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re: Northwestern Football players form a Union, who does so first in the SEC?

Posted on 1/28/14 at 11:57 am to
Posted by ElysianArmsAlum
Maryland
Member since Dec 2006
964 posts
Posted on 1/28/14 at 11:57 am to
I wonder if there are tax implications for the players if they are in a union. Will the scholarships, food, medical care all become taxable...very possible
Posted by CockInYourEar
Charlotte
Member since Sep 2012
22458 posts
Posted on 1/28/14 at 12:49 pm to
quote:

I wonder if there are tax implications for the players if they are in a union. Will the scholarships, food, medical care all become taxable...very possible


That's one of the places the universities who don't want to do this will start, it's all part of them finding out what is the total compensation/value they are really giving the athletes.
Posted by DoreonthePlains
Auburn, AL
Member since Nov 2013
7436 posts
Posted on 1/28/14 at 1:44 pm to
quote:

I wonder if there are tax implications for the players if they are in a union. Will the scholarships, food, medical care all become taxable...very possible


Wow, I hadn't ever thought about the tax issue that would arise from NCAA athletics becoming pro or semi-pro. As for the total compensation, I know for four years at Auburn as an out of state student, my tuition bill alone (if I wasn't on scholarship) would be right at or a little over $100,000. The school estimates a total cost of attendance at around $40,000 for an out of state student, but that has some things like travel to and from home that the school doesn't pay for already. So, assuming they estimated costs correctly and that they would require student-athletes to be especially economic, the total compensation for an out of state would be at least $35,000 a year. Over 4 years, that becomes $140,000.

And yes, I would imagine that all of that would be taxable compensation since the union would make them employees. However, and I'm really curious about this, how would the NCAA react if these players do form an union? The NCAA isn't a government organization, so I'm not sure they have to even recognize the union. Could they just declare the entire team ineligible?
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