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Will NCAA Likeness Lawsuit Change College Sports?

Author: Scarinci Hollenbeck, LLC

Date: June 21, 2013

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Former UCLA basketball player Ed O’Bannon is going after the National Collegiate Athletic Association and several companies that license college sports merchandise and video games in a likeness lawsuit for using players’ likenesses without permission or compensation. O’Bannon and other athletes named in the suit argue that it’s unfair for them to sign away the rights to their images in order to be eligible to compete in college athletics.

In anticipation of an upcoming key hearing on the matter, many sports analysts are wondering how the end result will impact the NCAA sports industry.

For several years, sports enthusiasts have argued about whether players should be compensated when their images or likenesses are used to promote university athletics, school merchandise, video games, and magazines. The schools themselves, sponsors and NCAA rake in billions of dollars as a result, and some argue that it’s unfair to athletes who are not compensated for their work. On the flip side, athletes often receive full scholarships, training from renowned coaches and national exposure than can lead to lucrative professional talent agreements with sports teams. Given these opposing arguments, the ruling in the O’Bannon case may very well change the scope of amateurism in college sports, the Tampa Bay Times reports.

Namely, the NCAA stands to lose billions of dollars in revenue should the use of players’ likenesses be banned, the results of which could heavily impact the way in which the NCAA operates. For example, Wake Forest President Nathan Hatch, who also chairs the NCAA Division I board, told Bloomberg News that if the school was forced to share revenue with players, it may be forced to slash its budget for other non-revenue sports.

However, O’Bannon retorted that given the amount of money being made in the industry, there is enough to go around without compromising NCAA sports.

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