The nonprofit status of NCAA athletic departments is starting to raise questions
With all the talk of busted brackets, game-winning shots, point spreads and Cinderellas, it was easy to miss the eye-popping offer University of Michigan star forward Yaxel Lendeborg claimed to have received during the first weekend of March Madness. Lendeborg told The Associated Press that the University of Kentucky had dangled between US$7 million and $9 million to entice him to transfer there in 2025. Though University of Kentucky head coach Mark Pope called it “100% false” in a subsequent interview, the numbers being thrown around show just how big a business college sports have become. CBS and Turner are paying the NCAA about $1.1 billion annually through 2032 to air March Madness games. Recent court decisions, settlements and NCAA policy changes have opened the door for top college athletes like Lendeborg to earn millions of dollars. Yet athletic departments are still operating as tax-exempt nonprofits, even as a growing chorus of voices, from academia to politics, is wondering whether this designation should be reevaluated. The nonprofit mission Most private universities operate as 501(c)(3) organizations …



