Joe Cleary’s Post

As expected, the SEC and PAC-12 have joined the NCAA and the other Power 5 conferences in agreeing to a potential settlement of the pending class action litigation brought by current and former college athletes seeking to share in the profits generated from use of their name, image and likeness. The terms of the NIL settlement, which includes a revenue-sharing plan, must still be approved by Judge Claudia Wilken of the Northern District of California, who is presiding over the consolidated actions in House v. NCAA, Hubbard v. NCAA and Carter v. NCAA. Counsel for the plaintiffs has stated that the settlement will also feature a "mechanism" that he believes will make it easier for schools to rein in the marketplace for third-party NIL deals. It will be interesting to see how the NCAA attempts to implement this mechanism in a way that complies with federal antitrust laws and whether the settlement sparks any movement in Congress to advance legislation in this area. #NIL #NCAA #antitrust https://lnkd.in/eWTzwd36

In my NCAA Policies and Procedures class yesterday, we were discussing the transition that has occurred over the past decade with how schools respond to NCAA infractions allegations. In the past, the common wisdom was to cooperate fully, conduct your own internal investigation, and even self-impose stiff penalties you think would be just enough to satisfy the enforcement staff and/or Committee on Infractions. That still happens in many lower stakes cases; however, in high stakes cases that is simply no longer true. You could see a shift occurring in 2017 with the University of Oregon, where the school self-reported violations and self-imposed penalties, but the NCAA came over the top with more severe charges and penalties. Oregon accepted most of the underlying factual conclusions but defended its coaches and programs against the more severe charges and penalties. The choice to fight back was eye opening at the time, and in some ways set the stage for what was to come. Then there is Kansas, which reportedly spent roughly $10M in legal fee to successfully defend its basketball program and Coach Bill Self against greater sanctions stemming from the Adidas recruiting scandal which led to federal criminal convictions for some of its participants. And now, as the NCAA has the University of Tennessee in its crosshairs related to a deal between quarterback Nico Iamaleava and collective Spyre Sports Group, the UT president is coming out hot in defense of its school. She sent a scathing letter to NCAA president Charlie Baker and is vowing to be "resolute in protecting the rights of our student-athletes and in upholding the integrity of our institution." There are a number of reasons one could point to for this change in response strategy: the weakening of the NCAA relative to its high profile member schools, its challenges and inconsistencies as an enforcement body, the financial stakes for the schools and coaches which make paying large amounts of legal fees viable, and the changing landscape of the rules where there is genuine confusion and lack of clarity which hardly seem like the time to come down on hard on schools trying to navigate the space in good faith. Whatever the reason, the transition is happening, and the NCAA needs to reestablish its credibility fast before it will no longer be in a position to enforce its own rules. Tennessee article: https://lnkd.in/gXMrU9mD Oregon article: https://lnkd.in/gedHrp5N Kansas article: https://lnkd.in/gQRcw478 #sportslaw #NCAA #NIL

⚾ 🏀 🏈 🏐 #MediaLaw and #NCAA #NIL Update - We've been watching closely as information surrounding the $2.8 BILLION settlement spools out. As most are aware, this settlement resolves three pending federal #antitrust cases in which it was alleged that the NCAA and the #PowerFive conferences improperly barred student-athletes from profiting from the use of their NIL. By this settlement, former #StudentAthletes will be compensated for past restrictions on NIL earnings. What's more, the settlement establishes some parameters for present and future student-athlete earnings. At this point, we await settlement approval by Judge Claudia Wilken and we also await additional details as to how this settlement will impact smaller, non-FBS (football bowl subdivision) Division I conferences. Another question, concerning #GenderEquity, is whether #TitleIX will apply to the new revenue sharing model. We expect this to be a major focus moving forward, as institutions finalize their revenue sharing structures. Look out, #EPL world, as this sounds ripe for #discrimination claims. For more like this, be sure to follow Kissel Straton & Wilmer LLP. Special thanks to Riley Odell for her assistance in reviewing this matter. #MediaLawyer #MediaLiability #NameImageLikeness #InsuranceLaw #InsuranceLawyer #EmploymentPracticesLiability https://lnkd.in/eFUB7wCs

"The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come" 😂 🙄 AND PROVIDE CLARITY: 1. Employees or not 2. Can the cap be circumevented 3. How does a newly imposed Salary Cap not violate Anti-Trust Laws 4. Will athletes opt in 5. How if at all does Title IX apply 6. Why are non-P4 programs paying 60% vs. P4 at 40% 7. Media rights valuations 8. What protections, if any, are provided for future lawsuits 9. Who was this collectively bargained with 10. Conflicts of Interests everywhere (university level, athlete level, conference levels, P4 vs. G5 vs. FCS) Anything but CLARITY!!!! #NIL #nameimagelikeness #ncaa #revenueshare #housesettlement https://lnkd.in/eW7wJUmW

As industry executives continue to negotiate with plaintiff lawyers in the House antitrust case, details of a future compensation model — a necessary piece to any settlement agreement — continue to emerge. Those who shared details were granted anonymity as they were not authorized to speak about a proposed settlement that continues to undergo changes. While negotiations are active and have been for as many as eight months — not a new revelation within the industry — concepts of the proposed new model are becoming more formalized as leaders work to meet a deadline set by attorneys. Money figures are becoming clear: For those in the power conferences, the price tag is steep. The 10-year settlement agreement could cost each power school as much as $300 million over the decade, or $30 million a year. That figure assumes a school meets what is believed to be: (1) a $17-22 million revenue distribution cap for athletes; (2) at least $2 million in withheld NCAA distribution for back damages; and (3) as much as $10 million in additional scholarship costs related to an expansion of sport-specific roster sizes — a concept previously unpublicized.

