Posted November 20, 2013

NCAA is suing EA Sports and CLC in wake of $40 million Ed O’Bannon settlement

Ed O'Bannon, Legal Matters, NCAA
Ed O'Bannon's high-profile lawsuit against the NCAA has shined a light on the definition of amateurism. (Isaac Brekken/AP)

Ed O’Bannon’s lawsuit against the NCAA has shined a light on the definition of amateurism. (Isaac Brekken/AP)

After EA Sports and College Licensing Co. settled for $40 million with the defendants in the O’Bannon lawsuit, the NCAA has taken its next step. The lone defendant in the lawsuit is alleging CLC failed to adequately supervise EA Sports, subjecting the NCAA to “potential liability in several lawsuits currently being litigated relating to EA’s alleged use of NCAA student athletes’ names, images, and likenesses in EA’s NCAA-themed video games,” according to the suit.

Per the Wall Street Journal:

The Nov. 4 suit by the NCAA comes after a $40 million settlement agreement announced in September by EA Sports and CLC, which used to be co-defendants with the NCAA in the O’Bannon case. The Nov. 4 filing alleges that CLC’s breached duties included “self-dealing in settlement negotiations without the NCAA’s knowledge, authorization or participation.” The NCAA seeks to prohibit EA Sports and CLC from completing the settlement, and have EA be held responsible for future liability judgments and legal fees.

Going to be hard to imagine the NCAA winning this one, but it can’t hurt to try I guess, although it doesn’t exactly make the NCAA look any better than it already did. Legal matters can bring out the worst in people. A judge recently allowed the suit to continue and defined it with class action status, and this thing isn’t going away for awhile.

18 comments
DanRonan
DanRonan

UCLA and all of the big schools made MILLIONS off the backs of Ed O'Bannon and other athletes.  I hope they collect every penny that is due them.  You use their image, you pay. 

festsgrber
festsgrber

After the lawsuit who will go away EA or the NCAA?

Mattdd17
Mattdd17

O'bannon is a joke. He should be happy that someone remembers that he had any skills.

Cool
Cool

I think if this were the NCAA looking at a school in question, they would penalize the school for not having enough enforcement oversight.

Rickapolis
Rickapolis

So the NCAA is suing because no one told them they were making money they weren't entitled too?

Goldlw2
Goldlw2

After doing math, this is what I have. Let's assume EA sells a million copies and then gives 10 percent to the players as a whole.

If there are 121 teams and  100 players on each team, then each player would be roughly 496 dollars. That isn't much, but that is still something. 

Goldlw2
Goldlw2

Here is something they can do. Each D1 athlete will get some part of the money that is made from the game. EA wins because I HATE having numbers instead of names. The players win because they get more money. As long as everyone gets the same share, I think this would be ok.. although I don't know how much it would be.

KidHorn
KidHorn

All the NCAA has to do is allow athletes to make money outside of being paid directly to play football. Allow things like autograph signing for money and things like EA sports paying players for using them in games. Allowing things like this doesn't cost the universities anything. The NCAA doesn't like it because they want all the licensing money for themselves. it's not enough to license the NCAA name or the team names. The NCAA is obsolete and needs to go away.

MidwestGolfFan
MidwestGolfFan

Revenge litigation, plain and simple.  Like an angry infant throwing things at everyone who won't give the infant its own way. 

Very ugly.

All of this is necessary to maintain the sacredness of Amateur Athletics.  Keep telling yourself that, NCAA.

berdosux
berdosux

@Mattdd17 It wasn't just him if you knew the actual case... Looks like if someone wants to talk about jokes he should just look in the mirror.

Keats1821
Keats1821

@Goldlw2 EA's earnings off NCAA were about 5% of its revenue, or about $175,000,000 as of the last fiscal year. 10% of that would be about $17,500,000. According to the NCAA there are 125 FBS schools in 2013. Teams typically have up to 125 players, with only 85 scholarships. We'll assume 110 as an average. That would be $1,272 per player. But I would expect the players to want a payout at least similar to the roughly $30,000,000 the NFLPA typically gets from Madden each year, which would raise the amount to about $2,181. 

DavidandTracyAgee
DavidandTracyAgee

@KidHorn I like this in theory except it will be unfair and easy to exploit.  Whichever school has the most boosters willing to pay the most dollars for autographs will win every recruit.  Can you imagine a Wyoming and Texas in a recruiting battle for a player.  No chance for Wyoming in that situation.  If you tried to put limits on the recruiting dollars you would be back to doing exactly the kind of stuff the NCAA is doing now.

NotAnNCAAFan
NotAnNCAAFan

@MidwestGolfFan Because the O'Bannon suit has the sacredness of amateur althetics rather than pure greed as its basis.....