Schools are officially allowed to pay their student-athletes. Here's what that means for the Wisconsin Badgers in this new era of college sports that are on the horizon.
Does this mean athletes will now be subcontracters to the schools who pay them and do the athletes know this is taxable income and must be reported to the IRS?
Great question—and honestly, so much of that is still unclear right now. The settlement opens the door for direct payments, but the specifics of how athletes will be classified—whether as subcontractors, employees, or something in between—haven’t been fully defined yet. What we do know is that, yes, any income received would be considered taxable and would need to be reported to the IRS. But this entire model is going to require a lot of legal and logistical refinement as it rolls out. Schools, conferences, and the new College Sports Commission are going to have their hands full figuring out those details.
Excellent background--for someone without a PhD in finance. Thanks.
Does this mean athletes will now be subcontracters to the schools who pay them and do the athletes know this is taxable income and must be reported to the IRS?
Great question—and honestly, so much of that is still unclear right now. The settlement opens the door for direct payments, but the specifics of how athletes will be classified—whether as subcontractors, employees, or something in between—haven’t been fully defined yet. What we do know is that, yes, any income received would be considered taxable and would need to be reported to the IRS. But this entire model is going to require a lot of legal and logistical refinement as it rolls out. Schools, conferences, and the new College Sports Commission are going to have their hands full figuring out those details.