Related: Why outcome of the House case could 'financially cripple NCAA'
This is from an On3 email newsletter that I get:
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It's impossible to overstate how radically the outcome of the blockbuster House v. NCAA antitrust case could reshape the entire college athletics enterprise.
Friday night's ruling by U.S. District Judge Claudia Wilken to grant class-action status for the remaining three damages classes ups the ante exponentially. The NCAA and power conferences could be ordered to pay some $4.2 billion in damages to former and current athletes.
"A loss would financially cripple the NCAA and eliminate any rule-making authority it still has on athlete compensation," Mit Winter, a college sports attorney for Kennyhertz Perry, said. "This is why the NCAA has been pushing [Congress] hard for an antitrust exemption."
Damages are now in play for thousands of athletes, not merely the three plaintiffs: former Arizona State swimmer Grant House, former Illinois football player Tymir Oliver and TCU basketball player Sedona Prince.
Both sides in the case have engaged in settlement talks – and Wilken's Friday night bombshell likely will increase the urgency for the NCAA to try to settle. But, at this point, what is the plaintiffs' motivation to settle?
For perspective, the 2020 Covid-driven cancellation of the NCAA tournament devastated college sports financially. The loss of more than $600 million in revenue prompted one high-ranking college sports official to tell me, "We literally cannot afford to go through anything like that again. It can't happen."
Now $4.2 billion could be at stake.
Wilken's ruling carries enormous implications but was not unexpected. She is the same judge who ruled against the NCAA in O'Bannon and Alston at the trial court level. Clearly, she is not averse to ruling that NCAA compensation rules violate antitrust law.
Thousands of athletes could possibly receive NIL backpay as well as a slice of TV broadcast revenue, something most college leaders have aggressively tried to prevent as the value of TV rights contracts has grown considerably. And NIL rule changes could take hold that would permit schools and conferences to pay NIL dollars to athletes for any reason, including athletic performance.
Wilken wrote in her ruling that she found "ample support for [the] plaintiffs' assumption that student-athletes NIL in broadcasts have value, and that their value is at least ten percent of the revenues of defendants' broadcasting contracts."
"This is the case that could end the NCAA — or at least the NCAA in its current form," Winter said. "I'd look for some schools to now more seriously consider leaving the NCAA to be part of creating a new organization that operates under a model that complies with antitrust and employment/labor law." – Eric Prisbell
Thread Replies (37)
Ruling against the NCAA in federal court (not sure if you have seen this).**
-- 132863Hokie
Nov 04, 2023 at 06:45 PM ET
132863Hokie
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11/04/23 06:45 PM ET
I was a volunteer ski patroller. Does someone owe me money?
-- Truthahn
Nov 06, 2023 at 01:41 PM ET
Truthahn
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11/06/23 01:41 PM ET
I think the mountains owe you something, be it firewood or snow.**
-- EDGEMAN
Nov 08, 2023 at 05:19 AM ET
EDGEMAN
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11/08/23 05:19 AM ET
I'm not arguing that the model is wack. But how far are they going to go
-- VT Pez4Life
Nov 06, 2023 at 09:43 AM ET
VT Pez4Life
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11/06/23 09:43 AM ET
Related: Why outcome of the House case could 'financially cripple NCAA'
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-- Will Stewart
Nov 06, 2023 at 08:00 AM ET
Will Stewart
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11/06/23 08:00 AM ET
They should shut it all down...........
