On Sun, 16 Apr 1995, Leigh Torbin wrote:
 
>         As it stands today, the college's athletic department is a branch
> of a giant institutuion. Schools, being considered charities aren't
> subjected to stringient tax laws. They're basically non-profit organizations.
 
I don't disagree with the business points Leigh mentioned, but did want
to point out that this view of intercollegiate athletics as being
non-profit is beginning to change.  Michigan is currently battling the
IRS over what is and isn't taxable income.  The IRS says our department
oews over $7 million, while we claim they owe us a refund.  It appears as
if we're the test case in seeing what piece of the athletic (and other
major events on campus) pie the IRS can take.  They don't seem to believe
that all of this fits into the education goals of universities.  We'll
have to see how this ends up, as we spent most of last summer and fall
being audited.  I guess they see 105,000+ coming into Michigan Stadium
six times a year and see money they should have.
 
---
Robb Dunn                                          |GO BEARS!
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