NCAA Football 14 News Post

EA/CLC Settlement With O'Bannon Team Is $40 Million

03:19 PM - September 27, 2013 by RaychelSnr

The settlement total for EA and the CLC in their part of the college athlete likenesses lawsuits which brought an end to the NCAA Football series is valued at $40 million according to the NY Times.

The settlement affects 125,000 current and former college basketball and football players and ends up averaging just about $320 per player -- which is still too high given the presence of lawyers fees and such which would lower the total payout per player.

The total monetary number is actually quite a bit smaller than you'd expect, and much smaller than if the case had actually gone to trial. From a business standpoint, the $40 million itself was likely not necessarily a reason for axing NCAA Football. What we haven't heard yet are the other terms of the settlement, one of which could very well have been that EA Sports couldn't develop a college football game for x number of years.

We'll keep digging to see what we can find -- most likely additional details of the settlement will continue to leak out in the days and weeks to come.

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# 61 da ThRONe @ 09/28/13 02:05 AM

Quote:

Originally Posted by NDAlum


	This kind of statement is ridiculous in my opinion. Exploitation is such a strong word and has no reason to be part of this conversation. However it's clear you feel it is. I just want to say I 1,000% disagree with you and I was a D-1 college athlete. Life was pretty damn good.

Every year less than 10,000 people generate billions of dollars and all they get in return is a glorified letter of recommendation that is furthered devalued every year.

SA generate actual money for schools and are paid with scholarships that cost the school nothing and other expenses that are pennies on the dollar compared to the revenue they generate. If that isn't being exploited I don't know what is.

# 62 mjarz02 @ 09/28/13 02:26 AM

Quote:

Originally Posted by da ThRONe


	Every year less than 10,000 people generate billions of dollars and all they get in return is a glorified letter of recommendation that is furthered devalued every year. SA generate actual money for schools and are paid with scholarships that cost the school nothing and other expenses that are pennies on the dollar compared to the revenue they generate. If that isn't being exploited I don't know what is.

You forget, housing, equipment, clothing,food, exposure and a once in a lifetime experience. They exploit each other, that's why this is a controversy and not so cut and dry.

Also, those requests for grants don't write themselves, you have to hire someone to manage that

# 63 khaliib @ 09/28/13 03:28 AM

Quote:

Originally Posted by mjarz02


	You forget, housing: - the cost is the same as if they were a non-athlete, which is taken from the so-called scholarship. - many also do not get the choice of were they can live, esp with programs trying to control/limit exposure to deemed "distractions". equipment: -I worked in the equipment room of a major college, the gear you think they're getting free is so closely maintained, it's crazy. - it's usually one set for workouts/non-pad practices and that's it. - administrators and coach's are the "only" ones that have/get new gear as the please, not the athlete. clothing: - even having a girlfriend buy you clothes is against the rules because of the perception of it breaking NCAA rules. - everything you buy and wear is closely eyed needing a who, what, when, where, how answer given. food: - try having someone "tell" you what you can/can't eat and you'll see this isn't a positive - most athletes are forbidden to go out to restaurants to eat because of the perception of possible NCAA violations (this one I really hated) exposure: -NFL scouts have no problem with finding the talent the organization is looking for - TV coverage nor school attended dictates if you get a shot at the NFL, it's 100% who you know if you're not the player they are looking for in the Draft (learned this at my Free Agent Tryout in San Diego) - the only ones that benefit from exposure is administrators, coach's, NCAA and companies that marketed through the program. once in a lifetime experience: - I would say that most who've earned a Bachelor's and Master's, yet finding it difficult to find employment within the field of their degree would argue that the only lifetime experience that they've gained is that a degree doesn't "guarantee" you employment. They exploit each other: -when Nike introduced a contract for college to use/market it's footballs, shoes and gloves when represented in the public, I remember not one athlete being in that meeting having a say so (only school/athletic dept administrators and head coach, that's it) -same for many other areas of the school/program.

I'm just happy that college sports video games will no longer be allowed to belong to one developer just because of the shedding of light this case has caused.

Somebody will develop a football game.
What skins will be used to make up the uniforms, stadiums etc... is another discussion.

# 64 DaSmerg @ 09/28/13 03:43 AM

Quote:

Originally Posted by khaliib


	I'm just happy that college sports video games will no longer be allowed to belong to one developer just because of the shedding of light this case has caused. Somebody will develop a football game. What skins will be used to make up the uniforms, stadiums etc... is another discussion.

