Should college athletes be employees of their universities?

I'm a CPA and nobody is talking about the tax bomb. Right now athletic scholarships are generally tax-free under Section 117. Reclassify athletes as employees and that tuition, housing, and meal money arguably becomes taxable compensation. A $70,000 scholarship package could generate a five-figure tax bill for a 19-year-old with no cash wages to pay it with. Plus the school owes payroll taxes on all of it. The IRS doesn't care about your amateurism ideals. It cares whether money changed hands for services rendered. Employment status could leave athletes financially worse off than the current system, owing taxes on benefits they used to get free. Be careful what you wish for.