-- 2hhoop3
Nov 07, 2023 at 10:02 PM ET
2hhoop3
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11/07/23 10:02 PM ET
The NFL would crap their pants if that happened...lol**
-- EDGEMAN
Nov 08, 2023 at 08:38 PM ET
EDGEMAN
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11/08/23 08:38 PM ET
Many non-revenue athletes are on Academic Scholarship according to College
-- Stech
Nov 08, 2023 at 10:43 AM ET
Stech
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11/08/23 10:43 AM ET
Many are getting need-based aid,
-- Pylons
Nov 08, 2023 at 12:12 PM ET
Pylons
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11/08/23 12:12 PM ET
Many are excellent students, I know this from decades of experience WADR.**
-- Stech
Nov 08, 2023 at 06:25 PM ET
Stech
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11/08/23 06:25 PM ET
True too, it’s really hard to get 💵 for Academic Scholarships at VT, a lot
-- Stech
Nov 09, 2023 at 08:55 AM ET
Stech
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11/09/23 08:55 AM ET
Well, I don't believe we'll ever get to paid athletes
-- Pylons
Nov 09, 2023 at 09:13 AM ET
Pylons
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11/09/23 09:13 AM ET
There are lawsuits all over the country suing for employee status, much
-- Stech
Nov 09, 2023 at 08:43 PM ET
Stech
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11/09/23 08:43 PM ET
The courts can't demand that universities have athlete empolyees
-- Pylons
Nov 10, 2023 at 12:00 PM ET
Pylons
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11/10/23 12:00 PM ET
Yes our experience is very different, many are top of the class students.
-- Stech
Nov 10, 2023 at 02:43 PM ET
Stech
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11/10/23 02:43 PM ET
If schools are forced to "employ" athletes, then most schools will ...
-- Atlee Hokie
Nov 12, 2023 at 09:01 AM ET
Atlee Hokie
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11/12/23 09:01 AM ET
That’s one possibility, another 1 is the courts could only have them pay
-- Stech
Nov 12, 2023 at 11:00 AM ET
Stech
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11/12/23 11:00 AM ET
My point was the courts can't make a school
-- Pylons
Nov 11, 2023 at 06:23 AM ET
Pylons
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11/11/23 06:23 AM ET
True, and my point is that a school can decide to only give out Academic or
-- Stech
Nov 11, 2023 at 08:43 AM ET
Stech
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11/11/23 08:43 AM ET
If the athlete does the work of an employee, I don't get how
-- Pylons
Nov 11, 2023 at 09:41 AM ET
Pylons
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11/11/23 09:41 AM ET
I am suggesting that “might” be a way to keep the non-revenue sports alive,
-- Stech
Nov 11, 2023 at 10:11 AM ET
Stech
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11/11/23 10:11 AM ET
I concur, but certainly wasn't going to be the guy to say such things. **
-- Big12 guy
Nov 08, 2023 at 09:22 AM ET
Big12 guy
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11/08/23 09:22 AM ET
"NIL backpay" is an odd/wrong characterization
-- Pylons
Nov 06, 2023 at 03:58 PM ET
Pylons
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11/06/23 03:58 PM ET
Good timing, right after 50 teams switched to coast-to-coast conferences.
-- Truthahn
Nov 06, 2023 at 01:50 PM ET
Truthahn
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11/06/23 01:50 PM ET
What does one have to do with the other?**
-- Pylons
Nov 06, 2023 at 10:04 PM ET
Pylons
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11/06/23 10:04 PM ET
If there is a new organization to replace the NCAA, will that mean...
-- EDGEMAN
Nov 06, 2023 at 11:08 AM ET
EDGEMAN
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11/06/23 11:08 AM ET
Sounds like reparations. But IMHO, the vast majority of the NCAA athletes
-- IB4TECH
Nov 05, 2023 at 12:44 PM ET
IB4TECH
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11/05/23 12:44 PM ET
Ironic that the lead plaintiff is a swimmer.
-- Truthahn
Nov 06, 2023 at 01:17 PM ET
Truthahn
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11/06/23 01:17 PM ET
It is but they put in the work.**
-- IB4TECH
Nov 06, 2023 at 05:47 PM ET
IB4TECH
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11/06/23 05:47 PM ET
So? The swim team doesn't make any money.
-- Atlee Hokie
Nov 12, 2023 at 09:10 AM ET
Atlee Hokie
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11/12/23 09:10 AM ET
So do WNBA players, presumably. But no one watches/cares.
-- MP4VT2004
Nov 11, 2023 at 07:32 AM ET
MP4VT2004
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11/11/23 07:32 AM ET
Lots of "jobs" are hard work that don't pay well**
-- RTFC
Nov 08, 2023 at 03:13 PM ET
RTFC
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11/08/23 03:13 PM ET
Ever since the courts got involved, there is no end. **
-- IB4TECH
Nov 07, 2023 at 01:36 PM ET
IB4TECH
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11/07/23 01:36 PM ET