Housing and food are already suppose to be reported as income when filing your return. Chances are the IRS would still not consider the tuition and books income even if scholarship athletes were designated employees but additional taxes (social security, medicare) would have to be paid on the compensation received. The benefits would probably not be taxed because what professional athlete gets taxed for training at a team facility. But athletes may owe state income tax in states they perform. So players in Florida would owe taxes for road games in other states.