Jim Harbaugh expresses concern about prospect of NCAA players unionizing

Submitted by UMProud on


"The one thing they probably need to look at is, if they are paid something and they become employees, there would be a real chance that they would be taxed, that their scholarship would be taxed as a taxable benefit," Harbaugh told reporters on the weekly Big Ten coaches conference call. 

"I don't know if they've really looked at that and wondered if they might not be better off in a situation that they have (now). That's my question. The youngsters might be in a worse position if they're paid something, some amount of money and they become employees of the university."

http://www.foxsports.com/college-football/story/michigan-wolverines-jim-harbaugh-northwestern-ncaa-union-movement-100715

 

Bando Calrissian

October 7th, 2015 at 10:54 PM ^

Basically, most schools treat grad students like employees when it's advantageous, and students when it isn't. And, regardless, tuition is never taxable because grad students never actually receive the money. The department pays it to the university. If I got the money and paid it myself, then it's taxable. Or so my Michigan based accountant tells me.

drzoidburg

October 7th, 2015 at 10:18 PM ^

he needs to stay out of it whether it's this or clemson's millionaire coach whining that we'd only pay players due to an "entitlement complex," or nick saban insisting that football is safe, the common denominator in all this is they have a *vested interest* in continuing the status quo. Despite their football knowledge, then, they are the last ones we should listen to. It's so obvious that it's embarrassing Exhibit A: "They might be in a worse position if they're paid." That is the dumbest fucking comment a multi-millionaire employee of the university could ever make. He should forfeit his own salary if he fears taxes more than an income. I swear this will end up on the next john olive opus on the corruption in college sports

sadeto

October 7th, 2015 at 10:29 PM ^

Yes. This is not a football issue at all (nor any other sport), it's a labor law issue.  The only relevant question for a coach on this matter would be how he would describe or classify his relationship with his student athletes vs. that of a head coach on an NFL team whose athletes are considered employees. I'd actually like to hear him answer that. 

Fire The Boosters

October 7th, 2015 at 10:46 PM ^

Sounds like you are the only one allowed to have an opinion on the topic. He is entitled to speak his mind on the subject the same as you and I especially considering he was in their shoes once.

I am one that does not agree with the players being paid to play regardless of the money they bring in for the university. I believe that the education, experience, network, etc. is payment enough. I wish I could have used football as payment for my college education.

sadeto

October 7th, 2015 at 11:19 PM ^

When I am at a podium in an official capacity representing my firm at a federal or state agency, I don't expect nor would I answer questions way outside my duties and expertise, for example questions relating to my staff members' legal employment status within my firm. It's just not appropriate and I would have little to offer, as Harbaugh does. He's the football coach, a university employee with $5M+ in W-2 compensation for his role in the game. Again, I would like to hear him answer the question I posed above. 

BornSinner

October 7th, 2015 at 11:13 PM ^

Yes agreed completely. This is not Harbaugh's brightest moment. That's for sure. 

 

And people take Dabo Swinney seriously? Every other word out of that dude's mouth is either god, lord or entitlement. 

Just perfect for the looney tunes in South Carolina.

bronxblue

October 7th, 2015 at 10:37 PM ^

The tax issue always strikes me as misguided; you can absolutely have a scholarship that covers room and board be one thing, then some additional income or stipend treated as taxable income.  My wife had a scholarship for part of her grad school, then a stipend for the rest.  She paid taxes on the latter, and nothing blew up.

This issue has been debated forever, and neither side is going to give in voluntarily, so my guess is that it will come down to a court order.  Players will keep filing for opportunities to profit from their efforts and the NCAA/schools will keep fighting it.  But based on my reading of the tea leaves from some of the lower court decisions, it feels like an inevitability that at some point we will have a different model for college athletes.  And that's probably for the best, as the current one sure feels broken.

 

go16blue

October 7th, 2015 at 11:07 PM ^

Or - and hear me out on this one - we just stop forbidding student athletes from making money off of their likeness. They don't even need to be employees! Just stop getting in the way when other parties want to pay them for things tangentially related to their being athletes. No new rules or anything! I think that solves this whole issue without opening up the whole "are they actually employees/students/etc" can of worms.

