On Friday, August 8th, a federal judge ruled that the NCAA’s efforts to prohibit players from receiving a share of revenues generated from the use of their names, images, and likenesses violates antitrust laws.
The case, led by plaintiff and former UCLA basketball player Ed O’Bannon, challenged the NCAA’s ability to prohibit players from receiving compensation in addition to their athletic scholarships. U.S. District Judge Claudia Wilken ordered an injunction that prevents the NCAA from enforcing any rules that prohibit players from receiving a share of revenues, but the effects will likely not be felt until 2016.
According to USA Today, the ruling will allow for the following:
· The NCAA will be allowed to set a cap on the amount of money that may be held in trust, but that cap cannot be less than $5,000 in 2014 dollars for every year the athletes remain academically eligible.
· Schools will be allowed to offer less than the NCAA maximum amount if they so choose, but they cannot unlawfully conspire with each other in setting the amounts they offer.
· The NCAA will be allowed have rules that prevent the athletes from using the money being held in trust for them to obtain other financial benefits while they are in school.
· The NCAA also will be able to have rules that prevent schools from offering different amounts of deferred money to athletes who are in the same recruiting class on the same team.
· The amounts that schools decide to place in trust for the athletes may vary from year to year.
For the full 99-page ruling, click here.