RaychelSnr's Blog
O'Bannon Case Expands it's scope, NCAA's fundamental claims now at stake 
Posted on January 30, 2013 at 11:04 AM.
In a case that started out as a simple suit against college sports video games for player likenesses has now expanded into a fundamental test of the claims of the NCAA about amateurism of it's athletes.
In a ruling released yesterday, Judge Claudia Wilkin rejected a motion that players in the antitrust suit led by former UCLA basketball star Ed O'Bannon should be prevented from advancing their lawsuit on procedural grounds.
With that rejection, a startling test of the NCAA's fundamental claims to amaterusim is now setting up inside of the courtrooms. Players, both current and former, are now possibly entitled to billions of dollars in licensing revenue from TV broadcasts, video game deals, and more.
The hearing to certify the class action suit is now set for June 20 -- there the NCAA will have to make it's arguments against class certification on the merits of the case rather than on procedural grounds. Simply put: the NCAA has to prove it's not taking money from players that the players claim is rightfully theirs.
As of this ruling, the NCAA has invested $20 million into defending the lawsuit -- only to be rebuffed at just about every corner.
While a final ruling probably won't happen for awhile yet (we've been covering this case for a few years already), when a ruling is finally handed down it could fundamentally change college athletics.
In the event of a players victory, conferences and the NCAA would owe players money for everything, from TV broadcasts to video game licenses. For a company like EA, the only maker of collegiate licensed video games, this may raise the costs for licensing to the point it become uneconomical to produce NCAA Football or Basketball games.
EA has already shown their hand a bit, allowing the NCAA exclusivity deal to expire as part of a settlement in a separate anti-trust suit against Madden. While it's clear no other company has serious intentions of making NCAA Football games given the licensing uncertainty currently abound, it seems EA is open to dumping the license themselves if and when they have to pay players as part of a licensing deal as well.
There are multiple moving parts to this case that go well beyond video games though. The fundamental challenge of the O'Bannon case could change college athletics forever if O'Bannon's team wins. No only will college athletes be due money owed to them from TV broadcasts, but the NCAA will have a hard time impeding college athletes ability to get endorsements and more -- effectively making sports like college basketball and football minor leagues for the NFL and NBA.
As usual, we'll stay on top of this case and keep bringing you the latest from the courtrooms. It appears the news cycle will dry up on this one until Summer, but be on the lookout for more news then!
# 2
BigBadTom @ Jan 30
I have no issue with paying the players for what they do, but limit it and make it equal for every D1 athlete. Like giving a player 30,000 g's over 4 years for the right to use them on tv and video games isn't an issue for me, but once it becomes a bidding war over players, how can a team like Miami compete with Notre Dame and Bama? It's not fair for the players and schools as only the top players will get paid and the rest are left in the dust
# 4
bccards13 @ Jan 30
I can understand where the players are coming from on this issue but I really don't like it. It's shortsightedness on their behalf due to the implications it will have.
First off most of these players are being paid. Some under the table, but most through scholarships that many earned solely on athletic ability which is not the true definition of a scholar. If getting a full ride or getting money for X amount of years to go to a university that you otherwise would not have been able to go to, simply because you have athletic ability seems like a steal to me.
Secondly, what this will do to the NCAA if this suit wins could be drastic. Good luck getting tons of nationally broadcast games like we do now. If players have to be paid every time they appear on TV then there undoubtedly will be less games on TV. We may still see regular season games but only with the big networks and the big names. However much the NCAA and their conferences has to pay out will determine this. If it's as big a settlement as they're making it out to be, we may only see the playoffs and the Elite Eight for the next few years.
I agree that college players are being used very prominently in the media and should be getting some compensation for it, but not the massive settlement that they're searching for. I like cch99's idea of a simple flat payment to each player for however much they find agreeable. 5, 10, 20 or even 30 thousand to use their name and likeness on TV, advertising, and in any video games. This undoubtedly will cost a lot of money and the effects will be felt in many places, but these athletes are being used in the media with no compensation for it and that's not fair to them. But for the athletes that graduated 20 or 30 years ago what good will it do for them? They have jobs, or are retired, and probably don't even need this money. Some of them made it to the NFL as well and definitely don't need it!
It's a good idea, but the people at the head of it have their minds in the wrong place.
First off most of these players are being paid. Some under the table, but most through scholarships that many earned solely on athletic ability which is not the true definition of a scholar. If getting a full ride or getting money for X amount of years to go to a university that you otherwise would not have been able to go to, simply because you have athletic ability seems like a steal to me.