Honk if Ufer M…

October 8th, 2015 at 5:38 AM ^

You're wrong go16blue. The only thing that solves is allowing the tiny percentage of superstars to make money. It doesn't solve any of the other legal, medical, financial or ethical issues that face the other 99.5% of players & the sport as a whole.

Of course even that doesn't really solve even the likeness issue. Our system is made up of seemingly infinite layers of ripoff, of lies and injustice.

If players were getting a cut of merchandise it would be a pitifully unjust fraction of the profits from the producers & sellers, who have already gotten rich from exploiting and ripping off every facet of the spectrum of people involved.

They have unjustly profited from all the players in history who were never compensated for use of likeness, to the hordes of underpaid US employees, to the literal or virtual slaves doing the manufacturing labor, to the unemployed Americans whose jobs were outsourced to the slaves, or were never insourced in the first place, to the customers who pay about 200 times the cost of production on each item.

grumbler

October 8th, 2015 at 10:51 AM ^

Agree.  it will destroy college football, but at least it won't have any new rules or anything.

Personally, while I agree that destroying college football would be easier than saving it, it would be even easier to simply get rid of it.  If players want to play for money, let them.  If they want to play for fun, we have intramural sports. If bag men want to pay players for playing intramural sports, they can do so under the pretense of "paying for likenesses." 

Carcajou

October 7th, 2015 at 11:57 PM ^

...the players unionize, and universities respond by basically negotiating with union standard 4 or 5 year contracts for all recruits.  That included a stipend, scholarship, and some sort of insurance for future lost earnings in case of injury. 
[I believe Harbaugh is right, technically the IRS could declare the value of a scholarship as a taxable benefit at any time, though they may have chosen not to do so, thus far.]

But then the universities would own each conract.  NFL teams interested in a player would have to buy the rights to negotiate, and buy up the contract at any time, they could.  Then the NFL could decide if they wanted "call the player up"- pending succeful negotiations with the player- or allow the player to continue until graduation.

For all the hate lopped on the NCAA and member universities, it is the NFL that benefits the most from the diminished amount of risk it has under the current system.

Meanwhile, the potentially NFL-bound player is putting his future at risk by playing in college in what is basically and extended audition paid for by somebody else- the schools.
The schools meanwhile give out scholarships and other costs to a large number of athletes who arguably will never bring a return on investment (while only a few will).

Honk if Ufer M…

October 8th, 2015 at 5:45 AM ^

It's not the schools that pay for the extended auditions, it's the fans, it's the donors, it's the other students who pay with their tuition. The school then skims off 100 percent of it and uses it to pay coaches and other staff and to build shit.

AlwaysBlue

October 7th, 2015 at 11:49 PM ^

will say make the NFL fund their own farm system. Let's see how many kids will trade the environment of thousands of students their age, television coverage, hype/publicity, a college degree, etc. for a small paycheck and the obscurity of a minor league football system.

Honk if Ufer M…

October 8th, 2015 at 6:02 AM ^

Always Blue, the very point of the attitude you display is to deprive the players of their rights, their livelihood, and the lifelong medical care they deserve. Why do you pretend you love the players when you only love them as slaves?

You are making up worst case scenarios in order to scare/threaten people into accepting unjust bullshit that shouldn't exist. Why?

Why not think up best case or good scenarios as solutions if you care about players and care about what's right?

Why would it have to be either, or? Instead of funding a minor league from scratch, figure out a way to let pro teams use the existing college system as a minor league.

The NFL teams pay half, or some reasonable percentage, of the player salaries, and half the the lifetime football related medical care, and the NCAA/conferences/schools, would pay the other half out of radio and TV contract money, gate money and their share of merchandise money.

If that somehow ends up meaning less money for coach's and administrators, tough shit, and good!

Blue_sophie

October 8th, 2015 at 1:40 AM ^

Errr... That's not how it works in grad school. Unionized GSIs are only taxes on their stipend (which I think is actually more like a salary if you are teaching), they are not taxed on the cost of tuition or fees. And if their pay is on the order of $5,000, they would actually be eligible for the Earned income tax credit. This may not be exactly how it would work if athletes were unionized employees, but it would be one way that tax issues could be massaged to prevent student athletes from getting nailed by the IRS.

