« Ind. Decisions - Transfer list for week ending February 12, 2010 | Main | Environment - Logansport, Cass County set wind energy fees »

Saturday, February 13, 2010

Courts - Update on "Three lawsuits may change how NCAA operates"

Updating this ILB entry from July 26, 2009, which quoted a story by Mark Alesia of the Indianapolis Star -- the three suits described in the story were:

UCLA basketball star Ed O'Bannon, who last week [July 2009] filed an antitrust lawsuit contending that the NCAA and its member schools illegally profit from using former players' images in DVDs, TV ads and other commercial pursuits. * * *

O'Bannon's class-action lawsuit, which focuses on the sale of players' images after they leave school, has the potential to inflict large financial damage on the NCAA. Antitrust judgments are automatically tripled.

But it's another pending case that, because of its effect on amateurism rules, "could unravel the way the NCAA operates entirely," said Gary Roberts, dean of the Indiana University School of Law-Indianapolis and an expert in sports law.

In February, an Ohio judge ruled in favor of then-Oklahoma State University pitcher Andy Oliver, striking down an NCAA rule prohibiting players from having agents, as Oliver did in high school. * * *

A jury trial to decide damages in the Oliver case is scheduled for October. * * *

A lawsuit filed in May by former Arizona State and University of Nebraska quarterback Sam Keller takes aim specifically at the use of players' images in the sale of video games.

What are they now?

"N.C.A.A. Fails to Stop Licensing Lawsuit " is the headline to Feb. 8, 2010 NY Times story by Pete Thamel. Some quotes:

A district court judge in San Francisco on Monday denied the N.C.A.A.’s motion for dismissal in a class-action lawsuit headed by the former U.C.L.A. basketball star Ed O’Bannon. The ruling leaves the N.C.A.A.’s licensing contracts open to discovery.

O’Bannon’s lawyers filed the antitrust suit in July, claiming that former athletes should be compensated for the use of their images and likenesses in television advertisements, video games and on apparel. They said Monday’s ruling was an important first step. * * *

The significance of this case appears to transcend financial reward, as its cuts to the core of the N.C.A.A.’s amateurism ideals.

“We think the N.C.A.A. will defend this case saying they are protecting amateurism and trying to prevent excess commercialization,” King said. “That’s their mantra in regard to the big-business aspect. We think their hypocrisy will be fully exposed once their numbers are put in the public eye.”

Michael McCann, a professor at Vermont Law School who specializes in sports law, called Monday’s ruling a “setback” for the N.C.A.A. He said that the case would probably be followed closely by members of Congress who were interested in the N.C.A.A.’s tax-exempt status.

“I think it’s an important case because it gets at the core of the student-athlete mission and the issue that new players have in terms of waving away potential benefits they may enjoy when they’re out of college,” McCann said.

O’Bannon, who led U.C.L.A. to the 1995 national title, brought the lawsuit after he kept seeing his likeness used each year around N.C.A.A. tournament time.

From the AP, a brief note on Feb. 9, 2010:
A federal judge has green-lighted most of a lawsuit by former UCLA basketball star Ed O'Bannon, who alleges the NCAA used the images of student-athletes without permission to sell DVDs, video games and apparel. The judge combined his case with that of former Nebraska quarterback Sam Keller, who filed a similar suit.
See Marlen Garcia's story from USA Today, including a copy of the Feb. 8, 2010 ruling.

As for the third lawsuit, that of Andy Oliver, the NCAA settled it last October, as reported in this ILB entry from Oct. 14, 2009. This Oct. 13, 2009 article by Jordan Kobritz, in The Biz of Baseball, is headlined "Andy Oliver Case Highlights Inflexibility Within NCAA Rules." A few quotes:

The NCAA has been accused of being many things – arrogant, intimidating, oppressive – but stupid isn’t one of them. And they proved it last week when a settlement was announced in the suit brought by Andy Oliver, the former Oklahoma State University pitcher who was punished for violating an NCAA bylaw against having an attorney. * * *

The damage portion of the case, which was separated from the trial on the merits, was scheduled to be heard on October 19, but the NCAA wisely settled the case for $750,000 before the matter was presented to a jury. * * *

The NCAA had vowed to appeal the case, a process that could have taken 3-5 years and cost millions of dollars. By settling the case, the NCAA merely transferred some portion of its projected legal fees to Oliver in exchange for a dismissal of the lawsuit. In effect, the case disappears, which allows the NCAA to act as if there never was a judicial finding against its Bylaws and actions. * * *

The settlement was somewhat surprising, given the NCAA’s avowed objection to settling cases for fear of encouraging future lawsuits. But the NCAA could see the handwriting on the wall, and it didn’t spell “Victory.” For the NCAA, a loss would have constituted a major chip in its heretofore virtually impregnable armor at a time when it is under fire on several fronts for using student-athletes for financial gain. The governing body obviously determined that the potential reward wasn’t worth the risk.

Posted by Marcia Oddi on February 13, 2010 12:59 PM
Posted to Courts in general