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NCAA Takes Hit in O'Bannon Lawsuit

Author: Scarinci Hollenbeck, LLC

Date: May 19, 2014

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Former UCLA basketball star, Ed O’Bannon, recently filed an anti-trust lawsuit against the NCAA

He is claiming the organization is violating anti-trust laws by limiting what athletes can receive for competing. O’Bannon says it is unfair that the NCAA can sell television rights and likeness of athletes to video game manufacturers without paying players.

If successful, the lawsuit could change the landscape of collegiate athletics forever. ESPN reported the NCAA took its first blow in the lawsuit when U.S. District Judge Claudia Wilken ruled against a motion filed claiming paying players in revenue-generating sports is difficult because those funds are used to pay for women’s sports.

“We disagree with the Court’s decision not to reconsider its summary judgment order,” the NCAA’s chief legal officer, Remy said in the statement. “It is core to the NCAA and its member institutions that schools offer a broad base of sports, for women and men, regardless of whether those sports generate more revenue than the cost to support.”

This ruling is a step in the right direction for O’Bannon’s lawsuit, but there are still hurdles to success. For example, Title IX could make it difficult for colleges and universities to pay football and basketball players and exclude other athletes, such as women’s field hockey that probably cost the school money.

It is important not to confuse Wilken’s ruling with this example, as there are laws in place against providing preferential treatment for male sports. Colleges may not be able to use this as an excuse for not paying revenue-generating athletes, but they do have to find a way to pay all athletes if this type of system is put in place.

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    NCAA Takes Hit in O'Bannon Lawsuit

    Author: Scarinci Hollenbeck, LLC

    Former UCLA basketball star, Ed O’Bannon, recently filed an anti-trust lawsuit against the NCAA

    He is claiming the organization is violating anti-trust laws by limiting what athletes can receive for competing. O’Bannon says it is unfair that the NCAA can sell television rights and likeness of athletes to video game manufacturers without paying players.

    If successful, the lawsuit could change the landscape of collegiate athletics forever. ESPN reported the NCAA took its first blow in the lawsuit when U.S. District Judge Claudia Wilken ruled against a motion filed claiming paying players in revenue-generating sports is difficult because those funds are used to pay for women’s sports.

    “We disagree with the Court’s decision not to reconsider its summary judgment order,” the NCAA’s chief legal officer, Remy said in the statement. “It is core to the NCAA and its member institutions that schools offer a broad base of sports, for women and men, regardless of whether those sports generate more revenue than the cost to support.”

    This ruling is a step in the right direction for O’Bannon’s lawsuit, but there are still hurdles to success. For example, Title IX could make it difficult for colleges and universities to pay football and basketball players and exclude other athletes, such as women’s field hockey that probably cost the school money.

    It is important not to confuse Wilken’s ruling with this example, as there are laws in place against providing preferential treatment for male sports. Colleges may not be able to use this as an excuse for not paying revenue-generating athletes, but they do have to find a way to pay all athletes if this type of system is put in place.

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