“Court ruling seeks test to decide if athletes are employees”

[BobPSU92]

See the link below. From the article:

”PHILADELPHIA -- College athletes whose efforts primarily benefit their schools may qualify as employees deserving of pay under federal wage-and-hour laws, a U.S. appeals court ruled Thursday in a setback to the NCAA.

The court, in the latest challenge to the NCAA's long-held notion of amateurism in college sports, said a test should be developed to differentiate between students who play college sports for fun and those whose effort "crosses the legal line into work."

"With professional athletes as the clearest indicators, playing sports can certainly constitute compensable work," U.S. Circuit Judge L. Felipe Restrepo wrote. "Ultimately, the touchstone remains whether the cumulative circumstances of the relationship between the athlete and college or NCAA reveal an economic reality that is that of an employee-employer."

Judge David J. Porter, in a concurring opinion, questioned the difficulty of such a process, noting that nearly 200,000 students compete on nearly 6,700 Division I teams. The NCAA had hoped to have the case dismissed, but it will instead go back to the trial judge for fact finding.”

Court rules college athletes could be employees

A U.S. appeals court, in the latest challenge to the NCAA's long-held notion of amateurism, said a test should be developed to differentiate between students who play college sports for fun and those whose effort "crosses the legal line into work."

www.espn.com

 

[SleepyLion]

See the link below. From the article:

”PHILADELPHIA -- College athletes whose efforts primarily benefit their schools may qualify as employees deserving of pay under federal wage-and-hour laws, a U.S. appeals court ruled Thursday in a setback to the NCAA.

The court, in the latest challenge to the NCAA's long-held notion of amateurism in college sports, said a test should be developed to differentiate between students who play college sports for fun and those whose effort "crosses the legal line into work."

"With professional athletes as the clearest indicators, playing sports can certainly constitute compensable work," U.S. Circuit Judge L. Felipe Restrepo wrote. "Ultimately, the touchstone remains whether the cumulative circumstances of the relationship between the athlete and college or NCAA reveal an economic reality that is that of an employee-employer."

Judge David J. Porter, in a concurring opinion, questioned the difficulty of such a process, noting that nearly 200,000 students compete on nearly 6,700 Division I teams. The NCAA had hoped to have the case dismissed, but it will instead go back to the trial judge for fact finding.”

Court rules college athletes could be employees

A U.S. appeals court, in the latest challenge to the NCAA's long-held notion of amateurism, said a test should be developed to differentiate between students who play college sports for fun and those whose effort "crosses the legal line into work."

www.espn.com

How would this apply to high school athletes? Especially at big time HS programs (10k+ attendance, games on TV, radio, etc.)
What about the Little League baseball? Their "work/play" is providing content for ESPN which, I assume, pays the league for its content. If one kids says, "my parents made me play, it wasn't fun" is that enough to make them employees?

 

[GrimReaper]

How would this apply to high school athletes? Especially at big time HS programs (10k+ attendance, games on TV, radio, etc.)
What about the Little League baseball? Their "work/play" is providing content for ESPN which, I assume, pays the league for its content. If one kids says, "my parents made me play, it wasn't fun" is that enough to make them employees?

If the high school and Little League athletes think they have a case, they can find a lawyer/team of lawyers to sue on their behalf. Doubt there is enough money for even Irwin R. Schyster to take it up.

 

[J.E.B]

It’s coming and so is private equity… call it the “corporating” of CFB and CBB. There is too much $$$ for Wall Street not to be involved!

 

[4theglory54]

How is current NIL income treated tax wise? Is there a 1099? Do recipients establish a registered business account? If they are deemed employees will FICA get involved requiring institutional matches? How about mandatory unemployment deductions/matches? After a year or so if the athlete left school could he/she file for unemployment?........what a mess......

 

[BiochemPSU]

Let me root, root, root for the offshore holding company, If they don’t win, it’s a shame.
For it’s one, two, three strikes, you’re out, At the private equity/venture capitalist sponsored ball game!

 

[GrimReaper]

How is current NIL income treated tax wise? Is there a 1099? Do recipients establish a registered business account? If they are deemed employees will FICA get involved requiring institutional matches? How about mandatory unemployment deductions/matches? After a year or so if the athlete left school could he/she file for unemployment?........what a mess......

Compensation for NIL 1099.

If they become employees, W-2, with payroll tax deductions kicking in. NIL deals with third parties remain 1099.

 

[BobPSU92]

If they become employees, W-2, with payroll tax deductions kicking in.

Will all of the formal policies and processes for other employees apply? Performance reviews in Workday? Formal Performance Improvement Plans for underperformers? $hitcanned for poor performance? (Not mysteriously entering the portal, but a formal announcement that an athlete was $hitcanned, like a coach.)

 

[JohnJumba]

Employee or dummee?

If you are too stupid to attend an institution of higher learning, then you are a dummee but not an employee. You should not be there in the first place.

If you don't belong there, you can't be an employee.

 

[GrimReaper]

Will all of the formal policies and processes for other employees apply? Performance reviews in Workday? Formal Performance Improvement Plans for underperformers? $hitcanned for poor performance? (Not mysteriously entering the portal, but a formal announcement that an athlete was $hitcanned, like a coach.)

Depends on the terms of the CBA. Can't envisage players becoming employees without one, though the nimrods that run college sports probably will try.

 

[blion72]

Depends on the terms of the CBA. Can't envisage players becoming employees without one, though the nimrods that run college sports probably will try.

if they have a CBA and are represented, they may not have performance appraisals like their non-union salaried workers. certainly they would have W2. The question might be whether the employer of the players and coaches is the university or a third party corporation that provides service to the school. someone said private equity above, but no PE firm is going to hand $$$ to a university. These are money losing operations. Also if the payers are paid as employees under individual contracts there would be no free transfer and the league would likely force a salary cap for teams. While true NIL would not be counted, I would expect that any $$$ received from any source would count against the cap. A small number of players would have any NIL value (i.e. State Farm, Allstate, Wendys, etc) to do ads.

under the current model the players that receive $$$ from collectives pay for play or true NIL from advertisers would be 1099's. The collectives are some kind of corporation and file all the necessary paperwork including the issuance of the 1099s. The players presumably are registered and completed their W9s. This is the LAW not NCAA rules. Players and collective management can get prison time for tax evasion. This would be good place for the IRS to send their new auditors.