Tag: Ed O’Bannon

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Appeals court rules NCAA in violation of antitrust laws

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SAN FRANCISCO — A federal appeals court has upheld a ruling against the NCAA saying its use of college athletes’ names, images and likenesses violated antitrust laws but struck down a plan allowing schools to pay athletes up to $5,000.

The 9th U.S. Circuit Court of Appeals said Wednesday that the NCAA couldn’t stop schools from providing full scholarships to student athletes but vacated the proposal for deferred cash payments.

The NCAA appealed U.S. District Judge Claudia Wilken’s 2014 decision, which came in a lawsuit filed by UCLA basketball star Ed O’Bannon and 19 others.

A statement from NCAA President Mark Emmert says the organization agrees with the court that the injunction “allowing students to be paid cash compensation of up to $5,000 per year was erroneous.”

NCAA announces it will appeal Ed O’Bannon ruling

Mark Emmert
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In a move that should surprise nobody, the NCAA announced on Sunday morning that it will appeal the ruling that it had violated antitrust laws. On Friday, in a 99-page ruling, U.S. District Judge Claudia Wilken determined that the NCAA violated antitrust laws by prohibiting student-athletes from being compensating for the use of their name, image or likeness.

Here is a portion of the statement from Donald Remy, the NCAA chief legal officer.

We remain confident that the NCAA has not violated the antitrust laws and intend to appeal. We will also be seeking clarity from the District Court on some details of its ruling.

It should be noted that the Court supported several of the NCAA’s positions, and we share a commitment to better support student-athletes. For more than three years, we’ve been working to improve the college experience for the more than 460,000 student-athletes across all three divisions. On Thursday, the Division I Board of Directors passed a new governance model allowing schools to better support student-athletes, including covering the full cost of attendance, one of the central components of the injunction. The Court also agreed that the integration of academics and athletics is important and supported by NCAA rules.

The lawsuit was led by former UCLA forward Ed O’Bannon.

Judge rules NCAA violated antitrust law in Ed O’Bannon case

Ed O'Bannon Jr.

It’s been a tough week for the NCAA as a federal judge ruled on Friday that the NCAA’s rules prohibiting student-athletes from being paid for the use of their name, image or likeness violates antitrust law. The ruling, handed down from U.S. District Judge Claudia Wilken, comes from the five-year lawsuit involving former UCLA star basketball player Ed O’Bannon.

Earlier in the week, the NCAA Board allowed autonomy to take place within the Power 5 conferences.

How the change in Division I power structure changes college hoops

The ruling from Wilken allows for licensing revenue to be shared in the form of a trust fund that will be established for student-athletes to share.

In her 99-page opinion, Wilken issued an injuction “that will enjoin the NCAA from enforcing any rules or bylaws that would prohibit its member schools and conferences from offering their FBS football or Division I basketball recruits a limited share of the revenues generated from the use of their names, images, and likenesses in addition to a full grant-in-aid.”

Wilken said the injunction will not take effect until the start of the next football and basketball recruiting cycles. The injunction will also not be stayed pending any appeal of her order.

The injunction will not prevent the NCAA from setting rules capping the amount of money that can be paid to student-athletes while they’re enrolled in school, but the NCAA is not allowed to set that cap below the cost of attendance.

The injunction will also prohibit the NCAA from “enforcing any rules to prevent its member schools and conferences from offering to deposit a limited share of licensing revenue in trust for their FBS football and Division I basketball recruits, payable when they leave school or their eligibility expires,” Wilken wrote.

With the ruling in the O’Bannon case, Wilken also said that the NCAA can continue to enforce all of its other existing rules.

“Nothing in this injunction will preclude the NCAA from continuing to enforce all of its other existing rules which are designed to achieve legitimate pro competitive goals,” Wilken wrote.

The NCAA responded to the ruling with a statement from NCAA Chief Legal Officer Donald Remy:

“We disagree with the Court’s decision that NCAA rules violate antitrust laws. We note that the Court’s decision sets limits on compensation, but are reviewing the full decision and will provide further comment later. As evidenced by yesterday’s Board of Directors action, the NCAA is committed to fully supporting student-athletes.”

You can read Wilken’s full 99-page ruling here, as published by USA Today.