The NCAA has bylaws that restrict what a college athlete can do while in school. For one, they aren’t allowed to earn money as an amateur athlete. Not from endorsements, not for signing memorabilia and not for on-field performance, so what can an athlete do to earn income if possible?
In order to remain an amateur athlete, the NCAA says a college athlete can’t have a contract with a professional team, salary for participating in athletics, prize money above actual and necessary expenses and benefits from an agent or prospective agent.
However, a recent court decision – O’Bannon vs. the NCAA – could help any college athlete earn money in the future. A federal judge ruled that football and basketball players in major programs could challenge NCAA rules that prohibit compensation beyond the value of their athletic scholarships. It wasn’t a complete victory for collegiate athletes though, as the judge ruled that they aren’t able to recoup past damages.
One of the biggest arguments NCAA athletes have is that rules prevent them from turning professional when they desire. Baseball players have to stay in college for three years if they pass on being drafted out of high school. Basketball players must attend college for one year before becoming eligible for the NBA draft. Football players also have to be in school for three years before draft eligibility is granted. As a note, this three-year period also applies to athletes who have been redshirted. Johnny Manziel is likely to declare for the draft, despite only playing for two seasons, as he was a redshirt freshman – this year of inactivity counts toward the three-year rule.
Athletes could argue that these rules are preventing them from earning wages. And, what happens if they get injured while participating in collegiate athletics and can no longer pursue a professional career? Sure, they could take out an insurance policy on themselves but that may not make up for the millions that the select few could earn.
With these issues facing the NCAA, it will be interesting to see how the organization moves forward. Will athletes be paid? Will they be able to go straight to the pros? Only time will tell.
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