Attorney General Miyares Scores Major Win for Collegiate Student-Athletes Attorney General Jason Miyares announced a landscape-changing settlement with the National Collegiate Athletic Association (NCAA) that permanently eases restrictions on Division I college athletes who have transferred schools multiple times. In addition to ensuring student-athletes’ autonomy, the agreement also: ☑ Prevents retaliation from the NCAA against member institutions and athletes who challenge the rule or support those who do. This includes safeguarding student athletes' rights to compete during legal proceedings without fear of punitive actions from the NCAA. ☑ Requires the NCAA to grant an additional year of eligibility to Division I athletes who for any reason were previously deemed ineligible under the transfer eligibility rule since the 2019-20 academic year. ☑ Prohibits the NCAA from undermining or circumventing its provisions through future actions, rules, or policies, thereby ensuring college athletes' rights and freedoms. ☑ Establishes the court's continuing jurisdiction to enforce its terms and resolve any disputes that may arise. In addition to Virginia, the attorneys general of Colorado, the District of Columbia, Illinois, Minnesota, Mississippi, New York, North Carolina, Ohio, Tennessee, and West Virginia, as well as the United States Department of Justice, signed the agreement.  Full OAG press release: https://lnkd.in/eRHbSZKg View the full agreement: https://lnkd.in/e82AQPXc

Settlement discussions in the House v NCAA case are getting more serious. For those that need a refresher, the case has two components. 1. A backwards looking damages component, pursuant to which plaintiffs could potentially be awarded over $4billion. 2. A forward looking component that is seeking an injunction that will allow schools and conferences to directly pay #NIL compensation to athletes. As reported in this article, current settlement discussions on the forward looking piece include a revenue sharing model that schools can choose to opt into. And this would reportedly include an agreed upon revenue sharing cap of around $20M per school. While this is progress towards a new college athletics model, it wouldn’t be a long term solution. A settlement would only apply to the class members, which includes current and former college athletes. Since it doesn’t include future college athletes (and legally can’t), a freshman college athlete could come in next year and sue the NCAA for violating antitrust law based on the existence of a cap, which wouldn’t gain antitrust immunity unless it’s collectively bargained. In other words, the uncertainty surrounding the college athletics model won’t end with a settlement here. It will be interesting to watch it continue to play out. #nameimagelikeness #ncaa #collegeathletes #collegeathletics #sportslaw #LinkedInSports https://lnkd.in/gGXYdbFW

🚨 **College Sports on the Brink of Transformation** 🚨 This week could mark a turning point for college athletics as a potential joint settlement in the House, Hubbard, and Carter antitrust cases approaches. Here are the key points from Ben Portnoy at the Sports Business Journal: 1. **Settlement Deadline**: Notre Dame and the Power Five leagues are finalizing a settlement by this week, ahead of a critical hearing in another antitrust case, Fontenot v. NCAA, on May 23. 2. **Financial Stakes**: Failure to settle could result in catastrophic financial repercussions, with potential damages up to $20 billion, possibly driving the NCAA and Power Five leagues to bankruptcy. 3. **Revenue Sharing Model**: The settlement might introduce a revenue-sharing model where schools could allocate around 22% of their media rights, sponsorship, and ticket sales revenue to athletes, starting in the 2025-26 school year. 4. **Title IX Implications**: The distribution of funds raises significant Title IX concerns regarding gender equity, which schools will need to navigate carefully. 5. **NIL Collectives**: The role of Name, Image, and Likeness (NIL) collectives remains uncertain. The settlement could change the dynamics but won't eliminate the need for collectives, which may help schools manage athlete payments. College athletics are at a crossroads, with major changes and challenges ahead. How schools adapt will shape the future of the sport. 🏈🏀 #CollegeSports #NCAA #Antitrust #TitleIX #NIL #AthleteCompensation https://lnkd.in/gP64XUjy

What does the concept of amateurism, once a cornerstone of college athletics, mean in the dynamic landscape of today? We are watching a seismic shift in college athletics right before us. * Where does the money come from? * Who is eligible for payment, and how much? * What happens to non-power conference schools? * What happens to non-revenue sports athletes? * How does Title IX affect all of this? * What are the federal legislative implications? It's all amazing to watch; things will never be the same. Does anyone have thoughts? ESPN, NCAA, Dan Murphy, The Players NIL, Mit Winter, Cal Stein, Darren Heitner, Bob Boland, Andrew Petcash, Braly Keller, Dan Lust, Esq., Sports Business Journal, https://lnkd.in/eWwqqFz6

#Antitrust-“#NCAA ,5 power conferences agree to #settlement to allow schools to pay #players and a historic settlement agreement that will pay back damages of $2.8 billion, at least $15 billion in revenue share and reshape the #governance, #enforcement, and #scholarship structure of major #college #athletics.”#sports #college #collegesports #classaction The proposed legal settlement also would involve $2.8 billion in damages to former and current college athletes. https://lnkd.in/ekVgzU2b