Your kidding about the someone else will make a college sports game right? The largest publisher just got burned for 40 large and the blood suckers behind this are still not done pushing for more cash.

No one will touch this genre of American [enter college sport of your choosing] again in any kind of legitimate way.

Hardy, har on those thinking NCAA college football players will be getting paid any time soon. You're going to see a push for a NFL minor system like all the rest of the organised North American sports sooner rather than later if anything.

# 65 mjarz02 @ 09/28/13 04:46 AM

What grants are used to subsidize athletic scholarships? Its my general understanding that funding for scholarships come from a "foundation" which is from donors and revenue that is brought in from athletic teams.

I agree that the NCAA is overbearing it makes it extremely difficult on athletes. Its sad that some of those who received illegal gifits (the minority) have ruined it for others that are trying to follow the rules.

When I visited my buddy down in Tennessee and from what I saw their food service was incredible! You are not even allowed to go in their if you aren't a football player or work with the team, luckily he did. I couldn't afford the food plan at my college, I ate pbjs 90% of the time, that's college. Going out to eat? Maybe the local diner or Mcdonalds but that's reality for a young person.

As far as exposure goes, im not talking about how scouts view you, but rather the public. If you go to a major university and are on the cover of sports illustrated, as soon as you turn pro, you have some serious endorsements coming your way. For the average athlete, its gotta be nice for friends and family to see you on TV that cant make it to games right? If you're playing double A baseball nobody can watch you play unless they are there.

Its difficult for everyone to find employment regardless of their degree. What college teaches you is critical thinking skills that you need to apply in whatever field you decide to go in. I was a social sciences major, I am now working in a hospital as an IT person. You do what you have to survive, athlete or not.

Academics aren't the only experiences in college. Its where I met some of my best friends. Its where I had some of the greatest moments of my life. Sure being an athlete can limit some of those experiences but you have to make the most of it.

When a 100,000 people show up for a minor league football game, I might change my mind. However, athletes need the universities just as much as the universities need the athletes.

There has to be common ground. Even if you started paying athletes of major sports, its going to be split so many times the amount will be minimal.

# 66 da ThRONe @ 09/28/13 10:11 AM

Quote:

Originally Posted by mjarz02


	You forget, housing, equipment, clothing,food, exposure and a once in a lifetime experience. They exploit each other, that's why this is a controversy and not so cut and dry. Also, those requests for grants don't write themselves, you have to hire someone to manage that

Not one person has said that these young people don't come away with some physical possessions, life lessons, and a chance at a debt free degree that can only be provided as a student athlete.

The problem lays in the amount of actual money they generate vs. the actual amount of money that's spent on them. Any system that allows one party to benefit monetarily of off the other party's labor, while the other party has to be benefitted in "life lessons", gifts, and/or the potential to earn income that is the very definition of exploitation.

# 67 da ThRONe @ 09/28/13 10:17 AM

Quote:

Originally Posted by mjarz02


	What grants are used to subsidize athletic scholarships? Its my general understanding that funding for scholarships come from a "foundation" which is from donors and revenue that is brought in from athletic teams. I agree that the NCAA is overbearing it makes it extremely difficult on athletes. Its sad that some of those who received illegal gifits (the minority) have ruined it for others that are trying to follow the rules. When I visited my buddy down in Tennessee and from what I saw their food service was incredible! You are not even allowed to go in their if you aren't a football player or work with the team, luckily he did. I couldn't afford the food plan at my college, I ate pbjs 90% of the time, that's college. Going out to eat? Maybe the local diner or Mcdonalds but that's reality for a young person. As far as exposure goes, im not talking about how scouts view you, but rather the public. If you go to a major university and are on the cover of sports illustrated, as soon as you turn pro, you have some serious endorsements coming your way. For the average athlete, its gotta be nice for friends and family to see you on TV that cant make it to games right? If you're playing double A baseball nobody can watch you play unless they are there. Its difficult for everyone to find employment regardless of their degree. What college teaches you is critical thinking skills that you need to apply in whatever field you decide to go in. I was a social sciences major, I am now working in a hospital as an IT person. You do what you have to survive, athlete or not. Academics aren't the only experiences in college. Its where I met some of my best friends. Its where I had some of the greatest moments of my life. Sure being an athlete can limit some of those experiences but you have to make the most of it. When a 100,000 people show up for a minor league football game, I might change my mind. However, athletes need the universities just as much as the universities need the athletes. There has to be common ground. Even if you started paying athletes of major sports, its going to be split so many times the amount will be minimal.

