Could the Athletic Department afford to pay every athlete 10 grand a year?

[Hogwild]

Texas AD just announced that is what they intend to do. College sports has we have known it is over.

Patterson said UT won't have problems paying the extra $6 million to its players. That money will break down to about $10,000 for each player. The money will cover college expenses that aren't covered by a traditional full scholarship and give each player $5,000 in compensation for the university's use of his image.

http://www.dallasnews.com/sports/college-sports/headlines/20141021-texas-athletic-director-with-new-rules-longhorns-will-pay-each-player-10000.ece

[Sooie71923]

It has to be every player in every sport. Not just football.

[thirrdegreetusker]

From what I have heard/read, only about 20 colleges make a profit on athletics. Texas and Arkansas are, I believe, among those 20.

Some northern and eastern schools, with rich athletic traditions, do not turn a profit. The reason is that those schools offer non-revenue sports like boxing, lacrosse, rowing, wrestling, swimming, hockey, etc, that UA does not. Even with the relatively small number of sports offered at UA, we could not afford to pay every athlete in every sport. Title IX ain't gonna allow schools to pay only male basketball and football players, with nothing for the ladies.

[pigskenG]

If in exchange for playing football in front of your family, friends and on national TV, be a BMOC, with great facilities, food, a tutor if you need to help you get a degree, get to see other parts of the country, and a chance to grow and get better with a possible chance at the NFL, not to mention that the money football and basketball generate supports your classmates in other sports (baseball, volleyball, swimming, golf, etc.) is not enough because you need money now, then you need quit school and get a job like the rest of us. It's great, you'll love it.

[Großer Kriegschwein]

Rumor, not happening that quick.

[Hogwild]

From what I have heard/read, only about 20 colleges make a profit on athletics. Texas and Arkansas are, I believe, among those 20.

A few dozen turn a profit but only (Texas, Ohio State, LSU, Penn St., Nebraska, & Purdue) don't take a subsidy from the school.  Penn State and Purdue were in the red.

Arkansas 14th in revenue $99,770,840 ($2,027,439 subsidy) with expenses of $92,131,933.

Others of note
Wisconsin was #2 in revenue ($149+ million) and if it wasn't for the school's $7 million subsidy they would have lost money. The badgers had $146+ million in expenses.

Arkansas State broke even at $16.281 million, but it required a school subsidy of $9.32 million.

Rutgers also broke even, but it took nearly $47 million from a school subsidy to make that claim.



http://www.usatoday.com/sports/college/schools/finances/

[onebadrubi]

Whose paying the taxes on that money?

Also, you think if a Vince Young comes along again for Texas that 5,000 is a drop in the hat for what someone would pay him for a Car Dealership advertisement, day worth of signatures, etc?  Your same EXACT problem still exist.  This fixes nothing. 

[Smokehouse]

The players will regret it the first time their various benefits at the school get turned into a game check.

As a graduate assistant, the difference between me paying taxes and me receiving a refund is just that my assistantship is considered wages rather than a scholarship. I give a heck of a lot more to the IRS now, even though my scholarship as an undergrad was worth a lot more money. Assuming most schools have to take some of that back for housing/tuition since they won't be able to cover that and pay all the athletes on campus, they could end up worse off than they are now.

[#NeverYield]

Anyone know how many student athletes we have? I've got to think if we're talking less than $5 million annually, Long and company will find the money.

[onebadrubi]

Anyone know how many student athletes we have? I've got to think if we're talking less than $5 million annually, Long and company will find the money.

We are a University that can most likely afford this.  It's not so much about if Arkansas can afford it as it is College athletics as a complete product. 

[BigSexyHog]

Major universities will find the money even if they don't claim to have it

[ricepig]

Anyone know how many student athletes we have? I've got to think if we're talking less than $5 million annually, Long and company will find the money.

435ish, or something close to that.

[rogers-hog]

Well if Texas$ is paying 6 million out at 10 grand a pop that's 600 athletes. We have around 400 I believe so it seems with the new sec network money we should be able to handle it.  Since they would then be employees instead of student athletes do their scholarships and extra benefits now become taxable and would that effect things like pell grants? 

[Hoggish1]

As has been said by others, what is proposed for one sport must be given to all others.  What's going to happen is that scholarships will pay the same stipends as the highest academic scholarships given out on campuses, which is usually about $1,000 - $1,500 a semester after everything else is paid. 

It's way more than they get now, but it won't be $10 grand.

