College Athletes are Employees

Scholarships are not taxable but this ruling would suggest that they are being compensated for services. That is taxable. These kids can't have it both ways. If they want to be employees they need to pay tax on the value of their scholarship.

Absolutely. And in the end, when they finally start paying athletes...how many of these kids are going to be in trouble with the IRS at such an early age.
 
Absolutely. And in the end, when they finally start paying athletes...how many of these kids are going to be in trouble with the IRS at such an early age.

Not many...will only get red flagged by the IRS if they make it big in the pros. IRS won't spend time trying to procure immaterial amounts.
 
Money is not one of their demands. Their argument is that they are employees because of their existing compensation arrangement. They might in the future demand more money, but that would be subject to normal bargaining rules.

by the same arguement privaite high school scholarship basketball players are employees ..

the union "loaded" NLRB may say they are but at the end of the day i bet that the courts say otherwise
 
I don't know all the details. It is a secret. But, they make out like bandits.

a secret ... lol .. that is funny .. what they can and cannot receive is specified by the NCAA

it is not some secret
 
a secret ... lol .. that is funny .. what they can and cannot receive is specified by the NCAA

it is not some secret

Really, I don't know how much Buddy's weekly check amounts to. Trevor Knights weekly check and Share Campbell's weekly check is kept secret from me.

I don't know which players are receiving any grant or aid above their athletic scholarship. My question is, do you? Does anyone outside of the athletic community know the details of all of the benefits received by athletes?

I can answer that question. It is no. I don't mind you being a contrarian. But, you could probably do a better job of picking your spots.
 
Not many...will only get red flagged by the IRS if they make it big in the pros. IRS won't spend time trying to procure immaterial amounts.

Really, from time to time, the IRS had their nose stuck up my business no matter the amount. Glad you haven't had the experience.
 
Not many...will only get red flagged by the IRS if they make it big in the pros. IRS won't spend time trying to procure immaterial amounts.

I've seen them do just that. The IRS doesn't understand materiality. And being that taxing scholarships would be a new thing, it'll be high on their radar.
 
Really, I don't know how much Buddy's weekly check amounts to. Trevor Knights weekly check and Share Campbell's weekly check is kept secret from me.

I don't know which players are receiving any grant or aid above their athletic scholarship. My question is, do you? Does anyone outside of the athletic community know the details of all of the benefits received by athletes?

I can answer that question. It is no. I don't mind you being a contrarian. But, you could probably do a better job of picking your spots.

the pell grant they may or may not receive has 0 to do with athletics and has nothing to do with being an athlete ..

as far as the cost of headington hall .. that is not a secret .. lots of non athletes (over 50%) live there .. and have the adjoining meal plan

just like reguar students move out of the dorm and go 3 to an apt to save money so to college athletes ... it is no a "scam" ..

maybe you should pick your spots ..
 
Really, from time to time, the IRS had their nose stuck up my business no matter the amount. Glad you haven't had the experience.

Very relieved, but I am also anal about my personal financial records, so that shouldn't be an issue if it did happen.

I've seen them do just that. The IRS doesn't understand materiality. And being that taxing scholarships would be a new thing, it'll be high on their radar.

IRS audits are primarily based on 1.) materiality and 2.) business activity (complicated return, fluctuations from year to year, deductions, etc).

If you want to argue that this new activity could be on the radar, that's plausible and a legitimate claim. However, as the beneficiaries could be considered employees, it should fall under the standard W-2 filing provisions and guidelines. I could see if the athletes were receiving 1099s and the university was reporting those amounts, but simple W2 filings won't be on the radar at this amount unless there are questionable deductions (which there may be based on this new process).

My main claim is that the notion that a lot kids will be in trouble with the IRS, is incorrect. Would argue, the kids that do get in trouble will be the same ones who get in trouble down the road regardless.
 
