By Ken Reed
U.S. District Judge Claudia Wilken ruled that the NCAA was unfairly and illegally limiting athletes’ right to make money off their names, images and likenesses in a Friday ruling in the Ed O’Bannon case. In effect, Wilkins ruled that forcing big-time football and basketball programs to all offer the same form of compensation to athletes is a form of collusion which allows the NCAA to operate as a cartel. Wilkins further concluded that disallowing payments to college athletes violated antitrust laws. More specifically, she issued an injunction against long-time NCAA rules that prohibit athletes from earning money from the use of their names, images and likenesses in video games and television broadcasts. As such, Wilken’s ruling was a huge victory for college athletes on civil rights and antitrust grounds.
“Before the court in this case is only whether the NCAA violates antitrust law by agreeing with its member schools to restrain their ability to compensate Division I men’s basketball and FBS football players any more than the current association rules allow,” Wilken wrote in her ruling. “For the reasons set forth above, the court finds that this restraint does violate antitrust law.”
So, under the ruling, athletes in Division I football and men’s basketball will be allowed to have trust funds established for payments that they can access after their college eligibility ends.
William Isaacson, an attorney for the plaintiffs, called Wilken’s ruling “a big step forward for common decency.”
Nevertheless, there also were troubling and confusing aspects to Wilken’s ruling. Wilkins stopped short of allowing an open market for players and she said that players still can’t market themselves. There are also questions remaining about exactly how much athletes will be allowed to receive. Wilkins ruled that the NCAA can cap payments to football and men’s basketball players as long as the cap isn’t less than $5,000 a year for every year an athlete plays. Additionally, the NCAA can’t prevent schools from giving “full cost of attendance” scholarships to athletes.
The NCAA will undoubtedly appeal this ruling — and the players might do the same, due to potential limits on the dollar amounts of payments and restraints on their ability to market themselves.
There will be plenty of questions on how much college athletes will actually be able to receive and when. However, the big outcome of this ruling is that current NCAA restrictions preventing college athletes from receiving money for use of their names, images and likenesses (NIL) violate antitrust law.
At this point, this ruling is another step forward for college athletes looking to have the same rights as fellow students and fellow Americans in general.
I think it’s safe to say that college athletics will be changed forever following this ruling, even though this case will likely be in the appeals process for a long time.
— Ken Reed, Sports Policy Director, League of Fans
Sports Forum Podcast
Episode #13 – League of Fans’ Sports Forum podcast: A Conversation With Long-Time MLB Exec Dan Evans About What’s Right With Baseball and What Could Be Better – Evans is a former general manager for the Los Angeles Dodgers and is currently a consultant for Go the Distance Baseball, which owns the Field of Dreams movie site. We discuss his experience at the MLB game at Field of Dreams; his thoughts on the appeal of the Field of Dreams, and baseball in general.
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Episode #12 – League of Fans’ Sports Forum podcast: A Fun Chat With Dan Gutman, Author of the Baseball Card Adventure Series for Kids
Episode #11 – League of Fans’ Sports Forum podcast: The Latest on Brain Trauma, Concussions and CTE with Dr. Chris Nowinski – Nowinski is CEO of the Concussion Legacy Foundation.
Episode #10 – League of Fans’ Sports Forum podcast: An Issues Discussion With Paul Dolan – Dolan is the Cleveland Indians Owner and CEO.
Episode #9 – League of Fans’ Sports Forum podcast: Talking Sports Issues With Ralph Nader – Nader is a consumer advocate and was named one of the “100 Most Influential Americans of the 20th Century” by Time magazine. He is the founder of League of Fans.
Episode #8 – League of Fans’ Sports Forum podcast: How Can We Save College Sports From Overcommercialization and Professionalization? – The guest is Dr. David Ridpath, a sports business professor and past president of the Drake Group
Media"How We Can Save Sports" author Ken Reed appears on Fox & Friends to explain how there's "too much adult in youth sports."
Ken Reed appears on Mornings with Gail from KFKA Radio in Colorado to discuss bad parenting in youth athletics.
“Should College Athletes Be Paid?” Ken Reed on The Morning Show from Wisconsin Public Radio
Ken Reed appears on KGNU Community Radio in Colorado (at 02:30) to discuss equality in sports and Title IX.
Ken Reed appears on the Ralph Nader Radio Hour (at 38:35) to discuss his book The Sports Reformers: Working to Make the World of Sports a Better Place, and to talk about some current sports issues.
Sports & Torts – Ken Reed, Sports Policy Director, League of Fans – at the American Museum of Tort Law
League of Fans is a sports reform project founded by Ralph Nader to fight for the higher principles of justice, fair play, equal opportunity and civil rights in sports; and to encourage safety and civic responsibility in sports industry and culture.
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