Keith Hobbs’ Post

US Antitrust Law: Class Action-Damages to College athletes: The deal covers three antitrust cases — including the class-action lawsuit known as House vs. the NCAA — that challenged NCAA compensation rules dating back to 2016. The plaintiffs claimed NCAA rules denied thousands of athletes the opportunity to earn millions of dollars off the use of their names, images and likenesses. The NCAA lifted its ban on athletes earning money off their fame through endorsement and sponsorship deals in 2021. #competitionlaw #antitrustlaw https://lnkd.in/g3pNVEiC

As has been discussed, there are two ways for the NCAA and conferences to make the framework being discussed for the House settlement (which includes a cap on #NIL payments from schools to athletes) comply with antitrust law. An antitrust exemption or collective bargaining with athletes. A new federal bill has been introduced that is seeking to provide the former. The Protect the Benefits And Limit Liability Act (Protect the BALL Act) introduced by two Republican representatives provides the NCAA with extremely broad liability protection. It provides immunity from ANY federal or state law (not just antitrust law) for limiting/prohibiting compensation to college athletes from ANY person or entity. This means not only could the NCAA cap the amount of NIL payments that schools/conferences can provide to athletes without legal liability (as being discussed in the House settlement), it could also completely prohibit payments to athletes from collectives and other third parties. That’s a big change from how things currently work. The bill also provides the NCAA immunity from federal/state law for any rules that restrict the eligibility of athletes. So rules limiting transfers, for example. Or any other eligibility rule the NCAA has recently been sued over. This bill has little to no chance of passing this year. But it’s an example of how the NCAA and others would like to continue governing college athletics without involving the athletes in the decision making. #ncaa #nameimagelikeness #collegeathletes #collegeathletics #sportslaw #LinkedInSports

College sports leaders are in talks to settle the ongoing NIL / antitrust lawsuit, House v. NCAA. The House case was originally filed in the Northern District of California by former collegiate swimmer Grant House. Plaintiffs argue that the NCAA restricted athletes’ ability to profit from their NIL, alleging a violation of antitrust laws. A settlement could include revenue sharing with athletes and legal protection for the #NCAA. The NCAA is opposed to athletes being classified as employees. According to the article, schools will have the discretion to opt in to revenue sharing up to a certain amount with their student athletes. The exact mechanics of how this will work are still uncertain. Schools could choose to share less, but not more, than the designated amount. #NIL #collegesports #sportslaw #NCAA #collegeathletes Source: https://lnkd.in/eYQP4GyD

Husch Blackwell is pleased to share its fourth-annual NCAA Compliance Report, which explores the legal and regulatory uncertainty the NCAA and its member schools are facing as the popularity of college sports is at an all-time high. This year's report includes insights on: Legal Challenges and NCAA Governance: Recent legal cases challenge the NCAA's authority to regulate student-athlete compensation and eligibility, signaling a shift away from traditional amateurism policies. The NCAA's governance structure is under scrutiny as courts question its ability to enforce amateurism rules. Compensation Debate: There is a growing debate over compensating college athletes, with courts and policymakers increasingly questioning the fairness of amateurism rules and exploring avenues for athlete compensation, such as expanding compensation to cover the full cost of attending college. Title IX Implications: Changes in student-athlete compensation and governance could impact Title IX compliance, requiring institutions to navigate gender equity concerns alongside financial considerations. Courts acknowledge the complexities of ensuring compliance with Title IX amidst evolving compensation models. NIL Regulations: The Name, Image, and Likeness (NIL) landscape is complex, with varying state laws and NCAA regulations prompting legal battles and the need for comprehensive federal legislation. The NCAA's enforcement of NIL rules faces challenges, with courts intervening to protect student-athlete rights. Transfer Rules: Recent changes in transfer rules have increased flexibility for student-athletes, but challenges remain in reconciling waiver requests and ensuring fairness in eligibility decisions. Legal cases have highlighted the need for clearer guidelines and consistent enforcement. Financial Pressures and Team Cuts: Institutions face budgetary strains exacerbated by potential revenue-sharing requirements and increased athlete compensation, leading to discussions around team cuts and fundraising challenges. Some institutions have announced cuts to sports programs in response to financial pressures. Legalized Gambling: The legalization of sports gambling introduces new risks for institutions and athletes, with the NCAA enforcing strict rules to preserve the integrity of collegiate sports. Leadership Initiatives: NCAA President Charlie Baker has proposed innovative solutions, including creating new subdivisions with tailored rules, to address the evolving landscape of collegiate sports governance. Comprehensive Solutions: Addressing the challenges facing collegiate sports requires comprehensive solutions that balance athlete compensation, Title IX compliance, governance reform, and the preservation of collegiate sports' unique identity. #YouthSports #NCAA #College #Sportsbiz #LinkedInSports

