Expert testifies NCAA scholarship caps hurt competition

Back to TopCommentsE-mailPrintBookmark and Share

The National Collegiate Athletic Association stifles competition among schools for players by capping scholarships, a Stanford University professor said Tuesday at a trial in which athletes are seeking a cut of the billions of dollars generated by college sports.

Roger Noll, an economics professor testifying as an expert witness for Ed O’Bannon, a former college basketball player and lead plaintiff in the lawsuit, continued his testimony from Monday that the Indianapolis-based NCAA is a cartel that blocks competition. Students should be able to market themselves to schools and broadcasters, he said.

O’Bannon is suing to stop the NCAA from preventing student players from seeking payments when their games are televised. Under NCAA regulations that treat athletes as amateurs, they can be stripped of their scholarships and barred from playing if they accept payment.

The NCAA had $912 million in total revenue last year, including $838 million from television, championships and marketing rights fees, according to its financial statement.

U.S. District Judge Claudia Wilken in Oakland, Calif., will decide the case without a jury in a trial scheduled to last three weeks.

Group licenses

If student athletes could license their names and identities, many would choose to let universities negotiate group licenses on behalf of their teams, Noll said. The schools would then offer stipends based on the proceeds from those licenses, and use those payments as bargaining chips to attract the best talent, Noll said.

The NCAA restrains such competition by controlling the amount and value of scholarships and barring students from marketing their images, he said.

“It’s that list of restrictions that prevents competition in the market for student athletes,” said Noll, who was paid $800 an hour for his work on the case.

Under questioning by Rohit Singla, an attorney for the NCAA, Noll acknowledged that no major league athletes anywhere in the world are paid for the use of their names, likeness and images, known as NILs, in team games that are televised live. Professional athletes get a share of broadcast revenue as part of their pay negotiated through collective bargaining agreements, he said.

‘No experts’

“The plaintiffs have no experts that suggest that there are NIL rights for athletes in broadcasts,” Singla said.

“I don’t know,” Noll responded. “It’s not a concern of mine what the legal rights are.”

If O’Bannon wins the case, a student athlete could be offered a scholarship and a $50,000 payment from a group license for broadcasts, Singla said.

“The next day another college would come and say we will give you $65,000” to recruit the student “regardless of whether there are any such things as NIL rights,” Singla said.

“It has nothing to do with whether there are any NIL rights,” Noll said. “Nothing hinges on that.”


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.