Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
EA Sports Enters Into Settlement Agreement With College Athletes
Author: Scarinci Hollenbeck, LLC
Date: October 2, 2013
Key Contacts
Back
Video game producer Electronic Arts Sports and Collegiate Licensing Company have agreed to pay out roughly $40 million to former players whose likenesses were used without authorization and compensation.
The settlement agreement will settle disputes against EA Sports and CLC, leaving the National Collegiate Athletic Association as the lone defendant in the controversial sports law dispute. The outcome of the case, filed by the former UCLA basketball player Ed O’Bannon, may carry significant implications for the future of college athletics and make it possible for players to lobby for a share of the multi billion-dollar profits generated by the sports industry.
As the NCAA has said it plans to fight the lawsuit vigorously and is confident in its position, the settlement between EA Sports and former players may have a broad impact on the association. Although EA Sports will not officially admit to any wrongdoing as part of the agreement, settlements typically denote some measure of acknowledgement or support for plaintiffs’ claims. If the NCAA loses its case or agrees to settle, the central question of whether college sports fall into the amateurism category may be challenged.
Legal analysts for the NCAA have long argued that because college sports fall into the amateur, rather than professional, realm, players are not entitled to compensation. Should the courts rule that players whose likenesses are used must be compensated, athletes may begin demanding payment any time their names or identifying characteristics appear on sports merchandise, games, music, movies, and other items.
Following the settlement – which has not yet detailed how the $40 million will be distributed among former players – the NCAA told USA Today that it is “not prepared to compromise on this case.” The association reaffirmed its position, and said that it its prepared to take the case to the U.S. Supreme Court if necessary.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Crypto Investor Protection: SEC and CFTC Enforcement Trends
Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
Author: Dan Brecher
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
A Simple Guide to Industry Roll-Up Acquisitions
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.