are employees. Companies have figured out how to work out "overtime" and "worker's compensation". There are literal, real-world models of EXACTLY how to handle these issues (The NBA, NFL, NHL, MLB...even organizations run by LITERAL idiots like the USFL and XFL figure out how to pay people to play sports.)
Or the other option - a wild west free for all where anyone but the actual school can pay kids (except the schools kinda can because they can give them stipends but how much they can give them depends on which conference they are in) and kids can just move around to different schools every year or even in the middle of the year and no one has any idea how much they are actually getting paid.........
You really feel like the 2nd option is better?