[Rzbakfromwaybak]

Anyone know how many student athletes we have? I've got to think if we're talking less than $5 million annually, Long and company will find the money.

Whatever $$$ figure this starts with, will never be enough.  There will be increases & demands constantly, which will continually hurt the fans, non athletic students & taxpayers.  Everything will go up.... tickets, parking, all TV games, etc.  Many average fans will eventually be forced to cut down or withdraw from attending or paying a hefty amount just to watch many of the games on TV.  The price of attending a game now, is not inexpensive....specially for a family. 

Exactly what we didn't need.  The govt. & courts involved in college football.

[Rzbakfromwaybak]

We are a University that can most likely afford this.  It's not so much about if Arkansas can afford it as it is College athletics as a complete product.

True.

[Rzbakfromwaybak]

Major universities will find the money even if they don't claim to have it

Yes, they will.  They will raise prices on everything.....which means the fans &
taxpayers are really the one's that will pay for it.....as always.

[007 License To Squeal]

Aren't scholarship players already getting thousands of $$ in education, boarding, etc??

[wupigsuey]

Dint read but, yeah. 100K at most? Yeah.

[hellwonthaveme]

Dint read but, yeah. 100K at most? Yeah.

I dint read either

PRJ

[The Hogfather]

Sad what the World is coming to.  More is never enough.

[The Hogfather]

I still say pay them and then send them a bill for everything.  Tuition, books, room, food, tutors, use of top notch facilities, trainers, coaching, equipment, clothing, marketing, etc.  We'll see how long they like being "paid what they're worth".

About 5 guys a year would make a decent amount and the rest would be in huge debt.

[#NeverYield]

Aren't scholarship players already getting thousands of $$ in education, boarding, etc??

Yes, but sports typically take up so much time that the players are unable to hold down an outside job. Jobs that could help provide money for their college expenses, or back home for their families.

[The Hogfather]

They also get a shiz ton for putting that time in.  Not just tuition and books.

[Hogtimes]

Whose paying the taxes on that money?

Also, you think if a Vince Young comes along again for Texas that 5,000 is a drop in the hat for what someone would pay him for a Car Dealership advertisement, day worth of signatures, etc?  Your same EXACT problem still exist.  This fixes nothing. 

If someone only makes $10,000 per year they will pay no taxes.

[Augustus]

If someone only makes $10,000 per year they will pay no taxes.

I would think they (or most college kids) would still be claimed as a dependent, on their parent's taxes?

[(notOM)Rebel123]

If someone only makes $10,000 per year they will pay no taxes.

But if(when) the IRS decides the cost of tuition, books, etc. not to mention the value of the medical care & tutors, AND the additional stipend is taxable income, athletes won't like it when they get the Tax bill from Uncle Sam. If you don't think the IRS isn't keeping an eye on this, you're sadly mistaken.

But Texas is reeling from the fact that they are no longer the "Top dog" in the state. They are desperate to reclaim their role and will stop at nothing to get there.

[Smokehouse]

If someone only makes $10,000 per year they will pay no taxes.

But if(when) the IRS decides the cost of tuition, books, etc. not to mention the value of the medical care & tutors, AND the additional stipend is taxable income, athletes won't like it when they get the Tax bill from Uncle Sam. If you don't think the IRS isn't keeping an eye on this, you're sadly mistaken.

The IRS already does this. Because I work for any portion of my research assistant stipend, all the benefits I receive from the university (OU) counts as taxable income. So while I take home a small stipend which would normally not make me a net payer on taxes, I end up paying because all of my tuition waivers get counted as taxable income. If college athletes become employees of the university they'll be in the same boat.

On top of that, as an employee of the university I'm not eligible to have fees paid for by my tuition waiver. So even after my tuition is covered, I pay around $2,000 to the university every semester while making $1,300 a month 9 months out of the year. When I was just on scholarship as an undergrad at Arkansas I paid zero out of pocket for my education.

Having the university label you as an employee rather than a scholarship recipient is about as raw a deal as you can get. But if that's what the athletes want...

[HOGINTENNESSEE]

And make money? No.

IMO the NCAA should just let them make money off their name if possible. This will allow the elite players to make extra money.

Public schools should not be paying kids

[Josh Goforth]

Whose paying the taxes on that money?

Also, you think if a Vince Young comes along again for Texas that 5,000 is a drop in the hat for what someone would pay him for a Car Dealership advertisement, day worth of signatures, etc?  Your same EXACT problem still exist.  This fixes nothing. 

who pays taxes on an academic scholarship? That money Texas has mentioned would be part of a scholarship package. No different than a highly sought after math student taking scholarship money except the player generates more revenue.

