Big changes for NIL ahead? In a nutshell, the main topics appear to be:
“Pay for recruit LOI signing” that could result in players deemed to be employees.
Schools offering these dollars through pre-packaged NIL “programs” rather than businesses seeking out specific players. I see you TX A&M football. Is this not similar to a business offering a signing bonus and an pretty exact salary amount?
I would assume the last thing colleges and Congress would want is for these players to be classified as employees.
The last thing the NCAA wants to admit is that players are employees. However the federal courts have pretty much said they are employees. And Congress is by and large agreeing. I haven’t seen a single congresscritter of either party speaking up in favor of the student-athlete farce (which was created so schools could avoid paying workers’ comp insurance for athletes).
If all these athletes are actually deemed to be employees of the school, it will cost the schools a lot more than just the workers comp insurance. They will also have to cover the 7.65% employer FICA tax.
question…would they not be deemed as Independent contractors?"the schools may have NIL plans or programs in place but would the athlete/employee be responsible for all the taxes and not the university as an employer?..
Probably so. When I was an independent contractor I was paying my own FICA. Which sucked. And continues to suck because I’m still paying the balance for 2021. Thankfully I’m not a contractor any more.