New details continue to emerge on the potential settlement of the House v NCAA case. As has been discussed, the settlement would include an annual cap on revenue sharing payments to a school’s athletes of around $20 million (20% of the average Power 4 school’s athletics revenue). Capping these payments for athletes that aren’t class members in the lawsuit has antitrust issues. To try and address this, a process is being discussed where athletes who aren’t class members (current HS athletes, for example) could annually opt in or object to the revenue sharing terms. Putting aside whether this novel approach solves the antitrust issues, it seems the new athletes would need to be organized to effectively opt into or object to the settlement’s rev sharing terms in an annual basis. Otherwise, this process seems like a disaster waiting to happen. The approach seems designed to avoid athletes having to collectively bargain the revenue sharing terms. But that issue (which includes employment of college athletes) will continue to be litigated in federal court and won’t be solved by this settlement. #ncaa #collegeathletes #collegeathletics #sportslaw #LinkedInSports https://lnkd.in/gpb8JQnV

With collegiate name, image, and likeness (NIL) rights becoming more prevalent, legal questions on how athletes' freedom to exploit those rights, and how regulation of those freedoms work, are also on the rise. Allison First discusses how the Transfer Rule works in this new era of athlete freedom, the Department of Justice's involvement in regulating athlete transfers, and if the Transfer Rule can survive an antitrust challenge. https://lnkd.in/gZ5h7-K7

Very interesting development out of Oregon as the state is taking strides with the introduction of House Bill 4119. This proposed legislation seeks to fortify the state's approach to Name, Image, and Likeness (NIL) regulations by prohibiting adverse actions from the NCAA and related entities against athletes or institutions involved in NIL activities. With its emphasis on safeguarding the rights of college athletes and providing liability protections to universities, HB 4119 signals a proactive step towards ensuring fairness and equality in collegiate athletics. #NIL #LinkedinSports

News broke yesterday that the NCAA is investigating Tennessee for #NIL-related rules violations, based on its collective allegedly using an NIL deal as a recruiting inducement. As part of that, the University of Tennessee’s chancellor wrote a strongly worded letter to NCAA president Charlie Baker that hinted a lawsuit was coming. Today, that lawsuit was filed. In a surprise, Virginia has joined Tennessee as a plaintiff in the case. The complaint alleges that the NCAA’s ban on using NIL agreements as recruiting inducements violates federal antitrust law. It asks that the rule be declared illegal and that a temporary restraining order (and eventual permanent injunction) be entered to prohibit the rule from being enforced. The motion for TRO that was also filed this morning by the two states asks that the TRO be entered by February 6, the day before the DI football signing period opens. This scenario is similar to the lawsuit originally filed by seven states alleging that the NCAA’s transfer rules violate antitrust law. The case resulted in a TRO/preliminary injunction that prevents the NCAA from enforcing its transfer rules. The US DOJ and four other states have now joined that lawsuit. I expect the same thing to happen here with respect to the NCAA’s ability to enforce its NIL related rules. The court will enter a TRO/preliminary injunction prohibiting the NCAA from enforcing its rules that restrict NIL deals from being used as recruiting inducements. And additional states may join as plaintiffs. I think the NCAA/college athletics should get the picture now that its rules on athlete compensation and player movement can’t be enforced as they violate antitrust law. It should have been working on a new, legally compliant model for college athletics the day after the Supreme Court’s Alston decision. Instead, it’s wasted 2.5 years and millions of dollars trying to fight the inevitable. If college athletics wants enforceable rules, it needs a model that incudes collective bargaining with athlete representatives. I think it may be too late for the NCAA to remain a part of this new world. I’d expect new governing bodies/leagues to form to operate specific sports. #ncaa #collegeathletics #collegeathletes #sportslaw #antitrustlaw

NFL Draft Day is here, and the college transfer portal is also heating up this spring. #NIL (Name, Image, and Likeness) is playing a role in the decisions for many #college athletes. #Virginia has become the first state to pass a groundbreaking law to allow colleges to pay athletes for NIL Deals. Our #litigation #sportslaw and #laborlaw attorney Caleb Diaz discusses how this legislation revolutionizes how athletes engage with their #brands in college sports. Caleb’s work on NIL deals and legislation has garnered national media attention, including from The Washington Post and ESPN. Read more >> https://lnkd.in/eqSBmu_p #NILDeals #Legislation #GovernmentRelations #LaborandEmployment #HigherEducation

College #sports is in transition with outside entities challenging the NCAA’s authority to govern #collegesports - from #NIL to college athlete employment and antitrust litigation. Read more for Husch Blackwell on Sportico. #sportslaw #sportsbusiness https://lnkd.in/e97qYnHq