IBJNews

NCAA’s $60M video-game settlement moves ahead

Back to TopCommentsE-mailPrintBookmark and Share

The National Collegiate Athletic Association and Electronic Arts Inc. won a judge’s preliminary approval of $60 million in settlements of athletes’ claims that their images were used in video games without permission.

The decision may mean that the judge will soon rule on whether the Indianapolis-based NCAA must change its rules to let students negotiate licenses for the use of their names and images in connection with $800 million in annual broadcast revenue from college games.

U.S. District Judge Claudia Wilken in Oakland, Calif., said Thursday that she would provisionally approve a $40 million settlement with Redwood City, Calif.-based Electronic Arts and a $20 million settlement with the NCAA, the main governing body for U.S. college sports.

It’s the first time the association has agreed to a settlement that pays college athletes for acts related to their participation in school sports, lawyers for the players said at the time the NCAA accord was announced.

Wilken held a four-week trial in June over claims that the NCAA violates antitrust laws by preventing players from sharing in profits generated by televised college football and basketball games. That case was brought by Edward O’Bannon, who played basketball for the University of California at Los Angeles and was the Most Outstanding Player of the 1995 Final Four.

The video-game claims came in a class action filed by former Arizona State University quarterback Sam Keller against EA and the NCAA. EA settled last year, while the NCAA settlement was announced the first day of the June trial.

Wilken hasn’t ruled on the other claims.

The outcome of that case could lead to the NCAA and its members being forced to negotiate payments with players for appearances in broadcast games or to allow players to negotiate with broadcasters. Under current NCAA rules, athletes can be stripped of their scholarships and barred from playing if they accept payments.

The NCAA is facing challenges in court and before the National Labor Relations Board from current and former college athletes seeking compensation, better medical benefits, control over their images and labor protections in a system that considers them amateurs.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
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
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

  5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

ADVERTISEMENT