All of this is great. However it doesn't stop the fact that athletes are not getting paid for their labor. Which for most isn't the issues, it's the fact that these schools prevent them from using their likeness to get paid is what's completely unfair. Removing that rule wouldn't harm college athletics one bit yet it remains.

# 68 roadman @ 09/28/13 10:44 AM

Quote:

Originally Posted by da ThRONe


	Not one person has said that these young people don't come away with some physical possessions, life lessons, and a chance at a debt free degree that can only be provided as a student athlete. The problem lays in the amount of actual money they generate vs. the actual amount of money that's spent on them. Any system that allows one party to benefit monetarily of off the other party's labor, while the other party has to be benefitted in "life lessons", gifts, and/or the potential to earn income that is the very definition of exploitation.

Exploitation is a two way street.

The high caliber players are benefiting where they are playing at. The last time Nebraska didn't sell out a game in Lincoln was 1961, 52 years ago. Is this something that Taylor Martinez started or benefited from?

The stadium will continue to sell out after Martinez leaves.

# 69 alifeincomplete @ 09/28/13 11:23 AM

BLUF: The entire lawsuit is extremely unfortunate and short-sighted, but paying student athletes is absurd.

I don't give a flip about the video-game being canceled. Honestly, I don't. Will it affect what game I purchase next year? Yes, by default, I will only have one football video-game on the shelf. Taking away choices has that funny habit of making your purchase for you. But I digress.

Outright compensation (paying a student athlete a stipend) is a ridiculous suggestion. It really seems like the people who push this are often fans of the teams who've been sanctioned for breaking the NCAA's compensation rules. Funny how that works. I will not say that the NCAA doesn't make a lot of money off its players, and it puts it in an awkward, questionable position of "I can make money, but you can't." But spare us the sob stories of student athletes who have such a hard life. The perspective these players have is delusional; most of them have no concept of what it's like to put yourself through school. Student athletes, for all their on-the-field triumphs, are nothing more than students. They're not special, and therefore are undeserving of anything beyond that. Everyone goes to college to prepare for a career -- why should football be any different? They receive free educations at the best schools in the nation -- a compensation that values $30,000 to $200,000 -- along with free room and board, free meals, and an unrivaled experience. There's also the unofficial perk among students; let's face it, student athletes, particularly the good ones, are royalty on a lot of campuses and are treated differently by many faculty, staff, and other students.

Anyhow, I'm rambling again. Long story short: A fraction of players get selected to play at the next level and do their hobby -- and that's what it is, a hobby, a game -- for a living. Good on them. I wish them all the best. That's when they should get paid. We need to stop treating the FBS like a semi-pro league. NCAA is to blame for a lot of it, no doubt, but that doesn't justify turning the players into employees of the college.

I have no problem with ending the prohibition on allowing a player to sell his or her likeness. However, this would come with a simple stipulation: it can, in no way, involve the university. The school nor any of its trademarked likenesses can be involved in the process. Additionally, I would raise the GPA requirements on students, both for those coming out of high school and for maintaining your free ride to school. Since ~97% of the athletes aren't going to be doing this for a living, how about we encourage them to get a practical degree in something worthwhile and become a benefit to society? And I know it, college isn't for everyone. If they can't hack it academically, get them out of there.

# 70 TracerBullet @ 09/28/13 11:46 AM

Quote:

Originally Posted by khaliib


	On top of this is the fact that not all sports generate revenues, so the athletes in the money making sports are also carrying the burden of working/generating revenues for those athletes in non-revenue generating sports. (how many non-athlete students can say that part of their sacrifice helps to pay another students education/athletic participation?)

Any student paying "Student fees" is helping to subsidize athletic departments while they attend college.

# 71 da ThRONe @ 09/28/13 12:05 PM

Quote:

Originally Posted by roadman


	Exploitation is a two way street. The high caliber players are benefiting where they are playing at. The last time Nebraska didn't sell out a game in Lincoln was 1961, 52 years ago. Is this something that Taylor Martinez started or benefited from? The stadium will continue to sell out after Martinez leaves.

It's not a two way street. T. Martinez isn't receiving any monetary compensation. Also Martinez is one of those player that probably don't have an NFL future. If he would have blown out his knee his scholarship could have been revoked. I fail to see where he benefits from Neb sellouts. He's not getting a piece of the ticket sales.