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the pell grant they may or may not receive has 0 to do with athletics and has nothing to do with being an athlete ..

as far as the cost of headington hall .. that is not a secret .. lots of non athletes (over 50%) live there .. and have the adjoining meal plan

just like reguar students move out of the dorm and go 3 to an apt to save money so to college athletes ... it is no a "scam" ..

maybe you should pick your spots ..

Please. Try to follow along. Why do you think that Stoops and Joe C. got on the TV and beamed and gloated that Heddington Hall would be a game changer for OU? But, yet, Stoops only requires freshmen to live there.

Follow along now. The value of the room and board portion of the athletes scholarship is based on Headington Hall rates. It is new, it is pretty, and it is nice and it demands the new highest rates on campus. Higher rates than anything before it.

Now, after their freshman year when they ball players move out, they will receive a weekly check that is equal to the cost of living and eating all their meals in Headington Hall. That amount of money is much greater than what it cost them to live in other places. The players can pocket the difference between the check and he actual cost of their living expenses.

Are you with me? Before Headington Hall other schools, many of them in the SEC, had structures in place that allowed them to actually pay the players more money to come their school than OU could.

The gap between the Headington Hall rate and the actual cost of living off campus is now about equal to most. Up until now OU has been at a recruiting disadvantage to some schools. It probably wasn't a lot of money. But, to a college kid, if they can legally pocket an extra $200 a week, that could often be the difference maker as to where they went to school.

Now, because of Headington Hall, an athlete will have an opportunity to pocket as much of their room and board money as they would at other schools that are competing for their services. Probably more than most.
 
a much bigger factor is where the freshman get to live the first year on campus .. that is the game changer

and again what part is "secret"
 
also where are these new highest rates on campus??

2013-2014 Residence Hall Rates
Suite-Style(Adams, Couch and Walker Centers)
Double: $4,359/semester; $8,718/year
Single: $5,750/semester; $11,500/year

Community-Style (Cate Center and David L. Boren Hall)
Double: $3,961/semester; $7,922/year
Single: $4,949/semester; $9,898/year

A Unit (2 Bedroom, 2 Bath, 2 Residents in single rooms) $5,000.00
B Unit (4 Bedroom, 2 Bath, 4 Residents in single rooms) $3,500.00
C Unit (2 Bedroom, 2 Bath, 2 Residents in a larger double room) $3,250.00

so 2 of the 3 room types are less expensive than the standard OU dorms ... and actually cheaper than a single option ..

wow what a secret ..
 
Do you think the ball players live in the cheap rooms or the nice rooms?
 
In regards to the health and safety aspect does anyone know if there are any plans to bring in the safety chips being used around the world? I saw an article on espn a few days back. Apparently it's big in rugby. It monitors a players fatigue and risk of injury, coaches are actually able to make accurate decisions on how much playing time a specific player should receive, if guys are gassed and at a higher risk of injury you simply check the monitor on the sidelines and see where they are at and make adjustments as needed. It's not health coverage obviously but maybe it would lower the risk of injury.
 
My daughter is a scholarship athlete at a private school. The only thing they don't cover is her room. That costs me $2k per semester. Total cost of a semester at her school for a non-scholarship student is around $40k. She was injured last year and we paid nothing. Her meals are covered. She gets athletic clothing, so she really doesn't have to buy clothes. She has access to tutoring. All books are paid for. I think we also pay for her parking permit, but I know that's just her school's policy as is the room cost - they won't let coaches pay for that.
 
My daughter is a scholarship athlete at a private school. The only thing they don't cover is her room. That costs me $2k per semester. Total cost of a semester at her school for a non-scholarship student is around $40k. She was injured last year and we paid nothing. Her meals are covered. She gets athletic clothing, so she really doesn't have to buy clothes. She has access to tutoring. All books are paid for. I think we also pay for her parking permit, but I know that's just her school's policy as is the room cost - they won't let coaches pay for that.

i would guess she is not at a D1 school correct??

D1 athletic full scholarships pay for school plus room and board
 
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