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DOI

https://doi.org/10.51221/sc.jiia.2024.17.1.5

Abstract

In light of recent administrative developments urging the classification of student-athletes as employees, litigation challenging the current employment status of student-athletes, and the Supreme Court’s willingness to tackle National Collegiate Athletic Association (NCAA) issues, many questions surrounding the future of college sports under an employment model have emerged. The authors analyzed key litigation, recent developments from administrative agencies, and academic literature. The authors used publicly available data from the NCAA, the United States Department of Labor (DOL), and other sources to construct two estimates of what it would cost NCAA member institutions to provide baseline compensation to their Division I athletes, including minimum wage, FICA taxes, unemployment taxes, health insurance, and worker’s compensation insurance. The GOALS model shows that paying student-athletes minimum wage for all the athletic hours they report in competition season would be significantly more expensive than what NCAA schools currently spend on athletic student aid. The NCAA model shows that paying student-athletes minimum wage for only the hours allowed under current NCAA rules could be a reasonable option for NCAA schools in terms of total costs. The authors considered different cost-management strategies and likely outcomes for the NCAA under both models.

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