Revenue sharing reporting
- Thread starter SCHawkFan
- Start date
not employees………what are they getting paid as? pretty sure a case can be made that is exactly why they are being paid.
I am pretty sure that as a result of the court settlement that players will not be designated as employees
one additional court case away…depends on if the judge is a liberal or a conservative. everything about this says “payment for services”.
There were a couple of Microsoft cases in the late 80s and early 90s that defined what an employee is for federal purposes. They used a 20 part test but the classic test is whether the putative employer has the right to control not just the end result to be accomplished but also "the manner and means" by which the result is accomplished. Seems pretty clear this “employer” (UI) meets that test. (Full disclosure: I was an IP lawyer, not employment lawyer, so take this advisedly)
They will absolutely at some point be considered employees. Probably be years from now and many lawyers will get rich off the attorneys fees
Where things stand now:
According to the "House" settlement regarding college athletics, players are still considered not to be employees under the agreement, meaning they do not have employee rights or the ability to unionize, even though the settlement provides them with increased revenue-sharing opportunities and compensation for name, image, and likeness (NIL) usage; essentially, the settlement aims to address some athlete concerns without classifying them as employees of the NCAA or their universities.
They are independent contractors. Current rules allow them to opt out of games, which means the player controls when, where and if they actually work. Thus, they are not employees as the University does not control all elements of the position as required by the federal law.
I agree with you. I'm a CPA, not a lawyer.
I don't know about the 20 part test, but what is there about this situation that could make them NOT employees? The U controls the when, where, how and how much a player works. They use university tools (uniforms, equipment). They can't apply their "trade" anywhere else. It seems to me that they are clearly employees. Will they get time and a half for overtime?
And if they are, in fact, employees, what is left to claim that athletic departments should be tax-exempt? I don't think they can claim with a straight face that the primary mission is education. It's a for-profit business. No more tax deductions for donations.
