The ISU would like to think of them as emplyees.
Actually, although skaters can do as they please, as Golden41 posted, the ISU does have control over which skaters are allowed to compete in ISU events like the Grand Prix, Worlds, and the Olympics. The rule is that if a top ten skater does not skate at this event for any reason, then that skater cannot do any shows or exhibitions during the time period that the World Team Trophy is going on (or between Worlds and the Team Trophy). What the ISU holds over the skaters' heads if they do it anyway, is that the skaters can't go to worlds next year, or something like that. The ISU can also punish the skaters' national federation in various ways if the federation cannot coerce the sdkaters to comply.
Whether they would enforce this rule or not, I don't know. In the past Michelle Kwan and Evgeny Plushenko were both warned about skipping Grand Prix events. In one case Plushenko was schedule to do an exhibition in St. Petersburg, but the ISU/Russian Federation made him withdraw and jus send a tape of himn skating to be played over the jumpbotron.
In Michelle's case, the cheesefest that she was scheduled for took plce just after the Grand Prix Final, so she was technically OK andfd the IDSU did not pursue the matter.
This is important to the ISU because it means money. The Japanese television networks that are paying out millions of dollars for this event will not be happy if the ISU does not send the top skaters.
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