Compensation

[NU5XChamps]

Not sure if this has been posted before, probably has but I couldn't find the posting. I have been reading a lot about the mistreatment of players by schools that make millions on there backs. Not that I don't agree that the schools make MILLIONS off the labor of the players, to say they are mistreated and improperly compensated is just crazy. I wanted to look at that this from just a financial angle.

According to a NBC Sports article, the average tuition for a Division I football player is worth $178,000. So if you divide that by 5, that is the number of years they are eligible, you come out to $35,600. Average interest rate is about 4% compounded annually, comes out to about $37,000 a year on average.

So a player is making about $17.78 an hour based on a 40 hour work week. That is pretty decent wages. They get free food, which has just been expanded to include as much as they can eat, free transportation to and from their employment location, free medical benefits while attending by top physicians and trainers. All benefits that every other employee would like to have. However, the key to all of this is that they get to leave with a degree and NO DEBT!!!! You immediately have an advantage over every other applicant for a job that does not have one. Why?? Because you played football!!! Ask any other college student how much of a benefit that is to them.....

Now there are those that say, "but they work more than 40 hours a week", and they are probably right. So do I, and as a salaried employee, it doesn't pay me more. I am from Nebraska, born and raised, and I know that $17 an hour in Lincoln is good money.

The one argument I do agree with is being able to earn money outside of the scholarship. If they want to work to have more money, they should be able to work. I could work two jobs if I wanted too. However, I would be working the first job if it didn't pay enough......

The reason I put all this together is to ask this question. Is a FREE degree worth it anymore?

 

[Ulty]

Not sure if this has been posted before, probably has but I couldn't find the posting.

You'll find a lot of agreement, but this is already being discussed on multiple threads that already have hundred of posts each. If you want to discuss an original idea though, we'd love to hear some thoughts on the team using worn out footballs.

 

[Landlord]

Try again.

As a football player at Northwestern, you are on full ride scholarship which translates out to roughly $65,000 a year. With nothing else, being a student-athlete, you are already receiving compensation that puts you in the top 3% in the entire country. As a full-time working adult, I don't make half that much. Now please, if you are reading, this is the part I want you to pay attention to.
In addition to that, you are likely also eligible for a Pell Grant, another $5,500 per year. In addition to that, if you receive a Pell Grant, you are also eligible for a $500 clothing allowance per year. In addition to that, your athletic department has a Student-Athlete Opportunity Fund, for anynon-scholarship expense that you can't pay for, such as gas in your car, a plane ticket home, etc. In addition to that, you also have access to a Special Assistance fund, which requests additional financial aid for similar special financial needs that you might have (since you do not have the available time to have a job outside of football). In addition to that, you likely live off-campus, right? Your scholarship gives you $13,862 towards room and board - but if you get an apartment with your teammates and pay $400 a rent in month, that is only $4,800 for the year. That leaves you with a $9,000 difference left in cash for you to use as you choose.

So, by my admittedly non-scientific math, being a football player at Northwestern earns you roughly $80,000 per year in compensation, untaxed. You receive over $10,000 in extra income that does not go towards any necessity living costs, and does not include anything you might get from the Student-Athlete Opportunity Fund or the Special Assistance Fund.

Still though, that's not the whole picture, is it? That does not take into account your access to tutors, personal trainers, nutritionists, athletic facilities, professional training, dozens of pairs of shirts, hoodies, sweatpants, shoes, backpacks, etc. It also doesn't take into account the trips that you get to take across the country all-expenses paid, the bowl game prize packages, the iPad in your locker, the free tickets for family members. It also doesn't take into account the non-quantifiable perks of being an athlete - the notoriety, the never having to pay for a beer wherever you go, the attention and praise, those sorts of things.

 

[NU5XChamps]

Thanks, I was using the NBC Sports article as reference, but this is even better.

 

[Abdullah the Butcher]

At the University of Nebraska, officials are sweating over a $4.7 million deficit, and the chancellor has suggested reducing planned raises at the university and making other cuts. In contrast, the athletic department enjoyed a $5.2 million surplus but did do its share to help, transferring about $2.7 million to the university in 2012-13.

http://m.espn.go.com/wireless/story?storyId=10851446

 

[Dagerow]

Northwestern could end this easily with one simple thing: W2s.

 

[Enhance]

What Landlord posted is pretty compelling. I tend to think that MANY division one athletes have it far better than than the average Joe or Jane. The value of that scholarship alone is completely worth it.

All that said, there are still a lot of instances reported of athletes being unable to pay for something as simple as food. A lot of times, where there's smoke, there's fire. I don't know how many of them are accurate. But, while I do think there's some sense of greed here among the athletes, I do think there are some struggling out there.

But, I know personally, it's hard to feel bad for someone who has their college education completely paid for as well as other aspects of their college life. That scholarship may be undervalued to some, but not to me.

 

[Branno]

Northwestern could end this easily with one simple thing: W2s.

If they are employees they should be taxed on their benefits. Just seems fair.

 

[caveman99]

Northwestern could end this easily with one simple thing: W2s.

If they are employees they should be taxed on their benefits. Just seems fair.