Secondly, what this will do to the NCAA if this suit wins could be drastic. Good luck getting tons of nationally broadcast games like we do now. If players have to be paid every time they appear on TV then there undoubtedly will be less games on TV. We may still see regular season games but only with the big networks and the big names. However much the NCAA and their conferences has to pay out will determine this. If it's as big a settlement as they're making it out to be, we may only see the playoffs and the Elite Eight for the next few years.
I agree that college players are being used very prominently in the media and should be getting some compensation for it, but not the massive settlement that they're searching for. I like cch99's idea of a simple flat payment to each player for however much they find agreeable. 5, 10, 20 or even 30 thousand to use their name and likeness on TV, advertising, and in any video games. This undoubtedly will cost a lot of money and the effects will be felt in many places, but these athletes are being used in the media with no compensation for it and that's not fair to them. But for the athletes that graduated 20 or 30 years ago what good will it do for them? They have jobs, or are retired, and probably don't even need this money. Some of them made it to the NFL as well and definitely don't need it!
It's a good idea, but the people at the head of it have their minds in the wrong place.
# 5
yount19 @ Jan 30
Ok fine, give them their money. But a decision is to be made by the athletes... accept the money and be ineligible for NCAA competition, or, be gracious in the fact that they are FORTUNATE enough to even be on a game that is idolized by millions. I do agree that the NCAA should not be making money on a license that is only appealing because of it's athletes but come on, why make such a big deal over it. Many of the players that are on board with this lawsuit are the same players that did not encounter the success and financial gain that they had envisioned, so now this is how they go about it. I am so over this!!!
# 6
Radja @ Jan 31
ok, this falls under the be careful what you wish for. if the players want the money, then make them pay for their tuition and all aspects of student life like regular students. if they do anything that harms the institution, fine them. if it greatly harms the institution, sue them. make them pay for their lodging, food and any other expenses.
i think they should decide on an amount each student athlete at the institution should receive and then use that money to pay for everything from that fund, and then if anything is left, the player can collect. if it goes over the amount, the university then covers as their portion of the scholarship.
the thing that irritates me about issues like this are the vast majority of players are not going pro and are benefiting from having a scholarship to a university of some choice. this will harm far more players than it will benefit. will all DI players get the same amount of money, or will it simply be those who are on the best teams?
this will also eventually splinter college athletics across the board. the teams with the most money, will eventually distance themselves from the pack and ultimately harm the overall product of the college game. those schools and / or conferences could stand to make a lot of money.
on the downside some programs may decide to forego D1 status as a cost cutting procedure since they will ultimately never be able to compete.
i think they should decide on an amount each student athlete at the institution should receive and then use that money to pay for everything from that fund, and then if anything is left, the player can collect. if it goes over the amount, the university then covers as their portion of the scholarship.
the thing that irritates me about issues like this are the vast majority of players are not going pro and are benefiting from having a scholarship to a university of some choice. this will harm far more players than it will benefit. will all DI players get the same amount of money, or will it simply be those who are on the best teams?
this will also eventually splinter college athletics across the board. the teams with the most money, will eventually distance themselves from the pack and ultimately harm the overall product of the college game. those schools and / or conferences could stand to make a lot of money.
on the downside some programs may decide to forego D1 status as a cost cutting procedure since they will ultimately never be able to compete.
# 7
Computalover @ Feb 2
This case will open alot more issues than it solves. so if the players win, how do you determine their monetary value? as far as the NCAA, how can a player define his value based on an overall projection of said value vs. the total number of players and schools? what about in video games? what is the value of a person's likeness? who determines that? and again, the number of players and schools? what about the contractual obligations of signing a letter of intent? playing for a college? what about the reimbursement of all the tuition, room board, uniforms shoes, travel, medical and training services that the student got in exchange of his services? will they be required to repay the school for all the monies invested in this individual student? breach of contract lawsuits the schools may file? what about the other sports that depends on the money maker sports to survive? will this mean the end of college sports?? I always said the students should get a stipend..its just as hard to stay in school as it is to get in school.. IDK
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In the case I side with the players. Reason being anyone using common sense knows that they are using these guys attributes to pattern the players after. And in this case not just the NCAA makes money on licensing, EA Sports makes a lot of money on these players.
That being said I think that if they made the attributes more random and the numbers of the players random but left it editable I don't have a problem with people who have bought the game taking the time to edit rosters and making it as close to the NCAA as possible and sharing it as long as those people aren't making money of there rosters.
That's my opinion. Without players modeled after real people you are buying the game for the schools and College Football itself. Someone could argue that by allowing rosters to be editable you are doing so knowing that people will make rosters fashioned after real life but to me that argument is not as strong and someone with no monetary reason has to make and edit their own rosters.
My thoughts.