# 72 coogrfan @ 09/28/13 12:28 PM

Quote:

Originally Posted by da ThRONe


	Every year less than 10,000 people generate billions of dollars and all they get in return is a glorified letter of recommendation that is furthered devalued every year.

If you actually believe that you probably chose the wrong college.

Quote:

Originally Posted by da ThRONe


	SA generate actual money for schools and are paid with scholarships that cost the school nothing and other expenses that are pennies on the dollar compared to the revenue they generate. If that isn't being exploited I don't know what is.

On this we are in complete agreement.

# 73 bkrich83 @ 09/28/13 12:30 PM

Quote:

Originally Posted by coogrfan


	If you actually believe that you probably chose the wrong college. On this we are in complete agreement.

You're 100% on the money here.

Posts like his while also lacking perspective and having no clue what exploitation really is, show a real ignorance to the economics of college athletics.

# 74 tessl @ 09/28/13 01:06 PM

So there will be no ncaa football for the ps4? I guess the important thing is the lawyers will cash in. This country needs tort reform badly.

# 75 da ThRONe @ 09/28/13 01:44 PM

Quote:

Originally Posted by bkrich83


	You're 100% on the money here. Posts like his while also lacking perspective and having no clue what exploitation really is, show a real ignorance to the economics of college athletics.

Exploitation -the action or fact of treating someone unfairly in order to benefit from their work.

There has been zero reason based on logic that explains why the NCAA should prevent SAs from being able to receive any kind of monetary compensation from 3rd parties (so long as it's for legal purposes).

Clearly my ignorance is way off base.

# 76 lord_mike @ 09/28/13 02:04 PM

Quote:

Originally Posted by tessl


	So there will be no ncaa football for the ps4? I guess the important thing is the lawyers will cash in. This country needs tort reform badly.

"Tort Reform" would accomplish very little in this case. The plaintiffs won. the only reason they had a case is that a bunch of judges bought their sob story. Even if you severely restricted lawsuits, the case still could have been brought and the plaintiffs still would have won. Blame the judges for having no concept of the first amendment or how video games work.

# 77 lord_mike @ 09/28/13 02:07 PM

Quote:

Originally Posted by da ThRONe


	Exploitation -the action or fact of treating someone unfairly in order to benefit from their work. There has been zero reason based on logic that explains why the NCAA should prevent SAs from being able to receive any kind of monetary compensation from 3rd parties (so long as it's for legal purposes). Clearly my ignorance is way off base.

There is plenty of reason based on logic why amateur players should remain amateurs. It's the concept of amateurism, which is a noble one and should be preserved, especially to serve as a check in an era that worships greed.

# 78 tessl @ 09/28/13 02:43 PM

Quote:

Originally Posted by lord_mike


	"Tort Reform" would accomplish very little in this case. The plaintiffs won. the only reason they had a case is that a bunch of judges bought their sob story. Even if you severely restricted lawsuits, the case still could have been brought and the plaintiffs still would have won. Blame the judges for having no concept of the first amendment or how video games work.

Tort reform would limit the payout from things like this and without the pot of gold at then end of the lawsuit the lawyers would not get involved.

My hope is former players now sue the plaintiffs to get more of the $40 million and the cash is tied up in court for years.

# 79 BJNT @ 09/28/13 02:52 PM

Quote:

Originally Posted by Sam Marlowe


	Lets be frank, there is never going to be an NFL minor league.and the NBA is not interested in expanding the NBDL. College athletics have a stranglehold and will continue to have one (as they want, for very good fiscal reasons). It would also be incredibly difficult to put together a fair pay all system. So in the end, the best thing to have happen is the NCAA releasing its monopoly on player likenesses and names for profit. The status quo would stay mostly in tact and those players who are really interested in monetizing themselves can without threat of sanctions to their schools.

Exactly. They won't get get a check from the school that they play for. But if somebody is willing to pay for their autograph, gloves, shoes, to be in a commercial, a video game,etc. They would be allowed to.

# 80 common-sense @ 09/28/13 03:07 PM

Quote:

Originally Posted by roadman


	Exploitation is a two way street. The high caliber players are benefiting where they are playing at. The last time Nebraska didn't sell out a game in Lincoln was 1961, 52 years ago. Is this something that Taylor Martinez started or benefited from? The stadium will continue to sell out after Martinez leaves.

And you could make this argument regarding the Green Bay Packers and Aaron Rodgers. The Packers are going to have people in the seats regardless.

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