Judge rules NCAA violates antitrust law

[BLUE 1,026]

A federal judge ruled Friday that the NCAA's rules prohibiting athletes from being paid for use of their names, images and likeness violate antitrust law because they "unreasonably restrain trade." The ruling in the five-year case of the Ed O'Bannon lawsuit allows for trust funds to be established for athletes to share in licensing revenue.

 

In a 99-page opinion, U.S. District Judge Claudia Wilken issued an injunction “that will enjoin the NCAA from enforcing any rules or bylaws that would prohibit its member schools and conferences from offering their FBS football or Division I basketball recruits a limited share of the revenues generated from the use of their names, images, and likenesses in addition to a full grant-in-aid.” Wilken said the injunction will not prevent the NCAA from implementing rules capping the amount of money that may be paid to college athletes while they are enrolled in school, but the NCAA will not be allowed to set the cap below the cost of attendance.

 

The injunction will also prohibit the NCAA from “enforcing any rules to prevent its member schools and conferences from offering to deposit a limited share of licensing revenue in trust for their FBS football and Division I basketball recruits, payable when they leave school or their eligibility expires,” Wilken wrote. Her injunction will allow the NCAA to set a cap on the money held in that trust, but prohibits the NCAA's cap to be less than $5,000 for every year an athlete remains academically eligible to compete. The money in the fund would be payable to athletes upon expiration of their athletic eligibility or graduation, whichever comes first.

 

Wilken said the injunction will not be stayed pending any appeal of her order, but will not take effect until the start of the next football and basketball recruiting cycles. The injunction will not affect any recruit who will enroll in college before July 1, 2016, Wilken wrote. The plaintiffs are allowed to recover their costs from the NCAA.

 

“Nothing in this injunction will preclude the NCAA from continuing to enforce all of its other existing rules which are designed to achieve legitimate pro competitive goals,” Wilken wrote.

 

Both sides previously said they expected Wilken's decision to be appealed no matter how she ruled. In a written statement, NCAA chief legal officer Donald Remy said the association disagrees with the court's ruling.

 

"We note that the Court's decision sets limits on compensation, but are reviewing the full decision and will provide further comment later," Remy said. "As evidenced by yesterday's Board of Directors action, the NCAA is committed to fully supporting student-athletes."

 

On Thursday, the NCAA Division I Board of Directors passed a new model that will allow the five major conferences to create their own legislation to benefit athletes.

 

Full Article: CBSSports.com

Edited August 9, 2014 by BLUE

[oochymp 2,393]

this ruling is beyond absurd to me, the ruling still allows the NCAA to set a cap on player compensation, it just has to be $5,000 above tuition, to me that just seems incredibly arbitrary

[Glanvilles Grits 142]

It's not huge, but it's definitely a small win for the players. I agree though, it's lopsided toward the schools convenience. There are going to be more rulings in the near future, and I bet they will get better as time goes forward.

 

These guys need to be paid for what their doing.