NCAA athletic departments are non-profit. They exist to offer students a service that would otherwise not be offered. They do not pay state or federal taxes on the revenue they bring in. At the federal level, that eliminates a roughly 21% tax rate. For OSU 200m x .21 = 42m saved
These departments spend every dime they bring in, largely on football. That’s because it’s in their own best interests to come in as close to $0 on that balance sheet as possible so they can continue to force obscenely expensive ticket prices and donation requirements on fans
Now these departments are looking to cut sports, petitioning the NCAA to drop minimum roster requirements, hoping to skirt Title IX requirements (though this is a federal policy and the NCAA has no authority there). So are they truly offering a service that a for-profit wouldn’t?
This is also the reason why it’s in the best interest of the NCAA and their members to continue with the amateurism facade. Salaries, insurance, and worker’s comp claims would be too much - just one carrier is willing to provide workers' compensation coverage for NFL teams now
Most of you watched Tiger King on Netflix, right? Were you appalled by the cult status of those zoos and that employees were only given $100 a week for their 24/7 job duties? How is college football any different? It’s not. And how is Title IX to blame? It’s not.
Football coaches at the P5 and G5 schools earn millions, their assistants are all into six figure salaries, they receive cars, trips, other bonuses for outcomes they don’t control. The athletes get some scholarship money and no other benefits, can’t even utilize their NIL
These decisions have nothing to do with Title IX. They have nothing to do with women’s programs or men’s Olympic programs. They have nothing to do with women student-athletes. They’re based in greed, and the illusion of revenue potential in the long-term for only certain sports.
Yet athletic departments continue to seek out ways to limit opportunities for athletes outside of football and basketball. Cuts were being made to athletic departments well before Title IX was even passed (or COVID) due to unsustainable spending and preferences placed on football
So if they’re not offering students a service that otherwise wouldn’t be offered, why are they even under the non-profit status - just so they can save tens of millions to spend on coach salaries, locker rooms with bowling alleys, and lavish hotel stays before home games?
The reality is that football programs and football spending are the issues even with the enormous tax savings they receive. And by cutting other sports just to sustain football, these departments are not abiding by their non-profit designation. It’s all a fraud to benefit few.
You can follow @DrLindseyDarvin.
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