GWUWolverineFan

October 8th, 2015 at 5:38 AM ^

I always love when non-college athletes/former athletes jump in this discussion. It's so obvious the lack of understanding of the situation and rules.

Also,no one considers how the offensive line is going to feel when they are eating ramen and the QB is hanging out at the chop house, with that idiotic they should be able to market their own name idea.



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bacon

October 8th, 2015 at 6:29 AM ^

Not a tax person. I'm a postdoc and I've read a fair amount about this to understand why I'm in a weird position. This is very relevant for us because we exist outside the tax system in a very tenuous gray area. I'm sure a lawyer will read this and correct me, but I'd rather know that I'm wrong or right. Michigan's unionized GSIs are an interesting case, but probably not directly applicable. I'm surprised the IRS hasn't come after them yet, but it's probably because the system is setup at most schools so that grad students teach and receive compensation in the form of taxable grants, but don't get a wage and therefore aren't employees. Thus, the irs doesn't come after you for your tuition because your not really an employee, you're a student. As a postdoc, the irs has sued postdocs and schools over tax issues because postdocs aren't students, earn money, yet aren't paying payroll taxes on fellowships (like many non-teaching grad students). The courts decided that postdoc fellows aren't employees because they're too autonomous, and their relationship with the university isn't an employee-employer relationship and thus the irs can't tax us for payroll taxes. The irs also went after the schools for offering benefits to postdocs (like health care, etc) and the schools decided not to offer these (or to handle it in an end around way) to avoid scrutiny by the Irs. The situation needs resolving, but congress would have to do that. I think Harbaugh is right here. The irs probably would sue players and cause problems because that's their mechanism for determining the law boundaries. Of course the backlash probably would prompt congress to fix the law in the favor of the players, but right now it's a gray area and most players probably don't know what this would mean for them.

ScruffyTheJanitor

October 8th, 2015 at 8:34 AM ^

The government came after our stipends as taxable income. Even though my assistantship was non-academic, I was able to stay tax free because I tought courses on Microsoft Office Products, which technically made it a "teaching" position. A few friends of mine lost a little over a hundred bucks a month because they simply did network troubleshooting and didn't teach a thing. 

Reader71

October 8th, 2015 at 8:41 AM ^

But that's because you and Harbaugh are assuming the union would only seek to make half-measures like a stipend. Why couldn't a union demand enough compensation to not only "put some extra money in their pockets", but also enough to cover whatever taxes might be assessed on the value of the scholarship? Or negotiate for a system without scholarships at all, but a salary that would comfortably allow them to pay for their own schooling? Unionize, and anything becomes possible. Strike, and schools will likely find a way through the uncertainty, or lose millions in revenue. I'm against unionization and player compensation, but I am not going to pretend it has anything to do with taxes. I like the current system for selfish reasons.

MaizeAndBlueWahoo

October 8th, 2015 at 9:14 AM ^

I like the current system for reasons both selfish and (I think) unselfish.  Shifting huge amounts of money towards a tiny fraction of the top athletes and away from the vast majority of other athletes who don't play football or men's basketball is unhealthy.  

First of all, you shouldn't have to limit yourself to football or basketball to have any opportunity.  Sorry you're athletically gifted but not 6'5", screw you buddy.  

Second, incentivizing people away from sports like soccer or tennis or swimming ultimately is going to hurt the US's ability to compete on a worldwide stage in those sports.  

Third, there are only so many opportunities in football and basketball to begin with and way more athletes than can fit in those opportunities.  Incentivizing people to try and win those limited chances because you took away their chance elsewhere only hurts them.  When some kid who would've been a swimming star chooses basketball instead because you took away all the swimming scholarships, but he's kind of a D-III quality hoops player, that never shows up in any whiny Dan Wetzel columns about unfairness.

The current system offers a HUGE reason to participate in a very wide variety of sports.  So football subsidizes them and a very, very small handful of people have to very temporarily put their aspirations of making huge sums of money on hold.  I do NOT care.  The benefits gained from that far, far, FAR outweigh the costs of "unfairness" currently in the system.

Honk if Ufer M…

October 8th, 2015 at 10:16 AM ^

Wahoo, would you rather your post be called poppycock, balderdash, or bullshit? Take your pick.

