Transfer Portal

[bisonaudit]

Johnson vs. NCAA is being heard in the 3rd Circuit now and whatever the decision will probably be appealed, next level is SCOTUS. It's asking for athletes to be considered employees of the school and paid a wage. Based on recent SCOTUS decisions they'll probably say yes if it they take it. If you thought the portal and NIL blew up college athletics, just wait. The lawsuit argues that a typical athlete's wage would be around $10k for one semester sport seasons. This would cover everyone, D3-D1. There are about 500k NCAA athletes. That's $5B in new annual wages nationwide. While the schools would be paying that, for comparison NCAA's annual revenue is just over $1B.

All kinds of unknown and unintended consequences out there. Scholarships generally aren't taxable, wages are. D3 probably straight up can't afford this. Do schools get to deduct wages from scholarships? $10k barely makes a dent in a lot of schools' tuition. Do schools start offering only half scholarships instead of full so this is nothing but extra accounting paperwork? Back pay? Back taxes on that back pay? Will this extend to non-NCAA athletics like NAIA and JUCO? How about high school and child labor laws?

One nice thing about public schools is they publish salaries. Using Alabama as one of the extreme examples, Nick Saban makes almost $12M. The average full professor is $160k. Even if Saban does provide nearly 100x the value to the school, that looks pretty bad. Tons of schools might need to put athletic staff on the same pay scale as academics to cover the budget, and that might not be a bad thing.

When I was a TA at NDSU I got tuition and a modest stipend. Pretty sure the stipend was taxed as regular income. A scholarship that goes entirely towards educational expenses is exempt.

Saban could pay that 10k out of his pocket to every athlete at Alabama and still be the highest paid employee of the university.

[BigHorns]

What I hear you saying is the Olympic sports aren’t important enough if we have to pay more to support them rather than redistributing the football and basketball players revenue to pay for them instead.

If we are going to redistribute the revenue, maybe we should redistribute the costs as well?
You know, for the training, equipment, and facilities, etc?

Very few NCAA programs are "profitable" ... if we lose money on basketball, does that mean we should send the players a bill?
Multi-million dollar donations to a performance complex are not "revenue" either. Thinking players have "earned" a cut of all donations is silly.

[bisonaudit]

If we are going to redistribute the revenue, maybe we should redistribute the costs as well?
You know, for the training, equipment, and facilities, etc?

Very few NCAA programs are "profitable" ... if we lose money on basketball, does that mean we should send the players a bill?
Multi-million dollar donations to a performance complex are not "revenue" either. Thinking players have "earned" a cut of all donations is silly.

Of course they aren’t profitable. They are not for profit organizations. There is no profit motive and they still cling to the notion that there is something admirable to not paying the people who produce a multi billion dollar product.

[mtoutfitter]

Audit....wondering if you saw my question on page 107? As I said, just curious, if you don't want to answer it's no big deal.

[bisonaudit]

Serious question Audit. Do you own your own business? Just curious.

I’m am/have been a member of the owner, manager, and employee classes. On balance mostly the manager class but fortunately increasingly the owner class over time. Frankly, I think most of the issues with collegiate sports are problems created and perpetuated by the manager class.

[mtoutfitter]

I’m am/have been a member of the owner, manager, and employee classes. On balance mostly the manager class but fortunately increasingly the owner class over time. Frankly, I think most of the issues with collegiate sports are problems created and perpetuated by the manager class.

Thanks for the reply. Wouldn't that make sense on the Collegiate level considering they're universities and not privately owned businesses? For the most part anyway.

[bisonaudit]

Thanks for the reply. Wouldn't that make sense on the Collegiate level considering they're universities and not privately owned businesses? For the most part anyway.

Yes. I suppose you could make some strained analogy to the donors or the state being owners but that seems like a reach. Not that there aren’t issues with donors building giant monuments to their own egos and things of that nature or legislators reaching way to far down from their lofty perch to engage in some petty meddling, grand standing, or some such. But mostly it’s management enriching themselves at the expense of their employees.

[Bisonator98]

Yes. I suppose you could make some strained analogy to the donors or the state being owners but that seems like a reach. Not that there aren’t issues with donors building giant monuments to their own egos and things of that nature or legislators reaching way to far down from their lofty perch to engage in some petty meddling, grand standing, or some such. But mostly it’s management enriching themselves at the expense of their employees.

So you think an employee deserves the same amount as an owner or the manager of a business?

[bisonaudit]

So you think an employee deserves the same amount as an owner or the manager of a business?

Yeah, that is exactly what I said.

[mtoutfitter]

Yeah, that is exactly what I said.

Don't think he meant that as he formed it as a question. Could be wrong.