[(notOM)Rebel123]

who pays taxes on an academic scholarship? That money Texas has mentioned would be part of a scholarship package. No different than a highly sought after math student taking scholarship money except the player generates more revenue.

See smokehouse's comments above....

[(notOM)Rebel123]

The IRS already does this. Because I work for any portion of my research assistant stipend, all the benefits I receive from the university (OU) counts as taxable income. So while I take home a small stipend which would normally not make me a net payer on taxes, I end up paying because all of my tuition waivers get counted as taxable income. If college athletes become employees of the university they'll be in the same boat.

On top of that, as an employee of the university I'm not eligible to have fees paid for by my tuition waiver. So even after my tuition is covered, I pay around $2,000 to the university every semester while making $1,300 a month 9 months out of the year. When I was just on scholarship as an undergrad at Arkansas I paid zero out of pocket for my education.

Having the university label you as an employee rather than a scholarship recipient is about as raw a deal as you can get. But if that's what the athletes want...

Wow. Good info. Thanks for posting. +1

[Smokehouse]

who pays taxes on an academic scholarship? That money Texas has mentioned would be part of a scholarship package. No different than a highly sought after math student taking scholarship money except the player generates more revenue.

It would no longer be a scholarship at that point. There are a lot of restrictions on how much money can be given as a stipend.

Also by definition a scholarship is not payments rendered for generating revenue. If you're compensating them for generating revenue then you're just giving them a job.

[Josh Goforth]

It would no longer be a scholarship at that point. There are a lot of restrictions on how much money can be given as a stipend.

Also by definition a scholarship is not payments rendered for generating revenue. If you're compensating them for generating revenue then you're just giving them a job.

right and that is why the above comments about being a GA  he pays normal payroll taxes. I still don't think it is a case where they will be considered employees of the univ. could be wrong.

[TheGrove68]

I'm to the point that I wish the colleges would just license their Football/basket logos,facilities etc. to a minor league organization and let them run the whole thing!This semi pro league could split the revenues with the universities and most of that cash could go directly to the average student !

Let it run like minor league baseball where most of the players draw about 1,000$ dollars a month and they pay their own expenses!! Schooling is optional and if they choose that route they pay their own tuition etc. plus own expense. This would free the schools from Title9...heck they could just drop the non-revenue sports if they wanted. Girls etc. most would not care!

Let's be honest 90% of Football and BB players put schooling second or third on their list of priorities...which is fine their choice.But with that said they see minimal value in the scholarship they receive. Most have cash for cars,smart phones,ink, and late nights off campus but they are being used.....or so the greedy agents,handlers,"uncles",media heads and parents scream!

So I say fine lets find out what most recruits are really worth! If you look at Minor league bball as a blue print a few players get a nice signing bonus and the rest work for peanuts for the dream of the MLB. If they want to be paid based on their athletic worth let a organization treat them like a piece of meat that's only value is performance based.

[(notOM)Rebel123]

I'm to the point that I wish the colleges would just license their Football/basket logos,facilities etc. to a minor league organization and let them run the whole thing!This semi pro league could split the revenues with the universities and most of that cash could go directly to the average student !

Let it run like minor league baseball where most of the players draw about 1,000$ dollars a month and they pay their own expenses!! Schooling is optional and if they choose that route they pay their own tuition etc. plus own expense. This would free the schools from Title9...heck they could just drop the non-revenue sports if they wanted. Girls etc. most would not care!

Let's be honest 90% of Football and BB players put schooling second or third on their list of priorities...which is fine their choice.But with that said they see minimal value in the scholarship they receive. Most have cash for cars,smart phones,ink, and late nights off campus but they are being used.....or so the greedy agents,handlers,"uncles",media heads and parents scream!

So I say fine lets find out what most recruits are really worth! If you look at Minor league bball as a blue print a few players get a nice signing bonus and the rest work for peanuts for the dream of the MLB. If they want to be paid based on their athletic worth let a organization treat them like a piece of meat that's only value is performance based.

Being used? Nobody makes them accept the scholarship deal. They choose to do it. It's voluntary.
If they don't like it....don't accept the deal. Pretty simple.

[MountieDawg]

It has to be every player in every sport. Not just football.

Why?

