We’re about six weeks from the start of the College Football season. The conferences are having media days, with coaches complaining about how NIL and the transfer portal are making their jobs difficult. They are equating it to pay for play, with the schools having the most dollars getting the best players.
Congressmen are sponsoring legislation to control NIL (name image likeness) nationwide. State legislators are doing the same for their domain, with each state having different laws. What?
What does a government have to do with limiting a person’s income? Their best approach would be to declare athletes employees and schools employers. Thus making compensation taxable under the multitude of IRS regulations, where employers already have systems in place for compliance.
Does the NCAA have a position? But first, the NCAA is not an independent governing body. The NCAA is an association of member schools. A consensus of the schools defines the policies of the NCAA.
Each school is represented at NCAA meetings by its President or Athletic Director.
At the June town hall session during my UVA Reunion, I asked President Ryan, “With NIL and the transfer portal, what are your thoughts about replacing the scholarship model with an employment model for Division 1 athletes?” I wish I had recorded the response for accurate quotes.
Since this question was in a public presentation setting, I was hoping for a transcript, which was not recorded. So, I’ll paraphrase his response.
We’re in the wild west. It should be considered if the employment model reigns in NIL and the transfer portal. Professional sports have salary caps and long-term contracts, which may reduce the chaos.
My note-taking was better at UR than at UVA. I hope I didn’t do him a disservice.
My definition of the employment model is as follows:
Employees sign a contract and are compensated for their work. They are required to pay for the tuition, room and board. They will be taxed on their income as W2 employees, and tuition is not a deductible expense. If they get money from NIL, they will receive 1099s for tax purposes.
Employers would provide a safe work environment and worker comp insurance.
It may take some time before the NCAA arrives at a solution. At least one different idea wasn’t a foreign concept.
Does it need to be an act of Congress?