What kind of business is a College + how does this relate to player and scholarships?
Colleges are broken down into a couple of different business entities...
1. Private Colleges are usually registered as Corporations or Non-Profits
2. State Universities are usually owned and operated by the individual state governments, not the U.S. federal government
3. Junior colleges are generally registered as Non-Profits
The reason all this is important is because it relates to Student Athletes.
- Are Student Athletes "Students"?
- Are Student Athletes considered "Employees"?
Since its inception in 1906, the National Collegiate Athletic Association (NCAA) has governed intercollegiate sports and enforced a rule prohibiting college athletes to be paid. Football, basketball, and a handful of other college sports began to generate tremendous revenue for many schools in the mid-20th century, yet the NCAA continued to prohibit payments to athletes. The NCAA justified the restriction by claiming it was necessary to protect amateurism and distinguish “student athletes” from professionals.
The question of whether college athletes should be paid was answered in part by the Supreme Court’s June 21, 2021, ruling in
National Collegiate Athletic Association v. Alston, et. al. The decision affirmed a lower court’s ruling that blocked the NCAA from enforcing its rules restricting the compensation that college athletes may receive.
- As a result of the NCAA v. Alston ruling, college athletes now have the right to profit from their name, image, and likeness (NIL) while retaining the right to participate in their sport at the college level. (The prohibition against schools paying athletes directly remains in effect.)
- Several states have passed laws that allow such compensation. Colleges and universities in those states must abide by these new laws when devising and implementing their own policies toward NIL compensation for college athletes.
Now that we've established that colleges don't own players likenesses it's time to go after the next big scam that colleges have been implementing on students.
- The scam is Scholarships.
Scholarships are a scam because they turn students into indentured servants. What I mean by that is in the Student / College relationship colleges maintain all the power in the relationship. Colleges can end a scholarship for any reason. Players only leverage is to leave the school. Some argue that businesses can fire employees at anytime so Employment and Scholarships are equal. This is 100% wrong and it's because those with scholarships have no right to recourse. Meaning if your scholarship was pulled for an unjust or unethical reason you can't take colleges to court to get it back or get compensation. In the college athlete situation this often plays out in unwanted sexual advances, or exploitative actions in any number of different ways by coaches who know that they're in a position of power.
The easy way to solve all these issues is to pay students a wage instead of providing scholarships. Throw the whole amature / professional nonsense out the window + stop the exploitation.
If above is too much words just watch the video below...