Yep because then you will still have the added healthcare costs, workers comp costs, tax costs, long term health issue costs, plus a whole bunch of other issues related to employment status.
From what I’ve read it mostly hinges on whether they are deemed part-time or full-time employees.
But clearly there is a risk that costs balloon once they go down this path.
What really needs to happen is for everyone to just accept that the revenue sports need to be treated differently than all the others. Schools obviously sponsored all these non-revenue sports back when football brought in no money so allowing football players to keep some of the money they bring in shouldn’t kill the whole system.
I have no idea how accurate this is but this is what AI estimates the additional costs of calling them employees would be:
Two Scenarios:
- High-End: Athletes are classified as full-time employees, triggering maximum legal and financial obligations
- Low-End: Athletes are part-time employees, allowing schools to limit benefits, reduce compliance burdens, and avoid new Title IX costs
1. Payroll Taxes
- High-End: $2–3 million
- Low-End: $2–3 million
Why: All employers must pay ~7.65% for FICA (Social Security & Medicare) and federal/state unemployment insurance. These apply regardless of part-time or full-time classification.
2. Employee Benefits
- High-End: $4–6 million
- Low-End: $0–1 million
Why: Full-time employees (30+ hrs/week) typically trigger ACA healthcare mandates, retirement eligibility, and disability coverage. If athletes are part-time, schools can avoid these obligations entirely or offer minimal voluntary plans.
3. Administrative & HR Compliance
- High-End: $1–3 million
- Low-End: $1–2 million
Why: Schools will need expanded HR teams, legal oversight, time-tracking systems, and employment documentation—regardless of classification. Complexity increases with scale and union pressure.
4. Title IX Equity Costs
- High-End: $10–20 million
- Low-End: $0
Why: Title IX requires gender equity in athletics, but whether that extends to employee compensation is legally unresolved. On the high end, schools preemptively expand pay and benefits to women athletes to avoid lawsuits. On the low end, schools gamble on narrow legal definitions, offer nothing new to non-revenue sports, and hope courts or regulators don’t intervene.
5. Legal Risk & Liability Reserves
- High-End: $1–2 million
- Low-End: $0.5–1 million
Why: Employee status brings exposure to workplace claims (harassment, wrongful termination, unsafe conditions). These risks are greater with full-time classification, but still relevant with part-time roles.
6. Unionization & Labor Counsel
- High-End: $2–3 million
- Low-End: $1–2 million
Why: Even part-time employees can unionize. Schools may need to negotiate collective bargaining agreements, defend against unfair labor practice claims, and retain labor lawyers. Larger programs and those in union-friendly states face higher exposure.
Interpretation
- Low-End Scenario (Optimistic): Schools limit total new costs to just $4.5–9 million per year, assuming:
- Athletes are classified as part-time,
- No Title IX expansion is enforced,
- Only limited administrative and legal overhead is necessary.
- High-End Scenario (Risk-Averse): Schools prepare for full employment protections and parity, pushing total additional cost up to $37 million/year.
