EA/CLC Settlement With O'Bannon Team Is $40 Million

Collapse

Recommended Videos

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • RaychelSnr
    Executive Editor
    • Jan 2007
    • 4845

    #1

    EA/CLC Settlement With O'Bannon Team Is $40 Million


    The settlement total for EA and the CLC in their part of the college athlete likenesses lawsuits which brought an end to the NCAA Football series is valued at $40 million according to the NY Times.

    The settlement affects 125,000 current and former college basketball and football players and ends up averaging just about $320 per player -- which is still too high given the presence of lawyers fees and such which would lower the total payout per player.

    The total monetary number is actually quite a bit smaller than you'd expect, and much smaller than if the case had actually gone to trial. From a business standpoint, the $40 million itself was likely not necessarily a reason for axing NCAA Football. What we haven't heard yet are the other terms of the settlement, one of which could very well have been that EA Sports couldn't develop a college football game for x number of years.

    We'll keep digging to see what we can find -- most likely additional details of the settlement will continue to leak out in the days and weeks to come.
    OS Executive Editor
    Check out my blog here at OS. Add me on Twitter.
  • HenryClay1844
    Rookie
    • Jul 2013
    • 273

    #2
    So they shut down the game because they were robbing the players of about one hundred dollars a year of payouts for their "likeness." Yup, this seems like something that has happened in America in 2013.

    Comment

    • Dogslax41
      MVP
      • Aug 2003
      • 1901

      #3
      Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

      EA and the CLC were never the real target. It may have started out as a money play for Obannon but the lawyers that jumped on the case did so to go after the NCAA and the TV money. My guess is that the structure of college athletics is going to change so much in the next 2-3 years a future video game is not off the table but the uncertainty of what player compensation is going to look like led EA to make the announcement that they did.

      Comment

      • Dogslax41
        MVP
        • Aug 2003
        • 1901

        #4
        Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

        Originally posted by HenryClay1844
        So they shut down the game because they were robbing the players of about one hundred dollars a year of payouts for their "likeness." Yup, this seems like something that has happened in America in 2013.
        It's not about robbing the players of money. It's about robbing them of the ability to market themselves for money.

        Comment

        • BadAssHskr
          XSX
          • Jun 2003
          • 3511

          #5
          Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

          Originally posted by MMChrisS
          just about $320 per player









          Last edited by BadAssHskr; 09-27-2013, 02:45 PM.
          "Not the victory but the action. Not the goal but the game. In the deed the glory."

          Comment

          • debauchlord
            Rookie
            • May 2004
            • 293

            #6
            Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

            Originally posted by Dogslax41
            EA and the CLC were never the real target. It may have started out as a money play for Obannon but the lawyers that jumped on the case did so to go after the NCAA and the TV money. My guess is that the structure of college athletics is going to change so much in the next 2-3 years a future video game is not off the table but the uncertainty of what player compensation is going to look like led EA to make the announcement that they did.
            My guess? Players will never get paid while in college. Never. The reason being is that because of Title IX, you will have to pay all players. Not necessarily equally, but pay them just the same. The value of a college education vastly trumps any sort of "earnings" a female soccer player brings in. Additionally, all college students are assessed an "athletic fee", which pays for gyms, stadiums, teams, etc. No way in hell am I subsidizing Bruiser McKneecaps to drink beer, get laid, and take Rocks for Jocks four times.

            I think what will happen is that the NCAA will pull away from professional leagues, make a student athlete's "free ride" 100% dependent on their graduation (if they do not graduate in five years, they must pay the money back), and kids that do not want to go to college, can skip to the pros. The pros will have then be forced to develop a better minor league system, like baseball and hockey and soccer (I believe?).

            Also, there will be a fund established by each individual school, which will pay the athlete, equally among ALL school athletes, a "residual", based on total athletic income for that school, dependent on graduation.

