There are three major issues:
1. The disparity between what the stars can get in the open market for NIL, vs. what the average player can get. Tua is seven figures. Pierce Quick.....???? Holds in Tuscaloosa, and is even more clear in lesser programs -- like Nick Fitzpatrick vs. the rest of the MSUs team.
So how do you allow for that? Or do you at all?
2. The extent to which boosters (think Jimmy Rane, Jimmy Haslam, or Phil Knight) would go to make up the difference. These guys are bad enough as it is. Unfettered by the NCAA, they could easily pay a scrub DL six figures for a no-show summer internship conditioned on not transferring to another school.
They have the money, and I think the willingness, to convert the recruiting process into an auction -- that they could lose only because they don't want to win.
3. And I think a lot of people have lost track of Bazza's point on the IRS. Stuff gets real taxable real quick. And if you're a 1099'd professional for purposes of getting an endorsement from YellaWood, which endorsement is obviously derived from your prowess on the football field, how is it that you're not a professional to the extent of the cost of your tuition, room, board, nutritional supplements, books and stipend?
Secondary interesting question: In the new world order, the currently-untaxed scholarship benefits would be almost entirely non-cash income that would nevertheless be taxable...in cash.
In other words, we're all used to being paid in cash, and to paying taxes in cash. We typically get the cash to pay the tax from the income received in cash. But if you have taxable non-cash income, you have to get the cash to pay the tax from somewhere else.....where, exactly, might that be? For the Tuas of the world, it's from the plentiful cash income left over after paying tax on it. What about the less-marketable guys?
And just for the record, under most circumstances, income tax liability isn't dischargeable in bankruptcy. You just have to deal with it.
Unintended consequences abound.