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Anti-trust lawsuit against NCAA

BB73

Loves Buckeye History
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si.com

NCAA could take big hit in scholarship anti-trust trial

Has the NCAA illegally fixed the price of an athletic scholarship below the cost of a college education? Or, is the NCAA trying to protect amateurism and competitive balance for its member schools?

A jury in Los Angeles will answer these questions in a trial that will begin on June 12. The jury's answer could be expensive for the NCAA. Very expensive.

Lawyers representing all Division I football and basketball players (there are 11,500 of them) claim that the athletes are shortchanged an average of $2,500 a year because of an arbitrary NCAA limit on scholarships.

Cont'd ...
 
Interesting as hell. I'm not a lawyer, but, as I understand it, the NCAA is not exempt from anti-trust (as is, for example, Major League Baseball). Scholarship limits would seem to me to be prima facie evidence of collusion. To the extent that they fall short of actual costs, that would seem to be prima facie evidence of damages.

Maybe Gonzo had a point. Give him (and others) the treble damage award.
 
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Interesting article BB73 - looks like Myles Brand back in 2003 wrote a letter to the Denver Post favoring the position that the NCAA now opposes. In addition, former NCAA Executive Director Walter Byers is quoted roundly dismissing the NCAA's main defense, that provision of the roughly $2,500 a head to cover books and other extraneous expenses will threaten amateurism.
Lastly there is the NCAA's failure to win a case in which they had tried to hold assistant coach salaries to $16,000 - also on grounds they presently cite. To produce a balance of competition among Division I schools and to protect amateurism.
Then you have to consider the potential impact should they also lose this case which would impact 11,500 football and basketball players. At $2,500 a head that is an annual basis of nearly $27 Million. With triple damages and a possible extension to the full four years of a scholarship those costs escalate commutatively.
Given the above, and the fast approaching trial date, I suspect that this will be negotiated to settlement before it gets in front of a jury. Most likely with something close to $2,500 a head beginning immediately.

And then begins the difficult task cost of implementing the agreement at all the Division 1 programs across the country.
 
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The class action lawsuit is based on an NCAA rule that specifies what may be included in a "grant-in-aid," the NCAA's term for a full-ride scholarship. The GIA does not include school supplies, recommended text books, laundry expenses, health and disability insurance, travel expenses and incidental expenses. Studies of GIA economics have shown that the shortfall averages $2,500 per athlete.

Laundry expenses? Uh, don't tell me they have to wash their uniforms themselves or pay someone to wash them. "Laundry expenses" is bullshit. I wonder if TBDBITL members get a laundry stipend for items other han their band uniforms...

Travel expenses? Don't they already ride on transportation furnished by the university? GTFOH.

Health and disability? Wow, I bet Anderson Russell is really in the hole now, having to pay out-of-pocket for the surgery on his knee. :roll1:

School supplies? I suppose they'll want the university buy them a new computer every year.

The only thing I agree with is "recommended text books". I always thought that books were covered along with tuition, but evidently "recommended" makes the books "optional" and thus not covered by scholarship.
 
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Re: A jury in Los Angeles will answer these questions in a trial that will begin on June 12.

After the OJ Simpson verdict do you really trust a jury in Los Angles to render anything close to a fair, reasonable, and/or sensible decision? :biggrin:
 
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Jeffrey Kessler files against NCAA

ncaa_a_kessler_b1_600x400.jpg


Sports labor attorney Jeffrey Kessler's lawsuit argues that no earnings cap, such as the NCAA's on athlete compensation, is legal in a free market.

In the most direct challenge yet to the NCAA's longstanding economic model, high-profile sports labor attorney Jeffrey Kessler filed an antitrust claim Monday (March 17, 2014) in a New Jersey federal court on behalf of a group of college basketball and football players, arguing the association has unlawfully capped player compensation at the value of an athletic scholarship.

"The main objective is to strike down permanently the restrictions that prevent athletes in Division I basketball and the top tier of college football from being fairly compensated for the billions of dollars in revenues that they help generate," Kessler told ESPN. "In no other business -- and college sports is big business -- would it ever be suggested that the people who are providing the essential services work for free. Only in big-time college sports is that line drawn."

The lawsuit names the NCAA and the five largest conferences (the Southeastern, Big Ten, Pacific-12, Atlantic Coast and Big 12) as defendants and effectively asks for an end to NCAA-style amateurism. The players listed as plaintiffs include Clemson defensive back Martin Jenkins, Rutgers basketball player J.J. Moore, UTEP tight end Kevin Perry and Cal tight end Bill Tyndall, though the claim is a class action and proposes to represent all scholarship players in FBS football and Division I basketball. Jenkins is a junior, while the other three are seniors who recently completed their NCAA eligibility.

Entire article: http://espn.go.com/college-sports/s...jeffrey-kessler-challenges-ncaa-amateur-model
 
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http://m.espn.go.com/ncf/story?storyId=10677763

Players win bid to unionize

  • Brian Bennett [ARCHIVE]
  • ESPN.com | March 26, 2014
In a potentially game-changing moment for college athletics, the Chicago district of the National Labor Relations Board ruled on Wednesday that Northwestern football players qualify as employees and can unionize.

NLRB regional director Peter Sung Ohr cited the players' time commitment to their sport and that their scholarships were tied directly to their performance as reasons for granting them union rights.

Ohr wrote in his ruling that Wildcats players "fall squarely within the [National Labor Relations] Act's broad definition of 'employee' when one considers the common law definition of 'employee.'"

Ohr ruled that Northwestern players can hold an election on whether they want to be represented by the College Athletes Players Association, which brought the case to the NLRB along with former Wildcats quarterback Kain Colter and the United Steelworkers Union.

Northwestern issued a statement shortly after the ruling saying it would appeal to the full NLRB in Washington.

"While we respect the NLRB process and the regional director's opinion, we disagree with it," the statement read. "Northwestern believes strongly that our student-athletes are not employees, but students. Unionization and collective bargaining are not the appropriate methods to address the concerns raised by student-athletes."

CAPA supporters, meanwhile, celebrated the news. Colter tweeted: "This is a HUGE win for ALL college athletes!"

 
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