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

 

bacon

October 8th, 2015 at 11:57 AM ^

I'm not saying they can't. But the taxes have to cover their tuition and food and housing and stipend if they're employees (according to the irs) instead of students. If you work at a company and they pay for you to take classes over a certain amount, you (or they) have to pay taxes on that. Food and housing probably as well (although I'm less sure about that). That's because you have an employee-employer relationship. If you're a student, the laws are written to allow the school to give you a scholarship without you paying taxes on that. This is the point I'm making and I think Harbaugh is making. The players don't want to be classified as employees because they'll get hammered by the irs. Unless congress creates another way for them to deal with it. The irs will probably come after them.

Honk if Ufer M…

October 8th, 2015 at 10:28 AM ^

If the free ride is such a great deal then let the "free market" of player opinion decide it. Let them choose between the alleged value of the scholarship, or take that value in cash if they don't want to play school or are not qualified to take advantage of school because they were recruited just for football even when they have no academic ability or interest.

In addition limit the pay of all coaches and AD employees to the value of a scholarship and funnel the rest of the money made by the department into day care, transportation for work, health care, pre-school reading programs & adult education/job training/career training for the poorest school districts, neighborhoods and families within a hundred mile radius of the university.

bacon1431

October 8th, 2015 at 9:11 AM ^

The most important thing that the players are lacking is representation on decision making committees. They are outnumbered about 40-2 on the legislative committees. That's ridiculous. Their best interests are not going to be considered heavily. 

bacon1431

October 8th, 2015 at 9:11 AM ^

The most important thing that the players are lacking is representation on decision making committees. They are outnumbered about 40-2 on the legislative committees. That's ridiculous. Their best interests are not going to be considered heavily. 

deemarsah

October 8th, 2015 at 3:14 PM ^

Not all that complicated, at least relative to the IRS norm.

http://www.irs.gov/taxtopics/tc421.html

The tuition and related expenses part is not taxable.  Anything beyond is.

This basically creates a system where it would be (at least nearly) equivalent for you to 1) not have a tuition waiver, but receive stipend+(amount of tuition) as your salary, but then claim the tuition and fees as a deduction off your taxable income, and 2) receive the stipend, and a non-taxable tuition waiver.  In both cases, the value of the stipend is the total taxable income.