Phoenix, Ariz. (September 10, 2024) - Phoenix Partner Gregg E. Clifton recently authored a blog post that was republished in the September 2024 issue of Legal Issues in Collegiate Athletics (LICA). The article titled, "Will the NCAA Settlement Lead to Finalization of Agreements, or Are More Disputes and Legal Actions on the Horizon," discusses the proposed settlement of three outstanding class action antitrust lawsuits filed against the NCAA.
The article, which originally appeared on Lewis Brisbois' sports law blog, The Official Review, opens by explaining that the U.S. District Court for the Northern District of California had been considering a 100-page proposed settlement agreement in NCAA class action antitrust litigations. Mr. Clifton describes that the NCAA, with the recognized Power 5 Conferences and the athletes involved, had filed a motion for preliminary approval of the agreement "in an effort to finalize the resolution and settlement" of the lawsuits. The article goes on to explain that the proposed settlement addresses three issues: (1) payment of back damages for claims related to name, image and likeness (NIL), academic related awards, and other benefits; (2) future increased revenue sharing from institutions to future student-athletes; and (3) elimination of scholarship limits in favor of expanded, full roster eligibility. Mr. Clifton then describes the highlights of the parties' proposed agreement.
Since the republication of Mr. Clifton's blog post in LICA, the status of the proposed settlement is unclear due to a recent ruling by U.S. District Court Judge Claudia Wilken. On September 5, Judge Wilken issued a decision questioning a portion of the negotiated settlement that states that third party boosters can only compensate student athletes if the booster can prove that the pay is for a legitimate endorsement deal and is of "fair market value." Judge Wilken determined that this clause would be difficult to enforce and could reduce current payments that athletes are receiving through NIL deals. The parties will now attempt to amend this language and report back to Judge Wilken in the coming weeks. If this settlement does not go forward, the NCAA can likely expect more antitrust lawsuits during the pendency of these matters, which is evinced by the $50 million lawsuit filed on September 10, 2024 by ex-Michigan football players against the NCAA and the Big Ten Network for purportedly exploiting these players' name, image and likeness.
Mr. Clifton is chair of Lewis Brisbois' Collegiate & Professional Sports Law Practice, and a member of the firm's Entertainment, Media & Sports and Labor & Employment Practices. He has extensive experience in the collegiate and professional sports world and has advised numerous professional franchises on a range of labor and employment issues, including Title III ADA regulatory compliance and wage and hour issues. Mr. Clifton is also an editor of The Official Review, Lewis Brisbois' sports law blog.
Read the full article on page 12 of LICA here.
-Summary written by Houston Associate Adarsh Annamaneni.