You just perfectly described professional sports. That means a scholarship is now compensation, so momma's going to have to foot that $10K per year tax bill. Same for Suzy on the golf team and Bob the bowler. That'll shut a lot of athletes out of college right there. And what about the student working in the university research department? Does he now get compensated for the discoveries made on behalf of the university? Are all scholarships now taxable? Athletics help to keep the cost down for all students. Get ready for skyrocketing tuition. And I can't get over your "finite value of education" comment. Not sure even what to do with that. And the worst effect will be the impact on high school athletics. If college now means $200,000 salaries for top recruits, then the AAU is going more to be more corrupt than ever before and high schools are going to be under more scrutiny than ever regarding how they manage the careers of their participants. The domino effect of this is endless. And the end result won't even be recognizable.