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If student athletes become employees that means Workers Comp would cover their sports injuries. Not just lifetime medical expenses but permanent and total disability. Football schools would go broke.
The conferences at the top are foaming at the mouth to vulture the PAC 12 and ACC because they must destroy their competition, yet are in lockstep Kumbaya when it comes to paying athletes (against it). The stench of potential labor law violations is through the roof.
As for students being termed athletes of the state or (if private) the school? IMO, it's not a question of if, but when.