If any or most of those concerns were legitimate and if you actually gave a shit about them then you'd call for equality of resources right now among all sports. All the luxury and extra expenses and facilities and gear etc., that football and basketball teams and players get should be redistributed among all the sports according to what your objections are. That, or upgrade everything the other sports have.

If you haven't already been calling for that then you're objections are made up bullshit, right?

If there were any principals or integrity involved in your position it would have to include the elimination of profit everywhere in the system.

No advertising or sponsorship allowed on any broadcasts or in stadiums. No uniform contracts. No visible logos on uniforms or equipment. No visible brand names or logos on food or drink containers at concession stands and no brands/logos on signs.

No merchandising of anything.

No charging for tickets or parking.

No paid coaching positions, no paid positions in the entire athletic department. Only volunteers or students who will get scholarships as compensation.

 

 

 

grumbler

October 8th, 2015 at 10:58 AM ^

I agree with almost all of this.  I disagree that football players "have to very temporarily put their aspirations of making huge sums of money on hold."  They need do no such thing.  They can make as much money playing football straight out of high school as anyone will pay them.  No one is forcing them to forgo that for college football; they are choosing to do so.

Reader71

October 8th, 2015 at 11:04 AM ^

Take it up with Adam Smith. Those 6'5" guys happen to play a sport that people will pay to see. You, and the current system, seek to punish them for that fact, in the name of providing opportunity to people who do not generate money. I am sympathetic to your point, but I cannot possibly agree that, "the benefits gained from that far, far, FAR outweigh the costs of 'unfairness' currently in the system." The problem is that actual people, individuals, are having their rights to earn curtailed. Allow an analogy: slavery was very, very, VERY beneficial to the Southern economy. Did that "far outweigh" the unfairness of keeping human beings in bondage? Obviously not, but a lot of people argued that. And before you poo-poo the analogy, sure it isn't perfect because of the great disparity in unfairness. Slavery is undoubtedly much worse than student-athletes not making some money. BUT, there is also a great disparity in benefits. The entire economy of a sizable portion of a country is much more important than a few thousand softball players getting opportunity to play in college.

pescadero

October 8th, 2015 at 12:10 PM ^

The problem is that actual people, individuals, are having their rights to earn curtailed.

 

Not really.

 

They are free to play professional football straight out of high school, and get payed for it... just not in the NFL.

 

They have the CHOICE to either go to college and all that entails, or becoming a professional straight out of high school.

 

They CHOOSE college over becoming a professional straight out of school because they believe it provides more benefits. If they feel that college is exploiting them - they are free to go pro.

Reader71

October 8th, 2015 at 12:52 PM ^

This is true, and it what I hang my hat on when I explain why players should not be paid. But it probably does not excuse a government actor denying its employees the right to make money. That's the really hairy issue. Sure, it is a take it or leave it decision. The players contract into this deal, but a union is meant to give them some bargaining power to change the contract, even out the power dynamics. And just as the players can opt out and go play elsewhere, they can also get up, en masse, and go on strike. Which would put the take it or leave it decision to the schools. Do they want the labor or not? If so, do things X, Y, and Z. If not, we will see how the market responds to the decision.

pescadero

October 8th, 2015 at 3:33 PM ^

The players contract into this deal, but a union is meant to give them some bargaining power to change the contract, even out the power dynamics.

 

...but it will do nothing of the sort. That is the problem with the idea.

 

And just as the players can opt out and go play elsewhere, they can also get up, en masse, and go on strike. Which would put the take it or leave it decision to the schools. Do they want the labor or not? If so, do things X, Y, and Z. If not, we will see how the market responds to the decision.

 

Every university in the USA could replace every athlete with willing participants in minutes, and the market reponse would be to go watch the games same as now. The athletes have no real leverage.

pescadero

October 8th, 2015 at 10:42 PM ^

I think they'd have folks to play by week 2. Thats the long term.

 

The product wouldn't be great - but they'd get an amazing level of support.

The average person in this country would see it pretty much like they see pro sports stikes. They'll be thinking: That guy getting compensated 2x what my family makes a year is lucky and shouldn't be complaining.

pescadero

October 8th, 2015 at 10:54 AM ^

"Why couldn't a union demand enough compensation to not only "put some extra money in their pockets", but also enough to cover whatever taxes might be assessed on the value of the scholarship? Or negotiate for a system without scholarships at all, but a salary that would comfortably allow them to pay for their own schooling?"

