Scholarships are mostly tax exempt, if the student athlete is working towards a degree. They do not receive a 1099 or a W-2.
Coaches get big salaries “mostly” at the bigger institutions. If their program, whether it be football, basketball, wrestling or whatever is successful, the sport pretty well pays their way.
When a team plays on TV or makes it to a Bowl game, or gets into the 68 team end of season tournament, the money is normally split between all the teams in that conference. So, if Ohio State makes it to the Rose Bowl, every team in the Big 10 splits the payout. OSU will get a bit more to cover their expenses.
If Duke moves along in the basketball playoffs at the end of the season, all teams in the ACC gets a share of the payout after Duke is paid for their expenses, plus a little extra.
Notre Dame is the exception to the rule. As an independent, they do not split their playoff or TV money. There is a bit more to it, but ND also boasts a $15 billion endowment fund, compared to Harvard’s $28 billion fund.
College athletes may be paid for endorsements, but not for playing. It is well known that universities have raked in billions for what the student athletes have accomplished. Many college coaches support paying the athletes. College coaches also are paid for endorsements. This is why you will see some schools with the Nike swoosh emblem on their uniforms while some have the UA (Under Armour) symbol on their uniforms.
College athletics has grown to become one of the largest “businesses” in the U.S. This is not to mention the billions of dollars that are wagered on sports and the millions of dollars that are made by bookies and other legal sports book outlets. College athletics is business; BIG business.
If you want to argue that college athletes are paid because some receive a full or partial scholarship, I guess that you could win that argument, but if some college athletes would be paid their worth, then they are not paid nearly enough. Then, there is the exception to all rules when a player skips college and goes right into the Pros.
LeBron James has earned in excess of $1billion since playing in the NBA. In his first season, LeBron earned $4 million, but he had signed a multi million dollar contract with Nike before even touching a basketball for the Cavs.