Tax'em!

In a recent provocative article in Chicago a sin tax for collegiate athletics was proposed. Although the article was quite controversial, it may have been spot on. However, I do not think a sin tax on consuming collegiate sports would be that good an idea. Consumers cannot be blamed, as college sports in the US have a long tradition and consumer demand has attracted TV networks. Not the other way round. I would tax the NCAA directly, by imposing taxes at least on their cash-cows Basketball and Football.

Impose taxes? Yes, because NCAA athletics are exempted from federal income tax by section 501(c)(3) of the federal tax code. So they can generate their huge revenues (mostly from enormous TV contracts) and hand a substantial share right over to the basketball and football coaches. I would tax colleges on high contracts of coaches, on TV revenues and on all revenues they generate by not granting players right to market themselves. If NFL teams have to pay taxes it is simply not justifiable to let colleges get away. They are every bit as professional about their sporting operations as any professional league in the world. There is no trace of amateurism left in top-tier collegiate Football and Basketball these days.



Colleges often argue in favor of the current system by mentioning scholarships as the reward for players instead of monetary compensation according to the true value of athletes. Here is a recent (following Auburns loss to Arkansas on Saturday) cynical quote by Gene Chizik, head coach of Auburn, who had a total salary of over $ 2 million in 2009:
"Players on game day have to make plays," [...]  "They're on scholarship, so they need to make plays." 

So that is the ugly truth how coaches who earn enormous wages think about their "amateur" players. If players do not perform on the field why do they might soon be gone. No more "education for sports". And it is true: Any athlete's scholarship can be taken away by colleges. So they get a scholarship only if they bring the appropriate performance on gamedays. Sounds like the perfect description of a professional sports environment with 0 amateurism to me. Only that players have no players' union, no market wage, no job protection...

Just a word: Can the current realignment mess get any worse? More on that soon.