NCAA

Judge Rules Against NCAA on Compensation

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NCAAAfter a judge ruling Friday against the NCAA, major collegiate football and basketball athletes may be able to expect a significant payday once they leave school.

A federal judge ruled against some of the NCAAs long standing rules that prevented players from using their name and recognition to earn money. The judge ruled that the NCAA can’t stop players from selling rights to their names, images, and likenesses, effectively nullifying the regulation on player compensation being limited to scholarships and cost of attendance.

“The Court finds that the challenged NCAA rules unreasonably restrain trade in the market for certain educational and athletic opportunities offered by NCAA Division I schools,” U.S District Judge Claudia Wilken wrote in her 99 page decision following a 3 week June trial.

Wilken continued, “justifications that the NCAA offers do not justify this restraint and could be achieved through less restrictive means.”

The decision was not a total loss for the NCAA however, as Wilken ruled that a $5,000 per year cap be implemented for the collegiate athletes, that means that, in general, if a 4 year player at a major football of basketball institution is on the roster for all 4 years, that player will receive $20,000 upon graduation.

In addition, if an institution does not sell anything with regard to a players name, likeness, or appearance, then there can will be no pay out to the player. As a result of a pretrial decision to ensure that a judge, not a jury, would hear the case, all former players gave up their right to damages, so former players will not receive any compensation for their college careers.

The new regulations on pay will go into effect at the beginning of the next NCAA recruiting cycle, so no prospect will be affected until July 1st of 2016.

 

 

About Grant Hamersma

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