So if college players are employees....

[DCWV4life]

http://espn.go.com/college-football/story/_/id/10677763/northwestern-wildcats-football-players-win-bid-unionize



So if college football players are employees, shouldn’t they have to pay taxes on their benefits? Tuition is about $45,000. They also get free food and workout facilities. If they are employees then what is the cost of a meal plan and gym membership because those are benefits that should probably be taxed. Let’s just round that up to $50,000 and say they owe the federal government about $12,000.

 

[Slaton10]

http://espn.go.com/college-football/story/_/id/10677763/northwestern-wildcats-football-players-win-bid-unionize



So if college football players are employees, shouldn’t they have to pay taxes on their benefits? Tuition is about $45,000. They also get free food and workout facilities. If they are employees then what is the cost of a meal plan and gym membership because those are benefits that should probably be taxed. Let’s just round that up to $50,000 and say they owe the federal government about $12,000.

On the right track DCW...but Shawne Alston's lawsuit spells it out a little clearer..it makes the case the Scholarship is over valued...meaning there is no money that truly exchanges hands internally...meaning its worth ZERO.....but your right, they would be subjected to taxation for monies made over a certain dollar figure....

 

[Anotherwvufan]

Scholorship tuition is generally not taxable, however, room,board and other benefits may be included in taxable income. There is alot of grey room here. They will be able to deduct their union dues.

Northwestern is about to become a Dynasty in college football.

In all reality, college players should be able to appear in commercials and make some money on the side. That does not cost the school and greatly benefits the student. From what I understand about the Nortwestern lawsuit, they were asking to be allowed to advertise and to get medical coverage for injuries related to their sport. That sounds reasonable to me.

 

[DCWV4life]

http://espn.go.com/college-football/story/_/id/10683398/tax-implications-create-hurdle-players-union

 

[Slaton10]

http://espn.go.com/college-football/story/_/id/10683398/tax-implications-create-hurdle-players-union

Section 117 of the Internal Revenue Service code provides that "gross income does not include any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization" as long as that money goes towards educational expenses. An IRS rule that was established in 1986 stated athletic scholarships are no different than financial aid or academic scholarships with respect to the tax code.

This is were the grey area is...IMHO they will never pay taxes when it comes to their Scholarship or potential stiepen...it would likely come into play if they get a roylaty for having their likeness on a video game or jersey sales.......

I beleive this is really what this is all about and has been for awhile...

 

[Anotherwvufan]

This could also thwart any attempt to pay players a stipend over and above tuition expenses. Once you open the box, the IRS will want to jump in.

I don't think that the IRS would tax future medical care resulting from sports injuries. Schools should really provide that.

As Ive said before, allowing athletes to appear in commercials (like amatuer Olympic athletes) can really be a part of the solution.

 

[bbwvfan]

Be careful what you wish for...

 

[Anotherwvufan]

If you are giving me a wish, it would be that the money factor be removed from college athletics. Use the TV money on offering more students the opportunity to earn a sports or academic scholarship, or even better, donate it back to the university. Cap coaches salaries so they make no more than the highest paid professors. Use athletics to support education. WVU made 4.2 million in sports last year on 77 million revenue. That equates to $150 per student. That could make a nice reduction in tuition.

When college athletics is able to make coaches multi millionaires and finance larger and larger facilities while players are unionizing so they can get medical benefits for sports related injuries, something is wrong. Athletic departments are not going to give up the cash cow without a fight. First step, Oh sorry we cant do that because it will make your scholarship taxable. Meanwhile Johnny Football cant make a buck selling an autograph.