesnt get a penny extra even though he threw some significant scratch in his ADs pocket."

Read more: http://m.si.com/4075602/ncaas-labor-mess/

I'm still trying to grasp as to why I should feel this kid isn't getting what is due him?

Ever seen how much people pay to use a gym or workout club per month? And this kid gets free access to much better facilities than most of us have access to. He gets an education without having to pour concrete or tie steel or roof houses or stand on his feet for hours waiting tables to scrape enough money to pay for it. I sold lawnmowers and stocked groceries at 5 am to pay for mine. He'll never have a tuition loan to pay for. Hell those bastards at TCU are married to their college loans for life trying to pay off their loans. He gets a roof over his head. He gets to eat all he wants. He has no electric bills to pay. Cable is probably free. Tutoring he may need is free. Books he needs are free. And since he's the darling of the wrestling team he gets an inside track to the hottest chicks on campus? What else is there? I guess I don't get it? I guess what I do get is this must be the entitlement mentality coach Mac was talking about last Fall of kids walking in with their hands out expecting something for nothing.

Rick

Edited by FirefightnRick
  • Upvote 3
Posted

Should have made a bet on over/under # of times the word "entitled" is used in this thread.

Kind of hard to disagree with though, you know?

Posted (edited)

Kind of hard to disagree with though, you know?

I just think its the most overused term used not only to describe my generation by my parent's generation, but for every younger generation by the older generation since the beginning of time.

Edited by ChristopherRyanWilkes
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Posted (edited)

I never thought of it as a generational thing, really. More of a "spoiled and lazy" ideal, which can fit any age or generation.

Edited by JesseMartin
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