            These changes are a long ways coming anyway, I am glad something as petty as 133.00 bucks per athlete is the catalyst to this. Time to put student back into student athlete.
            Last edited by debauchlord; 09-27-2013, 02:49 PM.

            Comment

            • JLoco11
              Rookie
              • Jun 2013
              • 236

              #7
              Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

              O'Bannon and Keller should be able to afford a few copies of Their Greatest plays on blu ray now.

              Be sure to see all 8 O'Bannon highlights and 4 Keller highlights on 1 action packed video! They might even have enough to buy copies for their immediate family members too

              Comment

              • Dogslax41
                MVP
                • Aug 2003
                • 1901

                #8
                Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                Originally posted by debauchlord
                My guess? Players will never get paid while in college. Never. The reason being is that because of Title IX, you will have to pay all players. Not necessarily equally, but pay them just the same. The value of a college education vastly trumps any sort of "earnings" a female soccer player brings in. Additionally, all college students are assessed an "athletic fee", which pays for gyms, stadiums, teams, etc. No way in hell am I subsidizing Bruiser McKneecaps to drink beer, get laid, and take Rocks for Jocks four times.

                I think what will happen is that the NCAA will pull away from professional leagues, make a student athlete's "free ride" 100% dependent on their graduation (if they do not graduate in five years, they must pay the money back), and kids that do not want to go to college, can skip to the pros. The pros will have then be forced to develop a better minor league system, like baseball and hockey and soccer (I believe?).

                These changes are a long ways coming anyway, I am glad something as petty as 133.00 bucks per athlete is the catalyst to this.
                Player's won't be paid by the institution in a formal capacity, for the very reason that you mentioned. but we are headed directly toward players being able to sign endorsement deals and be paid for their image and likeness. This is the can of worms the NCAA has opened because of their greed.

                Now the real negotiating is going to come between the players and the school because just because the courts may rule a player can market himself and his image, what he wont be able to do is wear the uniform unless there is an agreement between the player and the school and how valuable is a player's image when not linked to his university logo?
                Last edited by Dogslax41; 09-27-2013, 02:51 PM.

                Comment

                • debauchlord
                  Rookie
                  • May 2004
                  • 293

                  #9
                  Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                  Originally posted by Dogslax41
                  Player's won't be paid by the institution in a formal capacity, for the very reason that you mentioned. but we are headed directly toward players being able to sign endorsement deals and be paid for their image and likeness. This is the can of worms the NCAA has opened because of their greed.

                  Now the real negotiating is going to come between the players and the school because just because the courts may rule a player can market himself and his image, what he wont be able to do is wear the uniform unless there is an agreement between the player and the school and how valuable is a player's image when not linked to his university logo?
                  I always found it funny that football players want to market their likeness, when 90% of fans only see players with their helmets on. I am a huge football fan but can only pick a few guys out of a line up if they are not wearing their jerseys. The Manning brothers are distinctive, Tom Brady of course, Ray Lewis. Cut Clay Matthews hair and he disappears. Put Manziel or Clowney in a tshirt and biker shorts and I wouldn't know who the hell they are. But hey, capitalism, am I right?

                  Only 3% of college athletes make pro squads. I hope all these changes that will occur don't mess things up for the other 97%.

                  Comment

                  • Sam Marlowe
                    Banned
                    • Aug 2010
                    • 1230

                    #10
                    Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                    Lets be frank, there is never going to be an NFL minor league.and the NBA is not interested in expanding the NBDL. College athletics have a stranglehold and will continue to have one (as they want, for very good fiscal reasons). It would also be incredibly difficult to put together a fair pay all system. So in the end, the best thing to have happen is the NCAA releasing its monopoly on player likenesses and names for profit. The status quo would stay mostly in tact and those players who are really interested in monetizing themselves can without threat of sanctions to their schools.

                    Comment

                    • da ThRONe
                      Fire LesS Miles ASAP!
                      • Mar 2009
                      • 8528

                      #11
                      Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                      Originally posted by Dogslax41
                      Player's won't be paid by the institution in a formal capacity, for the very reason that you mentioned. but we are headed directly toward players being able to sign endorsement deals and be paid for their image and likeness. This is the can of worms the NCAA has opened because of their greed.

