Based on what? UF isn’t known to be big spenders.
For those that bytch about the UAA, the opposite of this statement is true. UF fans, as a community are huge spenders. Some of the biggest dollars in the country. It is the UAA that is not. This law bypasses the UAA. Could that create problems, sure, but lack of spending isn't the issue.
A lot of these kids have never had a job before. Wanna shoot a commercial for 10K? Inevitably Tax evasion will be a problem as a result. If I were a CPA in a college town i'd be thrilled at this news.
I agree with this post and others that there are going to be real money management problems. This is one area schools will begin to try to differentiate themselves and offer some financial protection, which itself gets precarious. But, it will occur the way we have player advisors now. For UF, this is the type of thing we are more likely to spend money on, across the entire athletic department. Expect the new staffs to include tax advisors, financial advisors, and trust services to hold and manage the money as options for players.
Can't wait til these kids get a big dose of Uncle Sam
This is still the most interesting element. If the player is paid an endorsement for the athletic fame, that is certainly taxed. Does the IRS then argue the entirety of the athletic benefit is taxable, i.e. the scholarship, training, food, clothes, dorm, stipends, etc. The tax bill could be huge. I expect such a maneuver to be labelled racist and disproportionately impacting those from low incomes. I think the IRS will not do it or congressmen will amend the IRS code to ensure an exception.
@Sec14Gator
Please explain the facepalm. I'm curious what your issue is with this
Here was your post:
And if college players can be paid for their likeness like pro athletes, I see no need for athletic scholarships anymore. They should live by their means just like the pros.
The facepalm is the absurdity of your position here that due to this great inflow of money every player will receive, that the need for scholarships will vanish or that the primary value exchange is no longer between the player and school, but the player and an endorser (who is only there because of the player/school relationship).
The vast majority (maybe more than 95%) of college athletes will not make money off of this, unless it is relative pennies from a unionized or collectively bargained - sign to join - agreement with a company like EA sports for a video game, which will not pay out too much regardless. For instance, in the NFL, with only 32 teams, and only 53 players per roster, the total payout is around $20,000 per year per player. Total to the NFL PA in 2013 was $2.2 million before it takes a cut to pay its executives and staff. The NFL gets a lot more and as other have noted here, the schools and NCAA are the more valuable product, similar to the NFL being more valuable than the specific players. In college, with thousands of more players (Power 5 has twice as many teams and 60% more players per team than the NFL; approx. 5200 players vs approx. 1700, not even accounting for G5) , and a less popular game than the NFL, are they going to make an extra $2-3k as part of a collective deal. That barely moves the stipend needle.
Even in the NFL, most players do not have individual endorsements, yet you think in college they all will? And sufficient to cover a scholarship, or that the school doesn't still derive a benefit worth providing the scholarship?
That is the reason for the facepalm.