 

They could ...but the money largely doesn't exist - anf ro most sports they'd be shooting themselves in the foot.

 

If it happens we'll see:

 

1) Massive numbers of schools dropping divisions.

2) Loss of almost all men's sports except football and basketball plus enough womens sports to make the scholarship numbers Title IX kosher.

 

Half the folks in that union making demands would just see their opportunity to get anything at all disappear.

 

 

Reader71

October 8th, 2015 at 11:06 AM ^

I agree. And I am against the move for unionization or player payment. But if they are going to unionize, we can't expect them to take anything off the table. And bargaining for a system whereby they end up in the hole due to taxes is just as feasible as the one I proposed, which is not at all.

pescadero

October 8th, 2015 at 12:15 PM ^

There is no system whereby the players unionize and the great majority of them don't get screwed.

 

They're already getting renumerated at a rate well above 50% of the HOUSEHOLDS in the USA, most athletic departments lose significant amounts of money and are subsidised by student fees, and even at schools which make money - the majority of the players even on the money making teams have a negative dollar value.

 

Reader71

October 8th, 2015 at 12:40 PM ^

So what? Most athletic departments run in the red, but no football/basketball programs do. I'm not arguing for unionization of every student-athlete, and I don't believe anyone has. So the non-union, non-revenue athletes will be screwed. But that isn't the union's responsibility, which is to its members. As for the union, revenue kids, even if they have negative value to the school, they will still be covered by whatever contract the union negotiates. They will not be screwed. And the larger point is that the athletes are unhappy with the status quo. They want to change it and think a union will work. They have every right to unionize, even if that leads to unfairness or catastrophe. Maybe the union brings down college athletics entirely. So what? It is a broken system. Whatever the case, taxes are not a serious consideration, which is how this while thing began. It is just a case of someone who benefits from the status quo clinging to anything that might protect it.

pescadero

October 8th, 2015 at 3:50 PM ^

Most athletic departments run in the red, but no football/basketball programs do.

 

Almost half of FBS Football programs lose money according to NCAA data compiled 2004-2010. The rate swings from about 43% to about 47% losing money over the time period.

 

The median football program makes about $3 million per year.

The median basketball program makes about $750,000 per year.

 

I'm not arguing for unionization of every student-athlete, and I don't believe anyone has. So the non-union, non-revenue athletes will be screwed. But that isn't the union's responsibility, which is to its members.

 

There may be some significant labor law issues disallowing that, and Title IX absolutely won't allow it.

 

And the larger point is that the athletes are unhappy with the status quo.

I'd say that is an assertion not in evidence. Some male athletes in a couple revenue sports are unhappy with status quo would be more accurate.

pescadero

October 8th, 2015 at 10:35 PM ^

Point 1: Are the programs that make money all of the power 5? To be honest, those are the only programs that matter, those are the only athletes that have a claim.

 

Unlikely. I don't have the data, so I can't be sure - but I would be very surprised if at least a few P5 schools aren't losing money.

 

Point 2: Title IX has implications for the schools, but not for the athletes.

 

It does if they decide Title IX means shutting down the football program... but labor law won't let it happen anyway.

MaizeAndBlueWahoo

October 8th, 2015 at 6:07 PM ^

I'm not arguing for unionization of every student-athlete, and I don't believe anyone has.

Unfortunately, you have to.  It's all or nothing.  You can't make the claim that football players are employees while swimmers are not.  The fact that people pay a lot more money for the football than the swimming makes no difference.  Categorizing someone as an employee has always been about the work they do, not the revenue they bring to the organization.  And any union leader would laugh in your face if you suggested that workers who build the Ford Fiesta should make less than the Ford F-150.  In fact that's one of the things that chaps their ass the most.

By the way, unions have a legal responsibility called duty of fair representation, which is an obligation to represent non-members.

At any rate, either they're all employees, or none of them are, but you can't split it or draw a line based on "revenue" or "non-revenue."  If the football players are employees, so are the swimmers.  Oh, and if the football players at Michigan are employees, so are the football players at Mount Union....which in a world where football players get paid what they negotiate, would probably put an end to Division III, because you can't pay employees zero.