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

[RaychelSnr]

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.

[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.

[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.

[Dogslax41]

Quote: 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.

[BadAssHskr]

Quote: Originally Posted by MMChrisS

just about $320 per player

[debauchlord]

Quote: 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.

[JLoco11]

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

[Dogslax41]

Quote: 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?