Actually since they have been classified as "employees," I am wondering how long it is until the IRS comes sniffing around. Kolter and the others have completely washed over that aspect of being an employee.

 

[ATLHusker]

But, I know personally, it's hard to feel bad for someone who has their college education completely paid for as well as other aspects of their college life. That scholarship may be undervalued to some, but not to me.

agreed, but there are other aspects to this that many people don't consider. in the B1G, scholarships are guaranteed for 4 years. that isn't the case in many places around the country. i live in georgia, and there is quite a big difference in a scholarship to play football at nebraska and a scholarship to play football at an $EC school. those are on a year by year basis, and DON'T guarantee you will be able to receive a degree. if you aren't one of the 85 best players, they pull it. if you fall out of the depth chart, they pull it. if you get hurt and someone takes your job, they pull it. on top of all that, if you do happen to be around long enough to get a degree, it might still be worthless. many of the schools here won't let you major in what you want to if they have any doubts as to whether or not you can complete the degree program without falling to an academically ineligible status. throw on top of that the possibility of a catastrophic head or neck injury that will require long term medical care (which of course the school won't pay for) and it isn't always as good of a deal as it's made out to be.

in principle, i agree though. i don't necessarily think we should pay the players, but i do think there needs to be a lot of reform in what a scholarship is required to include. if they all guaranteed 4 years, could put no restrictions on what sort of classes players could take, and would force the school to pay any medical bills related to an injury suffered in a game or practice (no matter how long that involves) then i see no reason to provide any additional compensation. we still have a long way to go before everyone is doing something even resembling that though.

 

[Branno]

Northwestern could end this easily with one simple thing: W2s.

If they are employees they should be taxed on their benefits. Just seems fair.

Actually since they have been classified as "employees," I am wondering how long it is until the IRS comes sniffing around. Kolter and the others have completely washed over that aspect of being an employee.

I wonder how many of those football players that "can't afford to eat" can afford ~$15,000 tax bill. Being an employee isn't everything it is cracked up to be boys.

 

[Count 'Bility]

Northwestern could end this easily with one simple thing: W2s.

If they are employees they should be taxed on their benefits. Just seems fair.

Actually since they have been classified as "employees," I am wondering how long it is until the IRS comes sniffing around. Kolter and the others have completely washed over that aspect of being an employee.

I wonder how many of those football players that "can't afford to eat" can afford ~$15,000 tax bill. Being an employee isn't everything it is cracked up to be boys.

This is what I've said going all the way back to the beginning of this pandora's box. Let's introduce these guys to good ole Uncle Sam and see how giddy they are about a paycheck then.

 

[NU5XChamps]

Based on $80K a year in benefits, that is a $21,600 tax bill. That is based on 27% tax bracket because they probably wouldn't have any deductions. LOL

 

[Branno]

Based on $80K a year in benefits, that is a $21,600 tax bill. That is based on 27% tax bracket because they probably wouldn't have any deductions. LOL

5k standard deduction.

 

[BIGREDIOWAN]

Try again.

As a football player at Northwestern, you are on full ride scholarship which translates out to roughly $65,000 a year. With nothing else, being a student-athlete, you are already receiving compensation that puts you in the top 3% in the entire country. As a full-time working adult, I don't make half that much. Now please, if you are reading, this is the part I want you to pay attention to.
In addition to that, you are likely also eligible for a Pell Grant, another $5,500 per year. In addition to that, if you receive a Pell Grant, you are also eligible for a $500 clothing allowance per year. In addition to that, your athletic department has a Student-Athlete Opportunity Fund, for anynon-scholarship expense that you can't pay for, such as gas in your car, a plane ticket home, etc. In addition to that, you also have access to a Special Assistance fund, which requests additional financial aid for similar special financial needs that you might have (since you do not have the available time to have a job outside of football). In addition to that, you likely live off-campus, right? Your scholarship gives you $13,862 towards room and board - but if you get an apartment with your teammates and pay $400 a rent in month, that is only $4,800 for the year. That leaves you with a $9,000 difference left in cash for you to use as you choose.

So, by my admittedly non-scientific math, being a football player at Northwestern earns you roughly $80,000 per year in compensation, untaxed. You receive over $10,000 in extra income that does not go towards any necessity living costs, and does not include anything you might get from the Student-Athlete Opportunity Fund or the Special Assistance Fund.

Still though, that's not the whole picture, is it? That does not take into account your access to tutors, personal trainers, nutritionists, athletic facilities, professional training, dozens of pairs of shirts, hoodies, sweatpants, shoes, backpacks, etc. It also doesn't take into account the trips that you get to take across the country all-expenses paid, the bowl game prize packages, the iPad in your locker, the free tickets for family members. It also doesn't take into account the non-quantifiable perks of being an athlete - the notoriety, the never having to pay for a beer wherever you go, the attention and praise, those sorts of things.

Exactly why I don't feel sorry for them, I've always said they get compensated on some level and this is a perfect example why. They get a free education and get everything handed to them. Wanna make money playing football? Quit partying and get to the NFL by working your butt off!