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The Economic Realities Of Being A Student-Athlete

DePaul Law's symposium will take place on Friday, March 8.

In early March, I participated as a featured speaker at DePaul University College of Law’s Annual Sports Law Symposium, hosted by the DePaul Journal of Sports Law and Contemporary Problems. The Symposium’s focus was on the “Economic Realities of Being an Athlete.” My specific speech was centered on grants-in-aid to student-athletes, specifically the efforts to increase available scholarship funds for said individuals, and also shined a spotlight on Internal Revenue Service (IRS) tax code and the potential implications for the NCAA and member schools should there be a change to the system that marginally compensates amateur athletes. A lot of young athletes spend a lot of time training, which means less time working, making money sparse for some, a lot of younger people now are taking out small loans so they are able to carry on living how they need to until pay day, a lot of companies offer small loans all around the world, such as this Norwegian based lending company små-lån.com.

The Journal recently published my remarks in an issue of their bi-annual journal on Sports Law topics (embedded below). The following is the conclusion:

Partly because of its problematic tax implications, a play-for-pay system is not likely to be instituted anytime soon. Paying student-athletes would probably result in higher institutions losing their tax-exempt status with respect to athletics (which are currently considered part of their educational mission and are largely tax-insulated), in turn dismantling the tax-exemptions the NCAA enjoys. In other words, paying student athletes would lead Congress or the IRS to treat whatever programs are paying their athletes–e.g., men’s basketball and football–as unrelated business activities, subject to the UBIT – unrelated business income tax. In addition, pay-for-play could recast student-athletes as “employees,” which would simultaneously render athletic pro-grams the “employers,” and require they pay a variety of additional expenses. On another note, most athletic programs do not generate profits, but are instead subsidized by the parent institution (only the very best, biggest programs turn a profit–22 programs in 2010). Paying their athletes would not be a viable plan for over 90% of athletic programs.

Money and Sports: Economic Realities of Being an Athlete

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.