Competency Statement 2

An athlete is an employee or an independent contractor depending upon the sport involved and the terms of the contract under which he/she performs. In team sports, such as football and baseball, where the player competes under the direction and control of a coach or manager, he/she is an employee.

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done. Small businesses should consider all evidence of the degree of control and independence in the employer/worker relationship.

Signing bonus for the execution of original employment contract or renewal contract. Participation in post-season tournaments or bowl games. Regular season win/loss record. Regular season or conference championship.

Names of parties. Addresses of parties. Statement of hiring. Term of contract. Duties and obligations of athlete. Attendance at training camp. Amount of compensation. Times at which compensation payable.

Here, we'll cover several fundamental elements of contracts between professional teams and athletes: (1) negotiation; (2) salary caps; and (3) free agents. Most professional athletes enter into a contract with a professional team for a specified number of seasons.

Seyfarth Synopsis: The Ninth Circuit has held that, under federal and California law, college student-athletes are not employees of either the NCAA or the Pac-12, the regulatory bodies that govern college sports.

"Professional sports services contract" means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization or as a professional athlete.

Q - Is every professional athlete an employee? A - No, there are exceptions such as golf. These athletes are treated as self-employed taxpayers and ProSportsTax works with such individuals proactively to minimize taxes. Additionally, endorsement and appearance income is considered to be self-employment income.

Depending on the method by which amateur athletic officials perform their services and the circumstances of their relationship, these workers may perform services as employees or independent contractors.