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NCAA loses appeal of O'Bannon case
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WMInTheBurg Offline
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Post: #1
NCAA loses appeal of O'Bannon case
Article about ruling

The court ruled that the NCAA is subject to the Sherman Antitrust Act, but overturned the previous ruling that allowed schools to offer athletes $5K/year deferred compensation.

Hopefully the lawyers on this board will weigh in, but it looks like the important development was the court imposing the Rule of Reason instead of using the NCAA v. Board of Regents of University of Oklahoma case as precedent as the NCAA has been arguing throughout all similar lawsuits.

I don't know if or how this will affect the COA payments, either; it may not apply at all.

(Tribal: if this needs to get moved to the OT board, that's fine. I posted here because the COA thread was here.)
(This post was last modified: 10-01-2015 10:25 AM by WMInTheBurg.)
10-01-2015 10:25 AM
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tribe_pride Offline
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RE: NCAA loses appeal of O'Bannon case
It was a mixed ruling and the NCAA can rule it a win of sorts because it is not requiring more than the COA to be paid and the NCAA won that they did not have to set aside the deferred payments.

Basically the Court ruled for the Status Quo which is more of a victory for the NCAA.
10-01-2015 11:04 AM
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billymac Offline
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RE: NCAA loses appeal of O'Bannon case
Yeah, while it will still probably end up in the Supreme Court, this court did, wisely, state that college athletes are NOT professionals, thus not in line for pay from the use of their likeness.

The interesting talk surrounding the verdict is that it looks like COA may be capped at $5000, supposedly to prevent an arms race type escalation. Not surprisingly, Alabama has already set their COA at $5114, the highest in the nation, to date. How quickly do you figure that every other Power Five school suddenly finds that $5000 is, amazingly, the amount that THEIR school also calculates for cost of attendance?
10-01-2015 12:18 PM
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tribe_pride Offline
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RE: NCAA loses appeal of O'Bannon case
Think you misread the ruling. The $5,000 is what the district court judge said could be set aside to give athletes as deferred compensation. The 9th Circuit disagreed with this part of the ruling and overruled it. The CoA (which is what it allowed) is whatever it is and is for all students.

The CoA from what I read can have effects outside of this athlete compensation and need to be reported to the Federal Government so there are limits. Will there be "fraud"? Sure but it will only go so high and to change it materially is something that will need to be showed to the Federal Government.
10-01-2015 12:36 PM
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billymac Offline
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RE: NCAA loses appeal of O'Bannon case
No, TP, what I was reading was an opinion piece that said some folks are trying to get $5000 as the limit, per player, for COA's. Whether or not that ever comes to pass is still, WAY up in the air.
10-01-2015 12:49 PM
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tribe_pride Offline
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RE: NCAA loses appeal of O'Bannon case
Got it. Thought you were talking specifically about the ruling.

Just read an article that said a 2012 survey found one FBS school's CoA was $6,904 - this was before all of this talk that we have now. If true and limited, that could hurt what a non-athlete student would be able to borrow to attend the school so you have to watch out on hard caps like that
(This post was last modified: 10-01-2015 01:05 PM by tribe_pride.)
10-01-2015 01:04 PM
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billymac Offline
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Post: #7
RE: NCAA loses appeal of O'Bannon case
Yeah, that was part of the article, also. Unintended consequences. It generally happens in every scenario.
10-01-2015 01:24 PM
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