                      Now the real negotiating is going to come between the players and the school because just because the courts may rule a player can market himself and his image, what he wont be able to do is wear the uniform unless there is an agreement between the player and the school and how valuable is a player's image when not linked to his university logo?
                      This. There's no reason that the NCAA or any school should prohibit student athletes from gaining money legally.
                      You looking at the Chair MAN!

                      Number may not tell the whole story ,but they never lie either.

                      Comment

                      • Sam Marlowe
                        Banned
                        • Aug 2010
                        • 1230

                        #12
                        Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                        Originally posted by debauchlord
                        Time to put student back into student athlete.
                        That went out the door as soon as profits entered the scene. That genie is never going back in the bottle. The more money these institutions make off football and basketball the more people will have their attention drawn to it. At the highests levels (where all the money is really made) the college/student relationship hasn't existed for years.

                        Comment

                        • da ThRONe
                          Fire LesS Miles ASAP!
                          • Mar 2009
                          • 8528

                          #13
                          Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                          Originally posted by Sam Marlowe
                          Lets be frank, there is never going to be an NFL minor league.and the NBA is not interested in expanding the NBDL. College athletics have a stranglehold and will continue to have one (as they want, for very good fiscal reasons). It would also be incredibly difficult to put together a fair pay all system. So in the end, the best thing to have happen is the NCAA releasing its monopoly on player likenesses and names for profit. The status quo would stay mostly in tact and those players who are really interested in monetizing themselves can without threat of sanctions to their schools.
                          As it should be. 90% of the time the people who pay for the violations aren't the ones even committing them. There has never been a good reason to criminalize one party giving another party money for anything that doesn't envolve a crime taking place.
                          You looking at the Chair MAN!

                          Number may not tell the whole story ,but they never lie either.

                          Comment

                          • JLoco11
                            Rookie
                            • Jun 2013
                            • 236

                            #14
                            Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                            Originally posted by Sam Marlowe
                            Lets be frank, there is never going to be an NFL minor league.and the NBA is not interested in expanding the NBDL. College athletics have a stranglehold and will continue to have one (as they want, for very good fiscal reasons). It would also be incredibly difficult to put together a fair pay all system. So in the end, the best thing to have happen is the NCAA releasing its monopoly on player likenesses and names for profit. The status quo would stay mostly in tact and those players who are really interested in monetizing themselves can without threat of sanctions to their schools.
                            Well, David Stern and Adam Silver have both already stated they want to expand the D-League, evidenced by the new team they just added in August, and 3 more teams over the next 2 years.

                            That leaves the NFL as the only 1 of the big 4 without a minor league system... which is sort of the lame attempt they had with the Euro league. While the NFL certainly isn't remotely close to a minor league, the NBA sure is.

                            Regardless of the money the NCAA makes, the NFL is their own business. They have a relationship with the NCAA, but their future isn't dictated by the NCAA trying to make money. If the NFL wants to expand into a minor league system, they're not going to ask the NCAA for approval... they ask for cooperation, but certainly not approval.

                            Comment

                            • debauchlord
                              Rookie
                              • May 2004
                              • 293

                              #15
                              Re: EA/CLC Settlement With O'Bannon Team Is $40 Million

                              Originally posted by da ThRONe
                              This. There's no reason that the NCAA or any school should prohibit student athletes from gaining money legally.
                              If the athlete is famous "because of" the university, then who gets the cut and how much? Texas A&M was popular before Manziel. How much is Johnny Football's likeness tied to Texas A&M? How much is Johnny Football's "Johnny Football-ness" tied to Texas A&M's system, situation, and marketing?

                              Just to be clear, I can't answer these questions, but you know who will answer them? Lawyers. There has to be tons of law firms just waiting for the NCAA implosion.

                              Comment

                              Working...