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Judge: NCAA's likeness compensation rules violate antitrust laws
U.S. District Judge Claudia Wilken ruled yesterday that NCAA rules prohibiting student athletes from receiving compensation for the use of their images, names and likenesses violates antitrust laws, CBS Sports reported. NCAA rules do not allow colleges to pay athletes when their images are used in a video game series such as EA Sports' NCAA Football games, and Wilken said those rules "unreasonably restrain trade." Wilken is the same judge that ordered settlement talks between the NCAA and Ed O'Bannon in February, after EA agreed to settle its own likeness lawsuits with student athletes to the tune of $40 million in September 2013. EA canceled its next NCAA Football game at that time and began "evaluating [its] plan for the future of the franchise." The publisher later reported an additional $8 million in expected expenses as a result of the lawsuit settlement, which amounted to roughly $1,000 per athlete, per appearance in the games.
EA may pay almost $1,000 per college athlete for sports game settlement
Student athletes whose likenesses were used in EA's NCAA football and basketball games will receive up to $951 for each year they were featured in the games, according to a proposed settlement being put forth for approval by a judge. While EA proposed a $40 million settlement in September 2013 for its ongoing litigation with student athletes over its college sports series stemming back to May 2009, it hasn't been clear how that money would divide among the parties in the lawsuit until now. More than 100,000 current and former college athletes will have the potential to claim part of the settlement, according to CBS Sports. Of those athletes, roughly 7,000 of them are current players, based on estimates from Rob Carey, an attorney for former Nebraska quarterback Sam Keller. EA tacked on an extra $8 million in expenses related to the settlement in its fiscal 2014 financial results in May. Its proposed settlement followed the cancellation of its 2014 college football game, which would have been without the NCAA's logos and marks after the two parted ways in July 2013. [Image: EA Sports]
EA tells NCAA Basketball games to hit the showers, 'reviewing' future of franchise
"We do not have an NCAA Basketball game in development at this time, and we're currently reviewing the future of our NCAA Basketball business," said EA Sports' senior director of communications David Tinson in a recent Game Informer interview. "This was a difficult decision, but we remain a committed partner to the NCAA and its member institutions." It's an odd move, considering EA's biggest rival, 2K Sports' NCAA College Hoops series, hasn't seen any new releases since its 2K8 installment, leaving the market wide open. Tinson confirmed that the team responsible for the series won't be laid off, but rather assimilated into the NBA Jam and NBA Live teams at EA Canada, dashing our hopes that an EA-developed Harlem Globetrotters game could come from this.
