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Message
Players could get big tax bill
Posted on 3/28/14 at 10:17 am
Posted on 3/28/14 at 10:17 am
LINK
quote:
Taxable income has been defined in the courts, and by the IRS, as compensation received through services that resulted in a time commitment that required a certain number of hours per week. Higgins said the time commitment put forth by former Northwestern quarterback Kain Colter, and backed by the National College Players Association, that resulted in the NLRB qualifying the Northwestern players as employees could serve to be the exact reason that the IRS would say the players must pay taxes if they unionize.
If Northwestern players did form a union and they were taxed, it's not clear exactly what they would be paying tax on. If, for example, their entire scholarship was deemed taxable, the athletes would be paying at least $15,000 in federal tax alone on the $61,000-a-year scholarship. One athletic director in a major conference, who requested anonymity, speculated that the value the players received from the training table, travel and even coaching could be taxed.
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Posted on 3/28/14 at 10:20 am to wickowick
They win. Congrats. 
Posted on 3/28/14 at 10:21 am to wickowick
all the pro-union folks will play the "scholarships aren't taxable" card, but to quote nimziki from ID4, that's not entirely true
my academic scholarship was not taxed
my on campus job that was guaranteed by the school? income from that was certainly taxed
i'd imagine if players negotiate collectively as "employees" the benefits they receive will be treated more like the guaranteed on campus job that i have, as opposed to the pure academic scholarship. why? it's a benefit received via employment
my academic scholarship was not taxed
my on campus job that was guaranteed by the school? income from that was certainly taxed
i'd imagine if players negotiate collectively as "employees" the benefits they receive will be treated more like the guaranteed on campus job that i have, as opposed to the pure academic scholarship. why? it's a benefit received via employment
Posted on 3/28/14 at 10:26 am to SlowFlowPro
quote:
but to quote nimziki from ID4, that's not entirely true
plausible deniability
quote:
'd imagine if players negotiate collectively as "employees" the benefits they receive will be treated more like the guaranteed on campus job that i have, as opposed to the pure academic scholarship. why? it's a benefit received via employment
once the Washington NLRB solidifies the regional ruling, you really think the now-politicized IRS won't be friendly to their union friends on the left?
Posted on 3/28/14 at 10:28 am to wickowick
College football is/was a good thing.
It never ceases to amaze me the lengths people will go to just to frick up a good thing.
It never ceases to amaze me the lengths people will go to just to frick up a good thing.
Posted on 3/28/14 at 10:30 am to wickowick
Just waiting for this to trickle all the way down to peewee football.
Posted on 3/28/14 at 10:36 am to wickowick
IRS rules currently say tuition awarded via scholarships isn't taxable although room and board is taxable.
The NLRB has already ruled the NW players to be employees. Whether that changes the IRS decision not to tax tuition remains to be seen.
Whether the NW kids join a union or not is their decision but the IRS doesn't care. They tax both union and non union the same.
The NLRB has already ruled the NW players to be employees. Whether that changes the IRS decision not to tax tuition remains to be seen.
Whether the NW kids join a union or not is their decision but the IRS doesn't care. They tax both union and non union the same.
Posted on 3/28/14 at 10:50 am to wickowick
What really makes it interesting is when states tax the players from other schools. Northwestern players having to pay taxes to Ohio, Iowa & Michigan.
Posted on 3/28/14 at 10:52 am to TigerintheNO
Good point...
Posted on 3/28/14 at 10:54 am to wickowick
Enjoy the tax burden 
Posted on 3/28/14 at 10:59 am to Godfather1
quote:
College football is/was a good thing.
it is, its also big money. the universities are getting rich off it, and the players (rightfully) want a cut.
Posted on 3/28/14 at 11:01 am to wickowick
Can Northwestern simply block the players union and give the scholarships to walk on players? I'm sure they could field a team of players that appreciate the plus $60,000 tuition and the benefits that go along with college football.
Posted on 3/28/14 at 11:02 am to Hawkeye95
quote:
it is, its also big money. the universities are getting rich off it
No they aren't, only few athletic departments turn a profit. A couple of years back, USA Today, listed the public universities that turned a profit from athletics, there were a dozen.
Posted on 3/28/14 at 11:06 am to wickowick
I've been saying this since the beginning of this college athlete bitchfest.
If the university starts paying players as employees, there will be an effect to their tax status (both the university and the players).
I say pay the players, but no more scholarships, free books, free housing, etc...
IRS and the state will get their cut from that compensation as well. They want to claim to be adults and want to be treated as such? Fine, get paid and pay your fair share of taxes like everyone else all while paying for school expenses.
If the university starts paying players as employees, there will be an effect to their tax status (both the university and the players).
I say pay the players, but no more scholarships, free books, free housing, etc...
IRS and the state will get their cut from that compensation as well. They want to claim to be adults and want to be treated as such? Fine, get paid and pay your fair share of taxes like everyone else all while paying for school expenses.
This post was edited on 3/28/14 at 11:08 am
Posted on 3/28/14 at 11:11 am to TigerintheNO
quote:
No they aren't, only few athletic departments turn a profit. A couple of years back, USA Today, listed the public universities that turned a profit from athletics, there were a dozen.
Since its a university setting, a profit isn't necessarily indicated of getting rich. Look at the salaries of the coaches, and administrative staff.
I definitely agree that it goes to the big boys like LSU and bama, ut, OSU, etc.
But there is big money sloshing around here, and the players want a cut. Rightfully so.
Posted on 3/28/14 at 11:14 am to wickowick
Players from a union and become "employees". The universities must now pay a payroll tax for the new employees. The plays now pay income tax. The only winner will be the IRS.
Players need to know this before they form a union.
Players need to know this before they form a union.
Posted on 3/28/14 at 11:18 am to Hawkeye95
quote:
Since its a university setting, a profit isn't necessarily indicated of getting rich
So we both agree the university isn't getting rich. Other people are getting that money. 90% of those on athletic scholarships are getting more in value than what the university is receiving from them, its the other 10% (football & basketball) that want a share.
Posted on 3/28/14 at 11:25 am to Godfather1
quote:
College football is/was a good thing.
It never ceases to amaze me the lengths people will go to just to frick up a good thing.
Correct.
And, it's equally amazing at the number of sport fans (see the MSB) who don't have the foresight to see the ultimate outcome...and instead argue vehemently based on their skewed perception of fairness.
Posted on 3/28/14 at 11:27 am to TigerintheNO
quote:
So we both agree the university isn't getting rich.
The money is definitely flowing into people's pockets, and just look at what some of these universities spend on facilities. I understand why they do it, but that is "getting rich" when you don't have shareholders.
quote:
90% of those on athletic scholarships are getting more in value than what the university is receiving from them, its the other 10% (football & basketball) that want a share.
I think its different at different universities. Those northwestern players probably receive more value but the upper echelon football and basketball schools probably receive more.
Posted on 3/28/14 at 11:27 am to Rohan2Reed
quote:
once the Washington NLRB solidifies the regional ruling, you really think the now-politicized IRS won't be friendly to their union friends on the left?
Yep, the IRS won't think of interfering with a union, less the goon bosses start pulling their support.
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