01-11-2016, 08:30 PM
While I am not a tax expert, I suspect that if players start getting paid amounts above the cost of schooling (or unionize), they become employees and their compensation becomes taxable, probably including scholarship value etc. This could result in a net negative financial impact for players who might only make an additional $25K or so. It might also change the tax status of athletic departments although that and all of this is really a guess.
But to be clear, I dont think this issue comes down to tax policy, it comes down to what universities are all about. Peter Thiel has tried to convince the most promising high school students to start/join promising start ups and bypass college. I dont think universities should start offering those students more money to come to their school instead, even if they are likely to create great technologies or products that will make money for the university. And while I fully acknowledge how hard football players work, so do a lot of other students (especially grad students) who toil away in labs and will make relatively little on any discoveries they make.
But to be clear, I dont think this issue comes down to tax policy, it comes down to what universities are all about. Peter Thiel has tried to convince the most promising high school students to start/join promising start ups and bypass college. I dont think universities should start offering those students more money to come to their school instead, even if they are likely to create great technologies or products that will make money for the university. And while I fully acknowledge how hard football players work, so do a lot of other students (especially grad students) who toil away in labs and will make relatively little on any discoveries they make.