By Donna A. Lopiano, Ph.D and president of sports management Camiseta Sporting CP Resources
“We must pay NCAA college football and basketball players because it is absolutely unfair that their coaches get millions in compensation while athlete compensation is capped at the value of a full athletic scholarship!”
This statement summarizes media and public sentiments currently in vogue. If division I men’s basketball and football programs step in that direction, they will also have to leave their “motherships” (their non-profit educational institutions) because they can’t afford the Title IX obligation of having to equally compensate female athletes. Currently, only 20 institutions bring in a lot more profits than they spend. before sport managers support any effort to professionalize college athletes by making them paid employees, they might want to consider what would happen if division I college football and men’s basketball created professional leagues.
Because the professional sport league would have to be constructed as a for-profit service operated outside the institution, the resources of the non-profit higher education institution legally could not be used to subsidize the for-profit business.
No longer under the not-for-profit umbrella of the educational institution, the new professional basketball and football programs would no longer benefit from tax preferences (i.e., the 80percent tax deductible donations driving season ticket and seating preference sales, use of tax-free bonds to construct athletic facilities, etc.). Thus, it is not clear whether the financial viability of a new league would be assured.
The new professional football and men’s basketball team and league profits would be fully taxable at the federal and state levels and in some cities, salaries and wages may be subject to employee payroll taxes, unlike the college programs.
Athlete employee salaries would be fully taxable at the federal and state level and athlete employees Camiseta Manchester City would have to pay unemployment taxes and social security. rather than accepting less than their current non-taxed athletic scholarship compensation, players would form a players’ association/union and demand $100,000 annual minimum salaries — the equivalent of the non-taxable athletic scholarship they would be giving up. While these athletes would not have to attend classes in season, removing the current pressure and conflict with academic demands, athlete employees wishing to attend college in the off-season would have to pay for their own housing and food and the cost of tuition, required fees and books. Tuition and fees would not be tax deductible if the athlete earned a lot more than $80,000 per year.
Instead of carrying squads of 85 players, all receiving full scholarships, squad sizes would be close to NFL limits (53) and include a smaller, lower cost taxi squad. fewer players would benefit as employees than being a student under the college scholarship system.
Gate receipt income and attendance would suffer a decline if enjoying Camiseta Selección de fútbol de Catar paid professional players, a product of lesser quality than the NFL, is not as attractive a sport product to customers as amateur students playing for their alma maters.
The institution would have to charge the new professional football and basketball teams fees to lease their stadia, weight rooms, locker rooms and meeting spaces and obtain the rights to use the institutions’ names and marks. These fees would have to be substantial considering that the professional teams would be taking all earned profits in those sports (gate receipts, media rights, advertising and sponsorship fees, concessions, parking, etc.) for their own support The institution would need to set these fees at a substantial level to include paying off existing capital debt that would be retained and to offset the anticipated decline of donated funds to the institution’s athletic program if the institution wants to continue supporting the retained non-revenue extracurricular athletic program. These substantial costs may minimize the attractiveness of the new professional college league to investors.
The new football and basketball professional sport services would have to incur the considerable costs of supplying full athletic injury and special needs benefits for all players, benefits institutions do not currently supply to college athletes.
Given the fact that only 50percent of division I FBS football and basketball programs pay for themselves with no institutional or student fee subsidies and the fact that this statistic does not include capital costs, it is doubtful that all 128 NCAA FBS members would risk operation of an independent professional football and basketball service on financial feasibility grounds. depending on how lots of and the quality of the institutions ready to give up their extracurricular amateur teams, the programs that remain in the NCAA intercollegiate athletics systenull