[Theolesnort]

The real big losers in all this will be scholarship athletes in many minor sports which will be dropped by many schools who can't afford to pay all athletes like the Texas model. When you look at the big picture what schools are doing now to help all young athletes compared to what will happen under paying all athletes it will result in a net loss for many young people. Sure money making sports and their athletes will get theirs but many young people will be hurt. Is this a can of worms they really want to open?

[HOGINTENNESSEE]

Why?

It would probably violate title 9

[RazorPiggie]

Why?

Really?

[hogsanity]

The question is not how many schools could afford this, but how many fbs schools could not. out 125 or so fbs schools, but 3 times that in basketball, only 20 or so could afford to do this. 

[LZH]

If you include all sports - 450 student-athletes at $10,000....isn't that $4.5 million a year?  Texas can afford it - and we probably could, too.  But there's only about 20-30 schools in the country that could come up with that kind of money over and above what they're already paying just to keep up....it's an understatement to say they are stretched thin.  How would that even work?

[Pigsknuckles]

Sure could have used that kind of jack when I was on the UofA Rifle Team.

[Dumb ole famrboy]

Being that the financial accounting for collegiate athletic departments is nothing more than smoke and mirrors, no one knows how much any school could afford paying scholarship athletes.

[Ash]

If this happens I'm done with watching college basketball and college football. This is spit in the face to all the students that actually belong at the universities and aren't just there being given grades through classes because of athletic ability.

[Hogwild]

If you include all sports - 450 student-athletes at $10,000....isn't that $4.5 million a year?  Texas can afford it - and we probably could, too.  But there's only about 20-30 schools in the country that could come up with that kind of money over and above what they're already paying just to keep up....it's an understatement to say they are stretched thin.  How would that even work?

But what happens when the biggest of the big boys, the Alabamas, LSUs, Notre Dames, Floridas, go to 25K a year?  Just because we can afford it now, doesn't mean that 10 years down the road, that this is a good thing for us.

[hogsanity]

If this happens I'm done with watching college basketball and college football. This is spit in the face to all the students that actually belong at the universities and aren't just there being given grades through classes because of athletic ability.

Calm down. College athletics has been corrupt since the start. Point shaving scandals, payoffs, cheating ( both on the field and off ), have been around for the entirety of college athletics. And much of it was before big money was involved.

This is just an attempt, albeit imo ill conceived, to bring some of this out from under the table and into public view.

[HogFries]

All this stems from the "give me mine" attitude.  Are there poor kids who play football at major universities?  Yes.  How much more does it cost them to attend college than it cost them to go to high school if they are on scholorship?
Did they not need clothes, pens, pencils, paper, or toilitries in high school?  They probably have a smaller need for clothing expense once they get on campus because of all the swag they get once there.  Did the fact they are poor not let them participate in things while they were in high school? Yes.  If an athelete that is in college is too poor to pay for things they need to attend, there are options available to them to receive grant money that I am sure their parents can qualify for.  Do they realy need more than what that gives them to get by every semester?   Most of the kids that would receive the extra payment that they say they deserve on top of the scolorship, could not handle it anyway.  I am sure handing over $10,000.00 to an 18 yr old who has never had anything in his life will turn out well for everybody. If this happens I will open up a chain of used car lot/ tatoo parlor next to  every FBS campus.

[Bardicer]

How much does it cost to fly round trip around six times a year?  How much do hotel rooms cost?  I know tutoring is around $35/hr.  How much does the education itself cost? I have almost 60k in loans..I also got the lottery scholarship and full Pell grants on top of having to pay housing and food costs (and time cost of having to fix said meals).   

I'm ok with a stipend, as long as in the contract the student ages that if they go pro, they have to reimburse  80% of all financial costs incurred during their time at the university at the rate of half their professional pay per year or the full amount owed, whichever is greater, until their debt is paid. That way they would still have as much if not more than their graduating peers to live off of.

[ricepig]

How much does it cost to fly round trip around six times a year?  How much do hotel rooms cost?  I know tutoring is around $35/hr.  How much does the education itself cost? I have almost 60k in loans..I also got the lottery scholarship and full Pell grants on top of having to pay housing and food costs (and time cost of having to fix said meals).   

I'm ok with a stipend, as long as in the contract the student ages that if they go pro, they have to reimburse  80% of all financial costs incurred during their time at the university at the rate of half their professional pay per year or the full amount owed, whichever is greater, until their debt is paid. That way they would still have as much if not more than their graduating peers to live off of.

Did the university make millions off of your abilities while you were there?